Document:

Settlement Agreement and Release

 Exhibit 10.6 
 EXECUTION COPY 
  

							
	 UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORK
	 				  	
	 	 	 	x	  	  	
	 In re
	 	 	:	  	  	Chapter 11
		 	 	:	  	  	
	 U.S. SHIPPING PARTNERS L.P., et al.
	 	 	:	  	  	Case No. 09-12711 (RDD)
		 	 	:	  	  	
	 Debtors.
	 	 	:	  	  	(Jointly Administered)
	 	 	 	x	  	  	
	 U.S. SHIPPING PARTNERS L.P., et al.,
	 	 	:	  	  	
		 	 	:	  	  	
	 Plaintiffs,
	 	 	:	  	  	
		 	 	:	  	  	
	 - against -
	 	 	:	  	  	Adv. Proc. No. 09-1170
		 	 	:	  	  	(RDD)
	 BLACKSTONE CORPORATE DEBT
	 	 	:	  	  	
	 ADMINISTRATION L.L.C.; CERBERUS
	 	 	:	  	  	
	 PARTNERS, L.P.; STYX PARTNERS, L.P.; A3
	 	 	:	  	  	
	 FUNDING LP; BLACKSTONE MEZZANINE
	 	 	:	  	  	
	 PARTNERS II USS L.P.; BLACKSTONE
	 	 	:	  	  	
	 MEZZANINE HOLDINGS II L.P.;
	 	 	:	  	  	
	 BLACKSTONE FAMILY INVESTMENT
	 	 	:	  	  	
	 PARTNERSHIP V USS L.P.; BLACKSTONE
	 	 	:	  	  	
	 FAMILY INVESTMENT PARTNERSHIP V L.P.;
	 	 	:	  	  	
	 BLACKSTONE FAMILY INVESTMENT
	 	 	:	  	  	
	 PARTNERSHIP V-A USS SMD L.P.;
	 	 	:	  	  	
	 BLACKSTONE PARTICIPATION
	 	 	:	  	  	
	 PARTNERSHIP V L.P.; BLACKSTONE
	 	 	:	  	  	
	 PARTICIPATION PARTNERSHIP V USS L.P.;
	 	 	:	  	  	
	 BLACKSTONE FAMILY INVESTMENT
	 	 	:	  	  	
	 PARTNERSHIP V-A L.P.; and BLACKSTONE
	 	 	:	  	  	
	 CAPITAL PARTNERS V USS L.P.,
	 	 	:	  	  	
	 Defendants.
	 	 	:	  	  	
	 	 	 	X	  	  	

 SETTLEMENT AGREEMENT AND RELEASE 

This Settlement Agreement and Release (the “Agreement”), dated as of July 10, 2009, is entered into by and among
U.S. Shipping Partners L.P. (“USSP”), USS Product Manager LLC (“Product Manager”), USS Product Carriers LLC (“Product Carriers”), USS PC Holding Corp. (collectively, the “Debtors”),
Blackstone Corporate Debt Administration L.L.C., 

 
Blackstone Capital Partners V USS L.P., Blackstone Family Investment Partnership V USS L.P., Blackstone Family Investment Partnership V-A USS SMD L.P., Blackstone Participation Partnership V USS
L.P., Blackstone Mezzanine Partners II USS L.P., Blackstone Mezzanine Holdings II USS L.P., Blackstone Family Mezzanine Partnership II USS SMD L.P., Cerberus Partners, L.P., Styx Partners, L.P., and A3 Funding LP (collectively, the
“Blackstone/Cerberus Parties”1) and USS
Products Investor LLC (“Products Investor”) (taken together, the “Parties”): 
 RECITALS

 WHEREAS, on March 14, 2006, Product Carriers entered into a contract with the National Steel and Shipbuilding
Company (“NASSCO”), which was subsequently amended and restated (the “Construction Contract”), under which NASSCO would construct nine double-hulled tankers for USSP; 

WHEREAS, on August 7, 2006, Product Carriers and certain of the Blackstone/Cerberus Parties agreed to form a joint venture (the
“Joint Venture”) to finance the construction of the first five NASSCO vessels (the “Vessels”); 
 WHEREAS, Products Investor was formed for the purpose of carrying out the Joint Venture; 
 WHEREAS, some or all of the Parties entered into various additional agreements to accomplish the Joint Venture’s goals, including but not limited to a Limited Liability Company Agreement (the
“LLC Agreement”), dated August 7, 2006, a Revolving Notes Facility Agreement (the “Credit Agreement”), dated August 7, 2006, and a Management and Operating Agreement (the “Management
Agreement”), dated August 7, 2006; 
  

	1	For purposes of this Agreement, the Blackstone/Cerberus Parties are understood and agreed to encompass all Blackstone and Cerberus entities that are currently
Class A Members (as defined below) and/or lenders pursuant to the Credit Agreement (as defined below). 

  
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 WHEREAS, pursuant to the LLC Agreement, certain of the Blackstone/Cerberus Parties are
“Class A Members” and Product Carriers is the “Class B Member,” and Product Carriers was appointed as Products Investor’s initial Managing Member; 

WHEREAS, pursuant to the Management Agreement, Product Manager was appointed to act as manager of the Vessels (“Vessel
Manager”) and was responsible for, among other things, construction oversight, chartering the Vessels, and the crewing, management, maintenance and repair of the Vessels; 

WHEREAS, in February 2009, the Blackstone/Cerberus Parties sent a series of letters notifying Product Manager and Product Carriers that
they were taking certain actions under the operative agreements (i.e., the Management Agreement, the LLC Agreement and the Credit Agreement), including, among other things, (a) declaring an Event of Default under the Credit Agreement;
(b) terminating Product Manager as Vessel Manager; (c) removing Product Carriers as Managing Member and designating Blackstone Capital Partners V USS L.P. as the new Managing Member; and (d) advising Products Investor that it was
commencing foreclosure proceedings on certain of its assets (collectively, the “February Actions”); 
 WHEREAS,
Product Carriers and Product Manager sent corresponding objections to the February Actions to the Blackstone/Cerberus Parties; 

WHEREAS, on April 3, 2009, Product Carriers and Product Manager filed an action (the “State Court Action”), USS
Product Carriers LLC and USS Product Manager LLC v. Blackstone Corporate Debt Administration L.L.C. et al (Index No. 601038/2009), in the Supreme Court of the State of New York, County of New York, seeking a declaration that the February
Actions were unauthorized and invalid and, pending a final determination of the State 

  
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Court Action, seeking a preliminary injunction to prevent the Blackstone/Cerberus Parties from exercising their claimed rights under the operative agreements; 

WHEREAS, on April 8, 2009, the Blackstone/Cerberus Parties filed an Answer and Counterclaim, together with a Cross-Motion for
Preliminary Injunction seeking to enjoin Product Carriers and Product Manager from holding themselves out as Managing Member and Vessel Manager for Products Investor, and from interfering with any foreclosure on Products Investor’s assets;

 WHEREAS, pending a hearing on Product Carriers’ and Product Manager’s motion for the preliminary injunction,
Product Carriers, Product Manager and the Blackstone/Cerberus Parties agreed to a temporary restraining order restraining the Blackstone/Cerberus Parties from (i) foreclosing upon the vessel Golden State or the membership interests in
the Joint Venture’s subsidiary that owns the vessel except upon five business days prior notice, which notice could not be given before May 1, 2009, or (ii) replacing Product Manager as vessel manager of the vessel Golden State
and the other four vessels currently being constructed for the Joint Venture prior to May 7, 2009, with notice of replacement, if any, to be given at least five business days prior to such replacement; 

WHEREAS, Debtors commenced their voluntary cases under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101 et
seq., as amended (the “Bankruptcy Code”), on April 29, 2009 (the “Petition Date”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”), Case
No. 09-12711 (RDD) (Jointly Administered); 
 WHEREAS, on the Petition Date, Debtors filed an adversary proceeding,
entitled U.S. Shipping Partners, L.P., et al. v. Blackstone Corporate Debt Administration L.L.C. et al., 

  
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No. 09-1170 (RDD) (the “Adversary Proceeding”), and removed the State Court Action to United States District Court for the Southern District of New York, which was
subsequently referred to the Bankruptcy Court (No. 09-1175 (RDD)); 
 WHEREAS, by Motion dated April 29, 2009, the Debtors
sought (a) entry of an order enforcing the automatic stay of section 362 of the Bankruptcy Code against the Blackstone/Cerberus Parties from, inter alia, foreclosing upon the assets of the Joint Venture and interfering with the
Debtors’ functioning as Managing Member of the Joint Venture, and (b) if the automatic stay did not apply, the issuance of a preliminary injunction pursuant to section 105 of the Bankruptcy Code, and on April 30, 2009, Product
Carriers, Product Manager and the Blackstone/Cerberus Parties stipulated to the entry of a temporary restraining order pending a hearing on the preliminary injunction request; 
 WHEREAS, mutually desiring to avoid the burdens, risks and expenses of potential litigation between themselves, the Parties have entered into this Agreement to facilitate a full and final resolution and
settlement of the Adversary Proceeding and the State Court Action, and to fully and finally resolve and settle any and all disputes between themselves; 
 WHEREAS, the Debtors have considered the benefit to the Debtors’ estates and creditors that will be received as a result of the settlement of the Adversary Proceeding and the State Court Action,
particularly in light of the costs, uncertainties and risks of further litigation, and have concluded that the settlement contained herein is (i) fair and equitable, (ii) a reasonable resolution of the Adversary Proceeding and the State
Court Action, and (iii) in the best interests of the Debtors, their estates, their creditors, and all other parties-in-interest; 
 WHEREAS, the Parties desire to set forth detailed terms for the settlement that was set forth on the Bankruptcy Court record by the Parties on June 3, 2009, 

  
 5 

 NOW, THEREFORE, in consideration of the foregoing, the covenants and releases herein, and
other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows: 
 1.
Bankruptcy Court Approval/Effective Date. (a) This Agreement is subject to approval by the Bankruptcy Court under Rule 9019 of the Federal Rules of Bankruptcy Procedure (“Rule 9019”) and Sections 363(b) and (f) of
the Bankruptcy Code. If the Effective Date (as defined below) does not occur and this Agreement is terminated, neither this Agreement, its terms, any affidavits filed in support of this Agreement, correspondence regarding it, nor any negotiations in
connection with this Agreement shall be, or be construed as or deemed to be, evidence of or an admission by or against any Party or admissible in any judicial, administrative or other proceeding, and this Agreement shall be null, void and of no
further force or effect ab initio, and the Parties shall retain all of their rights, claims and defenses vis-à-vis one another, including, without limitation, the claims and defenses asserted or assertable in the Adversary Proceeding
and/or the State Court Action. 
 (b) The effective date of the Agreement (the “Effective Date”) shall occur on
the date that all of the following conditions precedent are satisfied or, in the case of the condition in paragraph 1(b)(iv), satisfied or waived: (i) this Agreement shall have been executed and delivered by all Parties hereto; (ii) the
Bankruptcy Court shall have entered on the docket an order (the “Approval Order”) approving the settlement in form and substance reasonably satisfactory to the Parties (including, without limitation, findings by the Bankruptcy Court
that the Parties had entered into this Agreement in good faith and are entitled to the protections of Section 363(m) of the Bankruptcy Code); (iii) no stay of the Approval Order prohibiting the consummation of the transactions contemplated
by this Agreement shall be in effect; and (iv)

  
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either no appeal of the Approval Order shall have been filed or be pending on the 11th day following the date of entry thereof or, if there has been an appeal of the Approval Order, all appellate
remedies have been fully exhausted and the Approval Order has been affirmed. If all the conditions to the Effective Date have been satisfied other than the condition in paragraph 1(b)(iv), the Blackstone/Cerberus Parties shall have the right to
waive, in their sole discretion, satisfaction of such condition. In the event the Effective Date does not occur or cannot occur because one of the conditions precedent cannot be satisfied, and such conditions are not waived by the
Blackstone/Cerberus Parties, the terms set forth herein shall be null and void and of no binding effect on any of the Parties. Each of the Parties hereto shall use their commercially reasonable efforts to cause the Effective Date to occur as
promptly as possible after the date hereof, which for the avoidance of doubt shall not in any way impair the Blackstone/Cerberus Parties right, in their sole discretion, to not waive any unsatisfied condition precedent hereunder. 

(c) Debtors shall file a motion seeking approval under Rule 9019 and Sections 363(b) and (f) of the Bankruptcy Code, in form and
substance reasonably acceptable to the Blackstone/Cerberus Parties, within 5 business days of the execution of this Agreement. The Parties hereto shall use reasonable efforts to cause the entry of the Approval Order approving and incorporating this
Agreement. Reasonable efforts shall include the presentation of necessary evidence (documentary and testimony) to support entry of the Approval Order. 
 2. Transfer of Product Carriers’ Class B Interest. (a) As of the Effective Date, Product Carriers shall irrevocably transfer, for consideration of $1, all of its right, title and interest
as the Class B Member under the LLC Agreement, and all such right, title and interest, and all obligations, of the Class B Member under the LLC Agreement shall be automatically and irrevocably deemed transferred, free and clear of all Liens (as
defined below) other than the 

  
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NASSCO Lien (as defined below), to the Class A Members ratably according to each such Class A Member’s interest (obtained by dividing such Class A Member’s Capital
Account (as defined in the LLC Agreement) balance by the aggregate Capital Account balances of all Class A Members). Products Carriers agrees that it shall file, and cause to be filed, all tax returns, reports and any other tax-related
documents in a manner consistent with the transfer of the Class B Member Interest for $1. Product Carriers represents and warrants to the Blackstone/Cerberus Parties on the date hereof and immediately prior to the transfer on the Effective Date
that, Product Carriers (i) is the record and beneficial owner of the Class B Member Interest (as defined in the LLC Agreement), and (ii) has good and valid title to the Class B Member Interest, free and clear of any lien, mortgage, pledge,
claim, encumbrance, charge or other security interest (a “Lien”), other than any Lien (I) on payments and other distributions made in connection with the Class B Member Interest arising as a result of the Collateral Assignment
entered into between Product Carriers and NASSCO on August 7, 2006, to secure obligations owed under Article 36 of the Construction Contract (the “NASSCO Lien”) and (II) on the Class B Member Interest, and any payments and
distributions made in respect thereof, arising as a result of the Bankruptcy Court’s Stipulation and Second Interim Order Regarding Use of Cash Collateral and Adequate Protection, dated May 27, 2009, and any subsequent interim or final
order that supercedes such Second Interim Order. 
 (b) The Parties hereby acknowledge and agree that effective as of the
Effective Date (i) Product Carriers will not be and no longer has the right to be the Managing Member of Products Investor, and (ii) Product Carriers no longer has, nor has any right to appoint, any persons acting as directors and
representatives of the Class B Member on the Board of Directors of Products Investor. Product Carriers shall, as of the Effective Date, deliver to the 

  
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Blackstone/Cerberus Parties the Certificate of Interest (as defined in the LLC Agreement) with respect to the Class B Member Interest endorsed in blank or accompanied by duly executed assignment
documents. 
 (c) It is further understood and agreed that, except as expressly set forth in this Agreement, (i) Product
Carriers shall have as of the Effective Date relinquished all rights under the LLC Agreement with respect to Products Investor and (ii) the Debtors shall have as of the Effective Date relinquished all rights in respect of Products Investor and
the Joint Venture, including all Vessels owned by or being constructed on behalf of the Joint Venture. 
 (d) At the Effective
Date, there shall be a closing of the books of Products Investor, and each item of income, gain, loss and deduction of Products Investor for the period from January 1, 2009 through but excluding the Effective Date shall be allocated among the
Class A Members and the Class B Member in accordance with the LLC Agreement as in effect on the date hereof. For the avoidance of doubt, no item of income, gain, loss or deduction arising from and after the Effective Date shall be allocated to
Product Carriers. 
 (e) The Parties hereto acknowledge and agree that as of the Effective Date the Performance Guaranty, dated
as of August 7, 2006, made by U.S. Shipping Partners L.P. and USS PC Holding Corp. to Products Investor, shall be terminated and of no further force and effect. 
 3. Termination of Management Agreement. (a) Debtors hereby acknowledge, confirm, and agree that as of the Effective Date Product Manager shall be terminated as Vessel Manager with respect to
all Vessels, provided, however, that Product Manager shall remain as Vessel Manager and continue to provide Management and Operating Services (as defined in the Management Agreement) with respect to all Vessels, except as

  
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provided in this Agreement (but for the avoidance of doubt, as of the Effective Date Product Manager shall not provide Construction Supervision Services (as defined in the Management Agreement)
except to the extent requested by Products Investor in accordance with paragraph 4(c)(i) hereof), until the earlier of (i) seventy-five days following the Effective Date, provided that Product Manager has complied in all material respects with
its obligations in Section 3(b) below to cooperate with and assist in the transition of vessel management duties, and (ii) such time following the Effective Date as Products Investor and/or Blackstone/Cerberus Parties appoint a replacement
Vessel manager (the “Replacement Vessel Manager”) in their sole discretion, the Replacement Vessel Manager assumes full operational and management control of the Golden State, the Pelican State and any other Vessel
Delivered (as defined in the Construction Contract) prior to the Effective Date (collectively the “Operating Vessels”), and Debtors receive notification from Products Investor that full operational and management control of the
Operating Vessels has been assumed by such Replacement Vessel Manager (which the Blackstone/Cerberus Parties estimate will be completed within approximately 60 days from the Effective Date), such notice to be given no later than one business day
after the date all persons employed by Debtors or USS Transport LLC have vacated the Golden State and the Pelican State at the request of the Blackstone/Cerberus Parties (the period between the Effective Date and the earlier of the
foregoing dates being the “Management Transition Period”). The Blackstone/Cerberus Parties agree to use commercially reasonable efforts to (i) appoint a Replacement Vessel Manager as soon as practicable after the Effective Date
and (ii) cause the Replacement Vessel Manager to assume full operational and management control of the Operating Vessels within approximately 60 days after the Effective Date. Subject to paragraph 3(e) of this Agreement, Product Manager shall
not be entitled to any Management Fees (as 

  
 10 

 
defined in the Management Agreement) from Products Investor or the Blackstone/Cerberus Parties for the period from and after June 2, 2009, except for payments that are expressly provided for
by this Agreement. Product Manager shall be entitled to receive from Products Investor, and Products Investor shall pay to Product Manager, all Reimbursable Expenses (as defined in the Management Agreement and including any such expenses as
specified in paragraph 3(c) hereof as being Reimbursable Expenses) pursuant to Section 4.3 of the Management Agreement which are incurred prior to the end of the Management Transition Period in providing Management and Operating Services under
the Management Agreement or pursuant to this paragraph 3(a), consistent with past practice and regardless of whether incurred before or after the date of this Agreement. All payments of Reimbursable Expenses shall be made in the ordinary course of
business consistent with past practice. 
 (b) During the Management Transition Period, Debtors agree that Product Manager shall
use commercially reasonable efforts to cooperate with and assist the Replacement Vessel Manager with an orderly transition of Vessel Manager duties with respect to the Operating Vessels. Upon completion of the Management Transition Period, or at
such earlier time as Products Investor or the Blackstone/Cerberus Parties may request, upon at least five (5) business days’ notice, with respect to any Vessel, Debtors and their affiliates, crew, employees, staff, and agents shall
immediately vacate all Vessels, unless Products Investor or the Blackstone/Cerberus Parties in their sole discretion determine to waive this requirement in writing on an individual-by-individual basis for specifically identified Vessel personnel (it
being understood and agreed that any such individual may elect to remain in the employ of Debtors). The Parties agree that the Management Agreement and all rights and obligations of Product Manager thereunder shall be terminated upon completion of
the Management Transition Period; 

  
 11 

 
provided, however, that Sections 4.3, 7, 8, 12 through 16, 18, 20 and 21 of the Management Agreement shall survive termination of the Management Agreement and shall apply to services rendered
pursuant to this Agreement as though they were provided pursuant to the Management Agreement. 
 (c) Debtors agree to use
commercially reasonable efforts to assist Products Investor and Blackstone/Cerberus Parties in obtaining any consents, novations, authorizations, approvals, exemptions, notices or other agreements from third parties, including without limitation the
U.S. Navy Military Sealift Command, Marathon Petroleum Company LLC and BP West Coast Products LLC, with regard to any charters, the appointment of the Replacement Vessel Manager, and all other matters contemplated in this Agreement, as may be
reasonably requested by the Blackstone/Cerberus Parties, it being understood and agreed that (i) Debtors shall not be required to expend any funds in assisting the Blackstone/Cerberus Parties in obtaining any consents, novations,
authorizations, approvals, exemptions, notices or other agreements from third parties hereunder unless such expenditure of funds is specifically requested by the Blackstone/Cerberus Parties in writing, in which event such funds expended by the
Debtors shall be Reimbursable Expenses under the Management Agreement and reimbursed to Product Manager in accordance with the Management Agreement and (ii) the failure of Products Investor and the Blackstone/Cerberus Parties to obtain any
consents, novations, authorizations, approvals, exemptions, notices or other agreements from third parties shall not affect the Settlement Payments due Product Manager hereunder. 

(d) As soon as practicable, Debtors shall deliver to Products Investor, the Blackstone/Cerberus Parties, and/or the Replacement Vessel
Manager copies of all books, records, reports, and contracts of Products Investor, Vessel Manager (with respect to the Vessels) 

  
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and the Vessels and all further information concerning Products Investor’s business, properties and, except to the extent prohibited by applicable law, personnel, including but not limited
to the reports and statements set forth on Schedule A hereto, and any other reports required pursuant to the LLC Agreement, Management Agreement, and Credit Agreement as the Blackstone/Cerberus Parties may reasonably request. 

(e) The Parties agree that, in the event all conditions to the Effective Date have been satisfied other than the condition in paragraph
1(b)(iv), until the Effective Date, Products Investor shall continue to pay to Product Manager, in accordance with the terms of the Management Agreement, (i) the Annual Management Fee (as defined in the Management Agreement) in respect of each
Operating Vessel (all payments made pursuant to this Section 3(e)(i) being collectively referred to as the “Interim Management Fee”) and (ii) the Oversight Fee (as defined in the Management Agreement) in respect of each
Vessel under construction (all payments made pursuant to this Section 3(e)(ii) being collectively referred to as the “Interim Oversight Fee”). For the avoidance of doubt, if all the conditions to the Effective Date other than
the condition in paragraph 1(b)(iv) have been satisfied, Product Manager shall be entitled to receive from Products Investor, and Products Investor shall pay to Product Manager, promptly following the eleventh day after entry of the Approval Order,
all Annual Management Fees and Oversight Fees that Product Manager would have received during the period beginning on June 2, 2009 and ending on the date hereof, and all payments of Annual Management Fees and Oversight Fees pursuant to this
sentence shall be Interim Management Fees and Interim Oversight Fees for purposes of this Agreement. 
 (f) The Parties hereto
acknowledge and agree that simultaneous with the termination of the Management Agreement as set forth in paragraph 3(b), all obligations of 

  
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USSP and USS JV Manager Inc. (“JV Manager”) to Products Investor under that certain Performance Guaranty, dated as of August 7, 2006, made by USSP and JV Manager to Products
Investor (the “Performance Guaranty”), shall be terminated and of no further force and effect; provided, however, that notwithstanding the foregoing, the obligations of USSP and JV Manager under the Performance Guaranty in respect
of Product Manager’s obligations under Section 7.3 of the Management Agreement shall survive termination of the Performance Guaranty. 
 4. Settlement Payments. On the Effective Date, the Blackstone/Cerberus Parties, jointly and severally, shall deposit Fourteen Million Dollars ($14,000,000) less the amount of Interim Management
Fees and Interim Oversight Fees actually paid to Product Manager between the date hereof and the Effective Date into an escrow account (the “Escrow Account”) pursuant to the terms of an escrow agreement substantially in the form
attached hereto as Exhibit A for the purpose of funding the payment obligations in paragraphs 4(a) through 4(c). The Blackstone/Cerberus Parties shall, in cases of paragraphs 4(a) through (c), cause distributions from the Escrow Account to,
and Products Investor shall, in cases of paragraphs 4(d) and (e) directly pay, Product Manager at the times and in the manner set forth below (the “Settlement Payments”): 

(a) On the Effective Date, Nine Million Dollars ($9,000,000) by wire transfer of immediately available funds less 50% of the amount of
Interim Management Fees actually paid to Product Manager between the date hereof and the Effective Date. 

(b) On the 40th day following the conclusion of the Management Transition Period (or, if such date is not a business day, on the first
business day after such date), subject to the orderly transition of vessel management with respect to the Operating Vessels as provided in paragraph 3(b), Two Million Three Hundred Thousand Dollars ($2,300,000) less 50% of the

  
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amount of Interim Management Fees actually paid to Product Manager between the date hereof and the Effective Date. 
 (c) Two Million Seven Hundred Thousand Dollars ($2,700,000) less the amount of Interim Oversight Fees actually paid to Product Manager between the date hereof and the Effective Date, such amount to be
paid in equal monthly installments through December 2010, on the 17th day of each calendar month (or, if such date is not a business day, on the first business day after such date) commencing with the first month after the Effective Date. For the
avoidance of doubt, from and after the Effective Date (i) Debtors shall have no obligation to, and shall not, perform Construction Supervision Services on behalf of Products Investor except, and then only, to the extent reasonably requested by
Products Investor in writing and shall perform no other Construction Supervision Services pertaining to any of the Vessels, (ii) the payments due under this paragraph 4(c) are due and payable whether or not Product Manager renders any
Construction Supervision Services and (iii) neither Product Manager nor any Manager’s Covered Person (as defined in the Management Agreement) shall be liable, responsible or accountable in damages or otherwise to Products Investor, the JV
Subsidiaries (as defined in the Management Agreement) or the Blackstone/Cerberus Parties for any losses, damages, liabilities, demands or expenses suffered by Products Investor, the JV Subsidiaries or the Blackstone/Cerberus Parties for mistakes of
judgment or for action or inaction in performing Construction Supervision Services on behalf of Products Investor to the extent reasonably requested by Products Investor in writing pursuant to clause (i) of this sentence, except to the extent
arising out of (A) the gross negligence or willful misconduct of such Manager’s Covered Person or (B) a violation of any Applicable Law (as defined in the Management Agreement) by the Manager’s Covered Person. The
Blackstone/Cerberus Parties and Products Investor hereby agree to hold harmless and 

  
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indemnify the Debtors for any damages or liabilities incurred by the Debtors during the period from the Effective Date through and until the completion of construction of the Vessels, arising
from or related to the services performed by a person or construction manager other than Product Manager or as a result of Products Investor not appointing another person to provide Construction Supervision Services and not requesting Product
Manager to provide such services. 
 (d) Upon Delivery (as defined in the Construction Contract) of any of Vessels 3, 4 and 5,
to the extent Products Investor receives a provisional deduction in Progress Payments (as defined in the Construction Contract) made to NASSCO based on NASSCO’s cost performance pursuant to Article 3(e) of the Construction Contract with respect
to such Vessel (such deduction amount, a “Cost Under-run Provisional Deduction”), Products Investor shall, within 2 days of making any Progress Payment that has been reduced to give effect to such Cost Under-run Provisional
Deduction, pay Product Manager (by wire transfer of immediately available funds) an amount equal to 50% of the first One Million Dollars ($1,000,000) of any such Cost Under-run Deduction. For the avoidance of doubt, (i) the aggregate amount
that Product Manager may receive under this paragraph shall be up to, but not in excess of, Five Hundred Thousand Dollars ($500,000) and (ii) if Product Manager does not receive $500,000 in connection with any Cost Under-run Provisional
Deduction in respect of Vessel 3, then additional amounts shall be paid from the Cost Under-run Provisional Deductions in respect of Vessel 4, if any, and, if necessary, Vessel 5, if any, until Product Manager has received a total of $500,000 in the
aggregate under this provision; provided that any payment due under this paragraph 4(d) with respect to Vessel 5 shall be made within 2 days after receipt of the Cost Under-run Payment (as defined below), if any, made by NASSCO to Products Investor.

  
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 (e) Upon the expiration of Vessel 5’s Guarantee Period (as defined in the Construction
Contract), to the extent Products Investor receives a payment based on NASSCO’s cost performance pursuant to Article 3(d) of the Construction Contract with respect to such Vessel (such deduction amount, a “Cost Under-run
Payment”), Products Investor shall, within 2 days of receipt of such Cost Under-run Payment, pay Product Manager (by wire transfer of immediately available funds) an amount equal to 50% of the first $500,000 of any such Cost Under-run
Payment not applied to satisfy Products Investor’s obligations under paragraph 4(d). For the avoidance of doubt, the aggregate amount that Product Manager may receive under this paragraph 4(e) shall be up to, but not in excess of, Two Hundred
and Fifty Thousand Dollars ($250,000). 
 (f) The payments to be made pursuant to paragraphs 4(a) through (e) shall be in
settlement of the termination of the Management Agreement, and payment of management and other fees to have been paid thereunder. For the avoidance of doubt, in addition to the payments to be made pursuant to paragraphs 4(a) through (e), Product
Manager shall be entitled to receive, and Products Investor shall pay to Product Manager, in accordance with the terms of the Management Agreement, all Reimbursable Expenses incurred by Product Manager through the end of the Management Transition
Period. 
 (g) The Settlement Payments shall be in full settlement of any and all claims or interests whatsoever Debtors may
have relating to Products Investor and the Blackstone/Cerberus Parties, other than claims for Reimbursable Expenses and indemnification under Section 7 of the Management Agreement, and in full settlement of all other claims being released by
Debtors pursuant to this Agreement. The Settlement Payments shall be made by wire transfer to an account in the United States to be designated by Product Manager. Failure by 

  
 17 

 
Products Investor to make payments pursuant to paragraph 4(d) and (e) in accordance with the dates set forth in this Agreement shall not be deemed a default under this Agreement, unless a
missed payment shall not have been cured within 3 business days following receipt by Products Investor, the Blackstone/Cerberus Parties, and their counsel, of written notice of such missed payment by the Debtors. With respect to the payments due
under paragraphs 4(d) and (e), Product Investors shall provide Product Manager with notice of when the respective Vessels are delivered, and, if the aggregate amount to be paid thereunder to Product Manager is not paid with respect to any Vessel,
documentation demonstrating in reasonable detail whether or not a Cost-under Run Payment is due and the calculation of the Cost-under Run Payment. For the avoidance of doubt, except as provided in paragraph 4(i), the Blackstone/Cerberus
Parties’ obligations under this paragraph 4 shall be satisfied in full, with respect to each payment, upon the transfer of funds to the account or accounts designated by Product Manager for such payments. 

5. Jan Ziobro. The Debtors hereby agree that as of the Effective Date of this Agreement, and for so long as Mr. Jan T.
Ziobro is employed by any of Debtors or their affiliates (it being understood and agreed that Debtors shall have no obligation to retain Mr. Ziobro as an employee), Debtors shall, upon reasonable prior notice, provide to Products Investor
and/or the person providing construction oversight services to Products Investor reasonable access to Mr. Ziobro promptly upon request in connection with oversight of Vessel construction, including following the termination of the Management
Agreement, consistent with past practice. For the avoidance of doubt, no consideration shall be paid to Debtors in connection with the performance by Mr. Ziobro of such services beyond the Settlement Payments set forth in this Agreement.

  
 18 

 6. Vessel Sales. (a) With respect to any one or more Vessels, in the event
Products Investor makes a bona fide decision to sell one or more of the Vessels then, prior to effecting any such sale of one or more of the Vessels, Products Investor shall provide written notice to Debtors that it intends to effect a sale
of a Vessel or Vessels (a “Proposed Sale Notice”). 
 (b) Within 21 days of the date such Proposed Sale Notice
is delivered to Debtors, Debtors may elect, by delivery of a bona fide written notice (a “Purchase Offer Notice”) to Products Investor not later than the end of such 21 day period, to offer to purchase one or more of the
Vessels offered. The Purchase Offer Notice shall include evidence reasonably satisfactory to Products Investor demonstrating that Debtors have adequate financial resources to timely consummate the purchase of the Vessel or Vessels. The terms of any
Purchase Offer Notice shall expire on the tenth day following its delivery to Products Investor. If Products Investor accepts the Purchase Offer Notice within such ten day period, then Products Investor shall sell the Vessel or Vessels to Debtors on
a date designated by Debtors that is not more than 120 days after the date the Purchase Offer Notice is accepted by Products Investor. For the avoidance of doubt, Products Investor is under no obligation to accept any Purchase Offer Notice.

 (c) In the event that a Purchase Offer Notice was delivered but was not accepted by Products Investor, then Products Investor
may sell the Vessel or Vessels to a third party purchaser free of any right of Debtors, provided, however, that Debtors will be permitted to fully participate as a bidder in, and not be subject to a negative bias in connection with,
any such sales process. Products Investor shall exercise its commercially reasonable business judgment in 

  
 19 

 
conducting any sales process and in determining the successful bidder (if any) and the terms of any accepted purchase offer for any Vessel or group of Vessels. 

7. Releases. (a) As of the Effective Date and again as of the last day of the Management Transition Period, Debtors and each
of their predecessors, successors, assigns, agents, attorneys, insurers, subsidiaries, affiliates, stockholders, officers, directors, employees, heirs, executors, administrators, trusts, and trustees (collectively, “Debtor
Releasors”) fully and irrevocably release the Blackstone/Cerberus Parties, any other Blackstone or Cerberus entity that at any time was a member of Products Investor or a lender under the Credit Agreement, and Products Investor, and each of
their predecessors, successors, parents, subsidiaries, affiliates, divisions, officers, present and former directors, members, partners, principals, employees, agents, shareholders, assigns, heirs, executors, administrators, trusts, trustees, and
counsel (collectively, the “Blackstone/Cerberus Releasees”) of and from any and all manner of claims, demands, rights, liabilities, losses, obligations, duties, damages, debts, expenses, interest, penalties, sanctions, fees,
attorneys’ fees, costs, actions, potential actions, causes of action, suits, agreements, judgments, decrees, matters, issues and controversies of any kind, nature or description whatsoever, whether known or unknown, disclosed or undisclosed,
accrued or unaccrued, apparent or not apparent, foreseen or unforeseen, matured or not matured, suspected or unsuspected, liquidated or not liquidated, fixed or contingent, whether direct, derivative, individual, representative, legal, equitable, or
of any type, or in any other capacity, whether based on state, local, foreign, federal, statutory, regulatory, common, or other law that any or all Debtor Releasors ever had, now have, or hereinafter shall or may have, against any or all of the
Blackstone/Cerberus Releasees for, upon or by reason of any matter, cause, or thing whatsoever in any way relating to, involving, referring to, arising out of, or based upon, directly or indirectly,

  
 20 

 
any actions, transactions, occurrences, statements, representations, misrepresentations, omissions, allegations, facts, practices, events, claims or any other matters or things whatsoever, or any
series thereof, existing or occurring on or prior to the last day of the Management Transition Period; provided, however, that nothing herein shall release (i) the Blackstone/Cerberus Releasees from any of their obligations under this
Agreement, (ii) Products Investor from its obligations under Sections 4.3 and 7.2 of the Management Agreement, or (iii) any claim of any Debtor Releasor based on any Blackstone/Cerberus Releasees’ ownership of USSP’s 13% Senior
Secured Notes due 2014. 
 (b) As of the Effective Date and again as of the last day of the Management Transition Period, the
Blackstone/Cerberus Parties, on behalf of themselves and on behalf of any other Blackstone or Cerberus entity that at any time was a member of Products Investor or a lender under the Credit Agreement, Products Investor and each of their
predecessors, successors, assigns, agents, attorneys, insurers, subsidiaries, affiliates, stockholders, officers, directors, employees, heirs, executors, administrators, trusts, and trustees (collectively, the “Blackstone/Cerberus
Releasors”) fully and irrevocably release Debtors and each of their predecessors, successors, parents, subsidiaries, affiliates, divisions, officers, present and former directors, members, partners, principals, employees, agents,
shareholders, assigns, heirs, executors, administrators, trusts, trustees, and counsel (collectively, “Debtor Releasees”) of and from any and all manner of claims, demands, rights, liabilities, losses, obligations, duties, damages,
debts, expenses, interest, penalties, sanctions, fees, attorneys’ fees, costs, actions, potential actions, causes of action, suits, agreements, judgments, decrees, matters, issues and controversies of any kind, nature or description whatsoever,
whether known or unknown, disclosed or undisclosed, accrued or unaccrued, apparent or not apparent, foreseen or unforeseen, 

  
 21 

 
matured or not matured, suspected or unsuspected, liquidated or not liquidated, fixed or contingent, whether direct, derivative, individual, representative, legal, equitable, or of any type, or
in any other capacity, whether based on state, local, foreign, federal, statutory, regulatory, common, or other law that any or all the Blackstone/Cerberus Releasors ever had, now have, or hereinafter shall or may have, against any or all of the
Debtor Releasees for, upon or by reason of any matter, cause, or thing whatsoever in any way relating to, involving, referring to, arising out of, or based upon, directly or indirectly, any actions, transactions, occurrences, statements,
representations, misrepresentations, omissions, allegations, facts, practices, events, claims or any other matters or things whatsoever, or any series thereof, existing or occurring on or prior to the last day of the Management Transition Period;
provided, however, that nothing herein shall release (i) the Debtor Releasees from any of their obligations under this Agreement, (ii) Product Manager from its obligations under Section 7.3 of the Management Agreement, or
(iii) any claim of any Blackstone/Cerberus Releasor based on such entity’s ownership of USSP’s 13% Senior Secured Notes due 2014. 
 (c) The Debtor Releasors and the Blackstone/Cerberus Releasors, in connection with and as part of the releases described in paragraphs 7(a) and (b) above, voluntarily waive Section 1542 of the
California Civil Code, or any similar, comparable or equivalent provision of the statutory or non-statutory law of any other jurisdiction. Section 1542 provides: 

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at
the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. 
 (d) The Parties acknowledge that they may hereafter discover facts different from or in addition to those they now know or believe to be true with respect to the matters that

  
 22 

 
are the subject of this Agreement, and they expressly agree to assume the risk of the possible discovery of additional or different facts, and agree that the releases contained herein shall be
and remain effective in all respects regardless of such additional or different facts, unless this Agreement shall be declared null and void as provided herein. 
 8. No Further Actions. (a) Other than enforcement of the terms of this Agreement and Sections 4.3 and 7.2 of the Management Agreement, the Debtor Releasors (i) shall not institute,
commence, assert or prosecute against any of the Blackstone/Cerberus Releasees any claim, demand, action, suit or proceeding of any kind or nature whatsoever, in law or in equity, directly or indirectly, whether by way of action, defense, set-off,
cross-complaint, counterclaim or otherwise, and whether for payment, damages, loss, specific performance or otherwise, related to any claim to be released pursuant to paragraph 7(a) herein; and (ii) shall indemnify and hold each of the
Blackstone/Cerberus Releasees harmless against any and all costs (including attorneys’ fees and expenses) and liabilities incurred by them as a result of the Debtor Releasors breach of the foregoing clause 8(a)(i). 

(b) Other than enforcement of the terms of this Agreement and Section 7.3 of the Management Agreement, the Blackstone/Cerberus
Releasors (i) shall not institute, commence, assert or prosecute against any of the Debtor Releasees any claim, demand, action, suit or proceeding of any kind or nature whatsoever, in law or in equity, directly or indirectly, whether by way of
action, defense, set-off, cross-complaint, counterclaim or otherwise, and whether for payment, damages, loss, specific performance or otherwise, related to any claim to be released pursuant to paragraph 7(b) herein; and (ii) shall indemnify and
hold each of the Debtor Releasees harmless against any and all costs (including attorneys’ fees and expenses) and 

  
 23 

 
liabilities incurred by them as a result of the Blackstone/Cerberus Releasors’ breach of the foregoing clause 8(b)(i). 

(c) The provisions of paragraphs 8(a) and (b) shall be in full force and effect upon execution of this Agreement, and shall remain
in effect upon the Effective Date and thereafter. 
 9. Dismissal of Actions. Upon the Effective Date, in consideration
of the mutual promises, covenants, agreements and other consideration described in this Agreement, Debtors shall file or cause to be filed appropriate notices and/or stipulations dismissing the Adversary Proceeding with prejudice, and the Parties
shall jointly file or cause to be filed appropriate notices and/or stipulations dismissing the State Court Action with prejudice. The Parties shall bear their own respective costs (including without limitation attorneys’ fees) in the Adversary
Proceeding and the State Court Action. 
 10. Confidential Information. The Debtors shall keep confidential, and cause
their affiliates, and Debtors’ and their affiliates’ respective officers, directors, employees and advisors to keep confidential, all information relating to Products Investor and its subsidiaries, including but not limited to information
related to their business, charters and related rates, vendors, customers, market analyses, financial information, business plans, employee compensation information, and contracts (collectively, “Confidential Information”), except
as required by law and except for information that is available to the public on the Effective Date, or thereafter becomes available to the public other than as a result of a breach of this paragraph 10. For purposes of this paragraph 10 the term
“Confidential Information” should not include any information that (a) is or becomes generally available to the public or (b) was or becomes available to Debtors, its affiliates, or any of their respective officers, directors,
employees and 

  
 24 

 
advisors on a non-confidential basis from a source other than the Blackstone/Cerberus Parties or Products Investor. 
 11. Restriction on Certain Amendments to LLC Agreement and Construction Contract. Products Investor shall not, and the Blackstone/Cerberus Parties shall not permit Products Investor to, amend in
any respect (a) any provision of the LLC Agreement which would be effective for any period prior to the Effective Date, (b) the Construction Contract if such amendment would have the effect of (i) decreasing the Contract Price (as
such term is defined in the Construction Contract) for any Vessel or (ii) increasing Contractor’s Actual Cost (as such term is defined in the Construction Contract), for any Vessel or (c) Articles 3(a), (c), (d) or (e), 5, 6, 7
or 9 of the Construction Contract, if, and only to the extent that, any of the foregoing amendments of Articles 3(a), (c), (d) or (e), 5, 6, 7 or 9 of the Construction Contract could otherwise reasonably be expected to adversely affect Product
Manager’s rights to receive payments pursuant to paragraph 4(d) or (e) of this Agreement. For the avoidance of doubt, no amendment shall be deemed to adversely affect Product Manager’s right to receive payments pursuant to paragraphs
4(d) or (e) of this Agreement so long as Product Manager receives the payments contemplated by those paragraphs at the time the payments would have been received but for the amendments. Notwithstanding anything to the contrary herein, Products
Investor may amend the Construction Contract to defer progress and other payments to NASSCO for no more than six months and such amendments shall not be deemed to adversely affect Product Manager’s rights to receive payments pursuant to
paragraph 4(d) or (e) hereof as long as such amendments do not have the effect of or result in a decrease in the Contract Price or an increase in the Contractor’s Actual Cost. 

  
 25 

 12. Miscellaneous. 

(a) By entering into this Agreement, the Parties do not intend to make, nor shall they be deemed to have made, any admission of liability
of any kind whatsoever. The Parties agree that they are entering into this Agreement for the purpose of settling certain disputes between them and to avoid further expense with respect to those disputes. 

(b) The Blackstone/Cerberus Parties and Products Investor shall not, and shall instruct their officers, directors and employees, and use
commercially reasonable efforts to instruct the other persons or entities who are Blackstone/Cerberus Releasors, not to, either directly or through other persons or entities, publish or communicate any Disparaging (as defined below) remarks,
comments or statements concerning any of the Debtor Releasees or the operations, prospects or business of the Debtors. The Debtors shall not, and shall instruct their officers, directors and employees, and use commercially reasonable efforts to
instruct the other persons or entities who are Debtor Releasors, not to, either directly or through other persons or entities, publish or communicate any Disparaging remarks, comments or statements concerning any of the Blackstone/Cerberus Releasees
or the operations, prospects or business of the Blackstone/Cerberus Parties. Notwithstanding the foregoing, nothing in this paragraph shall prevent a Party from responding in a manner that does not violate the preceding sentences to
(i) inquiries regarding the State Court Action or the Adversarial Proceeding, (ii) any statement made at any time after the date hereof by another Party hereto, or (iii) any article appearing at any time after the date hereof in the
press. “Disparaging” remarks, comments or statements are those that impugn the character, honesty, integrity, morality or business acumen or abilities in connection with any aspect of the operation of business of the covered individual or
entity. 

  
 26 

 (c) This Agreement constitutes the entire agreement between the Parties regarding the
settlement of their disputes. Each Party acknowledges that it has not executed this Agreement in reliance on any representation, inducement, promise, agreement, or warranty that is not contained in this Agreement. 

(d) The Parties agree that the prior drafting history of this Agreement shall not be used to construe any term of this Agreement.

 (e) This Agreement has been negotiated by each Party and its respective attorneys, and the language hereof will not be
construed for or against any such Party as the principal drafter of this Agreement. 
 (f) The individuals signing this
Agreement and the Parties on whose behalf such individuals are signing hereby represent and warrant that they are empowered and authorized to sign on behalf of and bind the Parties for whom they have signed. 

(g) The Parties represent and warrant that, as of the Effective Date of this Agreement, they have not assigned, conveyed, or otherwise
transferred the rights to any claims, demands, causes of action, rights, or obligations related in any way to the claims to be released in paragraphs 7(a) and (b) to any other person or entity, nor shall they hereafter do so; provided, however,
that (i) in August 2006 the Debtors granted to its secured lenders a security interest in the Management Agreement and the proceeds thereof and (ii) the Bankruptcy Court has entered orders, including its order dated May 27, 2009 and
any subsequent interim or final order that supercedes the May 27, 2009 order, that provides the Debtors’ secured lenders with a security interest in all of the property of the Debtors, now owned or hereafter acquired. 

(h) Each Party agrees that this Agreement shall be binding upon the heirs, successors, assigns, subsidiaries, and affiliates of each
Party. 

  
 27 

 (i) The Parties agree that “Products Investor” as used in this Agreement shall
mean USS Products Investor LLC and its successors and assigns. 
 (j) Each Party represents and agrees: (i) that it has
fully reviewed this Agreement and has had the opportunity to seek advice by independent counsel of its choosing in that regard; (ii) that it fully understands the terms of this Agreement and has entered into this Agreement voluntarily without
any coercion or duress on the part of any person or entity; and (iii) that it was given adequate time to consider all implications of this Agreement prior to entering into it. 

(k) This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. 
 (l) This Agreement may not be amended or modified except by a written
instrument executed by the duly authorized representatives of all of the Parties. 
 (m) Each party to this Agreement shall do
and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party to this Agreement may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated herein. 
 (n) This Agreement shall be governed by the laws of the State of New York applicable to agreements entered into within the State of New York excluding the choice of law rules thereof. The Parties agree
that they are subject to the continuing jurisdiction of the Bankruptcy Court for the purpose of enforcing the provisions of this Agreement. 

  
 28 

 (o) The Debtors and the Blackstone/Cerberus Parties agree that solely for purposes of
executing this Agreement and consummating the actions contemplated herein, Blackstone Capital Partners V USS, L.P. shall be recognized as the managing member of Products Investor. To the extent other actions are required to be taken by Products
Investor prior to the Effective Date, the Parties shall reasonably cooperate in implementing a mechanism to effectuate such actions. 
 * * * * * * * 

  
 29 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by themselves or their duly
authorized representatives as of the date hereof. 
 ACCEPTED AND AGREED: 

 

			
	U.S. SHIPPING PARTNERS L.P.
		
	By:	 	 US Shipping General Partner LLC,

its General Partner

  

			
	By:	 	/s/ Joseph P. Gehegan
		 	Name: Joseph P. Gehegan
		 	Title: Chief Operating Officer

  

			
	USS PRODUCT MANAGER LLC
		
	By:	 	/s/ Joseph P. Gehegan
		 	Name: Joseph P. Gehegan
		 	Title: Chief Operating Officer

  

			
	USS PRODUCT CARRIERS LLC
		
	By:	 	/s/ Joseph P. Gehegan
		 	Name: Joseph P. Gehegan
		 	Title: Chief Operating Officer

  

			
	USS PC HOLDING CORP.
		
	By:	 	/s/ Joseph P. Gehegan
		 	Name: Joseph P. Gehegan
		 	Title: Chief Operating Officer

 
			
	BLACKSTONE CORPORATE DEBT ADMINISTRATION L.L.C.
		
	By:	 	Blackstone Debt Advisors, L.P., its Sole Member
		
	By:	 	BCLO Advisors L.L.C., its General Partner

  

			
	By:	 	/s/ George Fan
		 	Name: George Fan
		 	Title: Managing Director

  

			
	BLACKSTONE CAPITAL PARTNERS V USS, L.P.
		
	By:	 	Blackstone Management Associates V USS L.L.C., its General Partner
		
	By:	 	BMA V USS L.L.C., its Sole Member

  

			
	By:	 	/s/ David I. Foley
		 	Name: David I. Foley
		 	Title: Senior Managing Director

  

			
	BLACKSTONE FAMILY INVESTMENT PARTNERSHIP V USS L.P.
		
	By:	 	BCP v USS Side-by-Side GP L.L.C., its General Partner

  

			
	By:	 	/s/ David I. Foley
		 	Name: David I. Foley
		 	Title: Senior Managing Director

  

			
	BLACKSTONE FAMILY INVESTMENT PARTNERSHIP V-A USS SMD L.P.
		
	By:	 	Blackstone Family GP L.L.C., its General Partner

  

			
	By:	 	/s/ David I. Foley
		 	Name: David I. Foley
		 	Title: Senior Managing Director

			
	BLACKSTONE PARTICIPATION PARTNERSHIP V USS L.P.
		
	By:	 	BCP V USS Side-by-Side GP L.L.C., its General Partner

  

			
	By:	 	/s/ David I. Foley
		 	Name: David I. Foley
		 	Title: Senior Managing Director

  

			
	BLACKSTONE MEZZANINE PARTNERS II USS L.P.
		
	By:	 	Blackstone Mezzanine Associates II USS L.P., its General Partner
		
	By:	 	Blackstone Mezzanine Management Associates II USS L.L.C., its General Partner

 

			
	By:	 	/s/ George Fan
		 	Name: George Fan
		 	Title: Managing Director

  

			
	BLACKSTONE MEZZANINE HOLDINGS II USS L.P.
		
	By:	 	BMP II USS Side by Side GP L.L.C., its General Partner

  

			
	By:	 	/s/ George Fan
		 	Name: George Fan
		 	Title: Managing Director

  

			
	BLACKSTONE FAMILY MEZZANINE PARTNERSHIP II USS SMD L.P.
		
	By:	 	Blackstone Family GP L.L.C., its General Partner

  

			
	By:	 	/s/ George Fan
		 	Name: George Fan
		 	Title: Managing Director

			
	CERBERUS PARTNERS, L.P.
		
	By:	 	Cerberus Associates, L.L.C., its General Partner

  

			
	By:	 	/s/ Mark A. Neporent
		 	Name: Mark A. Neporent
		 	Title: Senior Managing Director

  

			
	STYX PARTNERS, L.P.
		
	By:	 	Styx Associates, LLC, its General Partner

  

			
	By:	 	/s/ Kevin Genda
		 	Name: Kevin Genda
		 	Title: Senior Managing Director

  

			
	A3 FUNDING LP
		
	By:	 	A3 Fund Management LLC, its General Partner

  

			
	By:	 	/s/ Kevin Genda
		 	Name: Kevin Genda
		 	Title: Vice President

  

			
	USS PRODUCTS INVESTOR LLC
		
	By:	 	Blackstone Capital Partners V USS L.P., its Managing Member
		
	By:	 	Blackstone Management Associates V L.L.C., its General Partner
		
	By:	 	BMA V USS L.L.C., its Sole Member

  

			
	By:	 	/s/ David I. Foley
		 	Name: David I. Foley
		 	Title: Senior Managing Director

 Schedule A 

 

	1.	Consolidated audited financial statements for the Fiscal Year ending December 31, 2008 pursuant to Section 8.2(a) of the LLC Agreement.2 

 

	2.	Monthly reports for the months of May and June of 2009 pursuant to Section 8.2(f) of the LLC Agreement. 

 

	3.	Quarterly reports for the Fiscal Quarters ending March 31 and June 30 of 2009 pursuant to Section 8.2(c) of the LLC Agreement. 

 

	4.	Annual operating budget for Products Investor for the 2009 Fiscal Year pursuant to Section 6.9 of the LLC Agreement. 

 

	5.	Annual operating budget for each Vessel for the 2009 Fiscal Year. 

  

	6.	Quarterly tax estimates for the Fiscal Quarter ended June 30, 2009, pursuant to Section 8.3(b) of the LLC Agreement. 

 

	7.	Any and all materials received from NASSCO for the months of April, May and June of 2009. 

 

	8.	Construction reports including status updates from the inspection team at the Shipyard (as defined in the Construction Contract) for the months of March, April, May and
June of 2009 pursuant to Section (2)(ii) of the Management Agreement. 

  

	2	The Blackstone/Cerberus Parties understand and acknowledge that these financial statements will show all the existing debt of the Joint Venture to be a current
liability, and that all deferred financing costs will have been written off. 

 EXHIBIT A 

ESCROW AGREEMENT 
 This
Escrow Agreement (this “Escrow Agreement”) dated as of July [ ], 2009, entered into by and among JP Morgan Chase Bank N.A. (“Escrow Agent”), USS Product Manager LLC (“Product Manager”) and
Blackstone Capital Partners V USS, L.P. (“Blackstone Entity”). 
 RECITALS 

WHEREAS, the Blackstone Entity, Product Manager and certain other parties have entered into a Settlement Agreement and Release dated as of July 10,
2009 (the “Settlement Agreement”). This Escrow Agreement shall become effective upon the occurrence of the Effective Date as defined in the Settlement Agreement; 
 WHEREAS, the Blackstone Entity and Product Manager desire that the Escrow Agent act as escrow agent for the purpose of holding the Escrow Funds (as defined below) in the Escrow Account (as defined below)
and making payments as provided herein, and Escrow Agent is willing to act in such capacity pursuant to the terms of this Escrow Agreement; and 

WHEREAS, the Blackstone Entity and Product Manager intend that the funds deposited into the Escrow Account contemporaneously with the execution of this
Agreement shall satisfy the payments to Products Manager pursuant to paragraphs 4(a)-(c) of the Settlement Agreement, subject to the terms and conditions of this Escrow Agreement and the Settlement Agreement. 

NOW THEREFORE, 
 The Blackstone Entity, Product
Manager and Escrow Agent hereby agree that, in consideration of the mutual promises and covenants contained herein, Escrow Agent shall hold in escrow and shall distribute the Escrow Funds in accordance with and subject to the terms and conditions
set forth herein: 
 I. DEFINITIONS 
  

	1.	Certain Definitions 

 Capitalized terms
used or incorporated herein but not defined herein will have the meanings given to them in the Settlement Agreement. 
 II.
INSTRUCTIONS 
  

	1.	Escrow Funds 

  

	 	(a)	 On the Effective Date, the Blackstone/Cerberus Parties shall deposit with the Escrow Agent the amount required pursuant to paragraph 4 of the
Settlement Agreement in immediately available funds (such amount, the “Deposit”). The Deposit shall be deposited with Escrow Agent in Account Number [•] (the “Escrow Account”). 

	 	(b)	The foregoing Deposit, plus all interest, dividends, gains or other income earned with respect thereto (if any), less any funds distributed or paid in accordance with
this Escrow Agreement, are collectively referred to herein as “Escrow Funds.” 

  

	2.	Appointment of Escrow Agent 

 The
Blackstone Entity and Product Manager hereby appoint Escrow Agent, and Escrow Agent hereby agrees, to act as custodian of the Escrow Funds, and to hold, invest, reinvest and distribute the Escrow Funds in accordance with the instructions and terms
and conditions of this Escrow Agreement. The Escrow Agent shall, except to the extent prohibited by law, segregate the funds credited to the Escrow Account from its other funds held as an agent or in trust. 

 

	3.	Investment of Escrow Funds 

  

	 	(a)	Upon receipt of the Deposit, the Escrow Agent shall deposit Escrow Funds in a non-interest bearing account, unless otherwise instructed by the Blackstone Entity and
Product Manager. JP Morgan Chase Bank N.A. is a participant in the FDIC’s Transaction Account Guarantee Program. A customer maintaining any non-interest bearing transaction account(s) at JP Morgan Chase Bank N.A. may benefit from the insurance
coverage provided in the Program (the “Program”) in the form of a full guarantee by the FDIC of such account(s). The FDIC maintains the right to modify and/or interpret the provisions of the Program and, accordingly, the Escrow
Agent may implement such modifications and/or interpretations at any time upon written notice to the Blackstone Entity and Product Manager. 

  

	 	(b)	Escrow Agent shall have no liability for any loss arising from or related to any such investment other than in accordance with paragraph 4 of the Terms and Conditions
sections of this Escrow Agreement. 

  

	 	(c)	All interest, gains, and other income (if any) earned with respect to the Escrow Account (its “Escrow Earnings”) shall be credited to and held in such
Escrow Account. 

  

	4.	Distribution of Escrow Funds 

  

	 	(a)	4(a) Payment Amount. 

 (i) On the Effective Date, Product Manager and the Blackstone Entity shall jointly execute and deliver to the Escrow Agent a certificate substantially in the form of Exhibit A attached hereto (the
“Joint Instruction Certificate”) instructing the Escrow Agent to make a distribution of the amount set forth in the Joint Instruction Certificate (the “4(a) Payment Amount”) to Product Manager by wire transfer to
the Product Manager Account identified on Schedule A to this Escrow Agreement or such other account as may be designated by Product Manager in writing to Escrow Agent from time to time (the “Product Manager Account”).

 (ii) Upon receipt of the Joint Instruction Certificate, Escrow Agent shall as soon as practicable thereafter,
release from the Escrow Account, and pay to Product Manager in immediately available funds the 4(a) Payment Amount in 

  

- 2 - 

 
accordance with the disbursement instructions set forth in such Joint Instruction Certificate. 
  

	 	(b)	4(b) Payment Amount. 

 (i) No later than the 30th day following the conclusion of the Management Transition Period, Product Manager shall execute and deliver to the Escrow Agent a certificate substantially in the form of Exhibit B attached hereto
(the “4(b) Request Certificate”) instructing the Escrow Agent to make a distribution from the Escrow Account of the amount required pursuant to paragraph 4(b) of the Settlement Agreement (the “4(b) Payment Amount”)
to Product Manager by wire transfer to the Product Manager Account. 
 (ii) At the time of
delivery of the 4(b) Request Certificate, a duplicate copy of such certificate shall be delivered to the Blackstone Entity. On the 40th day following the conclusion of the Management Transition Period (or, if such date is not a business day, on the first
business day after such date) (the “4(b) Payment Date”), the Escrow Agent shall release from the Escrow Account and pay to Product Manager from the Escrow Account in immediately available funds the 4(b) Payment Amount in accordance
with the disbursement instructions set forth in the 4(b) Request Certificate, provided that such distribution shall not be made if the Blackstone Entity shall have filed a motion with the Bankruptcy Court requesting a determination that Product
Manager is not entitled to receive the payment under paragraph 4(b) of the Settlement Agreement, such motion to have been filed with the Bankruptcy Court and a copy delivered by the Blackstone Entity to the Escrow Agent and Product Manager at least
three days prior to the 4(b) Payment Date (a “4(b) Objection”). 
  

	 	(c)	4(c) Payment Amount. 

 (i) On the Effective Date, pursuant to paragraph 4(c) of the Settlement Agreement, Product Manager shall execute and deliver to the Escrow Agent a certificate substantially in the form of Exhibit C
attached hereto (the “4(c) Request Certificate”) instructing the Escrow Agent to make monthly distributions from the Escrow Account on the amount set forth in the 4(c) Request Certificate, (each a “4(c) Payment
Amount”), such 4(c) Payment Amount to be paid on the 17th day of each calendar month commencing with the first month after the Effective Date (each a “4(c) Payment Date”), by wire transfer to the Product Manager Account.

 (ii) At the time of delivery of the 4(c) Request Certificate, a duplicate copy of such certificate shall be
delivered to the Blackstone Entity. On each 4(c) Payment Date, the Escrow Agent shall release from the Escrow Account and pay to Product Manager from the Escrow Account in immediately available funds the 4(c) Payment Amount in accordance with the
disbursement instructions set forth in the 4(c) Request Certificate, provided that such distributions shall not be made if the Blackstone Entity shall have filed a motion with the Bankruptcy Court requesting a determination that Product Manager is
not entitled to receive 

  

- 3 - 

 
payments under paragraph 4(c) of the Settlement Agreement, such motion to have been filed with the Bankruptcy Court and a copy delivered by the Blackstone Entity to the Escrow Agent and Product
Manager at least three days prior to a 4(c) Payment Date (a “4(c) Objection”). 
  

	 	(d)	Resolution of Objection. 

In the event that the Blackstone Entity shall deliver a 4(b) Objection or a 4(c) Objection, Product Manager and the Blackstone Entity
shall attempt in good faith to agree upon the proper instructions to be given to the Escrow Agent with respect to such distribution(s) (if any) in accordance with the applicable provisions of the Settlement Agreement. If such parties should so
agree, joint written instructions of such parties setting forth such agreement shall be prepared and signed by both parties and shall be furnished to the Escrow Agent. The Escrow Agent shall be entitled to rely on any such joint written instructions
and make the one or more distributions (if any) from the Escrow Account. If no such agreement is reached after good faith negotiation, the Bankruptcy Court shall resolve the dispute. 
 The Escrow Agent will act solely on the instruction from the Product Manager and/or the Blackstone Entity as provided in paragraph 4 of this Escrow Agreement, and shall not be responsible for, nor
chargeable with, knowledge of, nor have any requirements to comply with the terms and conditions of the Settlement Agreement. 
  

	5.	Addresses 

 Any notices, consents, waivers
or other communications required or permitted to be given under the terms of the Escrow Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to
the party to receive the same. The addresses and facsimile numbers for such communications shall be: 
  

	 	(a)	If to the Escrow Agent: 

 JP
Morgan Chase Bank N.A. 
 Escrow Services 
 4 New York Plaza, 21st Floor 
 New York, NY 10004 

Attn: Andy Jacknick/Christopher Fasouletos 
 Telephone Number: (212) 623-6224 
 Facsimile Transmission No.:
(212) 623-6168 

  

- 4 - 

	 	(b)	If to the Blackstone Entity: 

Blackstone Entity 

c/o Blackstone Capital Partners V USS, L.P. 
 345 Park Avenue 
 29th Floor 

New York, New York 10154 
 Attention: David I. Foley 
 Telephone Number: (212) 583-5832 

Facsimile Transmission No: (212) 583-5703 
 with a copy (which shall not constitute notice) to (legal counsel): 
 Schulte
Roth & Zabel LLP 
 919 Third Avenue 
 New York, NY 10022 
 Attention: Adam C. Harris, Esq. 

Telephone Number: (212) 756-2253 
 Facsimile Number: (212) 593-5955 
  

	 	(c)	If to Product Manager: 

 USS
Product Manager LLC 
 399 Thornall Street 
 Edison, New Jersey 08837 
 Attention: Joe Gehegan 

Telephone Number: 732-636-2701 
 Facsimile Number: 732-635-1918 
 with a copy (which shall not constitute notice) to
(legal counsel): 
 Fulbright & Jaworski L.L.P. 
 666 Fifth Avenue 
 New York, New York 10103 

Attention: David Barrack and Roy L. Goldman 
 Telephone Number: 212-318-3000 
 Facsimile: 212-318-3400 

Notwithstanding the above, in the case of communications delivered to the Escrow Agent pursuant to (i), (ii) and (iii) of this paragraph 5, such
communications shall be deemed to have been given on the date received by an officer of the Escrow Agent or any employee of the Escrow Agent who reports directly to any such officer at the above-referenced office. In the event that the Escrow Agent,
in its sole discretion, shall determine that an emergency exists, the Escrow Agent may use such other means of communication as the Escrow Agent deems appropriate. “Business Day” shall mean any day other than a Saturday, Sunday or any
other day on which the Escrow Agent located at the notice address set forth above is authorized or required by law or executive order to remain closed. 

  

- 5 - 

	6.	Distribution of Escrow Funds Upon Termination 

 Upon termination of the Escrow Agreement, any Escrow Funds then held hereunder shall be distributed to the Blackstone Entity. 

 

	7.	Compensation 

 (a) On the Effective Date, Escrow Agent shall be paid a fee of $[ ], to be paid 50% by the Blackstone Entity and 50% by Product Manager, in consideration of the services to be provided by the Escrow Agent
hereunder. 
 (b) Promptly after receipt of documentation reasonably satisfactory to the Blackstone Entity and
Product Manager, Escrow Agent shall be reimbursed upon demand for all reasonable and documented out-of-pocket expenses, disbursements and advances incurred or made by Escrow Agent in connection with this Escrow Agreement, in each case, to be paid
50% by the Blackstone Entity and 50% by Product Manager. 
  

	8.	Taxation of Escrow Earnings 

 (a) The parties hereto agree that, for tax reporting purposes, Product Manager shall be treated as the owner of all Escrow Funds while held by Escrow Agent, and Escrow Agent shall, for each calendar year
(or portion thereof) for which the Escrow Funds are so held report the interest, dividend and other income (the “Earnings”) earned on the Escrow Funds on Internal Revenue Service Form 1099. On the tenth day of each January, April,
June and September, and on each date Escrow Funds are released, in order to allow Product Manager to satisfy its income tax liabilities with respect to the Earnings, the Escrow Agent shall release and disburse to Product Manager in accordance with
payment instructions on Schedule A of the 4(c) Request Certificate, an amount of cash from the Earnings in the Escrow Fund equal to the product of 40% and the total amount of Earnings with respect to any period for which Product Manager has not
received a distribution under this Section 8(a). 
 (b) Product Manager will provide the Escrow Agent
with its tax identification number by furnishing an appropriate Internal Revenue Service Form W-9 and any other forms and documents that the Escrow Agent may reasonably request (collectively, “Tax Reporting Documentation”) to the
Escrow Agent within 30 days after the date hereof. The parties hereto understand that, if such Tax Reporting Documentation is not so provided to the Escrow Agent, the Escrow Agent may be required by the Internal Revenue Code of 1986, as amended, to
withhold and promptly remit to the Internal Revenue Service a portion of any interest or other income earned on the investment of monies or other property held by the Escrow Agent pursuant to this Escrow Agreement. 

III. TERMS AND CONDITIONS: 
  

	1.	 The duties, responsibilities and obligations of Escrow Agent shall be limited to those expressly set forth herein and no duties, responsibilities or
obligations shall be inferred or implied. Escrow Agent shall not be subject to, nor required to comply with, any other 

  

- 6 - 

	 	 
agreement between or among the Blackstone Entity or Product Manager or to which the Blackstone Entity or Product Manager are a party, even though reference thereto may be made herein, or to
comply with any direction or instruction (other than those contained herein or delivered in accordance with this Escrow Agreement) from the Blackstone Entity or Product Manager or any entity acting on their behalf. Escrow Agent shall not be required
to, and shall not, expend or risk any of its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, except in the case of its fraud, gross negligence or willful misconduct.

  

	2.	This Escrow Agreement is for the sole and exclusive benefit of the parties hereto and their respective successors hereunder, and shall not be deemed to give or confer,
either express or implied, any legal or equitable right, remedy, benefit or claim to or upon any other entity or person whatsoever. 

  

	3.	If at any time Escrow Agent is served with any judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process which in any
way affects the Escrow Funds (including but not limited to orders of attachment or garnishment or other forms of levies or injunctions or stays relating to the transfer of Escrow Funds) (each, an “Order”), Escrow Agent shall, within
three (3) business days of receipt of such Order provide to the Blackstone Entity and Product Manager a courtesy copy of such Order (which shall include a copy of any written material provided with such Order). The Blackstone Entity, Product
Manager and Escrow Agent shall use their reasonable best efforts to oppose or limit the effect of such Order. Escrow Agent is authorized to comply with such Order in any manner as it or its legal counsel of its own choosing deems reasonably
appropriate; and if Escrow Agent reasonably complies with any such Order, Escrow Agent shall not be liable to any of the parties hereto or to any other person or entity even though such Order may be subsequently modified or vacated or otherwise
determined to have been without legal force or effect. 

  

	4.		        (a) Escrow Agent shall not be liable for any action taken or omitted or for any loss or injury resulting from its actions or its performance or
lack of performance of its duties hereunder in the absence of fraud, gross negligence or willful misconduct on its part. In no event shall Escrow Agent be liable (i) for acting in accordance with or relying upon any joint instruction, notice,
demand, certificate or document from the Blackstone Entity or Product Manager or any entities acting on their behalf, in each case as permitted by this Escrow Agreement, (ii) for any consequential, punitive or special damages, (iii) for
the acts or omissions of its nominees, correspondents, designees, subagents or subcustodians, or (iv) for an amount in excess of the value of the Escrow Funds, valued as of the date of deposit. 

(b) If any fees, expenses or costs incurred by, or any obligations owed to, Escrow Agent hereunder are not promptly paid
when due, Escrow Agent shall give notice in writing to the Blackstone Entity and Product Manager of such failure to pay. If such fees, expenses or costs are not paid by the Blackstone Entity and Product Manager within ten (10) business days of
such notice, Escrow Agent may reimburse itself therefor from the Escrow Funds and may sell, convey or otherwise dispose of any Escrow Funds for such purpose. 

  

- 7 - 

 (c) Escrow Agent may consult with legal counsel at the expense of the
Blackstone Entity and Product Manager as to any matter relating to this Escrow Agreement, and Escrow Agent shall not incur any liability in acting in accordance with any advice from such counsel. 

(d) Escrow Agent shall not incur any liability for not performing any act or fulfilling any duty, obligation or
responsibility hereunder by reason of any occurrence beyond the control of Escrow Agent (including but not limited to any act or provision of any present or future law or regulation or governmental authority, any act of God or war, or the
unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility). 
  

	5.	Unless otherwise specifically set forth herein, Escrow Agent shall proceed as soon as practicable to collect any checks or other collection items at any time deposited
hereunder. All such collections shall be subject to Escrow Agent’s usual collection practices or terms regarding items received by Escrow Agent for deposit or collection. Escrow Agent shall not be required, or have any duty, to notify anyone of
any payment or maturity under the terms of any instrument deposited hereunder, nor to take any legal action to enforce payment of any check, note or security deposited hereunder or to exercise any right or privilege which may be afforded to the
holder of any such security. 

  

	6.	Escrow Agent shall provide to the Blackstone Entity and Product Manager monthly statements identifying transactions, transfers or holdings of Escrow Funds and each such
statement shall be deemed to be correct and final upon receipt thereof by each of the Blackstone Entity and Product Manager unless Escrow Agent is notified in writing to the contrary within thirty (30) business days of the date of such
statement. 

  

	7.	Escrow Agent shall not be responsible in any respect for the form, execution, validity, value or genuineness of documents or securities deposited hereunder, or for any
description therein, or for the identity, authority or rights of persons executing or delivering or purporting to execute or deliver any such document, security or endorsement. 

 

	8.	Escrow Agent is authorized to comply with and rely upon any notices, instructions or other communications actually received by it and believed by it to have been sent
or given jointly by the Blackstone Entity and Product Manager or by a person or persons authorized by them. Whenever under the terms hereof the time for giving a notice or performing an act falls upon a Saturday, Sunday, or banking holiday, such
time shall be extended to the next day on which Escrow Agent is open for business. 

  

	9.	The Blackstone Entity and Product Manager, jointly and severally, shall be liable for and shall reimburse and indemnify Escrow Agent and hold Escrow Agent harmless from
and against any and all claims, losses, liabilities, costs, damages or expenses (including reasonable attorneys’ fees and expenses) (collectively, “Losses”) arising from or in connection with or related to this Escrow Agreement
or being Escrow Agent hereunder (including but not limited to Losses incurred by Escrow Agent in connection with its successful defense, in whole or in part, of any claim of fraud, gross negligence or willful misconduct on its part), provided,
however, that nothing contained herein shall require Escrow Agent to be indemnified for Losses caused by its fraud, gross negligence or willful misconduct. 

  

- 8 - 

	10.		        (a) The Blackstone Entity and Product Manager may jointly remove Escrow Agent at any time by giving to Escrow Agent thirty (30) calendar
days’ prior notice in writing signed by the Blackstone Entity and Product Manager. Escrow Agent may resign at any time by giving to the Blackstone Entity and Product Manager thirty (30) calendar days’ prior written notice thereof;
provided, however, that no such resignation shall be effective until a successor agent reasonably acceptable to the Blackstone Entity and Product Manager shall have been appointed and such appointment shall have been accepted by such
successor escrow agent and Escrow Agent shall have delivered all Escrow Funds and any instruments in which the Escrow Funds have been invested in accordance with this Escrow Agreement to such successor escrow agent. 

(b) Within twenty (20) calendar days after giving the foregoing notice of removal to Escrow Agent or receiving the
foregoing notice of resignation from Escrow Agent, the Blackstone Entity and Product Manager shall jointly agree on and appoint a successor Escrow Agent. Any such successor escrow agent shall agree to be bound by the terms of this Escrow Agreement
and shall, upon receipt of the Escrow Funds and any instruments in which the Escrow Funds have been invested in accordance with this Escrow Agreement, become Escrow Agent hereunder. If a successor Escrow Agent has not accepted such appointment by
the end of such 20-day period, Escrow Agent may, in its sole discretion, apply to a court of competent jurisdiction for the appointment of a successor Escrow Agent or for other appropriate relief. The costs and expenses (including reasonable
attorneys’ fees and expenses) incurred by Escrow Agent in connection with such proceeding shall be paid by, and be deemed a joint and several obligation of, the Blackstone Entity and Product Manager. 

(c) Upon receipt of the identity of the successor Escrow Agent, Escrow Agent shall deliver the Escrow Funds then held
hereunder to the successor Escrow Agent, less Escrow Agent’s fees, costs and expenses or other obligations owed to Escrow Agent. 
 (d) Upon proper delivery of the Escrow Funds to a successor Escrow Agent in accordance with the terms hereof, Escrow Agent shall have no further duties, responsibilities or obligations hereunder.

  

	11.		        (a) In the event of any ambiguity or uncertainty hereunder or in any notice, instruction or other communication received by Escrow Agent
hereunder, Escrow Agent may, in its sole discretion, refrain from taking any action other than retain possession of the Escrow Funds, unless Escrow Agent receives written instructions, signed by the Blackstone Entity and Product Manager, which
eliminates such ambiguity or uncertainty. 

 (b) In the event of any dispute between or conflicting
claims by or among the Blackstone Entity and Product Manager and/or any other person or entity with respect to any Escrow Funds, Escrow Agent shall be entitled, in its sole discretion, to refuse to comply with any and all claims, demands or
instructions with respect to such Escrow Funds so long as such dispute or conflict shall continue, and Escrow Agent shall not be or become liable in any way to the Blackstone Entity or Product Manager for failure or refusal to comply with such
conflicting claims, demands or instructions. Escrow Agent shall be entitled to refuse to act until, in its sole discretion, either (i) such conflicting or adverse claims or demands shall have been determined by a final order, judgment or decree
of the Bankruptcy Court, which order, judgment or decree is not subject to appeal, 

  

- 9 - 

 
or settled by agreement between the conflicting parties as evidenced in a writing satisfactory to Escrow Agent or (ii) Escrow Agent shall have received security or an indemnity satisfactory
to it sufficient to hold it harmless from and against any and all Losses which it may incur by reason of so acting. Escrow Agent may, in addition, elect, in its sole discretion, to commence in the Bankruptcy Court an interpleader action or seek
other judicial relief or orders as it may deem, in its sole discretion, necessary. The costs and expenses (including reasonable attorneys’ fees and expenses) incurred in connection with such proceeding shall be paid by, and shall be deemed a
joint and several obligation of, the Blackstone Entity and Product Manager. 
  

	12.	This Escrow Agreement shall be interpreted, construed, enforced and administered in accordance with the internal substantive laws (and not the choice of law rules) of
the State of New York and the United States. Each of the Blackstone Entity, Product Manager and the Escrow Agent hereby submits to the personal jurisdiction of and each agrees that all proceedings relating hereto shall be brought in the Bankruptcy
Court. Each of the Blackstone Entity, Product Manager and the Escrow Agent hereby waives the right to trial by jury. To the extent that in any jurisdiction the Blackstone Entity, Product Manager or the Escrow Agent may be entitled to claim, for
itself or its assets, immunity from suit, execution, attachment (whether before or after judgment) or other legal process, each hereby irrevocably agrees not to claim, and hereby waives, such immunity. Each of the Blackstone Entity, Product Manager
and the Escrow Agent waives personal service of process and consents to service of process by certified or registered mail, return receipt requested, directed to it at the address last specified for notices hereunder, and such service shall be
deemed completed ten (10) business days after the same is so mailed. 

  

	13.	This Escrow Agreement may be amended, waived or otherwise modified only by a written amendment or waiver signed by all the parties hereto or, in the case of a waiver,
by the party or parties hereto against whom the waiver is to be effective. No failure or delay by any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof. 

 

	14.	The rights and remedies conferred upon the parties hereto shall be cumulative, and the exercise or waiver of any such right or remedy shall not preclude or inhibit the
exercise of any additional rights or remedies. The waiver of any right or remedy hereunder shall not preclude the subsequent exercise of such right or remedy. 

 

	15.	Each of the Blackstone Entity, Product Manager and the Escrow Agent hereby represents and warrants, individually and not with respect to any other party to this Escrow
Agreement (a) that this Escrow Agreement has been duly authorized, executed and delivered on its behalf and constitutes its legal, valid and binding obligation and (b) that the execution, delivery and performance of this Escrow Agreement
by itself do not and will not violate any applicable law or regulation. 

  

	16.	The invalidity, illegality or unenforceability of any provision of this Escrow Agreement shall in no way affect the validity, legality or enforceability of any other
provision; and if any provision is held to be enforceable as a matter of law, the other provisions shall not be affected thereby and shall remain in full force and effect. 

  

- 10 - 

	

	17.	This Escrow Agreement, along with the Settlement Agreement, shall constitute the entire agreement of the parties with respect to the subject matter and supersedes all
prior oral or written agreements in regard thereto, and to the extent there is a conflict between the two agreements, the Settlement Agreement shall control. 

 

	18.	Upon distribution of the final installment of the 4(c) Payment Amount to Product Manager pursuant to paragraph 5(c)(1) hereof, this Escrow Agreement shall terminate.
The provisions of these Terms and Conditions shall survive termination of this Escrow Agreement and/or the resignation or removal of the Escrow Agent. 

  

	19.	No printed or other material in any language, including prospectuses, notices, reports, and promotional material which mentions “JP Morgan Chase Bank N.A.” by
name or the rights, powers, or duties of the Escrow Agent under this Escrow Agreement shall be issued by any other parties hereto, or on such party’s behalf, without the prior written consent of Escrow Agent. 

 

	20.	The headings contained in this Escrow Agreement are for convenience of reference only and shall have no effect on the interpretation or operation hereof.

  

	21.	This Escrow Agreement may be executed by each of the parties hereto in any number of counterparts, each of which counterpart, when so executed and delivered, shall be
deemed to be an original and all such counterparts shall together constitute one and the same agreement. 

  

	22.	The Escrow Agent does not have any interest in the Escrow Funds deposited hereunder but is serving as escrow holder only and having only possession thereof. The
Blackstone Entity and Product Manager, jointly and severally, shall pay or reimburse the Escrow Agent upon request for any transfer taxes or other taxes relating to the Escrow Funds incurred in connection herewith and shall indemnify and hold
harmless the Escrow Agent any amounts that it is obligated to pay in the way of such taxes. Any payments of income from the Escrow Accounts shall be subject to withholding regulations then in force with respect to United States taxes. It is
understood that the Escrow Agent shall be responsible for income reporting only with respect to income earned on investment of funds which are a part of the Escrow Funds and is not responsible for any other reporting. 

 

	23.	Neither this Escrow Agreement nor any of the rights, interests or obligations hereunder may be assigned by any party hereto (whether by operation of law or otherwise)
without the prior written consent of the other parties hereto, and any attempted or purported assignment in violation of this paragraph 23 will be null and void; provided that this Escrow Agreement (including the rights, interests and obligations
hereunder) may be assigned by the Blackstone Entity by operation of any reorganization, restructuring, consolidation, merger or similar transaction of the Blackstone Entity. 

 

	24.	Except as expressly provided in paragraphs 4(b) and 4(c) of the Terms and Conditions herein, Escrow Agent hereby waives any and all rights to offset that it may have
against the Escrow Funds including, without limitation, claims arising as a result of any claims, amounts, liabilities, costs, expenses, damages, or other losses that Escrow Agent may be otherwise entitled to collect from any party to this Escrow
Agreement or any of their respective affiliates. 

  

- 11 - 

	25.	Compliance with Court Orders. In the event that any escrow property shall be attached, garnished or levied upon by any court order, or the delivery thereof shall
be stayed or enjoined by an order of a court, or any order, judgment or decree shall be made or entered by any court order affecting the property deposited under this Escrow Agreement, the Escrow Agent is hereby expressly authorized, in its sole
discretion, to obey and comply with all writs, orders or decrees so entered or issued, which it is advised by legal counsel of its own choosing is binding upon it, whether with or without jurisdiction, and in the event that the Escrow Agent obeys or
complies with any such writ, order or decree it shall not be liable to any of the parties hereto or to any other person, entity, firm or corporation, by reason of such compliance notwithstanding such writ, order or decree be subsequently reversed,
modified, annulled, set aside or vacated. 

  

	26.	Patriot Act Disclosure. Section 326 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
of 2001 (“USA PATRIOT Act”) requires the Escrow Agent to implement reasonable procedures to verify the identity of any person that opens a new account with it. Accordingly, the parties acknowledge that Section 326 of the USA
PATRIOT Act and the Escrow Agent’s identity verification procedures require the Escrow Agent to obtain information which may be used to confirm the parties identity including without limitation name, address and organizational documents
(“identifying information”). The parties agree to provide the Escrow Agent with and consent to the Escrow Agent obtaining from third parties any such identifying information required as a condition of opening an account with or using any
service provided by the Escrow Agent. 

 Security Procedures. In the event funds transfer instructions are given (other
than in writing at the time of execution of this Escrow Agreement), whether in writing, by facsimile or otherwise, the Escrow Agent is authorized to seek confirmation of such instructions by telephone call-back to the person or persons designated on
schedule 1 hereto (“Schedule 1”), and the Escrow Agent may rely upon the confirmation of anyone purporting to be the person or persons so designated. Each funds transfer instruction shall be executed by an authorized signatory, a
list of such authorized signatories is set forth on Schedule 1. The persons and telephone numbers for callbacks may be changed only in a writing actually received and acknowledged by the Escrow Agent. If the Escrow Agent is unable to contact any of
the authorized representatives identified in Schedule 1, the Escrow Agent is hereby authorized to seek confirmation of such instructions by telephone call-back to any one or more of Blackstone Entity or the Product Manger’s executive officers,
(“Executive Officers”), as the case may be, which shall include the titles of                     , as the Escrow Agent may select.
Such “Executive Officer” shall deliver to the Escrow Agent a fully executed incumbency certificate, and the Escrow Agent may rely upon the confirmation of anyone purporting to be any such officer. The Escrow Agent and the
beneficiary’s bank in any funds transfer may rely solely upon any account numbers or similar identifying numbers provided by Blackstone Entity and the Product Manager to identify (a) the beneficiary, (b) the beneficiary’s bank,
or (c) an intermediary bank. The Escrow Agent may apply any of the escrowed funds for any payment order it executes using any such identifying number, even when its use may result in a person other than the beneficiary being paid, or the
transfer of funds to a bank other than the beneficiary’s bank or an intermediary bank designated. The parties acknowledge that these security procedures are commercially reasonable. 

  

- 12 - 

 IN WITNESS WHEREOF, each of the parties has caused this Escrow Agreement to be executed by a duly authorized
officer as of the day and year first written above. 
  

			
	BLACKSTONE CAPITAL PARTNERS V USS, L.P.
		
	By:	 	BLACKSTONE MANAGEMENT, ASSOCIATES, V L.L.C., its General Partner
		
	By:	 	BMA V USS L.L.C., its Sole Member

  

			
	By:	 	 
		 	Name: David Foley
		 	Title: Senior Managing Director

  

			
	USS PRODUCT MANAGER LLC
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	JP Morgan Chase Bank N.A., as Escrow Agent
		
	By:	 	 
		 	Name:
		 	Title:

 SCHEDULE 1 

 

	 	1.	Telephone Number(s) and authorized signature(s) for 

  

	 	2.	Person(s) Designated to give Funds Transfer Instructions 

  

													
	 If to Blackstone Entity:
	  				  		 				  	
					
	 Name
	  	 	 	  	 Telephone Number
	 	 	 	  	 Signature

					
	
1.                       
                                         
               
	  				  	                           
                                         
          	 				  	                           
                                         
          
					
	
2.                       
                                         
               
	  				  	                           
                                         
          	 				  	                           
                                         
          
					
	
3.                       
                                         
               
	  				  	                           
                                         
          	 				  	                           
                                         
          
					
	If to the Product Manager:	  				  		 				  	
					
	 Name
	  	 	 	  	 Telephone Number
	 	 	 	  	 Signature

					
	
1.                       
                                         
               
	  				  	                           
                                         
          	 				  	                           
                                         
          
					
	
2.                       
                                         
               
	  	 	 	  	  	                           
                                         
          	 				  	
					
	
3.                       
                                         
               
	  	 	 	  	  	                           
                                         
          	 				  	                           
                                         
          

  

 EXHIBIT A 
 JOINT INSTRUCTION CERTIFICATE 
 [DATE] 

JP Morgan Chase Bank N.A. 
 Escrow Services

 4 New York Plaza, 21st Floor 
 New
York, NY 10004 
 Attn: Andy Jacknick/Christopher Fasouletos 
  

	 	Re:	Account # [            ] 

 Gentlemen: 
 Reference is made to the Escrow Agreement, dated as of July
[    ], 2009 (the “Escrow Agreement”), entered into by and among JP Morgan Chase Bank N.A. (“Escrow Agent”), USS Product Manager LLC (“Product Manager”) and Blackstone Capital
Partners V USS, L.P. (“Blackstone Entity”). 
 Capitalized terms not defined herein shall have the meanings
assigned to them in the Escrow Agreement. 
 The instructions set forth in this letter constitute the Joint Instruction
Certificate given pursuant to Section II; Paragraph 4(a) of the Escrow Agreement. 
 Pursuant to Section II; Paragraph 4(a) of
the Escrow Agreement, Product Manager and the Blackstone Entity hereby jointly instruct the Escrow Agent to disburse the aggregate amount of
                     Dollars
($                    
)1 from the Escrow Account to Product Manager in accordance
with the written payment instructions of Product Manager (which are attached hereto as Schedule A). 
 The Blackstone Entity and
Product Manager hereby agree that the disbursement of the 4(a) Payment Amount from the Escrow Account to Product Manager in accordance with the provisions of this letter constitutes full payment of the amount required by Section II; Paragraph 4(a)
of the Escrow Agreement and Section 4(a) of the Settlement Agreement, to be released by the Escrow Agent on the Effective Date. 
 The amount of the Escrow Account not disbursed pursuant to the foregoing provisions of this letter shall remain subject to the terms and conditions of the Escrow Agreement. 

 

	1	Such amount to be $9,000,000 less 50% of the amount of Interim Management Fees actually paid to Product Manager between the date of the Settlement Agreement and the
Effective Date. 

 Please acknowledge your receipt of this letter by your signature below where indicated and
your return of this letter, as so acknowledged, to Adam C. Harris, Esq. of Schulte Roth & Zabel LLP, by facsimile to (212) 593-5955 and to David Barrack and Roy L. Goldman, of Fulbright & Jaworski L.L.P., by facsimile to
(212) 318-3400. 

                    
    Very truly yours, 
  

			
	BLACKSTONE CAPITAL PARTNERS V USS, L.P.
		
	By:	 	Blackstone Management Associates V USS L.L.C., its General Partner

 

			
	By:	 	BMA V USS L.L.C., its Sole Member

  

			
	By:	 	 
		 	Name: David I. Foley
		 	Title: Senior Managing Director

  

 
  

			
	USS PRODUCT MANAGER LLC

  

			
	By:	 	 
		 	Name:
		 	Title:

  

			
	Acknowledged:
	
	JP Morgan Chase Bank N.A., as Escrow Agent
		
	By:	 	 
		 	Name:
		 	Title:

 SCHEDULE A 

Payment Instructions 
 of Product Manager 
 Name of Bank: 

ABA Number: 

Name of Account: 

Account Number: 

Ref: 

 EXHIBIT B 
 4(b) REQUEST CERTIFICATE 
 [DATE] 

JP Morgan Chase Bank N.A. 
 Escrow Services

 4 New York Plaza, 21st Floor 
 New
York, NY 10004 
 Attn: Andy Jacknick/Christopher Fasouletos 
  

	 	Re:	Account # [            ] 

 Gentlemen: 
 Reference is made to the Escrow Agreement, dated as of July
[    ], 2009 (the “Escrow Agreement”), entered into by and among JP Morgan Chase Bank N.A. (“Escrow Agent”), USS Product Manager LLC (“Product Manager”) and Blackstone Capital
Partners V USS, L.P. 
 Capitalized terms not defined herein shall have the meanings assigned to them in the Escrow Agreement.

 The instructions set forth in this letter constitute the 4(b) Request Certificate given pursuant to Section II; Paragraph
4(b) of the Escrow Agreement. 
 Pursuant to Section II; Paragraph 4(b) of the Escrow Agreement, Product Manager hereby
instructs the Escrow Agent to disburse the aggregate amount of                      Dollars
($            )2 from the Escrow Account to Product Manager on                      2009, being the 40th day following
the conclusion of the Management Transition Period in accordance with the written payment instructions of Product Manager (which are attached hereto as Schedule A). 
 Product Manager hereby agrees that the disbursement of the 4(b) Payment Amount from the Escrow Account to Product Manager in accordance with the provisions of this letter constitutes full payment of the
amount required by Section II; Paragraph 4(b) of the Escrow Agreement and Section 4(b) of the Settlement Agreement to be released by the Escrow Agent on the 4(b) Payment Date. 

The amount of the Escrow Account not disbursed pursuant to the foregoing provisions of this letter shall remain subject to the terms and
conditions of the Escrow Agreement. 
  

	2	Such amount to be $2,300,000 less 50% of the amount of Interim Management Fees actually paid to Product Manager between the date of the Settlement Agreement and the
Effective Date. 

 Please acknowledge your receipt of this letter by your signature below where indicated and
your return of this letter, as so acknowledged, to Adam C. Harris, Esq. of Schulte Roth & Zabel LLP, by facsimile to (212) 593-5955 and to David Barrack and Roy L. Goldman, of Fulbright & Jaworski L.L.P., by facsimile to
(212) 318-3400. 

                    
    Very truly yours, 
  

			
	USS PRODUCT MANAGER LLC
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	Acknowledged:
	
	JP Morgan Chase Bank N.A., as Escrow Agent
		
	By:	 	 
		 	Name:
		 	Title:

 SCHEDULE A 

Payment Instructions 
 of Product Manager 
 Name of Bank: 

ABA Number: 

Name of Account: 

Account Number: 

Ref: 

 EXHIBIT C 
 4(c) REQUEST CERTIFICATE 
 [DATE] 

JP Morgan Chase Bank N.A. 
 Escrow Services

 4 New York Plaza, 21st Floor 
 New
York, NY 10004 
 Attn: Andy Jacknick/Christopher Fasouletos 
  

	 	Re:	Account # [            ] 

 Gentlemen: 
 Reference is made to the Escrow Agreement, dated as of July
[    ], 2009 (the “Escrow Agreement”), entered into by and among JP Morgan Chase Bank N.A. (“Escrow Agent”), USS Product Manager LLC (“Product Manager”) and Blackstone Capital
Partners V USS, L.P. 
 Capitalized terms not defined herein shall have the meanings assigned to them in the Escrow Agreement.

 The instructions set forth in this letter constitute the 4(c) Request Certificate given pursuant to Section II; Paragraph
4(c) of the Escrow Agreement. 
 Pursuant to Section II; Paragraph 4(c) of the Escrow Agreement, Product Manager hereby
instructs the Escrow Agent to disburse from the Escrow Account to Product Manager an aggregate amount of                      Dollars
($            ) (the “Aggregate 4(c) Payment Amount”), paid in equal monthly installments through December 2010, on the 17th day of each calendar month commencing
                    
3 17, 2009 in accordance with the written payment
instructions of Product Manager (which are attached hereto as Schedule A). 
 Product Manager hereby agrees that the
disbursement of the Aggregate 4(c) Payment Amount from the Escrow Account to Product Manager in accordance with the provisions of this letter shall constitute full payment of the amount required by Section II; Paragraph 4(c) of the Escrow Agreement
and Section 4(c) of the Settlement Agreement. 
 The amount of the Escrow Account not disbursed pursuant to the foregoing
provisions of this letter shall remain subject to the terms and conditions of the Escrow Agreement. 
 * * * 

 

	3	The first month after the Effective Date. 

 Please acknowledge your receipt of this letter by your signature below where indicated and
your return of this letter, as so acknowledged, to Adam C. Harris, Esq. of Schulte Roth & Zabel LLP, by facsimile to (212) 593-5955 and to David Barrack and Roy L. Goldman, of Fulbright & Jaworski L.L.P., by facsimile to
(212) 318-3400. 

                    
    Very truly yours, 
  

			
	USS PRODUCT MANAGER LLC
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	Acknowledged:
	
	JP Morgan Chase Bank N.A., as Escrow Agent
		
	By:	 	 
		 	Name:
		 	Title:

 SCHEDULE A 

Payment Instructions 
 of Product Manager 
 Name of Bank: 

ABA Number: 

Name of Account: 

Account Number: 

Ref:Solicitation, Offer and Award

 Exhibit 10.7 

 

																																																																																			
	SOLICITATION, OFFER AND AWARD	  	1.     THIS CONTRACT IS A RATED ORDER

    
    UNDER DPAS (16 CFR 700)                 ̈
	  
   
	 	 

 
	RATING
 DO-
	  
   
	 	 
  
	PAGE
 1
	  
   
	 	 

 
	OF PAGES
 79
	  

  

	2. CONTRACT No.	  	3. SOLICITATION NO.	 	4. SOLICITATION TYPE	 	 	5. DATE ISSUED	  	 	 	6. REQUISITION/PURCHASE NO.	  
	  

N00033-07-C-5416
	  	  

N00033-06-R-5416
	 	 	 	Sealed Bid (IFB)	 	 	31 August 2006	  	 			 
	  	 	x	 	Negotiated (RFP)	 				 				 				 				 			 	 				 				 				 				 				 				 			 
	7. ISSUED
BY                                         
                       CODE	  	 	 	8. ADDRESS OFFER TO (If other than item 7)	  
	Military Sealift Command, N1033/PM5	 	See Item 7	  
	914 Charles Morris Court SE	 		 
	 Washington Navy Yard, DC
20398-5640
  
	 	 	 
	 NOTE: In sealed bid solicitations “offer” and “offeror”
mean “bid” and “bidder”.
	   

																																																											
	SOLICITATION
	
	 9.     Sealed offers in original and copies for furnishing the supplies or services in the
Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in                     until
04:00 PM (hour) local time 30 November 2006.

	
	 CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All
offers are subject to all terms and conditions contained in this solicitation.
  

																																																																																									
	 	 	 	 
	10. FOR INFORMATION	   	 	 	A. NAME	  	 	B. TELEPHONE (NO COLLECT CALLS)	 	 	C. E-MAIL ADDRESS	  
	 CALL:
	 	 ̈	 	  	 				 				 				 				 				 			 	 	AREA CODE	 	NUMBER	 	EXT.	 				 				 				 				 				 				 				  			 
	 	 	 	 	 	 	 	Diana Fischer	  	 	202	 	685- 5833	 	 	 	 	Diana.fischer@navy.mil	  
	11. TABLE OF CONTENTS	  
	 (x)
	 	SEC	 	DESCRIPTION	  	 	 	PAGE(S)	  	 	 	(ü)	 	SEC	 	DESCRIPTION	  	 	 	PAGE(S)	  
	Part I – The Schedule	  	 	 	PART II – CONTRACT CLAUSES	  
	 x
	 	A	 	SOLICITATION/CONTRACT FORM	   	 	 	1-9	  	 	 	x	 	I	 	CONTRACT CLAUSES	  	 	 	57-61	  
	 x
	 	B	 	SUPPLIES OR SERVICES AND PRICES/COSTS	      	 	 	10	  	 	 	PART III – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS	  
	 x
	 	C	 	DESCRIPTION/SPECS./WORK STATEMENT	   	 	 	11-25	  	 	 	x
	 	J	 	LIST OF ATTACHMENTS	  	 	 	62	  
	 x
	 	D	 	PACKAGING AND MARKING	    	 	 	26	  	 	 	PART IV – REPRESENTATIONS AND INSTRUCTIONS	  
	 x
	 	E	 	INSPECTION AND ACCEPTANCE	    	 	 	27-30	  	 	 	x
	 	K	 	REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS	     	 	 	63-67	  
	 x
	 	F	 	DELIVERIES OR PERFORMANCE	    	 	 	31-32	  	 	 	 	 
	 x
	 	G	 	CONTRACT ADMINISTRATION DATA	    	 	 	33-39	  	 	 	x	 	L	 	INSTR., CONDS., AND NOTICES TO OFFERORS	   	 	 	68-77	  
	 x
	 	H	 	SPECIAL CONTRACT REQUIREMENTS	    	 	 	40-56	  	 	 	x	 	M	 	EVALUATION FACTORS FOR AWARD	   	 	 	78-79	  

																																																											
	OFFER (Must be fully completed by offeror)
	 NOTE: Item 12 does not apply if the solicitation includes the
provisions at 52.214-16, Minimum Bid Acceptance Period.

	 12.   In compliance with the above, the undersigned agrees,
if this offer is accepted within             calendar days (60 calendar days unless a different period is inserted by the offeror) from the data for receipt of offers specified above, to
furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

																																																											
	 13.   DISCOUNT FOR PROMPT PAYMENT
 (See Section I,
Clause No. 52.232-8)             ̈
	 	10 CALENDAR DAYS

N/A                
%
	 	20 CALENDAR DAYS

N/A                
%
	 	30 CALENDAR DAYS

N/A                
%
	 	CALENDAR DAYS

N/
A                %

	
14.   ACKNOWLEDGMENT OF AMENDMENTS
	 	AMENDMENT NO.	 	DATE	 	AMENDMENT NO.	 	DATE
	 The offeror acknowledges receipt of amendments
to
	 	Amendment 0001	 	10/05/06	 	Amendment 0005	 	11/21/06
	 the SOLICITATION for offerors and
related
	 	Amendment 0002	 	10/23/06	 	Amendment 0006	 	11/22/06
	 documents numbered and
dated.
	 	Amendment 0003	 	11/03/06	 	Amendment 0007	 	11/28/06
	 	 	Amendment 0004	 	11/14/06	 	 	 	 

																																																																			
	 15A . NAME
 AND

ADDRESS
 OF
 OFFEROR
	 				 	CODE	 		 	 	 	 	 	FACILITY	  	 				 	 	 	 16.   NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER (Type
or print)

	 				 	US Product Carriers LLC
 399 Thornell Street
 Edison, NJ 08837
	 	 
	 				 	 	 
	 				 	 	 Joseph P. Gehegan

	 				 	 	 President & Chief Operating Officer

	 15B. TELEPHONE NUMBER.
	  	 	x	  	 	 
 
 
 
 
 
 
 	15C. CHECK IF
REMITTANCE
ADDRESS IS
DIFFERENCE
FROM ABOVE. -
ENTER
SUCH
ADDRESS IN
SCHEDULE.	 	17. SIGNATURE	  	18. OFFER DATE
	 AREA CODE
 (732)
	 	NUMBER
 635-2701
	  	EXT.	  	 	 	  
 /s/
	  	11/29/06

																																																																																																																					
	AWARD (To be completed by Government)	  
	
19.   ACCEPTED AS TO ITEMS NUMBERED

FIRM PERIOD
	
         

   
	 	      
	 20.   AMOUNT
	       
	 	      
	 21.   ACCOUNTING AND APPROPRIATION
	       

	 	 	 	 	$51,309,850	  	 	 	 	 
	 22.   AUTHORITY FOR USING OTHER THAN FULL AND
OPEN COMPETITION:
	        
	 	      
	 23.   SUBMIT INVOICES TO ADDRESS SHOWN IN
	       
	 	 	ITEM	  
	 ̈  10 
U.S.C. 2304 (c)(        )	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 ̈  41 U.S.C.
253(c)(        )	  	 	  
	 (4 copies unless otherwise
specified)                 ̈
	
  
	 
	 	 				 				 				 				 				 				 				 				 				 				 	 	 	 	 	 	 	 	 				 				 				 				 				 				 				 				 				 				 				 				 				  				 	 	 	 	  	 	 	 	  	 	 	 
	
24.   ADMINISTERED BY (If other than Item 7)
	
           
	 	 	 	 	 	 	CODE _________	  	 	 	PAYMENT WILL BE MADE BY	  	 	 	 	 	 	 	CODE	  
	 26.   NAME OF CONTRACTING OFFICER
(Type or print)
	        
	 	      

 
	 27.   UNITED STATES OF AMERICA

(Signature of Contracting Officer)
	       

  
	 	 	28.   AWARD DATE	  
	 DIANE
FISCHER
	   
	 	  
	 /S/ Diane Fischer
	   
	 	 	7/6/07	  

																																																																					
	 IMPORTANT – Award will be made on this form, or on Standard Form 26, or
by other authorized official written notice.

	 AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition not usable
	  	33-134	  				  				  				  				  				  	STANDARD FORM 33 (Rev. 4-85)
 Prescribed by GSA – FAR (48 CFR) 52.214 (c)

 Section SF 30 - BLOCK 14 CONTINUATION PAGE 
 BOXES 
  

	
	 Vessel(s):
  
 Hull Number – 503 or 504
 Hull Number – 504 or 505

	  
 Owner, DUNS, CAGE, TIN (and TIN of

parent, if applicable): USS Product Carriers
 LLC
DUNS#164564424, CAGE#4LRS1;
 TIN#204722588

 A. TANKTIME BOXES 
  

					
	 Solicitation Number
(date):                         N00033-06-R-5416
                                  
                                         
August 31, 2006
	  	Contract Number (date):
		
	 1.      Vessel(s) Required: See Section C
	  	 2.      Place/Range of Delivery: One or more ports within Continental United States,
Charterer’s option. Delivery Ballast Bonus payable upon delivery: $1,308,822.

		
		  	 3.      Place/Range of Redelivery: Worldwide – Redelivery Ballast Bonus payable
upon redelivery: $3,063,752.

			
	 4.      Charter Period

 

         Base period of about one year with three
option periods
of about 1-year and one option
period of about 11-months.
	  	 5.      Laydays:

 
 Commencing:

 
  

Cancelling:
	 	  
  
 Vessel1: 01 October 2010
 Vessel 2: 01 January 2011

 
 Vessel 1: 31 December 2010
 Vessel 2: 31 March 2011

			
	 6.      Terms/Conditions/Attachments added, deleted or
modified:
  
 See Section C.
	  		 	

  

 N00033-07-C-5416 

 

			
	 7.      Vessel/Flag/Year Built:

Hull Number – 503 or 504/USA/2010
 Hun Number – 504 or 505/USA/2011
	  	 8.      Proposal Firm Until:

November 30, 2006 to March 30, 2007

	
	 9.      Amendments Acknowledged (amendment numbers
and dates): Amendment 0001 – 10/05/06,
 Amendment 0002 – 10/23/06, Amendment 0003 – 11/03/06, Amendment 0004
– 11/14/06,
 Amendment 0005 – 11/21/06, Amendment 0006 – 11/22/06, Amendment 0007 –11/28/06,

Amendment 0008 –01/30/07, Amendment 0009 –02/01/07, Amendment 0010 – 02/23/07,

Amendment 0011 – 03/16/07, Amendment 0012 – 03/21/07.

		
	 10.    Owner :

(style, address, phone, cell phone, pager, e-mail, fax)
  

USS Product Carriers LLC 399
 Thornall Street
 Edison, NJ 08837

Phone: (732) 635-2701 – Joseph Gehegan
 Phone: (732) 635-2707 – Jeff Miller
 Phone: (732) 635-2708
– Ray Marquardt
 Cell: (732) 259-3563 – Joseph Gehegan

Fax: (732) 635-1924
 Email: mscrfp@usslp.com
  
 DUNS #164564424
	  	 11.    Broker (address, phone, e-mail, fax):

None

	  	  
  
  

 
  
  

 
 12.    Remittance
Address for Hire (if other than Box 11)
  
 LaSalle Bank
National Association
 ABA# 071000505
  

Credit to USS Chartering LLC
 Account Number 5800299439

  

 N00033-07-C-5416 

 

 SECTION B – SUPPLIES OR SERVICES AND PRICE 

 

	B-1	Charter Hire 

 B-1.1 Hire
Rates. Charter hire for services under this Charter Party shall be payable at the applicable rates stipulated in Boxes 14-16 and shall be earned at the expiration of each 15-day charter period. Except as otherwise provided herein, said hire
rates shall be considered payment in full for all services of the Vessel(s) and Associated Equipment under this Charter including all overtime, penalty time, bonuses, payments, and emoluments payable to Master, Officers, and crew for services under
this Charter, irrespective of the geographic scope of said service and including the carriage of hazardous cargoes except as otherwise identified by the Government. Said hire rates are exclusive of the costs of fuel and port charges, which are
addressed in Sections H-15 and H-13 respectively. 
 B-1.2 Loss of Vessel. Should the Vessel be either lost or missing and presumed lost,
Charterer may, at its sole discretion, terminate this Charter, in which case hire shall cease to be payable at the time of the loss or, if said time is unknown, at the time of the Vessel’s last received communication. Similarly, should the
Vessel become a constructive total loss, Charterer may, at its sole discretion, terminate this Charter, in which case hire shall cease to be payable at the time of the casualty resulting in the constructive loss. The Vessel shall be considered
missing and presumed lost when, after a reasonable lapse of time, it fails to reach its next scheduled port and reasonable efforts to contact it fail. 

  

 N00033-07-C-5416 

 

															
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	  	UNIT	  	UNIT PRICE	 	  	AMOUNT	 
	0001	  		  	1	  	Each	  	$	28,318,822.00	  	  	$	28,318,822.00	  
		  	Firm Period Vessel 1 Fixed Price	  		  		  				  			
		  	FFP	  		  		  				  			
		  	Per Diem $27,010,000.00 ($74,000.00 per day)	  		  		  				  			
						
		  	Delivery bonus $1,308,822.00	  		  		  				  			
		  	 FOB: Destination
  
	  		  		  				  			
		  		  		  		  				  	 	 	 
		  		  		  		  	 	NET AMT	  	  	$	28,318,822.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	  	UNIT	  	UNIT PRICE	 	  	AMOUNT	 
	0002	  		  		  		  				  			
		  	Year 1 Vessel 1 Reimbursables	  		  		  				  			
		  	FFP	  		  		  				  			
		  	 FOB: Destination
  
	  		  		  				  			
		  		  		  		  				  	 	 	 
		  		  		  		  	 	NET AMT	  	  	$	0.00	  

  

 N00033-07-C-5416 

 

																			
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	0003	  		  	 	1	  	  	 	Each	  	  	$	22,991,028.00	  	  	$	22,991,028.00	  
		  	Firm Period Vessel 2 Fixed Price	  				  				  				  			
		  	FFP	  				  				  				  			
		  	Per Diem $21,682,206.00 ($79,422.00 per day)	  				  				  				  			
						
		  	Delivery bonus $1,308,822.00	  				  				  				  			
		  	 FOB: Destination
  
	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	22,991,028.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	0004	  		  				  				  				  			
		  	Year 1 Vessel 2, Reimbursables	  				  				  				  			
		  	FFP	  				  				  				  			
		  	 FOB: Destination
  
	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	0.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	0005	  		  	 	1	  	  	 	Each	  	  	$	21,137,150.00	  	  	$	21,137,150.00	  
	OPTION	  	Year 2 Vessel I Fixed Price	  				  				  				  			
		  	FFP	  				  				  				  			
		  	Per Diem $21,137,150 ($57,900.00 per day)	  				  				  				  			
		  	 FOB: Destination
  
	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	21,137,150.00	  

  

 N00033-07-C-5416 

 

																			
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0006
	  		  				  				  				  			
	 Option
	  	Year 2 Vessel I Reimbursables	  				  				  				  			
		  	FFP	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	0.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0007
	  		  	 	1	  	  	 	Each	  	  	$	21,137,150.00	  	  	$	21,137,150.00	  
	 OPTION
	  	Year 2 Vessel 2 Fixed Price	  				  				  				  			
		  	FFP	  				  				  				  			
		  	Per Diem $21,137,150 ($57,900.00 per day)	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	21,137,150.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0008
	  		  				  				  				  			
	 OPTION
	  	Year 2 Vessel 2 Reimbursables	  				  				  				  			
		  	FFP	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	0.00	  

  

 N00033-07-C-5416 

 

															
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	  	UNIT	  	UNIT PRICE	 	  	AMOUNT	 
	 0009
	  		  	1	  	Each	  	$	20,042,150.00	  	  	$	20,042,150.00	  
	 OPTION
	  	Year 3 Vessel 1 Fixed Price	  		  		  				  			
		  	FFP	  		  		  				  			
		  	Per Diem $20,042,150.00 ($54,910.00 per day)	  		  		  				  			
		  	FOB: Destination	  		  		  				  			
		  		  		  		  				  	 	 	 
		  		  		  		  	 	NET AMT	  	  	$	20,042,150.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	  	UNIT	  	UNIT PRICE	 	  	AMOUNT	 
	 0010
	  		  		  		  				  			
	 OPTION
	  	Year 3 Vessel 1 Reimbursables	  		  		  				  			
		  	FFP	  		  		  				  			
		  	FOB: Destination	  		  		  				  			
		  		  		  		  				  	 	 	 
		  		  		  		  	 	NET AMT	  	  	$	0.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	  	UNIT	  	UNIT PRICE	 	  	AMOUNT	 
	 0011
	  		  	1	  	Each	  	$	20,042,150.00	  	  	$	20,042,150.00	  
	 OPTION
	  	Year 3 Vessel 2 Fixed Price	  		  		  				  			
		  	FFP	  		  		  				  			
		  	Per Diem $20,042,150.00 ($54,910.00 per day)	  		  		  				  			
		  	FOB: Destination	  		  		  				  			
		  		  		  		  				  	 	 	 
		  		  		  		  	 	NET AMT	  	  	$	20,042,150.00	  

  

 N00033-07-C-5416 

 

																			
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0012
	  		  				  				  				  			
	 OPTION
	  	Year 3 Vessel 2 Reimbursables	  				  				  				  			
		  	FFP	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	0.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0013
	  		  	 	1	  	  	 	Each	  	  	$	20,619,215.00	  	  	$	20,619,215.00	  
	 OPTION
	  	Year 4 Vessel 1 Fixed Price	  				  				  				  			
		  	FFP	  				  				  				  			
		  	Per Diem $20,619,215.00 ($56,491.00 per day)	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	20,619,215.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0014
	  		  				  				  				  			
	 OPTION
	  	Year 4 Vessel 1 Reimbursables	  				  				  				  			
		  	FFP	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	0.00	  

  

 N00033-07-C-5416 

 

																			
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0015
	  		  	 	1	  	  	 	Each	  	  	$	20,619,215.00	  	  	$	20,619,215.00	  
	 OPTION
	  	Year 4 Vessel 2 Fixed Price	  				  				  				  			
		  	FFP	  				  				  				  			
		  	Per Diem $20,619,215.00 ($56,491.00 per day)	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	20,619,215.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0016
	  		  				  				  				  			
	 OPTION
	  	Year 4 Vessel 2 Reimbursables	  				  				  				  			
		  	FFP	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	0.00	  

  

 N00033-07-C-5416 

 

																			
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0017
	  		  	 	1	  	  	 	Each	  	  	$	22,467,622.00	  	  	$	22,467,622.00	  
	 OPTION
	  	Year 5 Vessel 1 Fixed Price	  				  				  				  			
		  	FFP	  				  				  				  			
		  	Per Diem $19,403,870.00 ($57,922 per day)	  				  				  				  			
		  	Redelivery bonus $3,063,752.00	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	22,467,622.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0018
	  		  				  				  				  			
	 OPTION
	  	Year 1 Vessel 1 Reimbursables	  				  				  				  			
		  	FFP	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	0.00	  
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0019
	  		  	 	1	  	  	 	Each	  	  	$	22,467,622.00	  	  	$	22,467,622.00	  
	 OPTION
	  	Year 5 Vessel 2 Fixed Price	  				  				  				  			
		  	FFP	  				  				  				  			
		  	Per Diem $19,403,870.00 ($57,922 per day)	  				  				  				  			
		  	Redelivery bonus $3,063,752	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	22,467,622.00	  

  

 N00033-07-C-5416 

 

																			
						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0020
	  		  				  				  				  			
	 OPTION
	  	Year 5 Vessel 2 Reimbursables	  				  				  				  			
		  	FFP	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	0.00	  

  

 N00033-07-C-5416 

 

 SECTION C – STATEMENT OF WORK 

C-1 DEFINITIONS AND ACRONYMS: 
 C-1.1
Alterations - Additions of equipment; changes to the configuration, location, type, or number of pieces of equipment or systems; changes in the arrangement and outfitting of Vessel’s structure 

C-1.2 Associated Equipment - Construed to include all contractor-furnished or owned equipment necessary for performance under this Charter

 C-1.3 Bbl - Barrel (42 U.S. gallons volume measure) 
 C-1.4 CAGE - Commercial and Governmental Entity Code (reference DFARS 252.204-7001) 
 C-1.5
CEC - Contractor Establishment Code 
 C-1.6 CFE - Contractor-furnished equipment 

C-1.7 Charter - Interchangeable with “Charter Party” 
 C-1.8 Charterer - The United States of America 
 C-1.9 Charter Party - This document
when executed; interchangeable with “contract” and “Charter” 
 C-1.10 Charter Party Date - Identified in Box 3 of SF
1449 
 C-1.11 COMSC - U.S. Department of the Navy, Commander, Military Sealift Command 

C-1.12 COMSCINST - COMSC Instruction 

C-1.13 Condition Alpha - A standard of routine vessel physical security, effective throughout the currency of this Charter, which is associated
with good industry practice and prudent seamanship (see also Section H-26 MSC Ship Physical Security below). 
 C-1.14 Condition Delta -
A standard of enhanced vessel physical security, effective upon notice from Charterer authorities, which comes in response to an increased threat to the Vessel, its cargo, or crew. Security measures required to be taken during Condition Delta can be
manpower intensive, and additional personnel and materiel may be provided by Charterer or Government-contracted personnel. Because such personnel or materiel may not be immediately available, Owner must be prepared to unilaterally meet the security
requirements of Condition Delta for a period up to three days. (See also Section H-28 MSC Ship Physical Security below). 
 C-1.15 CONSOL
- Also known as Underway Replenishment wherein – Cargo Consolidation that is done at sea, underway where the tanker will transfer cargo fuel to a Naval Auxiliary while underway via cargo hoses sent from an oiler. This requires special fittings
on the tanker to be able to receive the hose via highline. 

  

 N00033-07-C-5416 

 

 C-1.16 Contracting Officer - Identified in Box 10 of SF33 

C-1.17 Contracting Officer’s Representative (COR) (DFARS 202.101, MAY 2006): means an individual designated (in accordance with subsection
201.602-2 of the DEARS) and authorized in writing by the contracting officer to perform specific technical or administrative functions. 
 If
the Contracting Officer designates a COR, the Contractor will receive a copy of the written designation. It will specify the extent of the COR’s authority to act on behalf of the Contracting Officer. The COR is not authorized to make any
commitments or changes that will affect price, quality, quantity, delivery, or any other term or condition of contract. 
 C-1.18
Contractor - Interchangeable with “Owner” 
 C-1.19 Crew - Of the Vessel identified at Box 7 

C-1.20 DESC - Defense Energy Support Center 
 C-1.21 DFARS - Department of Defense Federal Acquisition Regulation Supplement (issued by the Department of Defense) 
 C-1.22 DOD - Department of Defense 
 C-1.23 DWT - Deadweight 

C-1.24 FAR - Federal Acquisition Regulation (issued by Department of Defense, General Services Administration, and National Aeronautics and Space
Administration. 
 C-1.25 FCC - Federal Communications Commission 
 C-1.26 FOS - see “Full Operational Status” 
 C-1.27 Ft - feet 

C-1.28 Full Operational Status - Vessel manned and provisioned, all Associated Equipment operational, and Vessel prepared in all respects to
perform her mission in accordance with this Charter, whether or not so ordered (see Section H-16 - Reduced Operational Status (Layup) below)) 

C-1.29 GFP - Government-furnished property (see FAR 52.245-2 below) 
 C-1.30 Government - The United States of America; interchangeable with “Charterer”. 
 C-1.31 Government Personnel - All embarked personnel not employed by the Owner, including military personnel and Government-employed civilians 

C-1.32 Government Designated Representative - Including, but not limited to, force protection personnel, military, government employees, and
government contractors 

  

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 C-1.33 hp - horsepower [1 hp equals 0.745799 kW] 

C-1.34 ITOPF - International Tanker Owners Pollution Federation Limited 
 C-1.35 km - kilometers 
 C-1.36 kW - kilowatts [1 kW equals 1.34 horsepower (hp)]

 C-1.37 LT - Long Ton (2,240 pounds weight) 
 C-1.38 m - meter 
 C-1.39 C - 1.37 m3-cubic
meter 
 C-1.40 Master - Of the Vessel(s) identified in Box 7 
 C-1.41 Moderate Weather - Conditions up to and including sustained winds of Beaufort Force 5 and sea state 4 are encountered for more than six hours shall not be considered a
“moderate-weather” day for purposes of fuel or speed warranties made under this Charter) 
 C-1.42 MSC - U.S. Department of the
Navy, Military Sealift Command 
 C-1.43 NMCARS - Navy Marine Corps Acquisition Regulation Supplement 

C-1.44 NM - Nautical Miles 
 C-1.45
OCIMF - Oil Company International Marine Forum 
 C-1.46 Owner - That entity or entities exercising commercial control of
the Vessel identified in Box 7; interchangeable with “Contractor” and “offeror” and to include the disponent Owners and all the shipowner’s and the disponent Owner’s agents, employees, independent contractors, Master,
Officers, and crew 
 C-1.47 P&I - Marine protection and indemnity insurance 

C-1.48 Paying Office - Identified in Box 18a of SF 1449 
 C-1.49 Performance Speed. Derived by dividing the total hours at sea on any given sea passage (as shown in the Vessel’s log)-after excluding any hours of non-moderate weather and any sea
passage covered by an off-hire calculation – into the total miles at sea on the given sea passage. 
 C-1.50 Place - Any berth,
dock, anchorage, submarine line, alongside any Vessel or lighter or any other place whatsoever to which Charterer is entitled to direct the Vessel hereunder 
 C-1.51 Psi - pounds per square inch (pressure measure) 
 C-1.52 QAR/QR - DESC
Quality Assurance Representative. Person who inspects ship cargo spaces for suitability to carry cargo and cargo for compliance with DoD quality specifications. 

  

 N00033-07-C-5416 

 

 C-1.53 Readiness - See Section H-6 below 

C-1.54 Reduced Operational Status - see Section H-16 below 
 C-1.55 C-1.53 RFP - Request for Proposals; interchangeable with solicitation 
 C-1.56
C-1.54 ROS - Reduced operational status (see C-1.52 above) 
 C-1.57 SDWT - Deadweight capacity, to assigned summer mean draft

 C-1.58 SIRE - Ship Inspection Reporting System – Database of ship OCIMF vetting inspections 

C-1.59 SWL - Safe Working Load 
 C-1.60
TEU - Twenty-foot equivalent unit (container volume measure) 
 C-1.61 C-1.59 TIN - Taxpayer Identification Number (see FAR
52.204-03 below) 
 C-1.62 C-1.60 USCG - United States Coast Guard 
 C-1.63 Vessel(s) - Identified at Box 7 
 C-1.64 WOG - Without guaranty 

C-2 Mission. The vessel(s) may be employed in worldwide trade for the transportation and/or prepositioning of petroleum cargo (including but not
limited to, hazardous cargoes) and for military readiness, in accordance with the terms of this Charter. 
 C-3 Vessel(s)
Specification/Capability. The Military Sealift Command, Sealift Program Office, Code PM51P, requests proposals for up to three (3) U.S. Flag, Jones Act compliant, qualified for the US domestic contiguous and non-contiguous coastwise trade,
clean, approved, epoxy coated, complete double hull product tankers with a maximum age of ten (10) years at the time of delivery and the following characteristics: 
  

	 	(a)	Minimum/maximum DWT 35,000/50,000 in epoxy coated cargo tanks 

  

	 	(b)	Maximum laden draft 37 feet at full load of DFM/F76 

  

	 	(c)	Maximum LOA 700 ft 

  

	 	(d)	Maximum Beam PANAMAX 

  

	 	(e)	Minimum SOA 14 knots – Force 5 

 C-3.1
Owner warrants that the Vessel(s) performing under this Charter Party shall be in full conformity with the requirements of this Charter Party, from the time of delivery and thereafter during the currency of this Charter Party. In particular the
Owner warrants that the Vessel(s) is as described in Section A of this Charter Party and that the Vessel(s) shall be Jones Act compliant. 

C-3.2 Regulatory Compliance. The Owner warrants that the Vessel(s) and all Associated Equipment shall be in full compliance with the International
Safety Management Code, all 

  

 N00033-07-C-5416 

 

 
applicable international conventions, all applicable laws, regulations, and other requirements of the nation of registry and of the nation(s) and local jurisdictions to whose port(s) and/or
place(s) it is contemplated that the Vessel(s) will be ordered. The Vessel(s) shall also possess an International Ship Security Certificate prior to delivery. Vessel(s) shall be delivered and maintained in the highest class of a recognized
classification society and be in compliance with all current safety, health, and pollution regulations promulgated by appropriate authorities, including the latest applicable IMO/ISO regulations. The Owner also warrants that the Vessel(s) shall be
entered with the International Tanker Owners Pollution Federation Limited (ITOPF) for the duration of this Charter. The Owner further warrants that the Vessel(s) shall have on board all certificates, records, or other documents required by the
aforesaid conventions, laws, regulations, and requirements. The Owner will enter the ships in the OCIMF SIRE database and comply with all OCIMF guidelines. For new ships, Owner will include a plan for obtaining and maintaining vetting compliance
with OCIMF members. 
 C-3.2.1 Other compliances. The Contractor shall comply with all applicable Federal, State and local laws,
executive orders, rules and regulations applicable to its performance under this contract. 
 C-3.2.2 Compliance with laws unique to Government
contracts. The Contractor agrees to comply with 31 U.S.C. 1352 relating to limitations on the use of appropriated funds to influence certain Federal contracts; 18 U.S.C. 431 relating to officials not to benefit; 40 U.S.C. 327, et seq., Contract Work
Hours and Safety Standards Act; 41 U.S.C. 51-58, Anti-Kickback Act of 1986; 41 U.S.C. 265 and 10 U.S.C. 2409 relating to whistleblower protections; 49 U.S.C. 40118, Fly American; 41 U.S.C. 423 relating to procurement integrity and 40 U.S.C. 3701, et
seq., Contract Work Hours and Safety Standards Act. 
 C-3.2.3 Vetting Approvals. The vessel(s) must possess vetting approvals from current and
future U.S. Government world-wide petroleum suppliers (i.e. SANGYONG, Exxon-Mobil, Cal-Tex and SK BP, Chevron-Texaco, Shell). The Government will provide the names of current DoD suppliers 180 days prior to delivery. 

C-3.2.4 OCIMF Inspection Requirements. The vessel(s) must meet all OCIMF inspection requirements. 

C-3.2.5 SIRE Participant. The vessel(s) must be a party to the SIRE system. 
 C-3.3 Vessel(s) Capability. Vessel(s) must possess the following capabilities: 
  

	 	(a)	Equipped to perform cargo operations both pierside and at anchorage (with adequate fendering) 

 

	 	(b)	Ability (equipped) to perform Refueling at Sea (CONSOL only) operations 

  

	 	(c)	Ability (equipped) to call at offshore petroleum facilities 

 C-3.3.1 A total of four (4) RAS receiving stations shall be installed that can receive a fueling rig with a ROBB or NATO coupling during RAS operations. The capability to perform the simultaneous
transfer of up to two (2) different fuel products shall be met. RAS stations shall be installed in fore and aft positions, forward of the house, with two (2) stations on both port and stbd sides. 

  

 N00033-07-C-5416 

 

 C-3.3.2 Reference drawing 2227933, Standard RAS Receiving Station Arrangement and Requirements, shall be
used as guidance for installing the RAS stations. Only rigging and fittings for the ROBB and NATO coupling configuration shall be installed. Since the probe receiver will not be required onboard, item numbers 1, 2, 5, 6, and 7 listed on reference
drawing are not required to be installed. Item numbers 3 and 4 listed on reference drawing are to be sourced by the installing activity vice Government furnished. 
 C-4 Shipboard Personnel. The Owner warrants that the Vessel(s) shall have an efficient and legally sufficient complement of Master, Officers, and crew with adequate training and experience in the
operation of all of the Vessel(s)’s equipment. The ship’s crew shall be trained, qualified and medically fit sufficient to accomplish the requirements of the PWS and consistent with the ship’s mission. The Master, Officers and a
minimum of 75% of the unlicensed crew shall be U.S. citizens with any non-U.S. citizen crew member being an alien lawfully admitted to the United States for permanent residence; The Master, Officer, and entire crew must be able to adequately
communicate in spoken and written English and possess valid and current certificates, licenses, and documents. Deck and Engine Officers shall meet the requirements of the USCG and STCW and possess current, valid USCG licenses, including Radar
Observer endorsement for Deck Officers, commensurate with the tonnage and classification of the ship. GMDSS operators and maintainers are to be properly licensed and certified. Licensed personnel shall have the necessary endorsements on their USCG
Merchant Mariner’s Document for the job to which they are assigned. All shall hold valid passports for the full length of this assignment. 

C-4.1 Crew List. Owner must provide an accurate and current crew list within 24 hours of contract award and, additionally, no later than 96 hours
prior to delivery of the vessel(s) at the designated load or delivery port (or first designated load port in the case of multiple load ports), time permitting. Further, at any time during the contract period a list of any reliefs scheduled to board
the vessel(s) is required 96 hours prior to the personnel change. The crew list shall include full name (including middle name or the letters “NM” if no middle name), date of birth, place of birth (city and country), passport number and
country of issue, and nationality of all crewmembers and other personnel onboard the vessel(s). Similar data for security personnel, military personnel, industrial-assistance personnel, service representatives, and all others who will be granted
unrestricted access to the ship must also be submitted to MSC not less than forty-eight hours prior to their visit/embarkation. Upon award, Charterer will provide a template in which the crew list must be submitted. The template must be filled out
in its entirety by Owners and resubmitted electronically in Microsoft Excel format to the Charterer. Scanned lists are unacceptable. 
 C-4.2
Appearance. The Contractor shall ensure that the appearance, dress and behavior of the officers and crew are commensurate with the ships’ status as U.S. Naval Ships. Accordingly, the Contractor shall establish and enforce appropriate
dress and grooming standards approved by COR for shipboard personnel (e.g., khakis or white coveralls for officers and blue for other crewmembers, in order to distinguish officers and crew and to also distinguish between visitors, stevedores,
supercargo, officers and crew). 
 C-4.3 Delay. Any delay resulting from Owner’s failure to provide the information in paragraph
C-4.3, above, within the prescribed time frames shall result in a corresponding increase in the time afforded to Charterer to accept delivery of the Vessel(s). 

  

 N00033-07-C-5416 

 

 C-4.4 Crew Qualifications 
 C-4.4.1 The Master, Officers, and crew of this Vessel(s) shall be appointed or hired by the Owner and shall be deemed to be the servants and agents of the Owner at all times except as otherwise specified
in this Charter. The Master of the Vessel(s) shall be under the direction of the Charterer as regards the employment of the Vessel(s) but shall not be under Charterer’s orders as regards navigation, care, and custody of the Vessel(s).

 C-4.4.2 Conduct of Master, Officers, and Crew. If the Charterer shall have reason to be dissatisfied with the conduct of the Master,
Officers, or crew, the Owner shall, on receiving particulars of the complaint, investigate the matter and, if necessary, make a change in personnel. 
 C-4.4.3 Identification Cards. In the event Government identification cards are issued to Master, Officers and crew, the Contractor shall be responsible for tracking and, upon redelivery of the
Vessel, returning all cards. 
 C-5 Description of Vessel(s) 
 C-5.1 Pumping and Stripping Capacity. The Vessel(s) is equipped with the number of cargo and stripping pumps identified in Boxes 73 and 75, and their minimum discharge rates (against a back
pressure of 100 psi at Vessel’s manifold) are noted in Boxes 74 and 76, respectively. The Vessel(s) is so equipped to drain and strip all cargo tanks of all free-flowing liquid cargo. 
 C-5.2 Cargo Capacity. The Vessel(s) has the total capacity for bulk cargo identified in Box 56 after a deduction of two percent for expansion. The Vessel(s) is constructed and equipped to carry,
without admixture, the minimum number of grades of petroleum products identified in Box 54, with positive means of segregation between systems; that is, minimum double valves or effective line blinds. The Vessel(s) is also equipped and constructed
to be capable of loading and discharging the minimum number of grades of petroleum products identified in Box 55 simultaneously, using separate lines, pumps, and manifold connections. 
 C-5.3 Ballast Tanks. The vessel(s) must possess clean segregated ballast tanks (SBT), as those terms are defined by applicable regulations, have the capacities noted in Box 57. 

C-5.4 Vapor Recovery and Inert Gas Systems. The vessel(s) must possess a vapor recovery system and inert gas system (IGS). 

C-5.5 Segregations with Double Valves. The vessel(s) shall possess a minimum of three segregations with double valve isolation. 

C-5.6 Cargo Hose Handling Boom. The vessel(s) shall possess a minimum 10 ton cargo hose handling boom at the manifold. 

C-5.7 Cargo Tanks. Vessel(s) must hot wash all cargo tanks with water, not to exceed 58 degrees centigrade prior to presenting for initial
acceptance/inspection. A Certified Marine Chemist shall inspect and certify cargo tanks as clean and gas free and safe for entry. 

  

 N00033-07-C-5416 

 

 (a) Coatings. Owner warrants that Vessel’s cargo spaces are fully coated with epoxy
coating(s) or equivalents as determined by the Charterer. 
 (b) Prior Cargoes. For the Vessel(s)’ cargo tanks to be
considered acceptable upon delivery under this Charter, the last two cargoes carried by the Vessel(s) prior to delivery under this Charter shall have been petroleum or its products not darker than 2.5 NPA color. Owner shall submit other technical
data as required by DESC based on the type of product carried. 
 (c) Cleaning. Vessel(s) shall be able to carry one complete,
undecanted, tank washings in dedicated slop tanks. 
 (d) Tank-Cleaning Machines. Vessel(s) shall be equipped, manned, and
capable of conducting continuous cleaning at sea while underway. If the Vessel(s) is equipped with installed tank-cleaning machines, the system shall be equipped with double gates, valves, or line blinds to ensure positive isolation of the system
being cleaned. Vessel(s) shall be equipped to mechanically clean, mop, dry and inert cargo tanks within three days between cargoes during performance of the charter when required. 

(e) Return in Like Condition. If, on tendering for the first voyage, the Vessel(s)’s tanks are suitable for the carriage of clean
products, the Vessel(s), at the termination of this Charter, shall be returned to the Owner by the Charterer with tanks in like condition, excepting normal wear and tear. If the tanks on tendering for the first voyage are suitable only for black
products, the Charterer may at his sole option return the Vessel(s) at the termination of this Charter with tanks dirty or clean. 
 (f) Riser Valves. Vessel(s) shall be equipped with either steel or modular iron riser valves and either steel or modular iron fittings on such riser valves at the manifolds. 

(g) Heating Coils. If heating coils are installed, they must have been certified within the last year. Copper, copper-nickel and copper
alloys (e.g., brass, bronze) are not acceptable and shall not be used in Vessel(s) compartments, pipelines, heating coils, or fittings. 
 (h) Oil/Water Interface Point. The Vessel(s) shall establish, immediately upon completion of loading and immediately prior to discharge, either by manual or electronic means, the oil/water interface point
in all cargo tanks and record such readings in Vessel’s logs. 
 C-6 Other Cargo 
 C-6.1 General Cargo. Subject only to Master’s approval as to safety and stowage, Charterer shall have the option of shipping general and drum cargo in available space. All charges for dunnage,
loading, stowing, and discharging so incurred shall be paid by the Charterer. 
 C-6.2 Injurious Cargoes. No injurious cargoes, including
acids that are injurious to the Vessel(s), are to be shipped. 
 C-6.3 Carriage of Non-Clean Products. The Charterer shall have the right
to carry dirty petroleum products excluding crude oil at any time during the currency of this Charter Party and also the right to change from dirty petroleum products to clean petroleum products any time

  

 N00033-07-C-5416 

 

 
during the currency of this Charter Party, it being understood that any time and expense involved in cleaning the tanks to carry clean petroleum products after carrying dirty petroleum products
shall be for the Charterer’s account, except that any additional cleaning required by reason of carrying a higher grade of cargo which can normally be done by the crew and/or with the Vessel’s equipment shall be for the Owner’s
account. It is also understood that this paragraph does not alter the responsibilities of the parties with respect to the condition of the tanks on delivery and redelivery as contained in Section C-5.7. 

C-7 Loading and Discharging. The whole reach and burthen of the Vessel(s) shall be at the disposal of the Charterer, reserving only proper and
sufficient space for Vessel’s Master, Officers, and crew, tackle, apparel, furniture, provisions, stores, and fuel. The Charterer shall have the use of the Vessel’s winches, and other appropriate gear actually on board, and the Owner shall
provide sufficient power to operate all the Vessel’s winches simultaneously. The Vessel(s) shall work night and day, unless otherwise advised by the Charterer. 
 C-7.1 Cargo Quantity Limitation. In no case shall the cargo exceed what the Vessel(s) can reasonably stow and carry, in the judgment of the Master, over and above the space and burthen necessary
for Vessel’s Officers and crew, her cabin, tackle, apparel, furniture, provisions, fresh water, stores, necessary ballast and fuel (sufficient space to be left in the tanks to provide for the expansion of cargo) and, in any case, not in excess
of the quantity permitted by the minimum freeboard permitted for the specific voyages and always consistent with safe drafts at the loading/discharging port(s)/place(s). 
 C-7.2 Detention or Standby. If by reason of the Owner’s failure to use diligence to keep the Vessel(s) in a thoroughly efficient state of hull, machinery, equipment, personnel, and other
particulars relating to the seaworthiness of the Vessel(s), the Charterer incurs costs of stevedoring detention or standby time in connection with the loading or discharging of cargo, such costs shall be for the account of the Owner, provided,
however, the Owner shall not be liable for such costs unless the period of detention or standby time exceeds 20 minutes. The Charterer, within 24 hours after the period of detention or standby time commences, shall give the Owner or its
representative written notice of the detention or Standby time. 
 C-7.3 Lighterage. Lighterage, if any, will be at the risk and
expense of the Charterer, except as otherwise provided herein. For each evolution when scheduled, Owner shall obtain spill prevention booms for use during lightering operations and adequate fendering for alongside operations and be able to lighter
(skin to skin) from another tanker. Contractor shall arrange for oil spill protection and cleanup. 
 C-7.4 Stevedore Damage. The
Charterer is to be responsible for any physical damage done to the Vessel(s) by Charterer stevedores on loading and/or discharging only if such damage is occasioned by negligence, breach of warranty or breach of contract, and if the Master advises
Charterer, or Charterer’s representatives, in writing, within 24 hours after occurrence of the specific damage and the Master further notifies the parties who have caused this damage, in writing, and endeavors to obtain their admission of
liability. As soon as practicable after such damage is sustained, the Owner is to have an independent survey made to define and estimate the damage; a written copy of the survey report is to be promptly forwarded to the Charterer. All

  

 N00033-07-C-5416 

 

 
claims are to be settled directly between the Owner and the stevedores, with the Charterer being ultimately responsible. 
 C-8 Personnel and Facility Security Clearances. The Owner is required to have a facility clearance up to Secret level with a GSA approved Class 6 document safe that has an approved electronic
combination locking device and approved shredder in accordance with DoD 5220.22-M National Industrial Security Program Operating Manual (NISPOM). Master, Chief Mate, Chief Engineer, and one additional Officer (either another deck officer or a radio
officer if included in the crew), and Port Engineers and Port Captains must possess and maintain a Secret security clearance granted by the Defense Industrial Security Office (DISCO). It is the Owner’s responsibility to submit requests for
security clearances in the proper format and in a timely manner prior to assignment to the program based on Defense Security Service (DSS) guidance. 
 C-8.1 Crew, Vendor and Transient Vetting: Full name, birth date, city, country, citizenship and passport information of crew, security personnel, military personnel, industrial-assistance
personnel, service representatives, and all others who will be granted unrestricted access to the ship must be submitted to MSC not less than forty-eight hours prior to their visit/embarkation. Specific format and e-mail address will be provided at
contract award. 
 C-9 Communications Equipment. The Contractor shall ensure that the Vessel configuration and equipment meets the
Regulatory Body Distress/Ship requirements of the U.S. Coast Guard (USCG), Federal Communications Commission (FCC), International Maritime Organization (IMO); and International Convention for the Safety of Life at Sea (SOLAS), 1974 as amended. The
Contractor shall also meet the following MSC specific requirements: 
 (a) Communications Space and Equipment. The Vessel shall
be equipped with a separate, suitable, and securable communication space designated and equipped for the Government to operate and maintain special communications equipment. The space, at a minimum shall have adequate square footage in which
Contractor-furnished and MSC-furnished equipment can be operated and maintained, estimated to be twenty square feet. 
 (1) The
Contractor shall provide: 
  

	 	(i)	INMARSAT Standard B Ship Earth Station 

  

	 	(ii)	MF/HF Transceiver(s); can be included in an integrated GMDSS console. 

 (2) The Government will provide, and the Contractor shall accommodate Secure Communications devices 
 (b) Department of Defense General Service (GENSER) Messaging. The Vessel shall be capable of transmitting and receiving GENSER messages. Classified and unclassified GENSER message traffic is controlled by
a personal computer based system. 
 (c) Radiotelephone Services. The Vessel shall be capable of radiotelephony over terrestrial
and satellite circuits in the VHF, HF, MF bands as described in COMSCINST 2000.2 Series. 

  

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 (d) Secure Communications. The Vessel shall be capable of supporting secure (encrypted)
communication equipment by complying with DOD and DON guidance on proper access, handling and disposition of classified material. The Contractor shall comply with physical security requirements in the following publications: 

(1) DOD Manual 5220.22-M (Industrial Security Manual for Safeguarding Classified Information) and DOD 5220.22-S (COMSEC supplement)

 (2) SECNAVINSTs 5510.30 Series and 5510.36 Series 
 (3) COMSCINST 2000.2 Series Ch-8 
 (e) Communications Administrative Services. The
Vessel shall have standard office furniture necessary to support communications administrative functions in accordance with the procedures described in COMSCINST 2000.2 Series. These include a telephone connection to the interior communications
system, a facsimile machine, a safe and a paper shredder. The safe shall be a GSA approved container, multi-drawer, class 6 document safe, with an approved electronic combination locking device. The shredder shall be a cross-cut type with a maximum
size residue of 3/64 inch wide by 1/2 inch long that complies with SECNAVINST 5510.36 Series. 
 (f) Logs and Files. The Vessel
shall have standard office equipment necessary to maintain communications logs as required by regulatory bodies and COMSCINST 2000.2 Series. The Vessel shall have sufficient file cabinets and file safes to file classified and unclassified message
traffic for thirty (30) days (unless otherwise specified in SECNAVINSTs 5510.30 Series and 5510.36 Series). A GSA-approved locking device must secure the storage containers for classified material. 

(g) Reduced Operational Status (ROS) Communications. In the event the Vessel is placed into ROS, the Contractor shall designate and train
a crewmember to operate the INMARSAT equipment in accordance with the manufacturer’s instructions in the event of an emergency. 
 C-10
Navigational Equipment. The vessel(s) shall be equipped with navigational equipment as required by U.S. law and international regulation/convention including, but not limited to the following: 

 

	 	(1)	Two radars (1-10 cm, 1-3 cm), one of which is Automatic Radar Plotting Aids (ARPA) capable. 

 

	 	(2)	Global Positioning System (GPS) 

  

	 	(3)	Gyro Compass 

  

	 	(4)	Automatic Steering Device 

  

	 	(5)	Fathometer 

  

	 	(6)	Speedlog 

  

	 	(7)	Weather facsimile 

  

	 	(8)	AIS 

 C-11 Fuel Monitoring Reports

  

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	 	(A)	Monthly reports. An inventory report shall be submitted monthly and include the following information: 

 

	 	(1)	Bunkers at the beginning of each month. 

  

	 	(2)	Bunkers at the end of each month. 

  

	 	(3)	Fuel received during the month and source. 

  

	 	(4)	Fuel consumed during the month. 

  

	 	(B)	A fuel consumption report shall also be submitted monthly and include the following: 

 

	 	(1)	Daily fuel oil consumption. 

  

	 	(2)	Speed made good over the ground. 

  

	 	(3)	Speed made good through the water. 

  

	 	(4)	Average propeller RPM per day. 

  

	 	(5)	Vessel(s) draft. 

  

	 	(6)	Sea and weather states. 

  

	 	(7)	Hours run during the day (noon – noon) 

  

	 	(2)	At the end of each voyage/passage, a summary shall be submitted giving the total time at sea, total distance steamed, total average speed, and total fuel consumed for
the passage. 

  

	 	(3)	The above fuel oil reports shall be recorded daily and submitted monthly as described above. Reports and data collected shall be submitted via e-mail to the COMSC PM5,
Sealift Program; an e-mail address will be provided upon award. 

  

	 	(4)	Accompanying the submitted report(s) will be a statement certifying the accuracy of the data contained therein as a true and exact copy of Vessel(s) deck and engine log
books. 

 C-12 Small Arms, Ammunition and Physical Security Equipment. The Owner shall comply with all applicable
provisions of COMSCINST 5530 (series) Shipboard Physical Security. 
 C-12.1 Quantity and Type of Small Arms. The Government shall
furnish the small arms as described herein: 
 A. Four (4) semi-automatic 9mm pistols and four (4) leather holsters possessing a
minimum 2 1/2-inch belt loop. The magazine capacity shall be six (6) rounds minimum. The barrel shall be 4-6 inches in length, inclusive. 

B. Two (2) semi-automatic rifles with leather slings. The magazine capacity will be ten (10) rounds minimum. The caliber is limited to NATO
7.62 mm or .308 Winchester. The barrel shall be 22-24 inches in length, inclusive. Rifles shall be capable of firing a Mark 87, Mod 1 line throwing kit. 
 C. Four (4) slide action (pump) shotguns. The magazine capacity will be four (4) rounds minimum. The caliber shall be 12 gauge, 2 3/4 inch. The barrel shall be 18-20 inches in length, inclusive.

 C-12.2 Quantity and Type of Ammunition. The Owner shall maintain a minimum quantity of ammunition (as provided by the Government)
onboard the Vessel(s) for use in emergency situations as described herein: 

  

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	 	A.	One hundred (100) rounds of ball-type ammunition for each rifle and handgun required in paragraph A above. 

 

	 	B.	One hundred (100) rounds total of 00 buckshot for the four (4) 12 gauge shotguns. 

 

	 	C.	Small Arms and Ammunition Storage. Weapons and ammunition will be stored in accordance with OPNAVINST 5530.13, “Department of the Navy Physical Security
Instruction for Conventional Arms, Ammunition, and Explosives (AA&E).” 

 C-12.3 Physical Security Equipment. The
Government shall furnish the physical security equipment as described herein: 
 A. Six (6) black leather belts, 2 1/2
inches wide. 
 B. Six (6) handcuff cases. 
 C. Eight (8) 9mm ammunition cases. 
 D. Six (6) club carriers.

 E. Six (6) mace carriers. 
 F. Four (4) key ring straps. 
 G. Eight (8) whistles with chain and
hook. 
 H. Six (6) handcuffs. 
 I. Four (4) leg irons. 
 I. Six (6) police clubs. 

K. Six (6) flashlights. 
 L. Thirty (30) visitor I.D. badges in colors coded for escort required/not required. 
 M. Sufficient hand-held shipboard communications equipment shall be maintained onboard such that, at a minimum, the Master, Chief Mate, Mate-on-Watch, and two pier sentries can be in communication on the
same frequency concurrently. 
 N. The vessel(s) shall be equipped with sufficient fixed or portable hull waterline lighting
such that, pierside or at anchor, the entire hull is lit at the waterline. 
 C-12.4 Access Control. Access control is the first line of
defense towards attaining the goal of a secure ship. The Master will ensure that the crew is aware of the importance of access control, and will ensure the procedures described herein are followed. 

C-12.4.1 Vessel Watch. A vessel watch will be established at all active accesses. Watch personnel will be equipped with handheld communications
devices that maintain clear and reliable communications with the Deck Watch Officer. The Watchstander shall be thoroughly briefed on the duties to be performed. The Watchstander shall perform the duties as described herein: 

A. Maintain a gangway/visitor’s log. 
 B. Issue a color coded identification badge to each visitor. 
 C. Deny entry to
visitors refusing full and complete personal identification or explanation of the intended purpose of their visit. 
 D. Arrange
escort for visitors when circulation controls are in effect. 
 E. As directed, search visitors and their property upon their
boarding and departure. 
 C-12.4.2 Gangway/Visitor’s Log. A gangway/visitor’s log will be maintained by the vessel watch. The
log will contain, at a minimum, the current date, visitor’s name, firm represented, 

  

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name of the space/person being visited, time of arrival, time of departure, and the visitor’s ID badge number. 
 C-12.4.3 Identification Badge. Color-coded (escort required/not required) ID badges will be provided by the vessel watch to each visitor. ID badges will be prominently displayed by each visitor.

 C-12.4.4 Coordination with Shore Personnel. Access regulations and procedures in effect aboard ship will be coordinated with shore
personnel. 
 C-13 Equipment and Systems Required for Chemical, Biological, and Radiological Defense (CBR-D) 

(a) CBR-D Clothing and Equipment. The equipment specified in COMSCINST 3541.5D, Enclosure (1), Appendix 3 will be delivered to the Vessel and
shall be inventoried. The Owner shall designate a separate space for stowage and maintain equipment in accordance with directions provided by the cognizant MSC Squadron Commander. Various quantities of CBR-D related equipment will be placed onboard
for training and contingency purposes. An itemized listing of specific quantities will accompany the equipment and will be presented for custody receipt. The Government, with prior approval of the Contracting Officer, will reimburse the Owner for
expenses incurred in obtaining replacement consumables used in training. The equipment specified shall be considered Government Furnished Property in accordance with FAR Clause 52.245-2 entitled “Government Property (Fixed-Price
Contracts).” 
 (b) Water Washdown System (WWDS). The Owner shall install a Water Washdown System (WWDS) consisting of clips and
brackets for attaching standard fire hose nozzles at each weather deck fire station. The clips and brackets shall be as specified by COMSCINST 3541.5 Series, Part 1, Appendix C “CBR-D Policy” (MA Plan No. S89-5-1) or functionally
equivalent if modem vari-nozzles or others are onboard. The clips shall be positioned to provide the greatest spray coverage for lifeboats, weather decks, housetops, and bulkhead areas. Structures accommodating personnel shall receive priority in
coverage. A list of any areas receiving minimal or no spray coverage shall be posted in Damage Control Central. System will be capable of being activated from the interior of the Vessel(s). After installation, the WWDS shall be activated at least
once quarterly to ensure operational reliability. 
 (c) Decontamination Station. The Owner shall install a Water Washdown System (WWDS)
as specified under Attachment A. 
 C-14 Equipment and Systems Required for Antiterrorism/Force Protection (AT/FP) 

(a) Soft Body Armor Vest with Armor Plate Inserts. A minimum of five (5) sets of Soft Body Armor Vests with Armor Plate Inserts (two inserts
(front and back) for each Soft Body Armor Vest) will be delivered to the Vessel(s) and shall be inventoried. The Owner shall designate a separate space for stowage and maintain equipment in accordance with directions provided by the cognizant MSC
Squadron Commander. An itemized listing of specific quantities will accompany the equipment and will be presented for custody receipt. The equipment specified shall be considered Government Furnished Property in accordance with FAR clause 52.245-2
entitled “Government Property (Fixed-Price Contracts).” 

  

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 (b) High Intensity Xenon Searchlight Kit. One High Intensity Xenon Searchlight Kit will be
delivered to the Vessel(s) and shall be inventoried. The Owner shall designate a separate space for stowage and maintain equipment in accordance with directions provided by the cognizant MSC Squadron Commander. An itemized listing of specific
quantities of equipment contained in the kit (including operating instructions) will accompany the kit and will be presented for custody receipt. The equipment specified shall be considered Government Furnished Property in accordance with FAR Clause
52.245-2 entitled “Government Property (Fixed-Price Contracts).” 
 (c) References. COMSCINST 5530.3 Series, MSC Ship Physical
Security 
 C-15 Government Crew Training Requirements 
 C-15.1 Physical Security Training. The Owner will assign a Physical Security Officer as specified in enclosure (5) to COMSCINST 5530.3 Series. The Owner shall conduct a Shipboard Physical
Security Drill quarterly. This drill should be based on a realistic scenario that reflects possible threats that might arise at sea or in port. Threat analysis will be provided by the Operational Commander. The drill will utilize those personnel
assigned by the Physical Security Bill and should last approximately 45 minutes. A report of this training will be made to the cognizant MSC Squadron Commander and Area Commander when conducted. 

C-15.2 Chemical, Biological, and Radiological Defense (CBR-D) Training. The Owner shall train the Vessel(s)’s crew in Chemical, Biological
and Radiological Defense (CBR-D) as specified in this Attachment. 
 C-15.2.1 CBR-D Officer. The CBR-D Officer shall attend MSC’s
week long CBR-D Officer’s Course, presently coordinated by the MSC APMCLANT Training Facility, as specified by COMSCINST 3541.5 Series, Part 1, Appendix C ‘CBR-D Policy’, and Part 2, Chapter 5 ‘CBR Defense Bill’. The CBR-D
Officer will advise the Master on procedures required by COMSCINST 3541.5 Series. 
 C-15.2.2 Reference Material. The Government will
provide all formal training reference material including a USN CBR-D Handbook for Training and Naval Ships Technical Manual Chapters 070 and 470. 
 C-15.2.3 Crew Training. The Owner’s CBR-D Officer shall be responsible for conducting general shipboard CBR-D training for the ship’s crew, and specific CBR-D training for the Chemical
Decontamination and Radiological Survey teams. The general shipboard training for the crew shall include, but not necessarily be limited to: donning and doffing of the Chemical Protective Overgarment (CPO) and rubberized overgarments; use of the
CBR-D gas mask; general personnel decontamination procedures; buddy and self aid. Specific CBR-D training for the DECON and Radiological Survey teams shall include, but not be limited to: use of the radiac meters and chemical detection equipment;
decontamination of personnel and equipment; how to rig and operate the ship’s Water Washdown System (WWDS); how to set up and operate the DECON station; and in buddy and self aid. Training should be of such depth, detail and periodicity as to
enable the crew to perform their duties as outlined in COMSCINST 3541.5 Series, Part 2, Chapter 5 ‘CBR Defense Bill’ at any time. 

  

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 C-15.2.4 Drills. The Master shall ensure that a CBR-D drill is conducted on a quarterly basis.
The CBR-D drill shall involve the entire crew inn scenario that requires donning gas masks, exercising the decontamination team(s), and rigging and activating the WWDS. These drills should be alternated between a Chemical Defense Drill and a
Radiological Defense Drill. Thus, within one year, a ship should have conducted two (2) Chemical Defense Drills and two (2) Radiological Defense Drills. 
 C-15.3 Small Arms Training. A minimum of five crewmembers are required to be small arms qualified. Mariners who are to bear small arms shall hold a valid certificate from a MSC approved small arms
instruction and qualification provider. 
 C-15.4 Antiterrorism/Force Protection (AT/FP) Training and Reporting Requirements 

C-15.4.1 AT/FP Training/Reporting Requirements. The Owner shall comply with AT/FP training requirements for Level I- Basic Individual Awareness
Training and Level II- Training For Designated Personnel as Force Protection Officers (FPO) as set forth in DODINST 2000.16 and below. AT/FP reporting requirements shall comply with COMSC Notice 5530 and COMSCINST 5530.3 Series and below.

 C-15.4.2 Certified AT/FP Officer. The Owner shall ensure that either the vessel’s Master or Chief Mate is a certified AT/FP
Officer. Certification can be obtained through attendance at and graduation of the 5 day Military Sealift Command Force Protection Officer (FPO) Level II training course as coordinated via the MSC APMCLANT Training Facility. The FPO shall then
provide Level I, Basic Individual Awareness Training to the vessel’s crew. 
 C-16 Government Personnel. Notwithstanding any
restrictions in this charter party to the contrary, Owner agrees to the embark and berth a minimum of fifteen (15) government personnel, including supercargo and armed force protection personnel as provided for under the Force Protection
clause. In the event complying with this requirement exceeds the Vessel’s Certificate of Inspection (COI), Owner will advise the Charterer and agrees to make reasonable efforts to obtain all appropriate waivers so as to allow the Vessel(s) to
carry such additional personnel. If Owner is unable to obtain the necessary waivers, Owner shall notify the Charterer immediately. The cost of any additional lifesaving equipment shall be for Owner’s account. The cost of berthing and
victualling the Government personnel will be reimbursed at a fixed rate of $30 per day. 
 C-16.1 Merchant Marine Cadets. The Owner shall
participate in programs for Merchant Marine Cadets for training of engine and deck cadets under the sponsorship of the U.S. Merchant Marine Academy and all accredited state maritime schools. Vessel(s) must be capable of accommodating a minimum of
two cadets at all times. Available positions shall be distributed as equally as possible among the requesting schools. The carriage of cadets shall not interfere with the carriage of personnel assigned by the Government on either a temporary or
permanent duty basis. Subsistence, quarters, and training (as required by the cognizant school) shall be provided by the Owner. Cadet wages shall be paid by the Owner and reimbursed by the Government, but cadet wages shall not exceed the rate set
forth in 46 CFR. Cadet transportation costs shall be paid by the Owner and reimbursed by the Government, but shall not exceed the rate set forth in applicable DOD travel regulations. 

  

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 C-17 Vessel(s) is to be fully bunkered when presented (NOR tendered). 

C-18 Cargo Samples. The vessel(s) must be able to take upper, lower, bottom and all-level samples of the cargo (to include OBQ and ROB) without
contaminating the samples from the sampling location. If unable to do so or if the sampling location is contaminated or suspected to be contaminated, Charterer will require open sampling on a tank by tank basis, consistent with safety and local
terminal regulations. 
 C-19 Government Inspection. The vessel(s) offered under this RFP is subject to survey by a Government-identified
surveyor and to inspection for suitability by other government personnel, as specified in section E. 
 C-20 Owner’s Guarantee. The
vessel(s) owner warrants that the vessel(s) is clean and seaworthy and that the engineering plant is sound and has no known defects at time of delivery. Should the vessel’s main engines, drive gear, generators, electronics, or any other major
system fail in service due to poor mechanical design or previous poor maintenance practices during the life of this contract, the owner shall be immediately notified by telephone and the vessel(s) will be placed in an off-hire status until repairs
have been affected at owner’s expense. 
 C-21 Deliverables: 
 C-22 Documentation. The Owner shall submit all necessary documents to demonstrate the vessel(s) is offered in accordance with this solicitation, and any other documents the Government deems
necessary for its analysis. 
 C-23 Reporting Requirements. The Charterer shall furnish the Master with all requisite instructions and
sailing directions in writing, including COMSC Instruction 3121.9A, “Standard Operating Manual,” as revised. The Master shall exercise due diligence to observe all such orders and instructions of the Charterer in respect of the
Charterer’s employment of the Vessel’s services. Reports required of the Vessel(s) are listed in Section 2-15-6 of COMSCINST 3121.9 series. Further reporting guidance can also be found in COMSCINST 2002.2, “Communications, Policy
and Procedures Manual.” Additionally, vessel(s) shall provide position reports twice daily at 0600 and 1800 local Washington DC time to the following email and fax addresses: 

[Area Command email address] 
 john.joerger@navy.mil 
 thomas.walters@navy.mil 

garv.c.anderson@navy.mil 

Facsimile: 202/685-5850 attn: Sealift, Tankers Program 

  

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 SECTION F – DELIVERIES OR PERFORMANCE 

F-1 Laydays. The Vessel and all Associated Equipment shall be delivered to the Charterer at a port or place in accordance with Box 2 not later
than 1600 hours local time at place of delivery on the canceling date stated in Box 5, the Owner giving written notice of readiness during office hours to the appropriate Government representative at the port or place of delivery on a working day
(Saturdays, Sundays, or other recognized weekly days of rest, U.S. Government holidays, and holidays observed at the delivery port, whether national or local, shall not be considered working days). Government inspection of the Vessel shall be
completed within a reasonable amount of time thereafter, not exceeding twenty-four (24) hours after proper tender of the notice of readiness, (Saturdays, Sundays, or other recognized weekly days of rest, U.S. Government holidays, and holidays
observed at the delivery port, whether national or local, excepted in the computation of said twenty-four hour period). Hire shall commence upon acceptance of the Vessel by the Charterer but not before the commencing date stated in Box 5, unless
approved in writing in advance by the Contracting Officer. The Charterer shall have the liberty to cancel this Charter at no cost to the Government should the Vessel or Associated Equipment not be ready in accordance with the provisions hereof by
the canceling date stated in Box 5, said cancellation to be declared not later than twenty-four (24) hours after 1600 hours local time at place of delivery on the canceling date stated in Box 5, should the Vessel not be ready by that time. This
paragraph shall not limit any right of the Government under this Charter Party or any right to take any other action authorized by law. 
 F-2
Condition. The Vessel and all Associated Equipment shall be, insofar as due diligence can make them so, seaworthy, properly and efficiently manned and trained, equipped, supplied, and in every way suitable and adequately fitted for and in all
respects ready for the service contemplated under this Charter Party. Any Associated Equipment shall upon delivery be as described in this Charter Party and all cargo-handling equipment shall be rigged, secured, and operable. The Owner shall
exercise due diligence to maintain the Vessel and Associated Equipment in such state during the period of this Charter Party. 
 F-3
Vessel(s) Redelivery. Unless lost, the Vessel shall be redelivered at a port or place in accordance with Box 3. The Charterer shall give the Owner not less than twenty (20) days notice of expected date and range of redelivery, and not
less than ten (10) days notice of actual port or place of redelivery. Redelivery notice shall not impair the Charterer’s right to exercise any options under this Charter. 
 F-4 Ports/Places (MSC 5252.247-9810 (Aug 2005)) 
 F-4.1 Safety. The Charterer shall
exercise due diligence to order the Vessel to safe berths or places (or alongside vessels or lighters reachable on her arrival and designated/procured by the Charterer) that the Vessel can approach, lie at, and depart from always accessible, always
afloat. The Charterer shall not, however, be deemed to warrant the safety of any berth or place and shall not be liable or accountable for any loss, damage, injury, or delay resulting from any unsafe condition at any berth or place unless caused by
the Charterer’s failure to exercise due diligence as aforesaid. Any lightering will be at the expense of the Charterer; however, in the event the Charterer directs the Owner to arrange for lighterage services, the Owner shall make all necessary
arrangements therefore. 

  

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 F-4.2 Ice. The Vessel shall not be ordered or bound to enter any port or place inaccessible due
to ice or at which lights, lightships, markers, or buoys on Vessel’s arrival are (or are likely to be) withdrawn by reason of ice. The Vessel shall not be obliged to force ice. If a port or place to which the Vessel is ordered is inaccessible
due to ice, the Master shall immediately notify the Charterer requesting revised orders and shall remain outside the ice-bound area. If there is danger of the Vessel being frozen in at any port or place, the Vessel shall, at Master’s
discretion, proceed to the nearest safe and ice-free position, at the same time requesting the Charterer’s revised orders. Any delay or detention resulting from ice to be for the Charterer’s account. 

F-5 Charter Period. This Charter Party shall be for the period designated in Box 4, commencing upon the Charterer’s acceptance of the Vessel
and continuing until either the date of her redelivery or the completion of the voyage then current, at the Charterer’s sole option. Any option periods shall be in direct continuation; shall be without guaranty at the Charterer’s sole
option; and shall be declared as specified in Section I. Optional periods may be declared at any time prior to redelivery of the Vessel. 
 F-6
Drydock. Owner, at its expense, shall drydock, clean and maintain the Vessel’s bottom and propeller, and make all overhaul and other necessary repairs properly to maintain the Vessel(s) in class; maintain the Vessel(s) in compliance with
F-2 (Condition) above and the warranties of C-3.1 above, and otherwise to keep the Vessel(s) tight, staunch, and strong, and in thoroughly efficient order and condition. For such purpose of drydock, Charterer shall allow Vessel(s) to proceed to an
appropriate port upon 60 days’ prior notice to the Contracting Officer. All towage, pilotage, fuel, gas-freeing if required, water, and other expenses incurred while proceeding to and from drydock shall be for Owner’s account. 

F-6.1 Suspension of Hire. In case of drydocking, pursuant to F-6, at a port where Vessel(s) is to load, discharge, or bunker under
Charterer’s orders, hire shall be suspended from the time the Vessel(s) receives free pratique on arrival, if in ballast, or upon completion of discharge of cargo, if loaded, until Vessel(s) is again ready for service. In case of drydocking at
a port other than where Vessel(s) loads, discharges or bunkers, payment of hire shall cease from the time of deviation until the Vessel(s) is again ready and in a position not less favorable to the Charterer than that at which such deviation
occurred. 
 F-7 Stop Work Order (FAR 52.242-15) (AUG 1989) 

  

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 SECTION G – CONTRACT ADMINISTRATION DATA 

G-1 DESIGNATION OF PRINCIPAL CONTRACTING OFFICER 
 The Principal Contracting Officer for this contract is: 
 Diana Fischer,
Contracting Officer (PM5) 
 Department of the Navy 
 Military Sealift Command 
 914 Charles Morris Court SE, Bldg. 157 

Washington Navy Yard, DC 20398-5540 
 G-2 CONTRACTING OFFICER’S REPRESENTATIVE (COR) 
 (DFARS 252.201-7000)(DEC 1991)

 (a) Definition. “Contracting officer’s representative” means an individual designated in accordance with subsection
201.602-2 of the Defense Federal Acquisition Regulation Supplement and authorized in writing by the contracting officer to perform specific technical or administrative functions. 
 (b) If the Contracting Officer designates a contracting officer’s representative (COR), the Owner will receive a copy of the written designation. It will specify the extent of the COR’s
authority to act on behalf of the contracting officer. The COR is not authorized to make any commitments or changes that will affect price, quality, quantity, delivery, or any other term or condition of the contract. 

G-3 CONTRACTING OFFICER’S REPRESENTATIVE (COR) 
 (a) Upon contract award, the Contracting Officer’s Representative (COR) will be named in writing. As such, this individual will be responsible for monitoring the performance of the Owner and the
adherence to the requirements of the contract as defined herein. 
 (b) The COR shall provide technical guidance on a day-to-day basis, and
perform routine inspections of the facility on behalf of the Contracting Officer. In no event, however, shall any understanding or agreement, modification, change order, or other matter deviating from the terms of the contract be authorized by the
COR, or any other Government personnel, unless formalized by the proper documents executed by the Contracting Officer. 
 (c) When in the
opinion of the Owner, the COR, or any other Government personnel, requests effort outside the existing scope of the contract, the Owner will promptly notify the Contracting Officer. No action will be taken by the Owner under such technical
instruction unless the Contracting Officer authorized the change. 
 G-4 Invoice Requirements 

(a) Invoices shall be submitted in accordance with the following instructions. 

  

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 (b) The only items payable under this contract are the applicable per diem rates and the items listed as
reimbursables (insurance, fuel, canal charges, port expenses, and miscellaneous expenses). Additional operating services or maintenance and repair may be added to Section B by the Contracting Officer, by written order, pursuant to the Changes
Clause, FAR 52.243-1. Any other items or costs including alterations must be supported by an appropriate contract modification /Contracting Officer’s authorization. 
 (c) Invoices for per diem may be submitted by the Owner every thirty (30) days. The Government will pay per diem invoices in accordance with FAR 52.232-25, Prompt Payment, and Clause G-5. Invoices
for reimbursement line items may be submitted for payment as incurred. Cost reimbursable line items will be paid at cost only (see G-6). In addition, the Owner shall submit an original invoice and three copies (or electronic invoice, if authorized)
to the address designated in the contract to receive invoices. An invoice must include: 
  

	 	(1)	Name and address bf the Owner, invoice number (no more than 18 alpha numeric characters, date, Contract number, vessel(s) name, ports, the applicable Contract Line Item
Number (CLIN), Expenditure Type, Project and Task Numbers (for which each invoiced item is payable). The Owner shall ensure that the company name, vessel, contract number, contract per Diem rate, and similar data shown on the invoice agree with that
shown in the contract) 

  

	 	(2)	Provide a description, quantity, unit of measure, unit price and extended price of the items delivered; 

 

	 	(3)	Ensure invoices for cost reimbursement are itemized on the face of the invoice for each service provided, i.e. each port charge or each travel expense.

  

	 	(4)	Shipping number and date of shipment, including the bill of lading number and weight of shipment if shipped on Government bill of lading; 

 

	 	(5)	Terms of any discount for prompt payment offered; 

  

	 	(6)	Name and address of official to whom payment is to be sent; 

  

	 	(7)	Name, title, and phone number of person to notify in event of defective invoice; and 

 

	 	(8)	Taxpayer Identification Number (TIN). The Owner shall include its TIN on the invoice only if required elsewhere in this contract. 

 

	 	(9)	Electronic funds transfer (EFT) banking information. 

  

	 	(A)	The Owner shall include EFT banking information on the invoice only if required elsewhere in this contract. 

 

	 	(B)	If EFT banking information is not required to be on the invoice, in order for the invoice to be a proper invoice, the Owner shall have submitted correct EFT banking
information in accordance with the applicable solicitation provision, contract clause (e.g., 52.232-33, Payment by Electronic Funds Transfer-Central Contractor Registration, or 52.232-34, Payment by Electronic Funds Transfer-Other Than Central
Contractor Registration), or applicable agency procedures. 

  

	 	(C)	EFT banking information is not required if the Government waived the requirement to pay by EFT. (2) Invoices will be handled in accordance with the Prompt Payment
Act (31 U.S.C. 3903) and Office of Management and Budget (OMB) prompt payment regulations at 5 CFR part 1315. 

  

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	 	(10)	Payments Other Than EFT. If payments under this contract are to be made by check and the Owner elects that the Payment Office send the check via Federal Express, the
Owner shall include such instructions and the appropriate Federal Express account number when submitting the invoice for payment. 

  

	 	(11)	Ensure that supporting documentation for each invoice for reimbursement of expenses paid by the Owner for the account of the Government, shall be an original
vendor’s receipted invoice which shall be adequate supporting documentation provided the Owner is not delinquent in paying subcontractor invoices; and the payments will be made in accordance within the terms and conditions of a subcontract or
invoice; and ordinarily within 30 days of the submission of the Owner’s payment request to the Government. If the Owner is determined by the Government to be delinquent in paying subcontractor invoices in a timely manner then the supporting
documentation shall be a vendor’s receipted invoice clearly marked “Paid” by the vendor, and a copy or photostat of same. Where this procedure would cause extensive delay in payment, or it is impractical to have the vendor mark the
invoice paid, the Owner may stamp the invoice paid annotating beneath the paid stamp the check number evidencing payment (The Government may request copies of Owner’s canceled checks in support of the paid stamp on a random sample basis.)

  

	 	(12)	Indicate on each vendor invoice for foreign currency, the rate of exchange as of the date of Owner payment. In addition, the Owner shall attach a copy of the bank draft
or other suitable document showing the rate of exchange. 

  

	 	(13)	Attach an English translation if the vendor’s invoice or supporting documentation is in a foreign language 

 

	 	(14)	Advise all vendors to indicate on the vendor’s invoices the date their services were performed. Indicate this date on the face of the invoice with the line item
for the services received. 

  

	 	(15)	Attach copies of applicable Contracting Officer’s written consent issued pursuant to FAR 52.244-2 for cost reimbursable subcontracts if the costs exceed $25,000.

  

	 	(16)	When practicable, refer to supporting documents on the face of the invoice. 

 

	 	(17)	Address invoices to: 

 Commander

 Military Sealift Command 
 Attn: Code N82 
 914 Charles Morris Court, SE 

Bldg 157 

Washington, DC 20398 
  

	 	(18)	Invoices for reimbursement submitted under this contract must be submitted not later than 30 days from receipt/payment of a payable invoice from a subcontractor.
Any invoice for reimbursement not submitted within this timeframe shall not be payable under the contract. 

  

	 	(19)	When it is necessary to forward invoices with classified supporting documents, send via Registered Mail in double mailing envelopes. The inner envelope as well as the
cover letter should be clearly marked with the appropriate security classification. 

  

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	 	(20)	Avoid commingling documentation of reimbursable and non-reimbursable consumables in the same invoice. 

 

	 	(21)	When submitting invoices for reimbursement of consumables and durable movable property, group items by category (e.g., consumables, force protection, damage control,
maritime, medical, repair parts, etc.). 

 (d) Occasionally an invoice may be returned for correction. A “corrected”,
“adjusted”, or “revised” invoice or an invoice otherwise identified with a previous invoice which has been returned is acceptable only when the original invoice (for which the correction is submitted) is attached to the corrected
invoice. All invoices resubmitted for payment, regardless of reason, shall be denoted with the letter “R” at the end of the serialized Invoice Number. 
 (e) Personnel of the Military Sealift Command are prohibited from altering an invoice in any respect. Any deduction or difference between the amount invoiced and the amount paid will be fully explained by
the Disbursing Division, Code N84, and will accompany the Treasury check mailed to the Owner. 
 (f) Questions regarding deductions should be
referred to Commander, Military Sealift Command (N84). If the Owner considers a deduction unfair, he may present a claim for the amount deducted. In general, a claim should be in the form of a letter of explanation with necessary documentation
evidencing the deduction as payable. If the resubmitted claim is approved, corrections will be made by a Reinstatement, MSC Form 7560/3, prepared by the Comptroller’s Office. 
 (g) All correspondence relating to invoices should contain the ship’s name, company name, contract number, and invoice number. 
 (h) All invoices, vouchers, or other routine requests for payment of reimbursable expenses under this contract must be submitted by the Owner to the Government not later than 30 days after the date of
service or delivery of goods being billed. Any invoice, voucher, or other routine request for payment not so submitted shall be deemed waived by the Owner. 
 (i) The Owner shall mark or stamp every submitted invoice, voucher, or other routine request for payment of reimbursable expenses with the certification statement found at G-4 (j). No payment will be made
on submitted invoices, vouchers, or other routine requests for payment of reimbursable expenses unless they contain the certification statement, which must be attested to and signed by a duly authorized representative of the Owner. 

(j) A duly authorized representative of the Owner shall sign a certification statement marked or stamped on each submitted invoice, voucher, or other
routine request for payment of reimbursable expenses, thereby attesting to its truth and validity. The certification statement shall read: 

“Certification Statement: The undersigned affirms that I am a duly authorized representative of the Contractor, and that this invoice, voucher,
or other routine request for payment of reimbursable expenses is accurate, made in good faith for goods or services that have been provided to the Government, is fairly and reasonably priced and (if based in whole or in part on

  

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goods or services provided to the Government by a Subcontractor) that all Subcontractors were selected by the Contractor after full and open competition to the maximum extent practicable.”

 G-5 Payment. Payment shall be made for items accepted by the Government that have been delivered to the delivery destinations set
forth in this contract. The Government will make payment in accordance with the Prompt Payment Act (31 U.S.C. 3903) and OMB prompt payment regulations at 5 CFR part 1315. In connection with any discount offered for early payment, time shall be
computed from the date of the invoice. For the purpose of computing the discount earned, payment shall be considered to have been made on the date which appears on the payment check or the specified payment date if an electronic funds transfer
payment is made. 
 G-6 Assignment. The Owner or its assignee may assign its rights to receive payment due as a result of performance of
this contract to a bank, trust company, or other financing institution, including any Federal lending agency in accordance with the Assignment of Claims Act (31 U.S.C. 3727). However, when a third party makes payment (e.g., use of the Government
wide commercial purchase card), the Owner may not assign its rights to receive payment under this contract. 
 G-7 Payment of Fixed Price Per
Diem (MSC 5252.232-9803) (DEC 1988) 
 (a) Payment of per diem on the day the vessel(s) is delivered or redelivered will be made at the full
Per Diem rate. 
 (b) For periods of operation of less than a full 24-hour day (excluding delivery or redelivery days) the per diem rate will be
prorated in accordance with the clause entitled “Determination of Applicable Fixed-Price Per Diem”. Calculation of per diem will be based on Greenwich Mean Time. 
 (c) Where a vessel(s) has a voyage in progress on the date of contract expiration in accordance with the clause at F-1, the applicable per diem rate for that vessel(s) for the period beyond the expiration
date shall be the per diem rate that is in effect on the last day of the contract for that vessel(s). 
 G-8 Reimbursable Supplies and
Services (CHARTERS (MAR 2005). 
 (a) The Government will reimburse the Owner only for the actual price paid for those supplies and services
that are expressly identified as reimbursable items by this contract. “Actual price” paid by the Owner for such supplies and services, includes tax paid, if any, and reduced by any and all credits and rebates, whether accrued or realized,
associated with the supplies and services provided. “Actual price” does not include material handling charges, overhead, general and administrative costs, profit, or any other indirect cost that is in any way associated with the
Owner’s purchase or provision of such supplies and services. The parties expressly agree that the offered and accepted daily rate includes all costs incurred or paid by the Owner, including but not limited to material handling charges,
overhead, general and administrative costs, or profit, that are in any way associated with the Owner’s purchase or provision of such supplies and services. 

  

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 (b) To be eligible to receive reimbursement for services and supplies identified in this contract as
reimbursable items and obtained in support of this contract, the Owner must obtain at least three quotes for each transaction in excess of $2,500 to ensure that adequate price competition was sought or the Owner must provide an acceptable
justification as to why it was impracticable to do so. In the case of fuel purchases, unless directed otherwise by the Contracting Officer, the Owner shall provide the documentation listed in subparagraphs (i) through (iii) below to the
Contracting Officer for approval, prior to purchasing fuel. For purchases of services and supplies and other than fuel, the Owner need provide the aforementioned documentation only when requested by the Contracting Officer. The Owner shall maintain
documentation of all reimbursable purchases until three years after the contract is completed and shall provide access to and copies of such documentation when requested by the Contracting Officer. 

(i) A description of the supplies or services to be subcontracted. 

(ii) Identification of the proposed subcontractor and price. 
 (iii) Suppliers contacted and price quotes. Include other pertinent data such as price lists used if suppliers were not contacted and information regarding the selection if other than price-related
factors were considered. 
 (c) The Contracting Officer may reduce the reimbursement by any amount above that which the Contracting Officer
finds, in his/her sole discretion, is greater than that which is fair and reasonable for the supplies or services provided, giving due consideration to the facts and circumstances prevailing at the time that the Owner procured the supplies and
services. Disputes as to the amount by which any reimbursement is reduced shall be resolved in accordance with the “Disputes” clause of the contract. It shall be the Owner’s burden to demonstrate that the price it paid for
reimbursable supplies and services was fair and reasonable. 
 (d) When the Owner expects total funding expended for reimbursable items to reach
85 percent of the total funds available on each Reimbursable Supplies and Services CLIN, the Owner shall notify the Contracting Officer and the COR and any other Government official identified by the Contracting Officer. The notice shall state the
estimated amount of additional funds required to continue performance for the period specified in the Schedule. The Owner shall not exceed or incur costs that exceed the amount of funding stated on each Reimbursable Supplies and Services CLIN at the
time a reimbursable item is ordered. 
 (e) The Government is not obligated to reimburse the Owner for otherwise reimbursable supplies and
services in excess of the funded amount stated in the Schedule under each Reimbursable CLIN. 
 (f) The Owner is not obligated to continue
performance of any reimbursable work under this Contract or otherwise incur costs for reimbursable supplies or services in excess of the funded amount stated in the Schedule under each Reimbursable CLIN unless the Contracting Officer notifies the
Owner that the funded amount stated in the Schedule under the applicable Reimbursables CLIN has been increased. Notification shall be in writing. In the event notification is made orally, such notification shall be followed up in writing within two
working days. 

  

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 (g) No notice, communication, or representation from any person other than the Contracting Officer shall
affect the Government’s obligation to reimburse the Owner. 
 (h) Change orders shall not be considered an authorization to exceed the
funded amount stated in the Schedule under the Reimbursable CLIN unless they contain a statement expressly increasing the funded amount of the Reimbursables CLIN by a sufficient amount to cover the change order. 

  

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 SECTION H – SPECIAL CONTRACT REQUIREMENTS 

H-1 International Safety Guide for Oil Tankers and Terminals (ISGOTT). The Vessel(s) shall be operated in compliance with guidelines detailed in
ISGOTT. 
 H-1.1 Oil Pollution Spill. Where an escape or discharge of oil occurs from the Vessel(s) and threatens to cause pollution
damage to coastlines, Charterer may, at its option, and upon notice to Owner or Master, undertake such measures as are reasonably necessary to prevent or mitigate such damage, unless Owner promptly undertakes same. Charterer shall keep Owner advised
of the nature of the measures intended to be taken. Any of the aforementioned measures actually taken by Charterer shall be at Owner’s expense. If Owner, in its absolute discretion, considers such measures should be discontinued, Owner shall so
notify the Charterer, and thereafter neither the Charterer nor its nominee shall have any right to continue said measures under the provisions of the paragraph, and all further liability to Charterer under this paragraph shall thereupon cease.

 H-2 Pollution Prevention and Safety Compliance. Owner warrants that the Vessel(s) is in full compliance with the United States Oil
Pollution Act of 1990 (OPA 90) and all applicable U.S. Coast Guard (USCG) regulations for safety and pollution prevention, including those regulations in 33 CFR Parts 155, 156, and 164, and amendments thereto. Owner warrants that it has submitted a
Vessel Response Plan (VRP) for the Vessel(s), which complies with OPA 90 and with USCG regulations. Owner further warrants that the Vessel(s) will be operated in full compliance with the legally applicable VRP requirements and any future VRP
requirements. Owner further warrants that the Qualified Individuals listed in the VRP of the Vessel(s) are readily available and their contract telephone numbers can be given to Charterer immediately upon request. Owner will provide evidence of such
compliance within three working days from the date of the fixture. 
 H-2.1 Financial Responsibility. Owner warrants that it has secured,
and carries aboard the Vessel(s), a Vessel Certificate of Financial Responsibility (Water Pollution) issued by the United States Coast Guard in accordance with 33 C.F.R. 138.65. 
 H-3 Insurance. During the full period of this Charter Party, the Owner shall maintain marine insurance coverage on the Vessel, including Hull and Machinery, Protection and Indemnity (P&I),
Pollution Liability, War Risk Hull and Machinery, War Risk P&I and Second Seamen’s War Risk. Except as otherwise provided in this Charter Party, the expense for such insurance coverages shall be for the Owner’s account and shall be
deemed to be included in the hire payable under this Charter Party. Except as provided herein, the Owner shall be responsible for the cost of such insurance, including deductibles, premia, additional premia, calls, commissions, advancements,
assessments, and overspill claims where applicable. 
 H-3.1 Protection and Indemnity (P&I). Owner warrants that it has in place with
its P&I Club or other underwriter providing first class security, the standard coverage of U.S. $500-million plus an additional U.S. $1-billion oil pollution coverage. Owner further warrants that such coverage will remain in effect for the
duration of the Charter. Owner will provide evidence of such coverage from its P&I Club and/or underwriters providing first class security within three working days from the date of the fixture. In the event that the financial responsibility
requirements under United States Law shall increase during the term of this fixture so as to 

  

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require oil pollution coverage in excess of that which Owner has agreed to carry under the preceding sentences and there is coverage available to meet such requirements, Owner will obtain the
required and available coverage for its own account. 
 H-3.2 Trading Limits. If Vessel is sent beyond the limits of American Institute
Trade Warranties or Institute Warranties (as applicable) under this Charter Party, the Charterer agrees to reimburse the Owner for the actual extra cost of additional premia and/or increased deductible levels, to the extent incurred, properly
assessed by the Vessel’s marine insurance underwriters and payable by the Owner, which extra cost is occasioned by the Vessel’s trading beyond such limits. 
 H-3.3 Limitation of Liability. Except as otherwise specifically provided herein, the Charterer shall not be liable for any loss, damage, expense, cost, or liability whatsoever and howsoever
incurred by the Owner or Vessel, or which are imposed upon the Owner or Vessel by operation of law. Any amount due the Owner under Section H-3 shall be subject to setoff by the Charterer to the extent of any amount recovered under insurance carried
by the Owner, or to the extent of any amount recoverable under insurance required by H-3. 
 H-3.4 Notification to Charterer. All
policies shall contain an endorsement stating that any cancellation or material change in the coverage adversely affecting the Government’s interest shall not be effective unless the Contractor provides written notice of the same to the
Contracting Officer. 
 H-3.5 Charterer Named Assured. The United States of America shall be named as an additional assured with waiver
of subrogation under the Vessel’s Hull and Machinery policy (and the Increased Value policy if applicable), the Vessel’s P&I entry, any additional pollution liability coverage, the Vessel’s War Risk Hull and Machinery policy
including P&I, and Second Seaman’s War Risk . 
 H-4 War (MSC 5252.232-9812 ) (Aug 2005) 

H-4.1 Voyage Instructions. If Vessel is ordered under this Charter Party to any port, place, zone, or route involved in a state of war, warlike
operations or hostilities, civil strife, or piracy (whether there be a declaration of war or not) where it might reasonably be expected to be subject to capture, seizure, arrest, or hostile act by a belligerent power (whether de facto or de jure),
it shall be unreasonable for the Owner not to prosecute said voyage instructions if insurance against said risks is then available commercially or under a Government program or if the Government offers the Owner an indemnity under Public Law 85-804
against losses that would be covered by such insurance. In the event of the existence of said risks, the Charterer shall, to the extent provided under Section H-4, assume provable additional costs of wages (including all additional bonuses and
payments required) and insurance and all taxes associated therewith properly incurred by the Owner as a consequence of service under this Charter Party. 
 H-4.2 Additional Wage Costs. The Charterer shall reimburse the Owner for provable additional costs (including taxes associated therewith) incurred pursuant to this Charter Party as a consequence of
the risks identified at H-4.1 above for (i) wages of Master, Officers, or crew and (ii) required payments or bonuses to Master, Officers, or crew. However, any of said wages or 

  

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payments shall not exceed in amount that which would be payable, under applicable laws and regulations, to U.S. civil service mariners in the employ of the Military Sealift Command in a similar
port, place, zone, or route. 
 H-4.3 Additional Insurance Costs. The Charterer shall reimburse the Owner for provable additional costs
of premia and taxes associated therewith (over and above such costs in effect on the Charter Party Date) reasonably incurred pursuant to this Charter Party as a consequence of the risks identified at H-4.1 above in the Vessel’s War Risk
Hull & Machinery policy, in the Vessel’s War Risk Protection & Indemnity policy, and in any war risk policy on the lives of or for injuries to officers and crew. Provided, however, that no proportion of additional premia
allocable to insuring an amount in excess of the coverage in place as of the Charter Party date shall be reimbursable by the Charterer with respect to any of the foregoing war risk policies. Provided further that the Owner shall apply for and remit
to the Charterer as savings any rebates by reason of reductions in or rebates of premia charged for entry into war risk exclusion zones. Provided further that the United States of America shall be named as an additional assured with waiver of
subrogation noted under all of the foregoing war risk policies. Alternatively, with respect to any area(s) excluded by war risk trading warranties under the Owner’s commercial war risk insurance coverage, at the Charterer’s sole option,
and at no cost to the Government, the Charterer may delete this subparagraph with twenty-four hours notice, in which case Time Charter War Risk Coverage below shall automatically be effective; or (ii) the Government shall offer an indemnity
under Public Law 85-804. 
 H-4.4 Insurance Nonavailability. If no commercial or governmental insurance is available for service under
this Charter Party covering the risks identified in H-4.1 above, Vessel shall not be required to enter or remain at any port, place, zone, or route subject to said risks; the Charterer in such case shall have the right to order the Vessel to other
port(s) or place(s). 
 H-4.5 War Risk Changes. The Owner must immediately notify the Charterer of any changes in the Vessel’s
commercial war risk insurance, including but not limited to, extensions of war risk exclusion zones and increases in commercial war risk insurance premia. The Owner must secure the Charterer’s permission prior to entry into any commercial war
risk exclusion zones before incurring liability for additional premia. 
 H-5 Time Charter War Risk Coverage. Under the authority of 46
U.S.C. App. 1285, the U.S. Maritime Administration will furnish the following war risk insurance coverages, which will be effective during the Vessel’s transit during this Charter of areas currently excluded under commercial marine insurance
war risk trading warranties. 
 (A) War Risk Hull Coverage, insured at the hull value stated in Vessel’s current commercial
hull and increased-value policies effective on Charter Party date, a copy of which current hull policies shall be furnished to Charterer; 
 (B) War Risk Protection and Indemnity coverage, insured at a value of either (i) 150% of the hull value stated in Vessel’s current commercial hull policy effective on Charter Party date or
(ii) $50-million, whichever is greater but in no event exceeding that amount of commercial P&I cover which was in effect for the Vessel(s) on Charter Party date; 

  

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 (C) War Risk Blocking and Trapping Coverage; 

(D) War Risk Second Seamen’s Coverage, the principal sum of which shall be $200,000 per Master, Officer, or crew member (this is
also loss-of-life benefit). Non-hospitalization disability payments therein to be payable in the amount of $1,000 per month. Dismemberment benefits to be payable in accordance with the schedule identified in the policy, as a percentage of the
$200,000 principal sum. For loss of or damage to personal effects, an amount not exceeding $1,500 shall be payable to licensed officers, and an amount not exceeding $1,000 shall be payable to unlicensed crew members and U.S. Merchant Marine cadets
and cadet officers. 
 H-5.1 Terms of coverage above referenced to be in accordance with MARAD policies issued pursuant to the authority of 46
U.S.C. App. 1285 as approved by the Contracting Officer, in the form of Policy set forth in 46 CFR 308, as such form is amended. 
 H-5.2 Owner
shall provide, as a minimum, a Certificate of Insurance evidencing types and levels of insurance held. If requested by Contracting Officer, the Owner shall provide a copy of above mentioned policies with endorsements. 

H-5.3 Notwithstanding any other provision of this Charter Party, all other insurance shall be for Owner’s account. 

H-6 Readiness (MSC 5252.246-9810) (Jun 1998). Readiness is a required service of the Vessel. Readiness shall be defined as the ability of a Vessel
and Associated Equipment to perform the function for which designed, built, or chartered, including the ability to deploy without delays, whether or not so ordered to perform. If there is a degradation of this readiness, such that actual performance
or condition of the Vessel or Associated Equipment shows any failure to satisfy one or more of the Owner’s warranties or renders the Vessel in less than a fully efficient state, the hire will be proportionately decreased so as to indemnify the
Charterer to the extent of such failure, this Charter Party to remain otherwise unaffected. Failure of the parties to agree upon the extent of the proportional decrease in hire shall be a dispute under the clause entitled “Disputes”
incorporated herein by reference in Section I below. Nothing in this clause shall limit the rights of the Charterer to place the Vessel off-hire pursuant to Section H-9 (Off-Hire) below. 
 H-7 Fuel and Speed Warranty. All the fuel and speed characteristics provided in Section A (boxes 87 – 95) shall be deemed warranties and any breach of such warranties shall be subject to the
remedies contained in Section H-9 below. 
 H-8 Remedies. Should actual performance or readiness condition of the Vessel(s) show any
failure to satisfy one or more of such warranties or other Charter requirements not due to the fault of the Charterer, the hire may be equitably decreased, the Charter may be terminated, or the Vessel(s) may be placed off-hire, at Charterer’s
option so as to indemnify the Charterer to the extent of such failure. 
 H-9 Off-Hire (MSC 5252.246-9811 (AUG 2005)). In the event of
the loss of time resulting from deficiency and/or default of men including but not limited to misconduct, illness, injury, strikes, labor disruptions, lockouts, deficiency of stores; fire; breakdown of or damages to hull,

  

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machinery, or equipment; collision; stranding; grounding; detention by authorities; average accidents to Vessel or cargo unless resulting from inherent vice, quality, or defect of the cargo;
repairs; inspections; dry docking for the purpose of examination or painting bottom; or deviation for the purpose of landing any ill or injured person onboard other than any passenger, supercargo, or military personnel who may be carried at the
Charterer’s request; or by any other cause whatsoever preventing the full working of the Vessel; the payment of hire shall cease for all time lost until the Vessel is again ready and in a fully efficient state to resume her service from a
position not less favorable to the Charterer than that at which such loss of time commenced. Should the Vessel deviate or put back during a voyage contrary to the orders or directions of the Charterer for any reason, the hire is to be suspended from
the time of her deviating or putting back until she is again ready and in a fully efficient state to resume her service from a position not less favorable to the Charterer than that at which such loss of time commenced. When the period of time lost
to the Charterer on any one occasion is less than four (4) consecutive hours (or twelve (12) consecutive hours while in prepositioning service), the hire shall not be reduced for such period. 

H-9.1 Costs for Owner. The cost of fuel consumed while the Vessel is off-hire, as well as all port charges, pilotages, and other expenses incurred
during such period and consequent upon the putting in to any port or place other than that to which the Vessel is bound, shall be borne by the Owner. All fuel used by the Vessel being driven into port or to shallow harbors or to rivers or ports with
bars, the delay of the Vessel and/or expenses resulting there from shall be for the Charterer’s account. 
 H-9.2 Delays/Excessive Fuel
Consumption. If upon any passage the Vessel(s) (i) fails to make the warranted speed in Boxes 87-88 or if her warranted fuel consumption exceeds that in Boxes 89-92, either or both of which are due to defect in or breakdown of any part of
her hull, machinery, or equipment; casualty; or inefficiency of Master, Officers, or crew or their failure to proceed with utmost dispatch, and (ii) is delayed more than 12 hours, the hire for the time lost and any cost of extra fuel consumed,
if any, shall be borne by the Owner. Any delay by ice shall be for Charterer’s account. 
 H-10 Supercargo and Government
Representatives (MSC 5252.247-9858) (Aug 2005) 
 H-10.1 Charterer’s Option. The Charterer shall have the right to assign
supercargo (supercargo as used herein is both plural and singular) and other government designated representatives aboard the Vessel for duty purposes to the extent that accommodations and United States Coast Guard certification (when applicable)
allow and in accordance with COMSC Instruction 3121.9 Series. The Charterer shall pay an amount of $30.00 per day, per person, covering all expenses including accommodations and victualling. The Owner shall victual U.S. Government designated
representatives, pilots, and Customs Officers when authorized by the Charterer at $7.00 per meal. The Government particularly reserves the right to put a representative onboard the Vessel, with the pilot, at the approach to a discharge port (or
otherwise as mutually agreeable) to inspect the Vessel and to monitor the unloading; reimbursement for accommodations and/or victualling is to be as described above. 
 H-10.2 Military Personnel. In addition to the carriage of personnel noted in H-10.1 above, the Charterer shall have the right to assign other military personnel aboard the Vessel. Such

  

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personnel are not to require victualling or berthing facilities from the Vessel unless requested by the military commander aboard, in which case the Owner will be reimbursed out-of-pocket
expenses not to exceed the amount per person per day set forth in H-10.1 above. The Charterer will supply life floats and jackets for the use of such military personnel carried aboard the Vessel during the charter period, unless otherwise specified
in this Charter. Such items shall be removed by the Charterer at termination of this Charter. 
 H-10.3 Charterer’s Liability. The
Charterer shall be liable to the Owner for any loss of the Vessel’s fittings or appurtenances or any damage to the Vessel, her fittings, or appurtenances caused by the act of supercargo or government designated representatives in the
embarkation, carriage, or debarkation of supercargo or government designated representatives to the extent such loss or damage is not payable under the Vessel’s insurance policies. However, the Charterer shall not be liable for such damage
unless written notice specifying such damage and, if obtainable, the name of the party or parties causing such damage shall have been given to the Charterer or its authorized representative within a reasonable time. 

H-11 Time Lost (MSC 5252.246-9812) (Aug 2005) 
 H-11.1 Tacking to the End of Charter Period. Any time during which the Vessel is off hire under this Charter Party may be added to the charter period, at the Charterer’s option. If the
Charterer exercises its option to extend the charter period pursuant to this sub-clause, the charter period shall be deemed to include such extension and hire shall be payable at the rate(s) which would otherwise have been payable during each period
of off hire. 
 H-11.2 Excessive Time Lost. The Charterer may by written notice cancel this Charter at no cost to the Government
whenever, in any given 365-day period, for any reason whatsoever, more than 30 days are lost except for time lost as a result of the causes set forth in Section H-4(WAR) above. Failure to cancel this Charter after thirty days are lost shall be
without prejudice to any other rights of the Charterer, or any later right of the Charterer to cancel this Charter Party. 
 H-11.3
Relationship to Other Remedies. No remedy conferred by this paragraph upon the Charterer is intended to be exclusive of any other remedy already conferred by this Charter Party now or hereafter existing at law or in equity or by statute.

 H-12 Negligence of Pilots (MSC 5252.247-9815 (Feb 1999)). The Government, as Charterer, shall not be held responsible, liable, or
accountable for losses sustained by the Owner or the Vessel through the negligence of pilots or tugboats although engaged by the Charterer. Pilots and tugboats shall be considered servants of the Owner. This paragraph shall not apply to pilots or
tugboats of the Government. 
 H-13 Port Charges and Expenses (MSC 5252.232-9811) (Aug 2005) 

H-13.1 Expenses for Charterer. Except as otherwise provided herein, the Charterer shall pay expenses of loading and unloading cargo and all
wharfage, dockage, canal tolls, dues, taxes, and similar port charges imposed by public authority including consular charges (except those pertaining to the Master, Officers, and crew) incurred by the Vessel in ports visited pursuant to the
Charterer’s direction. Agency fees, provided not incurred for the convenience of the Vessel or the Owner, shall also be for the Charterer’s account. The Charterer shall pay all pilotage

  

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charged to the Vessel; however, in no case shall the Charterer reimburse the Owner for pilotage paid to the Master or other members of the crew. Surveyors or consultants as mutually agreed may be
retained under this Charter in order to facilitate fact-finding in respect of actual or potential claim actions or for inspections or surveys generally; the costs therefore shall be as mutually agreed and, if for the Charterer’s account, said
costs shall be incurred only after prior written approval from the Contracting Officer. 
 H-13.2 Reimbursement. All of the charges
incurred for the Charterer’s account as noted in H-13.1 above shall be paid by the Owner if so required by the Charterer. The Charterer shall thereafter reimburse the Owner for such charges in accordance with Section G-5 (Payment) and Section
G-8 (Reimbursable Supplies and Services (Charters)). 
 H-14 Owner’s Obligation 

(a) Provisions, Insurance, Wages, Fees, and Other Expenses. The Owner shall, unless otherwise provided herein, provide and pay for all provisions;
deck, engine room, and galley stores; lube oil; slop and garbage removal/disposal; fresh water; insurance on the Vessel; wages of, transportation of, and services for Master, Officers, and crew and consular fees pertaining to them in accordance with
Section H-13 (Port Charges and Expenses) above. The Owner will be responsible for all port charges associated with the foregoing. 
 (b)
Dispatch. The Owner, through its agents, employees, and servants, shall commence and prosecute the voyages made pursuant to this Charter with utmost dispatch and shall render all customary assistance with the Vessel’s crew and equipment.

 (c) Logs. The Owner shall have maintained onboard the Vessel deck and engine room logs, true copies of which shall be retained by the
Owner and made available to the Charterer at any time upon request and at no cost to the Government for a period of 10 years after the expiration of this Charter Party. Logs shall be legible and in English. 

H-15 Fuel (MSC 5252.247-9821) (Jun 1998) 

H-15.1 Delivery Bunkers. Upon delivery of the Vessel(s), the Owner shall present to the Contracting Officer a statement certified by the Owner or
its authorized agent showing the amount and grade of fuel on board at the time of delivery with such additional verification as the Contracting Officer may require and the Charterer shall pay the Owner for such fuel at the current market price at
the port of delivery upon certification and verification of such statement by the Contracting Officer. The Charterer shall pay for the on-hire bunker survey if performed by an independent surveyor and required by the Contracting Officer. The Owner
shall provide additional bunkers as may be required by the Charterer prior to the acceptance of the Vessel(s) by the Charterer; the Charterer shall reimburse the Owner all costs directly connected with the bunkering of the additional fuel, including
but not limited to, lighterage, dockage and similar charges, and taxes related therewith. 
 H-15.2 Provision of Fuel. The Charterer
shall ordinarily supply or cause to be supplied any or all of the fuel required by the Vessel(s) during the period of this Charter. The grade of such fuel is to be specified by the Owner, and the grade supplied shall be at least that grade unless
otherwise mutually agreed. The Owner shall be responsible for any fuel testing. Testing 

  

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laboratory confirmation of compatibility and specifications of newly on-board delivered fuel shall constitute acceptance by Owner. The Vessel(s) shall not be off-hire in the event of delay
resulting from the supply of fuel found to be off specification, unless for want of due diligence by Owner. If the Owner loads such fuel on the Vessel(s) at his own expense, the Charterer shall reimburse the Owner the reasonable expenses of such
loading. 
 H-15.3 Owner’s Purchase of Fuel. The Owner shall, if directed by the Charterer, purchase fuel for the Vessel(s), in
which case the Charterer shall reimburse the Owner the cost of all fuel (excluding lube oils and slop removal) procured by the Owner and loaded in the Vessel(s) during the period of this Charter. If the Owner is required to incur costs under this
paragraph by the Charterer, the Charterer shall thereafter reimburse the Owner for the reasonable expenses of such fuel upon presentation of properly certified vouchers, supporting receipts, and other documentation which justify the charges as fair
and reasonable in accordance with Section G-5 (Payment) and G-8 (Reimbursable Supplies and Services). The Owner shall not, however, be reimbursed any amount in excess of the current market price of such fuel at the place of loading plus all
reasonable expenses incurred by the Owner in loading said fuel on board the Vessel(s). 
 The title to all fuel for the cost of which the Owner
is entitled to be reimbursed hereunder shall automatically pass to and vest in the Charterer upon delivery to the Owner or upon the happening of any other event by which title passes from the vendor or supplier thereof to the Owner, in the case of
any such fuel which is purchased for the performance of this Charter. The Charterer shall be afforded all benefits of Owner’s contracts for its fuel requirements, including but not limited to any savings addressed in H-25 (Savings) below.

 H-15.4 Off-Hire. If the Vessel(s) should go off-hire during the period of this Charter, the Owner shall present to the Contracting
Officer a statement certified by it or its authorized agent showing the amount of fuel on board at the time the off-hire period commenced and the amount of fuel on board when the off-hire period ended. The Charterer shall be credited for the cost of
the fuel consumed during the off-hire period and also reasonable expenses incurred in loading such fuel, with such costs based upon costs at the previous refueling point. (See Attachment C for Off-Hire Percentages.) 

H-15.5 Redelivery. Upon redelivery of the Vessel(s), the Owner shall present to the Contracting Officer a statement certified by the Owner or its
authorized agent showing the amount of fuel on board at the time of redelivery. A bunker survey conducted by an independent bunker surveyor approved by the Charterer shall be performed at the port of redelivery or such other place as the Charterer
shall direct, at Owner’s time and expense. The Charterer shall be credited with the value of fuel on board at the time of redelivery, computed at the current market price at the port of redelivery. 

H-15.6 Reasonable Expenses. The term “reasonable expenses” as used in this paragraph, shall mean all reasonable costs excluding crew
overtime which are necessarily incurred in loading said fuel on board the Vessel(s) such as expenses incurred at tanker terminal; loading fuel from lighters, barges, or other craft used as lighters, including lighterage, lighter demurrage, or
detention incurred; cost of shifting lighters for the convenience of the Vessel(s), handling lighter lines and oil booms; and such similar expenses which the Charterer shall find were necessarily incurred in the loading of fuel on the Vessel(s)
during the period of this Charter. 

  

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 H-16 Reduced Operational Status (Layup) (MSC 5252.212-9805) (Aug 2005) 

H-16.1 Charterer’s Option. The Charterer shall have the right to direct the Owner to place the Vessel in a period of reduced operational
status (ROS). During any such period the rate of hire shall be as stipulated in the applicable boxes in Section A. The less-than-10-day rates stipulated in Section A shall apply over the full term of: (a) any ROS period which actually extends
less than 10 days, and (b) any ROS period which is initially estimated by the Charterer to extend less than 10 days, regardless of the actual duration. The 10-day-and-longer rates stipulated in Section A shall apply over the full term of any
ROS period which is estimated to and does extend 10 days or longer, without reference to any other ROS or FOS rates. 
 H-16.2 Notice to
Owner. The Charterer shall give the Owner written or electronic notice or, in the event notice is given by telephone, written or electronic confirmation of exercise of the right specified in H-16.1 above, including with said notice an estimate
of the duration of the ROS period. Such notice shall also specify the time at which the period of ROS is to commence, which time shall not be less than 48 hours subsequent to the receipt of such notice by the Owner or its representative. The
Charterer shall give the Owner written or electronic notice or, in the event notice is given by telephone, written or electronic confirmation of termination of the period of ROS. Such notice shall specify the time at which such period shall
terminate, which time shall be at least 72 hours (Saturdays, Sundays and holidays excluded) subsequent to the receipt of said notice by the Owner or its representative; provided, however, that by agreement between the Owner and the Charterer the
Vessel may be returned to full operational status (FOS) before the time specified in the notice of termination of the reduced operational period. 
 H-16.3 Repairs During ROS. During any period of ROS, Owner shall have the option of performing voyage repairs or maintenance work for its account. 

H-17 Waiver of Claims (MSC 5252.233-9801) (Aug 2005). All claims whatsoever under this contract must be submitted to the Contracting Officer
pursuant to the clause entitled “Disputes” within six months of the accrual of the claim. All claims not so submitted shall be deemed waived by the Owner. 
 H-18 Charter Not a Demise (MSC 5252.247-9823) (Dec 1988). Nothing herein contained shall be construed as creating a demise of the Vessel(s) to the Charterer, the Owner under this Charter retaining
complete and exclusive possession and control of the Vessel(s) and her navigation. 
 H-19 Subcharter (MSC 5252.247-9822) (Aug 2005). The
Charterer shall have the right, without the prior written consent of the Owner, to subcharter or agree to subcharter the Vessel under any form of time or voyage charter. If the Charterer shall enter into any such charter, the Charterer shall
nevertheless remain responsible for the performance of this Charter. Any such subcharter shall include a provision that it is subject to the provisions of this Charter. 
 H-20 General Average (MSC 5252.247-9818) (Aug 2005). General average shall be adjusted, stated and settled according to the York-Antwerp Rules 2004, and any subsequent modification thereof, in the
port of New York and according to the laws and usages of the port of New York. In such adjustment, disbursements in foreign currencies shall be converted into United States Dollars at the exchange rate prevailing in the United States on the date
made and allowances for 

  

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damage to cargo claimed in foreign currency shall be converted into United States Dollars at the exchange rate prevailing on the last day of discharge of such damaged cargo from the Vessel.
Notwithstanding the foregoing, the Charterer’s contributions in general average shall in no event exceed three times the Owner’s contribution for any single general average incident. 

H-21 Salvage. All salvage moneys earned by the Vessel(s) during the period of this Charter shall be divided equally between the Owner and the
Charterer after deducting Master’s, Officers’ and crew’s shares, legal expense, vessel hire lost, if any, as a result of the salvage service, value of fuel consumed (which shall be paid in full to the Charterer from the salvage
award), repairs of damage, if any, and other extraordinary loss or expense sustained as a result of the salvage service. Charter hire shall continue to be paid by Charterer during deviations for the purpose of performing salvage service. 

H-21.1 Navy Salvage Services. When engaged in the carriage of government cargo and if requested by Charterer, Owner agrees to accept Navy salvage
services. Such services may be provided using Navy personnel and resources or Navy contracted resources. 
 H-21.1.1 Waive Claims for Pure or
Bonus Salvage. In providing such services, the Navy, through Charterer, agrees to waive all claims for “pure” or “bonus” salvage. Instead, Charterer shall be entitled to the following: 

(a) In those cases in which the salvage services are provided by Navy personnel and resources, the salvage claim shall be limited to a
schedule of current per diem rates and allowable expenses as established by the Navy’s Supervisor of Salvage. In no event shall such amount exceed a maximum claim of $25,000 per day. 

(b) In those situations in which the Navy utilizes contracted resources to deliver assistance, Owner shall be liable for the actual daily
rate charged the Navy by the contractor(s). 
 H-21.1.2 It is understood that this limited Supervisor of Salvage claim is asserted against the
vessel only, is solely for the vessel’s account, and does not include any amounts for the salvage of the Government’s cargo. Notwithstanding any other provisions of this contract, this limited Supervisor of Salvage claim IS NOT directly or
by way of setoff chargeable in whole or in part to the Government by way of general average or otherwise. 
 H-22 Limitations (MSC
5252.247-9832) (Jan 1999). The Owner shall have the benefit of all limitations of and exemptions from liability accorded to the Owner or Chartered Owner of the Vessel by any statute or rule of law for the time being in force except to the extent
that contract terms entitle the Government to compensation from the Owner for the Owner’s failure to perform the requirements and obligations of this Charter or such statute or rule of law limiting the Owner’s liability is subordinate to
any statutorily mandated provision of this Charter Party by operation of law. Nothing in this Charter Party shall operate to limit or deprive the Owner of any statutory exceptions or limitation of liability (against parties other than the Charterer)
on the theory of personal contract or otherwise. 
 H-23 Alterations (MSC 5252.245-9801) (Aug 2005). The Charterer shall be at liberty to
make any additional alterations it may require beyond what is onboard at the commencement of this Charter, such work to be done at the Charterer’s expense and on its time. The Charterer shall

  

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thereafter, during the period of this Charter, leave the Vessel in her original condition, ordinary wear and tear excepted, provided that the Contracting Officer is notified in writing within 30
days of completion of any alteration that the Contractor requests such restoration or removal. The Charterer shall be at liberty to install any equipment or defensive armament (including demagnetization by installed equipment or other process, e.g.,
degaussing, wiping, or deperming), to install any additional gear or equipment for loading, carrying or discharging cargoes, and to repaint the Vessel. Such work shall be done at the Charterer’s expense and on its time and shall not be such as
to be in contravention of any applicable law of the United States or regulation made pursuant thereto. Such equipment, armament, materials, and gear so fitted are to be considered “Government Property” under the terms of FAR clause
52.245-02 incorporated by reference. The Charterer shall, during the period of this Charter, remove the same together with any alterations and additions thereto at its expense and time and shall restore the Vessel to her condition and color prior to
such changes, ordinary wear and tear excepted. The Government shall have the right to abandon in place any alteration or Government furnished property, unless the Contracting Officer is notified in writing within 30 days of completion of any
alteration that the Contractor requests such restoration or removal. 
 H-24 Standards of Appearance (MSC 5252.247-9864) (Jun 1998). It
is important that the Vessel(s) operation meets the highest possible standards of appearance and Vessel(s) smartness. To this end, the Owner and operator will institute a continuous program of Vessel(s) maintenance. The hull, decks, deckhouse, and
all appurtenances will be cleaned and preserved as necessary and painted as required. The interior of the Vessel’s deckhouses will be maintained in a clean and orderly state, with all equipage properly and securely stowed. The main and
auxiliary machinery spaces will be kept clean and free of excessive accumulations of oil and debris. All spaces will be lighted to allow safe operation and correct maintenance of machinery and equipment. 

H-25 Savings (MSC 5252.232-9813) (Jun 1998). The Owner agrees that any refunds, rebates, credits, discounts, insurance payments, or other amounts
(including any interest thereon) accruing to or received by the Owner under this Charter shall be paid by the Owner to the Government to the extent that they are properly allocable to costs, expenses, or reimbursements for which the Owner has been
reimbursed by the Government under the terms of this Charter. The foregoing shall apply to any savings to the Owner resulting from a fleet reduction, applied on a pro rata basis. 
 H-26 Law Governing (MSC 5252.247-9833) (Jun 1998). This Charter Party shall be governed by the laws of the United States. 
 H-27 Substitution. Subject to the Charterers approval, the Owner may, at any time, propose a substitute a Vessel or Vessels. The nominated Vessel or Vessels shall possess the same characteristics
as the Vessel or Vessels being replaced. Approval of a vessel substitution is a matter with the Charterer’s sole discretion. 
 H-28
Ship Physical Security (MSC 5252.247-9845 (Jun 1998). The Owner will comply with and implement the Ship Physical Security Requirements contained in COMSC Instruction 5530.3 “MSC Ship Physical Security,” as revised, incorporated
herein by reference with the 

  

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same force and effect as if given in full text. Upon request the Contracting Officer will make the full text available. 
 H-28.1 Condition Delta Reimbursement. For vessels over 10,000 tons summer deadweight, reimbursement for recurring costs of “Condition Delta” under Section C-1 (Definitions and Acronyms)
shall be $1,000 per day for up to three days. For vessels not in excess of 10,000 tons summer deadweight, reimbursement for recurring costs of “Condition Delta” shall be $500 per day for up to three days. All other costs (non-recurring)
shall be included in the basic hire payable under this Charter. 
 H-29 Bonuses 

(A) The delivery ballast bonus identified in Box 18 is in consideration of the Vessel’s timely delivery and loading at the port,
place, or range stipulated in Box 2 of this Charter, said Vessel having positioned there in ballast from the area identified elsewhere in Part I. 
 (B) Charterer shall have the unilateral right to change the delivery port or place once or more often, always consistent with Box 2. 

(C) Should Charterer order Vessel(s) to deliver at a port or place other than that intended in Box 2, and should said change necessitate
a ballast passage either shorter or longer than originally contemplated, the bonus shall be adjusted. This adjustment shall be proportionate to the change in ballast distance, expressed as a percentage variation describing the difference between the
ballast distance run and the ballast distance originally contemplated. 
 (D) The redelivery ballast bonus identified in Box 18
is in consideration of the necessity to reposition the Vessel(s) in ballast to its customary trading range after its redelivery at the port, place or range stipulated in Box 3 of this Charter. 

(E) Charterer shall have the unilateral right to change the redelivery port or place once or more often, always consistent with Box 3.

 (F) Should Charterer order Vessel(s) to redeliver at a port or place other than that intended in Box 3, and should said
change necessitate a ballast passage either shorter or longer than originally contemplated, the bonus shall be adjusted. This adjustment shall be proportionate to the change in ballast distance, expressed as a percentage variation describing the
difference between the ballast distance run and the ballast distance originally contemplated. 
 (G) Unless otherwise agreed,
the delivery bonus shall be considered earned upon acceptance of vessel(s) by Charterer and the redelivery ballast bonus shall be considered earned upon redelivery of vessel(s) to Owner. 

(H) In the event a follow-on contract is awarded in direct continuation of this contract, Owner shall not be entitled to a
ballast/redelivery bonus under this contract and any bonus or other cost delineated herein for redelivery of the Vessel(s) shall be voided. 

H-30 No-Cost Cancellation. If it shall become clear to Owner that the Vessel(s) will be delayed in arrival beyond the cancelling date identified
in Box 5, Owner may, at the earliest 72 

  

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hours before the Vessel(s) is due to sail for the delivery port, ask Charterer in writing whether the right to cancel will be exercised. Upon receipt of such written notice, Charterer shall,
within one business day thereafter, exercise one of the following actions: 
 H-30.1 The Charter may be cancelled at no cost whatsoever to
either party and the parties shall be relieved of any and all further responsibilities thereunder; or 
 H-30.2 The cancelling date may be
extended to a date mutually agreed, and all other terms and conditions of the Charter shall continue in full force and effect. 
 H-31
Agreement. The Government proposes to form a Partnering relationship with the Owner in order to improve cooperation, share information about significant interests and concerns and establish mutually acceptable problem-solving procedures to
resolve disputes satisfactorily at a minimum cost. 
 H-31.1 Implementation. The Partnering relationship will be bilateral and
participation will be totally voluntary. The Government anticipates convening a workshop as soon as possible after contract award to develop details such as common goals, lines of communication and specific dispute prevention processes. 

H-31.2 Additional Costs. Any costs associated with affecting this Partnership will be agreed to by both parties; each party will bear its own
costs. 
 H-32 Both to Blame. To the extent not inconsistent with U.S. law, the following shall apply: 

(A) If the Vessel comes into collision with another ship as a result of the negligence of the other ship and any act, neglect, or default
of the Master, mariner, pilot, or servants in the navigation or in the management of the Vessel, the Charterer shall indemnify Owner, or where Owner is not the owner/charterer of the Vessel, shall indemnify Owner as agent or trustee for the Owner,
against all loss or liability to the other or non-carrying ship or her owners insofar as such loss or liability represents loss of or damage to, or any claims whatsoever of the Charterer, paid or payable by the other or non-carrying ship or her
owners to the Charterer and/or owners of the cargo and set off, recouped, or recovered by the other or non-carrying ship or her owners as part of their claim against the Vessel or Owner. 

(B) The foregoing provisions shall also apply where the owners/operators or those in charge of any ship or ships or objects other than,
or in addition to the colliding ships or object are at fault in respect of a collision or contact, stranding, or other accident. 
 H-33 Risk
of loss 
 (A) Carriage of Goods by Sea Act (COGSA). Except as otherwise specified herein, the Owner, Vessel(s), and
Charterer in all matters arising under this Charter Party shall be entitled to the like privileges, rights, and immunities (from the time the cargo is loaded until the time it is discharged from the Vessel) as are contained in the COGSA, 46 U.S.C.
App. 1300-1315. However, any references in COGSA to (a) notices of loss or damage or (b) limitation-of-action periods shall not apply to this Charter Party. For purposes of this Charter Party, the term “carrier” as used in COGSA
shall mean “Owner” and the term “shipper” shall mean “Charterer.” 

  

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 (B) Other Statutes. The Owner and the Vessel(s) shall have the benefit of all
limitations of and exemptions from liability accorded the Owner by any U.S. statute or rule of law for the time being in force, except to the extent that contract terms entitle the Government to compensation from the Contractor for the
Contractor’s failure to perform the requirements and obligations of this Charter or to the extent such statute or rule of law is subordinate to any statutorily mandated provision of this Charter Party by operation of law. 

H-34 Statutory Employee. Pursuant to La.R.S. 23:1061(A)(3) the Department of the Navy, by and through Military Sealift Command, and Contractor
expressly provide and agree that the United States of America and/or the Department of the Navy, by and through Military Sealift Command, is the statutory employer of any of Contractor’s employees and is entitled to the tort immunity provided
in La.R.S. 23:1061 and La.R.S. 23:1032. 
 H-35 Military Extraterritorial Jurisdiction Act. Upon award of this contract, the Contractor
shall immediately notify all contractor personnel, who are or who will be employed by, or who are or who will be accompanying, United States Armed Forces outside the continental United States (OCONUS), and who are not a host country national
ordinarily resident in the host country, that such personnel, and any dependents residing with such personnel, who engage in conduct OCONUS that would constitute an offense punishable by imprisonment for more than one year if the conduct had been
engaged in within the special maritime and territorial jurisdiction of the United States, may potentially be subject to the criminal jurisdiction of the United States as required by the Military Extraterritorial Jurisdiction Act of 2000, Pub. L.
106- 523, 114 Stat. 2488, codified at 18 U.S.C. 3261 – 3267, as implemented by DoD Instruction 5525.11, “Criminal Jurisdiction over Civilians Employed by or accompanying the Armed Forces outside the United States. 

H-36 In-Transit Visibility. The Military Sealift Command has implemented a fully automated satellite tracking system (ASTARS) for the purpose of
providing In-Transit Visibility (ITV) of its Vessels. To support this system, the Owner’s Vessel shall be equipped with an INMARSAT-C Terminal with GPS input. 
 H-36.1 Prior to delivery of the Vessel, the Owner shall provide to the Charterer the make and model of the INMARSAT-C terminal, its registered identification number, and the specific satellite (POR, AORE,
AORW, or IOR) on to which it is currently logged. Once this information is received, MSC technicians will remotely communicate with the terminal to activate reporting. When no longer required, MSC technicians will stop the terminal from reporting.
The Owner shall provide MSC technicians with assistance as required to activate and maintain ASTARS reporting. 
 H-36.2 The cost of ASTARS
reporting shall be included in the fixed price of this Charter. 
 H-37 Force Protection. Owner agrees that U.S. Armed Forces personnel
may board the Vessel(s) at any time at any location for U.S. national security purposes, gives consent for such boarding, and agrees to cooperate fully with such U.S. Armed Forces personnel in the boarding party. Owner also agrees to permit U.S.
Armed Forces personnel to search without limitation any and all vessel spaces for U.S. national security purposes. 

  

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 H-37.1 Owner agrees to render all necessary assistance to U.S. Armed Forces personnel with respect to
the identification and screening of crew members or such others as may be aboard the Vessel(s). Owner consents to the immediate removal of crewmembers or such others as may be aboard the Vessel(s) deemed unsuitable for any reason by the Contracting
Officer or U.S. Armed Forces personnel. Owner agrees to replace any such crewmembers promptly and that such replacements will fully comply with all crew screening requirements. Charterer agrees to bear proven and reasonable costs incurred by Owner
associated with replacement, if necessary. 
 H-37.2 Charterer reserves the right, at Charterer’s sole option, to embark U.S. Armed Forces
personnel and their weapons at any time during the period of the Charter to protect U.S. Armed Forces personnel, cargo or equipment on board the Vessel(s). These force protection personnel will provide security in accordance with rules of engagement
established by competent U.S. military authorities and will operate under the command of such authorities. Charterer agrees to reimburse Owner for cost of such personnel at the rate set forth in the Charter for Supercargo. 

H-37.3 Owner agrees to comply fully with the current ship threat condition measures required by relevant Navy and MSC Force Protection instructions and
messages for the threat condition of the area. See Section H-26 for additional requirements, although the requirements of COMSC instruction 5530.3 shall apply only to time charters of six months or longer. 

H-38 Security Threat. In the event of a security threat or incident involving the Vessel, crew or cargo during the voyage, the Vessel’s
Master will report any incident immediately to the MSC Area Command in whose area the Vessel is currently located. The MSCHQ Command Center should be contacted if the Military Sealift Fleet Support Command cannot be reached. Contact numbers will be
provided upon award. 
 H-39 Immunizations. U.S. flag time chartered vessel(s) services are considered essential contractor services to
the Department of Defense in support of military and associated support missions. As a result, Masters, officers, crewmembers, and other individuals who are embarked on such vessels for Owner’s purposes, including but not limited to
subcontractors, are considered contractor personnel performing mission essential services under DODI 3020.37, November 6, 1990, (Change 1, January 26, 1996), and are subject to the following: 

(a) Masters, officers, crewmembers and other individuals, as described above, who are embarked on any vessel(s) subject to this charter
must be medically pre-screened and immunized in accordance with Commander, Military Sealift Command (COMSC) policy, and any changes thereto, in effect or made during the period of this charter, including any options or extensions. Owner shall ensure
that all Masters, Officers, crewmembers, and other individuals embarked on any vessels) subject to this charter comply with all such immunization programs. Notification of immunization requirements pursuant to this section shall be provided to Owner
by the Contracting Officer. 
 (b) When immunizations are required pursuant to this clause, Owner must provide notification, as
directed by the Contracting Officer, of the immunization status of all embarked personnel within 24 hours of fixture or award. Further, at any time during the contract period, the immunization status of any relief personnel scheduled to board the
vessel(s) is required no 

  

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later than 96 hours prior to the personnel change, unless authorized otherwise by the Contracting Officer. 
 (c) Any Master, officer, crewmember or other individual who refuses to comply with the immunization requirements, or who is ineligible for a particular required immunization as provided herein, shall be
removed by Owner from the vessel(s) as soon as possible, but not later than the next port call unless authorized by the Contracting Officer, and replaced with personnel who either have the required immunization or are eligible and will comply with
the policy. Any removal and replacement of personnel pursuant to this clause shall be solely at Owner’s expense, including, but not limited to, travel, per diem, wages and associated administrative expenses. 

(d) Crew shortages resulting from the application of this section may subject the vessel(s) to being placed off-hire. 

H-40 MSC Shipboard Antiterrorism/Force Protection Measures (MSC 5252.247-9845 (AUG 2005)). The Owner agrees that U.S. Armed Forces personnel may
board the Vessel at any time at any location for U.S. national security purposes, gives consent for such boarding, and agrees to cooperate fully with such U.S. Armed Forces personnel in the boarding party. The Owner also agrees to permit U.S. Armed
Forces personnel to search without limitation any and all vessel spaces for U.S. national security purposes. 
 H-40.1 The Charterer reserves
the right, at the Charterer’s sole option, to embark armed U.S. Armed Forces personnel at any time during the period of this Charter to protect U.S. Armed Forces personnel, cargo or equipment onboard the Vessel, or to protect the Vessel itself.
These force protection personnel will provide security in accordance with rules of engagement established by competent U.S. military authorities and will operate under the command of such authorities. The Owner shall provide accommodations and
victualling for these embarked personnel. The Charterer shall reimburse the Owner for all expenses relating to the embarkation force protection personnel as provided in this Charter for Supercargo. 

H-40.2 The Owner agrees to render all necessary assistance to U.S. Armed Forces personnel with respect to the identification and screening of crewmembers
or such others as may be aboard the Vessel. The Owner consents to the immediate removal of crewmembers or such others as may be aboard the Vessel deemed unsuitable for any reason by the Contracting Officer or U.S. Armed Forces personnel. The Owner
agrees to replace any such crewmembers promptly and that such replacements will fully comply with all crew screening requirements. The Charterer agrees to reimburse the Owner for the reasonable costs directly incurred by the Owner with respect to
such replacements. 
 H-40.3 The Owner agrees to comply with the current ship physical security measures required by relevant MSC Force
Protection instructions or other security-related directions from MSC or U.S. military authorities for the threat condition of the area. This may include turning off Automatic Identification Systems onboard the Vessel, or adopting other security
measures. additionally, the Owner will comply with and implement the requirements of MSC’s current SHIPBOARD ANTITERRORISM/FORCE PROTECTION (AT/FP) PROGRAM instruction, COMSCINST 5530.3 Series, as revised, incorporated herein by reference. The
Contracting Officer will make the full text available upon request. 

  

 N00033-07-C-5416 

 

 H-41 Riding Gang Member Requirements. Under Charters awarded pursuant to this solicitation, Owners will
be required to comply with the provisions of Section 1018 “Riding Gang Member Requirements” of the recently enacted H.R.5122, the “John Warner National Defense Authorization Act for Fiscal Year 2007,” (Public Law 109-364).

 H-42 TERMINATION/CANCELLATION LIABILITY 
 The contractor and Government agree the purpose of this clause is to induce the contractor to offer to provide and to provide the required services when the contractor otherwise would not offer to provide
them because of the contractor’s inability to recover its costs in the event the Government does not exercise an option to extend the term of the contract or terminates the contract for the convenience of the Government. 

In the event the Government does not exercise an option to extend the term of the contract or terminates the contract for convenience, the contractor
shall be entitled to not-to-exceed cancellation costs subject to the following conditions and according to the following schedule: 
 Date of
Government failure to exercise option or Date of Termination for Convenience: Cancellation Costs*: 
  

					
	 1. Prior to delivery (of vessel or layberth)
	  	$	            	 
	 2. During 1st fixed performance period
	  	$	            	  
	 3. During 2nd fixed performance period
	  	$	            	  
	 4. During 3rd fixed performance period
	  	$	            	  
	 5. Dining 4th fixed performance period
	  	$	            	  
	 6. During 5th fixed performance period
	  	$	            	  

  

	*	The Government shall insert final accepted prices in the schedule above prior to contract award. 

 “Cancellation costs” means, and only means, costs specifically identified by the contractor in its proposal and actually incurred by the contractor between contract award and vessel delivery to
the Government including, and limited to, the following categories of costs: costs incurred by the contractor for vessel acquisition, reflagging costs and modification, or conversion costs, and only to the extent such modification, or conversion
costs were incurred in order for the vessel to meet contract requirements. The Government has sufficient working capital funds for these cancellation costs. The present value of the cancellation costs must be less than 25% of the vessel value upon
delivery. See 10 U.S.C. § 2401. 
 When requesting payment of cancellation costs as a result of the Government’s failure to exercise
an option, the contractor shall provide evidence satisfactory to the contracting officer verifying that contractor actually incurred the specified categories of cancellation costs prior to delivery of the vessel to the Government and the amount
thereof. The cancellation costs must be 

  

 N00033-07-C-5416 

 

 
reasonable, allowable, and allocable to the contract. In no event will the amount payable to the Contractor for such costs exceed the amount that would have been payable under the Termination for
Convenience Clause had the subject contract been for 59 months and the Government terminated the contract for convenience on the date of the conclusion of the then current performance period. 
 In the event the Government terminates the contract for convenience, the Government will not be obligated in any event to reimburse the contractor for the specified categories of cancellation costs in
excess of the amount allotted in the schedule above for each contract period regardless of anything to the contrary in the clause entitled “Termination for Convenience of the Government.” 

The contractor agrees that payment of the specified cancellation costs according to the schedule above for any contract period fully compensates the
contractor for the specified categories of cancellation costs. The contractor waives any right it may have to claim any additional costs for the specified categories of cancellation costs in the event such cancellation costs become payable, whether
as a result of a termination for convenience or as a result of the Government’s failure to exercise an option. As used in this clause, the total amount payable by the Government for the specified categories of cancellation costs in the event
the Government does not exercise an option or terminates for convenience is as set forth in the schedule above. 
 This clause does not limit
the rights of the Government under the clause entitled “Default” or under the clause entitled “Termination for Convenience of the Government.” 

  

 N00033-07-C-5416 

 

 SECTION I – CONTRACT CLAUSES 

I-1 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) 
 This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available.
Also, the full text of a clause may be accessed electronically at these addresses: 
 farsite.hill.af.mil/ 

http://www.arnet.gov 

I-1.1 FEDERAL ACQUISITION REGULATION (FAR) (48 CFR CHAPTER 1) CLAUSES 

 

					
	52.202-1	  	Definitions	  	JUL 2004
	52.203-3	  	Gratuities	  	APR 1984
	52.203-5	  	Covenant Against Contingent Fees	  	APR 1984
	52.203-6	  	Restrictions On Subcontractor Sales To The Government	  	JUL 1995
	52.203-7	  	Anti-Kickback Procedures	  	JUL 1995
	52.203-8	  	Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity	  	JAN 1997
	52.203-10	  	Price Or Fee Adjustment For Illegal Or Improper Activity	  	JAN 1997
	52.203-11	  	Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions	  	SEP 2005
	52.203-12	  	Limitation On Payments To Influence Certain Federal Transactions	  	SEP 2005
	52.204-2	  	Security Requirements	  	AUG 1996
	52.204-4	  	Printed or Copied Double-Sided on Recycled Paper	  	AUG 2000
	52.204-8	  	Annual Representations and Certifications	  	JAN 2006
	52.209-5	  	Certification Regarding Debarment, Suspension, Proposed Debarment and Other Responsibility Matters	  	DEC 2001
	52.209-6	  	Protecting the Government’s Interest When Subcontracting With Contractors Debarred, Suspended, or Proposed for Debarment	  	JAN 2005
	52.211-15	  	Defense Priority And Allocation Requirements	  	SEP 1990
	52.215-2	  	Audit and Records – Negotiation	  	JUN 1999
	52.215-8	  	Order of Premdence – Uniform Contract Format	  	OCT 1997
	52.215-10	  	Price Reduction for Defective Cost or Pricing Data	  	OCT 1997
	52.215-17	  	Waiver of Facilities Capital Cost of Money	  	OCT 1997
	52.215-20 Alt IV	  	Requirements for Cost and Pricing Data or Information	  	OCT 1997
		  	Other than Cost or Pricing Data – Alternate IV	  	
	52.215-21 Alt IV	  	Requirements for Cost or Pricing Data or Information Other Than Cost or Pricing Data – Modifications Alternate IV	  	OCT 1997
	52.219-8	  	Utilization of Small Business Concerns	  	MAY 2004
	52.219-9 Alt II	  	Small Business Subcontracting Plan. Alt. II (OCT 2001)	  	JUL 2005
	52.219-14	  	Limitation on Subcontracting	  	DEC 1996
	52.219-16	  	Liquidated Damages – Subcontracting Plan	  	JAN 1999
	52.222-01	  	Notice to the Government of Labor Disputes	  	FEB 1997

  

 N00033-07-C-5416 

 

					
	52.222-26	  	Equal Opportunity	  	APR 2002
	52.222-29	  	Notification Of Visa Denial	  	JUN 2003
	52.222-35	  	Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and other Eligible Veterans	  	DEC 2001
	52.222-36	  	Affirmative Action For Workers with Disabilities	  	JUN 1998
	52.222-37	  	Employments Reports on Special Disabled Veterans, Veterans Of The Vietnam Era, And Other Eligible Veterans	  	DEC 2001
	52.222-39	  	Notification of Employee Rights Concerning Payment of Union Dues or Fees	  	DEC 2004
	52.222-41	  	Service Contract Act of 1965, as Amended	  	JUL 2005
	52.222-43	  	Fair Labor Standards Act and Service Contract Act – Price Adjustment (Multiple Year and Option Contracts	  	MAY 1989
	52.222-44	  	Fair Labor Standards Act and Service Contract Act – Price Adjustment	  	FEB 2002
	52.223-3	  	Hazardous Material Identification And Material Safety Data	  	JAN 1997
	52.223-5	  	Pollution Prevention and Right-to-Know Information	  	AUG 2003
	52.223-6	  	Drug-Free Workplace	  	MAY 2001
	52.223-10	  	Waste Reduction Program	  	AUG 2000
	52.223-12	  	Refrigeration Equipment and Air Conditioners	  	MAY 1995
	52.223-14	  	Toxic Chemical Release Reporting	  	AUG 2003
	52.224-1	  	Privacy Act Notification	  	APR 1984
	52.224-2	  	Privacy Act	  	APR 1984
	52.227-1	  	Authorization and Consent	  	JUL 1995
	52.227-2	  	Notice And Assistance Regarding Patent And Copyright Infringement	  	AUG 1996
	52.227-3	  	Patent Indemnity	  	APR 1984
	52.227-14	  	Rights in Data – General	  	JUN 1987
	52.228-7	  	Insurance – Liability To Third Persons	  	MAR 1996
	52.229-3	  	Federal, State And Local Taxes	  	APR 2003
	52.229-6	  	Taxes – Foreign Fixed-Price Contracts	  	JUN 2003
	52.229-8	  	Taxes – Foreign Cost-Reimbursement Contracts	  	MAR 1990
	52.232-1	  	Payments	  	APR 1984
	52.232-4	  	Payments under Transportation Contracts and Transportation-Related Services Contracts	  	APR 1984
	52.232-8	  	Discounts For Prompt Payment	  	FEB 2002
	52.232-9	  	Limitation On Withholding Of Payment	  	APR 1984
	52.232-11	  	Extras	  	APR 1984
	52.232-17	  	Interest	  	JUN 1996
	52.232-18	  	Availability of Funds	  	APR 1984
	52.232-23	  	Assignment Of Claims	  	JAN 1986
	52.232-25	  	Prompt Payment	  	OCT 2003
	52.232-33	  	Payment by Electronic Funds Transfer – Central Contractor Registration	  	OCT 2003
	52.233-1 Alt I	  	Disputes Alternate I (DEC 1991)	  	JUL 2002
	52.233-3	  	Protest After Award	  	AUG 1996
	52.237-3	  	Continuity of Services	  	JAN 1991

  

 N00033-07-C-5416 

 

					
	52.242-1	  	Notice of Intent to Disallow Costs	  	APR 1984
	52.242-3	  	Penalties for Unallowable Costs	  	MAY 2001
	52.242-13	  	Bankruptcy	  	JUL 1995
	52.243-1 Alt II	  	Changes-Fixed-Price Alternate II (APR 1984)	  	APR 1987
	52.243-7	  	Notification of Changes	  	APR 1984
	52.244-5	  	Competition In Subcontracting	  	DEC 1996
	52.245-1	  	Property Records	  	APR 1984
	52.245-2	  	Government Property (Fixed Price Contracts)	  	MAY 2004
	52.246-20	  	Warranty of Services	  	MAY 2001
	52.246-25	  	Limitation of Liability – Services	  	FEB 1997
	52.247-63	  	Preference For U.S. Flag Air Carriers	  	JUN 2003
	52.247-64	  	Preference For Privately Owned U.S. Flagged Commercial Vessels	  	FEB 2006
	52.248-1	  	Value Engineering	  	FEB 2000
	52.249-2	  	Termination For Convenience Of The Government (Fixed-Price)	  	MAY 2004
	52.249-8	  	Default (Fixed-Price Supply and Service)	  	APR 1984
	52.251-1	  	Government Supply Sources	  	APR 1984
	52.253-1	  	Computer Generated Forms	  	JAN 1991

 I-1.2 DOD FEDERAL
ACQUISITION REGULATION SUPPLEMENT (DFARS) (48 CFR CHAPTER 2) CLAUSES 
  

					
	252.203-7001	  	Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies	  	DEC 2004
	252.203-7002	  	Display Of DOD Hotline Poster	  	DEC 1991
	252.204-7000	  	Disclosure Of Information	  	DEC 1991
	252.204-7002	  	Payment For Subline Items Not Separately Priced	  	DEC 1991
	252.204-7003	  	Control Of Government Personnel Work Product	  	APR 1992
	252.204-7004	  	Alternate A	  	NOV 2003
	252.205-7000	  	Provisions Of Information To Cooperative Agreement Holders	  	DEC 1991
	252.209-7000	  	Acquisition From Subcontractors Subject to On-Site Inspection Under the Intermediate-Range Nuclear Forces (INF) Treaty	  	NOV 1995
	252.209-7004	  	Subcontracting with Firms That Are Owned or Controlled by the Government of a Terrorist Country	  	MAR 1998
	252.211-7003	  	Item Identification and Valuation	  	JUN 2005
	252.215-7000	  	Pricing Adjustments	  	DEC 1991
	252.219-7003	  	 Small, Small Disadvantaged and Women-Owned Small Business Subcontracting Plan
 (DoD Contracts)
	  	APR 1996
	252.223-7001	  	Hazard Warning Labels	  	DEC 1991
	252.223-7002	  	Safety Precautions For Ammunition And Explosives	  	MAY 1994
	252.223-7003	  	Changes In Place Of Performance – Ammunition And Explosives	  	DEC 1991
	252.223-7004	  	Drug-Free Work Force	  	SEP 1988

  

 N00033-07-C-5416 

 

					
	252.225-7001	  	Buy American Act And Balance Of Payments Program	  	JUN 2005
	252.225-7002	  	Qualifying Country Sources As Subcontractors	  	APR 2003
	252.225-7004	  	Reporting of Contract Performance Outside the United States and Canada	  	JUN 2005
	252.225-7005	  	Identification of Expenditures in the United States	  	JUN 2005
	252.225-7012	  	Preference for Certain Domestic Commodities	  	JUN 2004
	252.225-7025	  	Restriction on Acquisition of Forgings	  	APR 2003
	252.225-7031	  	Secondary Arab Boycott Of Israel	  	APR 2003
	252.225-7040	  	Contractor Personnel Authorized to Accompany U.S. Armed Forces Deployed Outside the United States	  	JUN 2006
	252.227-7013	  	Rights in Technical Data – Noncommercial Items	  	NOV 1995
	252.227-7016	  	Rights in Bid or Proposal Information	  	JUN 1995
	252.227-7018	  	Rights in Noncommercial Technical Data and Computer Software – Small Business Innovation Research (SBIR) Program	  	JUN 1995
	252.227-7030	  	Technical Data-Withholding of Payment	  	MAR 2000
	252.227-7032	  	Rights in Technical Data And Computer Software (Foreign)	  	JUN 1975
	252.227-7037	  	Validation of Restrictive Markings on Technical Data	  	SEP 1999
	252.231-7000	  	Supplemental Cost Principals	  	DEC 1991
	252.243-7001	  	Pricing of Contract Modifications	  	DEC 1991
	252.243-7002	  	Requests for Equitable Adjustment	  	MAR 1998
	525.245-7000	  	Government-Furnished Mapping, Charting, and Geodesy Property	  	DEC 1991
	252.245-7001	  	Reports Of Government Property	  	MAY 1994
	252.247-7023	  	Transportation Of Supplies By Sea	  	MAY 2002
	252.247-7024	  	Notification Of Transportation Of Supplies By Sea	  	MAR 2000
	252.247-7025	  	Reflagging or Repair Work	  	(JUN 2005)
	252.249-7002	  	Notification of Anticipated Contract Termination or Reduction	  	DEC 1996

  

 N00033-07-C-5416 

 

 I-2 CLAUSES INCORPORATED BY FULL TEXT 

52.217-8 Option to Extend Services. (NOV 1999) 
 The Government may require continued performance of any services within the limits and at the rates specified in the contract. The option provision may be exercised more than once, but the total extension
of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor any time prior to redelivery of the vessel. 
 52.217-9 Option to Extend the Term of the Contract (MAR 2000) 
 (a) The Government may
extend the term of this contract by written notice to the Contractor any time prior to redelivery of the vessel provided that the Government gives the Contractor a preliminary written notice of its intent to extend any time before
vessel redelivery. The preliminary notice does not commit the Government to an extension. 
 (b) If the Government exercises this option, the
extended contract shall be considered to include this option clause. 
 (c) The total duration of this contract, including the exercise of any
options under this clause, shall not exceed fifty-nine months. 
 52.217-7 Option for Increased Quantity - Separately Priced Line Item (MAR
1989) The Government may require the delivery of the numbered line item, identified in the Schedule as an option item, in the quantity and at the price stated in the Schedule. The Contracting Officer may exercise the option by written notice to
the Contractor within 180 days of contract award. Delivery of added items shall continue at the same rate that like items are called for under the contract, unless the parties otherwise agree. 

  

 N00033-07-C-5416 

 

 SECTION J – LIST OF ATTACHMENTS 

 

			
	 ATTACHMENTS
	  	 TITLE

	 A
	  	Specifications for Chemical, Biological and Radiological Defense (CBR-D) Decontamination Station
		
	 B
	  	Government Furnished Property and Directives (GFP)
		
	 C
	  	Guidelines for Full/Partial Off-Hire Percentages on Readiness Issues for Prepositioned Vessels
		
	 D
	  	Electronic Data Interchange Trading Partner Agreement
		
	 E
	  	Ship Characteristics Record for Operations
		
	 F
	  	DD Form 254, Contract Security Classification Specification
		
	 G
	  	U.S. Department of Labor Wage Determination

  

 APPENDIX A 

Novation Agreement 
 USS Product Carriers LLC (“Transferor”), a limited liability company duly organized and existing under the laws of Delaware with its principal office in Edison, New Jersey; USS
Products Investor LLC (“Transferee”) a limited liability company duly organized and existing under the laws of Delaware with its principal office in Edison, New Jersey; and the United States of America
(“Government”) enter into this Agreement as of June 30, 2008. 
 (a) The Parties agree to the
following facts: 
 (1) The Government, represented by a Contracting Officer of the United States Navy Military
Sealift Command, has entered into a certain contract with the Transferor, namely: Contract No. N0003-06-R-5416. The term “the contracts,” as used in this Agreement, means the above contract and purchase order and all other
contracts and purchase orders, including all modifications, made between the Government and the Transferor before the effective date of this Agreement (whether or not performance and payment have been completed and releases executed if the
Government or the Transferor has any remaining rights, duties, or obligations under these contracts and purchase orders). Included in the term “the contracts” are also all modifications made under the terms and conditions of these
contracts and purchase orders between the Government and the Transferee, on or after the effective date of this Agreement. 
 (2) As the date first appearing above, the Transferor has transferred to the Transferee all of the Transferor’s assets involved with performing the contracts by virtue of that certain Assignment and
Assumption Agreement dated August 7, 2006. The Transferee has acquired all the assets required to perform under the contracts of the Transferor by virtue of the above transfer. 

(3) The Transferee has assumed all obligations and liabilities of the Transferor under the contracts by virtue of the
above transfer. 
 (4) The Transferee is in a position to fully perform all obligations that may exist under the
contracts. 
 (5) It is consistent with the Government’s interest to recognize the Transferee as the
successor party to the contracts. 
 (6) Evidence of the above transfer has been filed with the Government.

 (b) In consideration of these facts, the Parties agree that by this Agreement — 

(1) The Transferor confirms the transfer to the Transferee, and waives any claims and rights against the Government that
it now has or may have in the future in connection with the contracts. 

  
 Page 1 of 3

 (2) The Transferee agrees to be bound by and to perform each contract in
accordance with the conditions contained in the contracts. The Transferee also assumes all obligations and liabilities of, and all claims against, the Transferor under the contracts as if the Transferee were the original party to the contracts.

 (3) The Transferee ratifies all previous actions taken by the Transferor with respect to the contracts, with
the same force and effect as if the action had been taken by the Transferee. 
 (4) The Government recognizes the
Transferee as the Transferor’s successor in interest in and to the contracts. The Transferee by this Agreement becomes entitled to all rights, titles, and interests of the Transferor in and to the contracts as if the Transferee were the
original party to the contracts. Following the effective date of this Agreement, the term “Contractor”, as used in the contracts, shall refer to the Transferee. 

(5) Except as expressly provided in this Agreement, nothing in it shall be construed as a waiver of any rights of the
Government against the Transferor. 
 (6) All payments and reimbursements previously made by the Government to
the Transferor, and all other previous actions taken by the Government under the contracts, shall be considered to have discharged those parts of the Government’s obligations under the contracts. All payments and reimbursements made by the
Government after the date of this Agreement in the name of or to the Transferor shall have the same force and effect as if made to the Transferee, and shall constitute a complete discharge of the Government’s obligations under the contracts, to
the extent of the amounts paid or reimbursed. 
 (7) The Transferor and the Transferee agree that the Government
is not obligated to pay or reimburse either of them for, or otherwise give effect to, any costs, taxes, or other expenses, or any related increases, directly or indirectly arising out of or resulting from the transfer or this Agreement, other than
those that the Government in the absence of this transfer or Agreement would have been obligated to pay or reimburse under the terms of the contracts. 
 (8) The Transferor guarantees payment of all liabilities and the performance of all obligations that the Transferee — 

(i) Assumes under this Agreement; or 

(ii) May undertake in the future should these contracts be modified under their terms and conditions. The Transferor
waives notice of, and consents to, any such future modifications. 
 (9) The contracts shall remain in full force
and effect, except as modified by this Agreement. Each Party has executed this Agreement as of the day and year first above written. 

  
 Page 2 of 3

			
	United States of America,
		
	By	 	/s/ Diana Fischer
	Title	 	Contracting Officer, MSC

  

			
	USS Product Carriers LLC,
		
	By	 	/s/ Joseph Gehegan
	Title	 	President & COO

  

			
	USS Products Investor LLC,
		
	By	 	/s/ Joseph Gehegan
	Title	 	President & COO

 CERTIFICATE

 I, Albert Bergeron, certify that I am the Secretary of USS Product Carriers LLC; that Joseph P. Gehegan, who signed this Agreement for this
company, was then President of this company; and that this Agreement was duly signed for and on behalf of this company by authority of its governing body and within the scope of its corporate powers. Witness my hand this 30th day of June, 2008.

  

			
		
	By	 	/s/ Albert Bergeron

 CERTIFICATE 
 I, Albert Bergeron, certify that I am the Secretary of USS Products Investor LLC;
that Joseph P. Gehegan, who signed this Agreement for this company, was then President of this company; and that this Agreement was duly signed for and on behalf of this company by authority of its governing body and within the scope of its
corporate powers. Witness my hand this 30th day of June, 2008 
  

			
		
	By	 	/s/ Albert Bergeon

  
 Page 3 of 3

					
	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	  	1. CONTRACT ID CODE	  	PAGE OF PAGES
	 	 	 
	 	  	 	  	1            
            2

									
	 	 	 	 
	
2. AMENDMENT/MODIFICATION NO.

                   
     P00001
	  	 
  
	3. EFFECTIVE DATE
 06 July 2007        
	  

  
	  	 4. REQUISITION/PURCHASE REQ. NO
	  	
5. PROJECT NO. (If applicable)

	 	 	 	 
	 6. ISSUED
BY                    CODE
	  	 	N00033	  	  	7. ADMINISTERED BY (IF OTHER THAN ITEM 6)	  	    CODE
	 	 
	 MILITARY SEALIFT COMMAND PMs
 914 CHARLES MORRIS
COURT 85
 WASHINGTON NAVY YARD DC 20898-5640
	   

  

  
	  	PCC: Diana Fischer,
202-585-5838

																																							
	 	 	
	 8. NAME AND ADDRESS OF CONTRACTOR
 (No., Street,
County, State, and Zip Code)
  
 USS Product Carriers
LLC
 399 Thornell Street

Edison, NJ 08837
  
	  	x	  	 9A. AMENDMENT OF SOLICITATION NO.

 

	  	 	  	 9B. DATED (SEE ITEM 11)
          
  

	  	x	  	 10A. MODIFICATION OF CONTRACT/ORDER NO.

                         
   N00033-07-C-5416

	 CODE:
          
	  	FACILITY CODE:           	  	  	 10B. DATED (SEE ITEM 11)
                                 
6-Jul-07

	
	 
	11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF
SOLICITATIONS
	 
	  ̈ The above numbered, solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers
 ̈ is extended  ̈ is not extended.
  

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following
methods:
  
 (a) By completing Items 8 and 15, and returning
           copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers, FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you
desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date
specified.

	 
	12. ACCOUNTING AND APPROPRIATION DATA
(If Required)
	 
	 13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
 IT
MODIFIES THE CONTRACT/ORDER NO., AS DESCRIBED IN ITEM 14

																																							
	 	 
	
 ̈
	  	A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify Authority) THE
CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
	 	 
	
 ̈
	  	B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE
ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF PAR 43,103 (b).
	 	 
	
 ̈
	  	C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY
OF:
	 	 
	
x
	  	D. OTHER (Specify type of modification and authority)
                Mutual agreement of this party.

													
	 	 	 	 	 	 	 
	 E. IMPORTANT:
Contractor
	  	 	  	is not,	  	 	  	is required to sign this document and return	  	 	  	copies to the issuing office.
	 
	 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.

 
 See attached page.

 
 Except as provided herein, all terms and conditions of the document referenced in
Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

											
	 15A. NAME AND TITLE OF SIGNER

    Raymond W. Marquardt
	  	 	 	 	  	16A. NAME AND TITLE OF CONTRACTING OFFICER	  
	 		 	 
	 15B.
CONTRACTOR/OFFEROR
	  	 
  
	15C. DATE

        SIGNED
	  
   
	  	 16B. UNITED STATES OF AMERICA

 
 By /s/ Diane Fischer
	  	 
  
	16C. DATE
 SIGNED
	  
   

	(Signature of person authorized to sign)	  	 	7/6/2007	  	  	(Signature of Contracting Officer)	  	 	7/6/07	  

 

			
	NSN 7540-01-152-8070	  	STANDARD FORM 30 (REV. 10-83)       
	Previous Edition Unusable	  	Prescribed by GSA FAR (48 CFR) 53.243

  

 The purpose of this modification is to definitize the delivery/redelivery locations for the vessels under
this contract and to remove the ballast bonuses associated with current delivery/redelivery locations. Accordingly, the parties mutually agree to the following contract revisions: 
 1. Box 2 is revised from “Continental U.S. - $1,308,822” to “NASSCO ship yard.” 
 2. Box 3 is revised from “Wordwide - $3,063,752” to “U.S. Gulf Coast.” 
 3.
The mutual benefit each party will gain from the definitized delivery/redelivery locations will represent consideration for these changes. 
 4.
The parties hereby agree that the changes in the terms and conditions of the contract set forth above provides the Contractor with the full and complete consideration for the changes in modification P00001. The Contractor hereby waives all right,
title and interest, if any, to further adjustment for the aforesaid changes. 
 5. All other contract terms and conditions remain unchanged and
in full force and effect. 

					
	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	  	1. CONTRACT ID CODE	  	PAGE OF PAGES
	 	 	 
	 	  	 	  	1            
        3

									
	 	 	 	 
	
2. AMENDMENT/MODIFICATION NO.

                   
     P00002
	  	 

 
	3. EFFECTIVE DATE
 14 Jan 2009        
	  

  
	  	 4. REQUISITION/PURCHASE REQ. NO
	  	
5. PROJECT NO. (If applicable)

	 	 	 	 
	 6. ISSUED
BY                    CODE
	  	 	N00033	  	  	7. ADMINISTERED BY (if other than item 6)	  	    CODE
	 	 
	 MILITARY SEALIFT COMMAND PMS
 914 CHARLES MORRIS
COURT SE
 WASHINGTON NAVY YARD DC 20398-55640
	   

  

  
	  	PCC: Diana Fischer,
202-685-5838

																																							
	 	 	
	 8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State, and Zip Code)
  

USS Product Investor LLC
 399 Thornell
Street, 8th FI
 Edison, NJ 08837

 
	  	x	  	 9A. AMENDMENT OF SOLICITATION NO.

 

	  	 	  	 9B. DATED (SEE ITEM 11)
          
  

	  	x	  	 10A. MODIFICATION OF CONTRACT/ORDER

                         
   N00033-07-C-5416

	 CODE:
          
	  	FACILITY CODE:           	  	  	 10B. DATED (SEE ITEM 13)
                                 
6-Jul-07

	
	 
	11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF
SOLICITATIONS
	 
	  ̈ The above numbered, solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers
 ̈ is extended  ̈ is not extended.
  

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following
methods:
  
 (a) By completing Items 8 and 15, and returning
           copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you
desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date
specified.

	 
	12. ACCOUNTING AND APPROPRIATION DATA
(If Required)
	 
	 13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
 IT
MODIFIES THE CONTRACT/ORDER NO., AS DESCRIBED IN ITEM 14

																																							
	 	 
	
x
	  	A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify Authority) THE
CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
	 	 
	
 ̈
	  	B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE
ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103 (b).
	 	 
	
 ̈
	  	C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY
OF:
	 	 
	
x
	  	 D. OTHER (Specify type of
modification and authority)                 

Mutual agreement of the Parties in accordance with FAR 42.12.

													
	 	 	 	 	 	 	 
	 E. IMPORTANT:
Contractor
	  	 ̈        	  	is not,	  	x        	  	 is required to sign this document and return

 
	  	 	  	copies to the issuing office.
	 
	 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.

 
 See attached page.

 
 Except as provided herein, all terms and conditions of the document referenced in
Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

											
	 15A. NAME AND TITLE OF SIGNER
     JOSEPH P. GEHEGAN

    CHIEF OPERATING OFFICER
	  	 	 	 	  	 16A. NAME AND TITLE OF CONTRACTING OFFICER

DIANE FISCHER
	
  
   

	 		 	 
	 15B. CONTRACTOR/OFFEROR
  
 /S/ Joseph Gehegan
	  	 
  
	15C. DATE

        SIGNED
	  
   
	  	 16B. UNITED STATES OF AMERICA

 
 /s/ Diane Fischer
	  	 
  
	16C. DATE
 SIGNED
	  
   

	(Signature of person authorized to sign)	  	 	1/15/09	  	  	(Signature of Contracting Officer)	  	 	1/16/09	  

 

			
	NSN 7540-01-152-8070	  	STANDARD FORM 30 (REV. 10-83)       
	Previous Edition Unusable	  	Prescribed by GSA FAR (48 CFR) 53.243

  

 N00033-07-C-5416 
 P00002 
 SECTION SF 30 BLOCK 14 CONTINUATION PAGE 

SUMMARY OF CHANGES 
 The following have
been added by full text: 
 NOVATION AGREEMENT RECOGNITION 

 

	1.	Pursuant to the Novation Agreement executed for this contract on 16 January 2009 among Transferor USS Product Carriers LLC, Transferee USS Products Investor LLC
and the Government, this modification recognizes the transferee as a successor in interest under this contract, following the transfer of all assets involved in contract performance to a third party. 

 

	2.	The Transferee has acquired all the assets required to perform under the contracts of the Transferor under an Assignment and Assumption Agreement dated August 7,
2006 executed between USS Product Carriers LLC (the Transferor) and USS Products Investor LLC (the Transferee). 

  

	3.	Under the Novation Agreement, the transferor waives all rights under this contract against the Government. 

 

	4.	Per the Novation Agreement, the transferee USS Products Investor LLC assumes all of the transferor’s obligations under this contract, and the transferor USS
Product Carriers LLC guarantees continued performance of the requirements under this contract by the transferee. Nothing in the agreement relieves the transferor or transferee from compliance with any Federal Law. 

 

	5.	In the event the Charterer is unable to secure the services of USS Vessel Management as required under the subject Contract, the Contractor shall promptly appoint as
its “Operating Agent” a responsible party to perform all the operational and managerial services required of the Contractor under this Charter. The Operating Agent shall be subject to the approval of the Contracting Officer, which approval
shall not be unreasonably withheld. The Operating Agent shall perform the services required under this Charter under the same terms and price or such other terms and price as the Contracting Officer may deem appropriate and the Contractor shall be
liable to the Charterer for any excess costs for such similar services. If the Contractor is unable to procure a satisfactory Operating Agent within a reasonable period of time, the Charterer shall have the right to procure such Operating Agent,
upon such terms and in such manner as the Contracting Officer may deem appropriate and the Contractor shall be liable to the Charterer for any excess costs for such similar services. 

 

	6.	The parties agree that no adjustment to the contract price, delivery schedule or other terms and conditions of the contract is warranted by virtue of the above changes
to the contract. The parties waive all right, title and interest, if any, to such adjustment. 

  

	7.	All other terms and conditions of this contract, except as modified herein, remain in full force and effect. 

 N00033-07-C-5416 
 P00002 
  

	8.	The Contracting Officer is not aware of any other contracts with the Government that are affected by the Novation herein. The Contractor has provided a statement to
this effect. 

 SECTION SF 1449 - CONTINUATION SHEET 
 SOLICITATION/CONTRACT FORM 
 The contractor organization has changed from

 USS PRODUCT CARRIERS LLC 

399 THORNALL STREET 
 PO BOX 2945 
 EDISON, NJ 08837 

to 
 USS PRODUCTS INVESTOR LLC 
 399 THORNALL STREET 

PO BOX 2945 
 EDISON, NJ 08837 
 (End of Summary of Changes) 

					
	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	  	1. CONTRACT ID CODE	  	PAGE OF PAGES
	 	 	 
	 	  	 	  	1            
            3

									
	 	 	 	 
	
2. AMENDMENT/MODIFICATION NO.

                   
     P00003
	  	 
  
	3. EFFECTIVE DATE
 10 Dec09        
	  

  
	  	 4. REQUISITION/PURCHASE REQ. NO
	  	
5. PROJECT NO.(If applicable)

	 	 	 	 
	 6. ISSUED
BY                    CODE
	  	 	N00033	  	  	7. ADMINISTERED BY (If other than item 6)	  	    CODE
	 	 
	 MILITARY SEALIFT COMMAND, N1033/ PM5
 914 CHARLES MORRIS
COURT 85
 WASHINGTON NAVY YARD DC 20398-5540
	   

  
   
	  	See Item
6

																																							
	 	 	
	 8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State, and Zip Code)
  

American Petroleum Tankers LLC
 345
Park Avenue, 29th Floor
 New York, NY 10154-0004

 
	  	x	  	 9A. AMENDMENT OF SOLICITATION NO.

 

	  	 	  	 9B. DATED (SEE ITEM 11)
          
  

	  	x	  	 10A. MODIFICATION OF CONTRACT/ORDER

                         
   N00033-07-C-5416

	 	 	 	
	 CODE
          
	  	FACILITY CODE           	  	x	  	 10B. DATED (SEE ITEM 13)
                                 
6-Jul-07

	
	 
	11. THIS ITEM APPLIES TO AMENDMENTS OF
SOLICITATIONS
	 
	  ̈ The above numbered, solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers
 ̈ is extended  ̈ is not extended.
  

Offerors must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following
methods:
  
 (a) By completing Items 8 and 15, and returning
           copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers, FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you
desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date
specified.

	 
	12. ACCOUNTING AND APPROPRIATION DATA
(If Required)
	 
	 13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
 IT
MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

																																							
	 	 
	
x
	  	A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify Authority) THE CHANGES
SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
	 	 
	 	  	B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE
ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43,103 (b).
	 	 
	 	  	C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY
OF:
	 	 
	
x
	  	 D. OTHER (Specify type of
modification and authority)                 

Mutual Agreement of the Parties in accorandance with FAR 42.12.

													
	 	 	 	 	 	 	 
	 E. IMPORTANT:
Contractor
	  	 	  	is not,	  	X	  	is required to sign this document and return	  	1	  	copies to the issuing office.
	 
	 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.

 
 Please See attached page.

 
 Except as provided herein, all terms and conditions of the document referenced in
Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

											
	 15A. NAME AND TITLE OF SIGNER (Type or print)

    David Foley, Managing Member
	
  

  
	  	 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or
print)
 Diana Fischer, Contracting Officer
 Phone - (202) 685-5833
	
   

  
   

	 		 	 
	 15B. CONTRACTOR/OFFEROR
  
 /s/ David Foley
	  	 
  
	15C. DATE

        SIGNED
	  
   
	  	 16B. UNITED STATES OF AMERICA

 
 By     /s/ Diana Fischer
	  	 
  
	16C. DATE
 SIGNED
	  
   

	(Signature of person authorized to sign)	  	 	Dec. 15, 2009	  	  	(Signature of Contracting Officer)	  	 	12/15/09	  

30-105 

			
	NSN 7540-01-152-8070	  	STANDARD FORM 30 (REV. 10-83)
	PREVIOUS EDITION UNUSABLE	  	 Prescribed by GSA
 FAR (48 CFR) 53.243

  

 N00033-07-C-5416 
 P00003 
 SECTION SF 30 BLOCK 14 CONTINUATION PAGE 

SUMMARY OF CHANGES 
 The following have
been added by full text: 
 CHANGE-OF-NAME RECOGNITION 

 

	 	1.	Pursuant to the Change-of-Name Agreement executed for the contract on 10 December 2009, the Government recognizes that USS Products Investor LLC, by an amendment
to its Certificate of Formation, dated 28 July 2009, has changed its corporate name from “USS Products Investor LLC” to “American Petroleum Tankers LLC.” 

 

	 	2.	This modification documents a change in corporate name only. Therefore, all rights and obligations of the Government and of the Contractor under this contract remain
unaffected by this change. 

  

	 	3.	The Contracting Officer is not aware of any other contracts with the Government that are affected by the Name Change herein. The Contractor has provided a statement to
this effect. 

  

	 	4.	The Contractor’s legal counsel provided its written opinion on l7 August 2009 and stated that the change of name was properly effected pursuant to the Delaware
Limited Liability Company Act effective as of the time of the filing of the Certificate of Amendment on 28 July 2009. 

  

	 	5.	As per Paragraph 5 of Modification N00033-07-C-5416-P00002, in the event that the Contractor is unable to secure the services of USS Vessel Management LLC as required
under the subject contract, the Contractor shall promptly notify the Contracting Officer in writing. If the Contractor chooses to propose the use of another ship operating company in order to provide these services, the Contractor must provide
adequate documentation to allow the Contracting Officer to make a determination as to whether the Contractor’s proposal is acceptable. This documentation shall include, but not be limited to, the following: 

 

	 	a.	TankTime (Boxes 7-97) ProForma to confirm vessel data and document owner of vessels. 

 

	 	b.	Vetting Schedule to include confirmation that vetting approvals will be maintained during the life of the charter. 

 

	 	c.	Organizational Charts for American Petroleum Tankers LLC and its proposed ship operating company. 

 

	 	d.	General Ship Arrangement Plans that meet contract requirements. (If the arrangement has not changed from the proposal submitted by USS Product Carriers LLC, please
confirm). 

  

	 	e.	Confirmation of the provision of vessels as originally proposed, including a letter from National Steel and Shipbuilding Company (NASSCO) confirming its agreement to
build the required vessels for American Petroleum Tankers LLC and its anticipated delivery schedule. 

  

	 	f.	Confirmation of the fuel consumption warranty for the vessels. 

  

	 	g.	Confirmation of speed warranty for the vessels. 

  

	 	h.	Confirmation of CONSOL stations/capability. 

  

	 	i.	Confirmation of ability to meet security space requirements aboard the vessels in accordance with section C.9 of the contract’s Statement of Work.

  

	 	j.	Confirmation of ability to provide space to accommodate up to fifteen (15) Government security personnel and two (2) Merchant Marine Cadets aboard the vessels
in accordance with section C.I 6 of the contract’s Statement of Work. 

  

	 	k.	Confirmation of compliance with inspection requirements for Oil Companies International Marine Forum (OCIMF) standards. 

 

	 	1.	Evidence of Required Certifications for the vessels belonging to American Petroleum Tankers LLC and its proposed ship operating company. 

 

	 	m.	Proof of Insurance -The following minimum information is required: 

 (1) A sample insurance policy cover note meeting the requirements of this contract, especially sections H-3. 

 N00033-07-C-5416 
 P00003 
  
 (2)
Specimen Copy of insurance policy and the current P&I club rulebook for both basic »P&I and war risk P&I coverage. 
 (3) Identity, address, and telephone number of insurer(s) and insurance broker(s). 

(4) For British P&I clubs or other foreign insurers, provide some written assurance (or policy clause) from that insurer
acknowledging its responsibility to defend suits in appropriate courts within the United States. 
  

	 	n.	Past Performance Documentation for Proposed Ship Operating Company submitted on the Past 

Performance Data Sheet included as Attachment K to the solicitation. 

 

	 	o.	Updated discussion of focus on small business concerns. 

 This documentation shall be provided to the Contracting Officer not later than 30 calendar days following the effective date of this modification as documented in Block 3 of the SF 30 form. In addition,
should the Contracting Officer accept this change in ship operating companies, it shall not result in any adjustment to contract price, delivery schedule, or other terms and conditions of this contract. 

 

	 	6.	The parties agree that no adjustment to contract price, delivery schedule, or other terms and conditions of this contract is warranted by the virtue of the above
changes to the contract. The parties hereby waive all right, title, and interest, if any, to such adjustment. 

  

	 	7.	All other terms and conditions of this contract, except as modified herein, shall remain in full force and effect. 

SECTION SF 1449 - CONTINUATION SHEET 

SOLICITATION/CONTRACT FORM 
 The contractor organization has changed from 
 USS PRODUCTS INVESTOR LLC

 399 THORNALL STREET 
 PO BOX 2945 
 EDISON, NJ 08837 

The contractor organization is hereby changed to: 
 AMERICAN PETROLEUM TANKERS LLC 
 345 PARK AVENUE, 29TH FLOOR 

NEW YORK, NY 10154-0004 
 (End
of Summary of Changes) 

					
	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	  	1. CONTRACT ID CODE	  	PAGE OF PAGES
	 	 	 
	 	  	 	  	1            
        2    

									
	 	 	 	 
	
2. AMENDMENT/MODIFICATION NO.

                   
     P00004
	  	 

 
	3. EFFECTIVE DATE
 09 MAR 2010        
	  

  
	  	 4. REQUISITION/PURCHASE REQ. NO
	  	
5. PROJECT NO.(If applicable)

	 	 	 	 
	 6. ISSUED
BY                    
	  	 	CODE    N00033	  	  	7. ADMINISTERED BY (If other than item 6)	  	    CODE
	 	 
	 MILITARY SEALIFT COMMAND N1033/PM5
 914 CHARLES MORRIS
COURT SE
 WASHINGTON NAVY YARD DC 20398-5340
	   

  
   
	  	See Item
6

																																							
	 	 	
	 8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State, and Zip Code)
  

American Petroleum Tankers LLC
 345
Park Avenue, 29th Floor
 New York, NY 10154-0004

 
	  	x	  	 9A. AMENDMENT OF SOLICITATION NO.

 

	  	 	  	 9B. DATED (SEE ITEM 11)
          
  

	  	x	  	 10A. MODIFICATION OF CONTRACT/ORDER

                         
   N00033-07-C-5416

	 	 	 	
	 CODE
          
	  	FACILITY CODE           	  	x	  	 10B. DATED (SEE ITEM 13)
                                 
5-Jul-07

	
	 
	11. THIS ITEM APPLIES TO AMENDMENTS OF
SOLICITATIONS
	 
	  ̈ The above numbered, solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers
 ̈ is extended  ̈ is not extended.
  

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following
methods:
  
 (a) By completing Items 8 and 15, and returning
           copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers, FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you
desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date
specified.

	 
	12. ACCOUNTING AND APPROPRIATION DATA
(If Required)
	 
	 13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
 IT
MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

																																							
	 	 
	
x
	  	A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify Authority) THE CHANGES
SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
	 	 
	 	  	B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE
ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103 (b).
	 	 
	 	  	C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY
OF:
	 	 
	
x
	  	 D. OTHER (Specify type of
modification and authority)                 

Mutual Agreement of the Parties in accorandance with FAR 42.12.

													
	 	 	 	 	 	 	 
	 E. IMPORTANT:
Contractor
	  	 	  	is not,	  	x	  	is required to sign this document and return	  	1	  	copies to the issuing office.
	 
	 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

 
 Please See attached page.

 
 Except as provided herein, all terms and conditions of the document referenced in
Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

  

											
	 15A. NAME AND TITLE OF SIGNER (Type or print)

    Robert K. Kurz, CEO
	  	 	 	 	  	 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or
print)
 Diana R. Fischer, Contracting Officer
	
   

  

	 		 	 
	 15B. CONTRACTOR/OFFEROR
  
 /s/ Robert K. Kurz
	  	 	15C. DATE SIGNED	  	  	 16B. UNITED STATES OF AMERICA

 
 By     /s/ Diana Fischer
	  	 	16C. DATE SIGNED	  
	(Signature of person authorized to sign)	  	 	3/9/10	  	  	(Signature of Contracting Officer)	  	 	3/10/2010	  

 

					
	NSN 7540-01-152-8070	 	30-105	  	STANDARD FORM 30 (REV. 10-83)
	PREVIOUS EDITION UNUSABLE	 		  	 Prescribed by GSA
 FAR (48 CFR) 53.243

  

 N00033-07-C-5416 
 P00004 
 SECTION SF 30 BLOCK 14 CONTINUATION PAGE 

SUMMARY OF CHANGES 
 The following have
been added by full text: 
 ACCEPTANCE OF PROPOSAL 

 

	 	1.	The Government hereby accepts the proposal submitted by the Contractor on 22 January 2010 and revised on 20 February 2010 for the utilization of Crowley
Technical Management, Inc. as its subcontractor to operate the vessels provided under this contract. 

  

	 	2.	The proposal, along with its revision, are hereby incorporated into the contract and are subject to the terms and conditions therein. 

 

	 	3.	The parties agree that no adjustment to contract price, delivery schedule, or other terms and conditions of this contract is warranted by the virtue of the above
changes to the contract. The parties hereby waive all right, title, and interest, if any, to such adjustment. 

  

	 	4.	All other terms and conditions of this contract, except as modified herein, shall remain in full force and effect. 

(End of Summary of Changes) 

					
	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	  	1. CONTRACT ID CODE	  	PAGE OF PAGES
	 	 	 
	 	  	 	  	1            
        4    

									
	 	 	 	 
	
2. AMENDMENT/MODIFICATION NO.

                   
     P00005
	  	 

 
	3. EFFECTIVE DATE
 07 APR 2010        
	  

  
	  	 4. REQUISITION/PURCHASE REQ. NO
	  	
5. PROJECT NO.(If applicable)

	 	 	 	 
	 6. ISSUED
BY                            
	  	 	CODE    N00033	  	  	7. ADMINISTERED BY (If other than item 6)	  	    CODE
	 	 
	 MILITARY SEALIFT COMMAND N1033/PM5
 914 CHARLES
MORRIS COURT SE
 WASHINGTON NAVY YARD DC 20398-5540
	   

  

  
	  	See Item
6

																																							
	 	 	
	 8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State, and Zip Code)
  

American Petroleum Tankers LLC
 345
Park Avenue, 29th Floor
 New York, NY 10154-0004

 
	  	x	  	 9A. AMENDMENT OF SOLICITATION NO.

 

	  	 	  	 9B. DATED (SEE ITEM 11)
          
  

	  	x	  	 10A. MODIFICATION OF CONTRACT/ORDER NO.

                         
   N00033-07-C-5416

	 	 	 	
	 CODE
          
	  	FACILITY CODE           	  	x	  	 10B. DATED (SEE ITEM 13)
                                 
6-Jul-07

	
	 
	11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF
SOLICITATIONS
	 
	  ̈ The above numbered, solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers
 ̈ is extended  ̈ is not extended.
  

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following
methods:
  
 (a) By completing Items 8 and 15, and returning
           copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers, FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you
desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date
specified.

	 
	12. ACCOUNTING AND APPROPRIATION DATA
(If Required)
	 
	 13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
 IT
MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

																																							
	 	 
	
x
	  	A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify
Authority)                 THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
	 	 
	 	  	B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE
ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103 (b).
	 	 
	 	  	C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY
OF:
	 	 
	
x
	  	 D. OTHER (Specify type of
modification and authority)                 

Mutual agreement of the parties in accordance with FAR 42.12..

													
	 	 	 	 	 	 	 
	 E. IMPORTANT:
Contractor
	  	 	  	is not,	  	X	  	is required to sign this document and return	  	1	  	copies to the issuing office.
	 
	 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

 
 Please See attached page.

 
 Except as provided herein, all terms and conditions of the document referenced in
Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

											
	 15A. NAME AND TITLE OF SIGNER (Type or print)

    Robert K. Kurz, CEO
	  	 	 	 	  	 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or
print)
 Diana R. Fischer

Contracting Officer
	
   

  
   

	 		 	 
	 15B. CONTRACTOR/OFFEROR
  
 /s/ Robert K. Kurz
	  	 
  
	15C. DATE

        SIGNED
	  
   
	  	 16B. UNITED STATES OF AMERICA

 
 By     /s/ Diana Fischer
	  	 
  
	16C. DATE
 SIGNED
	  
   

	(Signature of person authorized to sign)	  	 	4/6/10	  	  	(Signature of Contracting Officer)	  	 	4/6/10	  

30-105 
  

			
	NSN 7540-01-152-8070	  	STANDARD FORM 30 (REV. 10-83)
	PREVIOUS EDITION UNUSABLE	  	 Prescribed by GSA
 FAR (48 CFR) 53.243

  

 N00033-07-C-5416 
 P00005 
  

 SECTION SF 30 BLOCK 14 CONTINUATION PAGE 
 SUMMARY OF CHANGES 
 SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

 The following is hereby deleted in its entirety: 
 C-8.1 Crew. Vendor and Transient Vetting: Full name, birth date, city, country, citizenship and passport information of crew, security personnel, military personnel, industrial-assistance
personnel, service representatives, and all others who will be granted unrestricted access to the ship must be submitted to MSC not less than forty-eight hours prior to their visit/embarkation. Specific format and e-mail address will be provided at
contract award. 
 The following is hereby incorporated into the contract: 
 C-8.1 Crew, Vendor and Transient Vetting. The Contractor shall submit the Full Name, Billet, SSN, Date of Birth, Birth Country, City of Birth, State of Birth, U.S. Passport Number and Nationality
for all crew members to MSCHQ/PM5 using the Government provided MSCIEPIC Force Protection Personnel/Crew list Submission Template to allow screening by the El Paso Intelligence Center (EPIC). The template must be filled out in its entirety by Owners
and resubmitted electronically in Microsoft Excel format to the Charterer, at the following PM5 mailbox MSCHQ.PM5-screening.fct@navy.mil. Submit crewmember’s information as they are identified to go to the ship(s). When a crew member is
replaced, only submit that crewmember’s information instead of submitting the entire crew list again when the new crewmember is submitted. All new personnel must be screened at the beginning of the hiring process prior to being sent to the
ship. All personnel information shall be resubmitted every time they join/rejoin a vessel, upon a change in contract or Contractor, upon transfer from one ship to another, and once in each 12-month period. A similar procedure shall be followed for
all other Contractor personnel for whom unescorted access to the ships is required. MSC PM5 will notify the Contractor of any anomalous screening results requiring further action or investigation. Emails containing the Microsoft Excel attachment
shall be written as follows: 
  

	 	•	 	 Subject line format is as follows: FOUO - PRIVACY SENSITIVE - EPIC - PM5 - NAME of SHIP - CREW or NON-CREW 

 

	 	•	 	 Body of email is to begin and end as follows: FOR OFFICIAL USE ONLY - PRIVACY SENSITIVE. ANY MISUSE OR UNAUTHORIZED DISCLOSURE MAY RESULT IN BOTH CIVIL
AND CRIMINAL PENALTIES 

  

	 	•	 	 Submitter’s name, company, address, and telephone number must be included in the email. Scanned lists are unacceptable. Additionally, if there is
a scheduled crew change or rotation of any percentage of such, the above information is to be provided at least four working days prior to departing (home or assignment) to report to the vessel. 

 

	 	•	 	 The Microsoft Excel attachment shall be password protected using the Microsoft password option. The password will be provided by MSCHQ N34. Access to
personal information by contractor employees shall be on a need to know basis. To obtain the password, contact either Bruce Belden, 202-685-5378, bruce.belden@nayy.mil or Lance Murray, 202-685-5139, lance.a.murray@nayy.mil

  

	 	•	 	 A Microsoft attachment can be password protected as follows: Open the template (spreadsheet) and click on Tools and then Options. In the Options drop
down menu, click on Security. Then enter the password and click on OK. Then you will be asked to re-enter the password. Password is case sensitive. 

  

 N00033-07-C-5416 
 P00005 
  

 SECTION H – SPECIAL CONTRACT REQUIREMENTS 

The following is hereby deleted in its entirety: 
 H-39 Immunizations. U.S. flag time chartered vessel(s) services are considered essential contractor services to the Department of Defense in support of military and associated support missions. As
a result, Masters, officers, crewmembers, and other individuals who are embarked on such vessels for Owner’s purposes, including but not limited to subcontractors, are considered contractor personnel performing mission essential services under
DODI 3020.37, November 6, 1990, (Change 1, January 26,1996), and are subject to the following: 
 (a)
Masters, officers, crewmembers and other individuals, as described above, who are embarked on any vessel(s) subject to this charter must be medically pre-screened and immunized in accordance with Commander, Military Sealift Command (COMSC) policy,
and any changes thereto, in effect or made during the period of this charter, including any options or extensions. Owner shall ensure that all Masters, Officers, crewmembers, and other individuals embarked on any vessel(s) subject to this charter
comply with all such immunization programs. Notification of immunization requirements pursuant to this section shall be provided to Owner by the Contracting Officer. 
 (b) When immunizations are required pursuant to this clause, Owner must provide notification, as directed by the Contracting Officer, of the immunization status of all embarked personnel within 24 hours
of fixture or award. Further, at any time during the contract period, the immunization status of any relief personnel scheduled to board the vessel(s) is required no later than 96 hours prior to the personnel change, unless authorized otherwise by
the Contracting Officer. 
 (c) Any Master, officer, crewmember or other individual who refuses to comply with the immunization
requirements, or who is ineligible for a particular required immunization as provided herein, shall be removed by Owner from the vessel(s) as soon as possible, but not later than the next port call unless authorized by the Contracting Officer, and
replaced with personnel who either have the required immunization or are eligible and will comply with the policy. Any removal and replacement of personnel pursuant to this clause shall be solely at Owner’s expense, including, but not limited
to, travel, per diem, wages and associated administrative expenses. 
 (d) Crew shortages resulting from the application of this
section may subject the vessel(s) to being placed off- hire. 
 The following is hereby incorporated into the contract: 

H-39 PROPHYLACTIC AND MEDICAL COUNTERMEASURES, INCLUDING IMMUNIZATIONS: U.S. flag time chartered vessel(s) services are considered essential
Contractor services to the Department of Defense in support of military and associated support missions. As a result, Masters, officers, crewmembers, and other individuals who are embarked on such vessels for Owner’s purposes, including but not
limited to subContractors, are considered Contractor personnel performing mission essential services under DODI 3020.37, November 6,1990, (Change 1, January 26, 1996), and are subject to the following: 

(a) Masters, officers, crewmembers and other individuals, as described above, who are embarked on any vessel(s) subject to this charter
shall be medically pre-screened, and issued or given prophylactic and medical countermeasures, including immunizations, in accordance with Commander, Military Sealift Command (COMSC) policy. Owner shall ensure that all Masters, Officers,
crewmembers, and other individuals embarked on any vessel(s) subject to this charter comply with all such prophylactic and medical countermeasures, including all immunization requirements in effect or made during the period of this charter,
including any options or extensions. Notification of the requirements pursuant to this section shall be provided to Owner by the Contracting Officer. 
 (b) When prophylactic and medical countermeasures, including immunizations are required pursuant to this clause, Owner shall provide notification, as directed by the Contracting Officer, of the
immunization status of all 

  

 N00033-07-C-5416 
 P00005 
  

 embarked personnel within 24 hours of fixture or award. Further, at any time during the contract period,
the immunization status of any relief personnel scheduled to board the vessel(s) is required no later than 96 hours prior to the personnel change, unless authorized otherwise by the Contracting Officer. 

(c) Any Master, officer, crewmember or other individual who refuses to comply with any prophylactic or medical countermeasure
requirement, including any immunization requirement, or any policy concerning the use of said prophylactic or medical countermeasure, or who for medical, personal, religious or any other reason declines or is ineligible to take or use a particular
required immunization or other prophylactic or medical countermeasure, shall be removed by Owner from the vessel as soon as possible, but not later than the next port call, and replaced, with an individual of equal or better qualifications who has,
as applicable, the required immunization(s) or is eligible and willing to comply with the requirement. Any removal and replacement of personnel pursuant to this clause shall be solely at Owner’s expense, including, but not limited to, travel,
per diem, wages and associated administrative expenses. 
 (d) Crew shortages resulting from the application of this section may
subject the vessel(s) to being placed off- hire. 
 AU other contract terms and conditions remain unchanged and in full force and effect

 (End of Summary of Changes) 

  

					
	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	  	1. CONTRACT ID CODE	  	PAGE OF PAGES
	 	 	 
	 	  	J	  	1            
            6

									
	 	 	 	 
	
2. AMENDMENT/MODIFICATION NO.

                   
     P00006
	  	 
  
	3. EFFECTIVE DATE
 22-Nov-2010        
	  

  
	  	 4. REQUISITION/PURCHASE REQ. NO

SEE SCHEDULE          
	  	
5. PROJECT NO.(If applicable)

	 	 	 	 
	 6. ISSUED
BY                    CODE
	  	 	N00033	  	  	7. ADMINISTERED BY (If other than item 6)	  	    CODE        
N00033
	 	 
	 MILITARY SEALIFT COMMAND,
N1033/PM5
 914 CHARLES MORRIS COURT SE
 WASHINGTON NAVY YARD DC 20300-5540
	   
   
   
	  	 MILITARY SEAUFT COMMAND,
N1033
 914 CHARLES MORRIS CT SE
 WASHINGTON NAVY YARD DC 20398-5540

																																							
	 	 	
	 8. NAME AND ADDRESS OF CONTRACTOR
 (No., Street, County,
State, and Zip Code)
 AMERICAN PETROLEUM TANKERS LLC
 MR. ROBERT KURZ
 345PARKAVEFL29
 C/0 BLACK STONE CAPITAL PARTNERS V US
 NEW YORK, NY 10154-0004

 
	  	 	  	 9A. AMENDMENT OF SOLICITATION NO.

 

	  	 	  	 9B. DATED (SEE ITEM 11)
          
  

	  	x	  	 10A. MOD. OF CONTRACT/ORDER NO.

                         
   N00033-07-C-5416

	 	 	 	
	 CODE      5SZC7
	  	FACILITY CODE   5SZC7	  	x	  	 10B. DATED (SEE ITEM 13)
                                 
06-Jul-2007

	
	 
	11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF
SOLICITATIONS
	 
	  ̈ The above numbered solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers
 ̈ is extended  ̈ is not extended.
  

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following
methods:
  
 (a) By completing Items 8 and 15, and returning
           copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you
desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date
specified.

	 
	 12. ACCOUNTING AND APPROPRIATION DATA (If required)
       See
Schedule

	 
	 13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS
 IT
MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

																																							
	 	 
	 	  	A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify Authority) THE CHANGES
SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
	 	 
	 	  	B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE
ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103 (B).
	 	 
	 	  	C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY
OF:
	 	 
	
x
	  	 D. OTHER (Specify type of
modification and authority)                 
 FAR
52.243-1, Changes – Fixed-Price Alternate II (APR 1987) 

													
	 	 	 	 	 	 	 
	 E. IMPORTANT:
Contractor
	  	 ̈	  	is not,	  	x	  	is required to sign this document and return	  	1	  	copies to the issuing office.
	 
	 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)
 Modification Control Number: cochrane11310
 This bilateral modification to N00033-07-C-5416 adds
$35,233,401.79 in FY 11 funding for the charter hire and reimbursable items for the MT EMPIRE STATE PRs N000331322PST1 and N000331302PST2 apply, respectively. This modification also updates the following sections within the contract: C-4.1, Crew
List; C-23, Reporting Requirements; G-1, Designation of Principal Contracting Officer; and H-37, Force Protection. Please see attached.
  

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in
full force and effect.

											
	 15A.
NAME AND TITLE OF SIGNER (Type or print)
  
     Robert
K. Kurz, CEO
	   

   
	  	 16A. NAME AND TITLE OF CONTRACTING OFFICER

(Type or print)
 JAY STANDRING, CONTRACTING
OFFICER
 Tel: 202 685 5833     EMAIL: JAY STANDRING@NAVY.MC
	
  
   

  

   

	 		 	 
	 15B. CONTRACTOR/OFFEROR
  
 /s/ Robert K. Kurz
	  	 
  
	15C. DATE

        SIGNED
	  
   
	  	 16B. UNITED STATES OF AMERICA

 
 BY     /s/ Jay Standring
	  	 
  
	16C. DATE
 SIGNED
	  
   

	 	 	 	 
	(Signature of person authorized to sign)	  	 	11/24/10	  	  	(Signature of Contracting Officer)	  	 
 	24 Nov
2010	  
  

 

					
	EXCEPTION TO SF 30	 	30-105-04	  	STANDARD FORM 30 (REV. 10-83)
	APPROVED BY OIRM 11-84	 		  	 Prescribed by GSA
 FAR (48
CFR) 53.243

  
  

 N00033-07-C-5416 
 P00006 
  

 SECTION SF 30 BLOCK 14 CONTINUATION PAGE 
 SUMMARY OF CHANGES 
  

																							
	 PR
	  	Ship
Name	  	CLIN	  	Description	  	Project	 	  	Task	 	  	Exp.
Type	 	  	Amount	 
	 NOO0331322P5Tl
	  	MT
EMPIRE
STATE	  	0001	  	Charter Hire	  	 	121186	  	  	 	010100	  	  	 	2521K	  	  	$
  
 
 
	26,714,000.00

($74,000.00
daily charter hire
x 361 days).
	  

  
  
  

	 NOO0331302P5T2
	  	MT
EMPIRE
STATE	  	0002	  	Reimbursables	  	 	121186	  	  	 	010100	  	  	 
 	2522K,
26052	  
  	  	$	8,519,401. 79	  
		  		  		  		  				  				  				  	 	 	 
		  		  		  		  				  				  	 	TOTAL	  	  	$	35,233,401. 79	  
		  		  		  		  				  				  				  	 	 	 

 The following are applicable to this modification: 

 

	 	1.	This modification to N00033-07-C-5416 adds FYl l funds as follows per the table above. The Charter Hire funding on CLIN 0001 includes 361 days of funding at $74,000.00
per day, as the vessel was delivered on 05 October 2010. $2,146,049.09 in reimbursable funding is added to CLlN 0002 for Port Charges under Expenditure Type 2522K. $6,373,352.70 in reimbursable funding is added to CLlN 0002 for Fuel/Bunkers
under Expenditure Type 26052. 

  

	 	2.	Paragraph C-4.1, Crew List, of reference (b) is deleted in its entirety and is marked “Reserved — See C-8.1, Crew, Vendor, and Transient Vetting.”

  

	 	3.	Sentence 5 from Paragraph C-23, Reporting Reguirements, is hereby deleted: 

Additionally,, vessel(s) shall provide position reports twice daily at 0600 and 1800 local Washington DC time to the following email and
fax addresses: 
 [Area Commander email address]  

john.joerger@navv.mil 
 thomas.walters@navv.mil 
 gary.c.anderson@navy.mil 

Facsimile: 202/685-5850 attn: Sealift, Tankers Program 
 Sentence 5 from Paragraph C-23, Reporting Reguirements, is hereby replaced with the following: 
 Additionally, vessel(s) shall provide position reports four times daily at 0600,1200, 1800, and 2400 Greenwich Mean Time (GMT) to the following email and fax addresses: 

[Area Commander email address] 
 HQTankers@navy.mil 
 Facsimile: 202/685-5850 attn: Sealift, Tankers Program

  

	 	4.	The following text from Section G-1, Designation of Principal Contracting Officer, is hereby deleted: 

Diana R. Fischer, Contracting Officer (PM53INI033e) 
 Department of the Navy 
 Military Sealift Command 

914 Charles Morris Court, SE, Bldg. 210 

  

 N00033-07-C-5416 
 P00006 
  

 Washington Navy Yard, D.C. 20398-5540 

Phone: (202)685-5833 
 Fax: (202) 685-5887 
 Email: diana.fischer@navy.mil 

The following text from Section G-1, Designation of Principal Contracting Officer, is replaced with the following: 

Jay M. Standring, Contracting Officer (PM53/N1033e) 
 Department of the Navy 
 Military Sealift Command 

914 Charles Morris Court, SE, Bldg. 210 
 Washington Navy Yard, D.C. 20398-5540 
 Phone: (202)685-5833 

Fax: (202) 685-5887 
 Email: jay.standring@navy.mil 
  

	 	5.	Paragraph H-37, Force Protection, is deleted in its entirety and is marked “Reserved—See H-28, Ship Physical Security (MSC 5252.247-9845 (JUN 1998) &
H-40 MSC Shipboard AntiterrorismIForce Protection Measures (MSC 5252.247-9845 (AUG 2005).” 

  

	 	6.	All other terms and conditions of the contract remain unchanged and in full force and effect. 

 SECTION A – SOLICITATION/CONTRACT FORM 
 The total cost of this contract was increased
$35,233,401.79 from $0.00 to $35,233,401.79. 
 SECTION B – SUPPLIES OR SERVICES AND PRICES 

CLIN 0001 is added as follows: 
  

																			
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0001
	  		  	 	1	  	  	 	Each	  	  	$	26,714,000.00	  	  	$	26,714,000.00	  
		  	Charter Hire - MT Empire State - Base	  	  				  			
		  	FFP	  				  				  				  			
		  	Charter Hire Rate: $74,000.00 per day. 361 days x $74,000.00 =	  	  			
		  	$26,714,000.00. Period of performance: 05 October 2010 - 30 September	  	  			
		  	2011.	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	26,714,000.00	  

 SUBCLIN 000101 is added
as follows: 

  

 N00033-07-C-5416 
 P00006 
  

																			
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 000101
	  		  				  	 	Each	  	  	$	0.00	  	  	$	0.00	  
		  	CHARTER HIRE 361 DAYS @ $74,000.00/DAY	  	  				  			
		  	FFP	  				  				  				  			
		  	CHARTER HIRE 361 DA YS @ $74,000.00/DAY. MT EMPIRE STATE	  	  			
		  	FOB: Destination	  				  				  				  			
		  	PURCHASE REQUEST NUMBER: N000331322P5Tl	  	  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	0.00	  
	
	 CLIN 0002 is added as follows:
	   

						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 0002
	  		  	 	1	  	  	 	Each	  	  	$	8,519,401.79	  	  	$	8,519,401.79	  
		  	Reimbursables - MT EMPIRE STATE - BASE	  	  			
		  	FFP	  				  				  				  			
		  	FOB: Destination	  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	8,519,401.79	  
		  	ACRN AA	  				  				  				  	$	8,519,401.79	  
		  	CIN:000000000000000000000000000000	  	  				  				  			
	
	 SUBCLIN 000201 is added as follows:
	   

						
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 000201
	  		  				  	 	Each	  	  	$	0.00	  	  	$	0.00	  
		  	 PORT CHARGES, N0003307C5416-0002 FY11 EMPIRE STATE -
 PROJECT 121
 FFP
	   

  
   
	  				  			
		  	 PORT CHARGES, N0003307C5416-0002 FY11 EMPIRE STATE -
 PROJECT 121186 TASK 010100 ET 2522K $2,146,049.09
 FOB: Destination

PURCHASE REQUEST NUMBER: N000331302P5T2
	   

  
   

  
	  				  			
		  		  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	0.00	  

  

 N00033-07-C-5416 
 P00006 
  

 SUBCLlN 000202 is added as follows: 

 

																			
	ITEM NO	  	SUPPLIES/SERVICES	  	QUANTITY	 	  	UNIT	 	  	UNIT PRICE	 	  	AMOUNT	 
	 000202
	  		  				  	 	Each	  	  	$	0.00	  	  	$	0.00	  
		  	 FUEL/BUNKERS, N0003307C5416-0002 FYll EMPIRE STATE -
 PROJECT 12
 FFP
	   

  
   
	  				  			
		  	 FUEL/BUNKERS, N0003307C5416-0002 FYll EMPIRE STATE -
 PROJECT 121186 TASK 010100 ET 26052 $6,373,352.70
 FOB: Destination

PURCHASE REQUEST NUMBER: N000331302P5T2
	   

  
   

  
	  				  			
		  		  				  				  				  			
		  		  				  				  				  	 	 	 
		  		  				  				  	 	NET AMT	  	  	$	0.00	  

SECTION C - DESCRIPTIONS AND SPECIFICATIONS 
 The following have been modified: 
 STATEMENT OF WORK 

C-4.1 Crew List. Reserved - See C-8.1, Crew, Vendor, and Transient Vetting. 
 C-23 Reporting Requirements. The Charterer shall furnish the Master with all requisite instructions and sailing directions in writing, including COMSC Instruction 3121.9A, “Standard Operating
Manual,” as revised. The Master shall exercise due diligence to observe all such orders and instructions of the Charterer in respect of the Charterer’s employment of the Vessel’s services. Reports required of the Vessel(s) are listed
in Section 2-15-6 of COMSCINST 3121.9 series. Further reporting guidance can also be found in COMSCINST 2002.2, “Communications, Policy and Procedures Manual.” Additionally, vessel(s) shall provide position reports four times daily at
0600, 1200,1800, and 2400 Greenwich Mean Time (GMT) to the following email and fax addresses: 
 [Area Commander email address]

 HQTankers@navy .mil 

Facsimile: 202/685-5850 attn: Sealift, Tankers Program 
 SECTION G - CONTRACT ADMINISTRATION DATA 
 Accounting and Appropriation 

Summary for the Payment Office 
 As a result of
this modification, the total funded amount for this document was increased by $35,233,401.79 from $0.00 to $35,233,401.79. 
 CLlN 0001:

 Funding on CLlN 0001 is initiated as follows: 

  

 N00033-07-C-5416 
 P00006 
  

 ACRN: AA 
 CIN: 000000000000000000000000000000 
 Acctng Data: 97 X 4930 FD20 000 00033 0
000033 2F00000000000000000 
 Increase: $26,714,000.00 
 Total: $26,714,000.00 
 CLIN 0002: 
 Funding on CLIN 0002 is initiated as follows: 
 ACRN:AA 

CIN: 000000000000000000000000000000 
 Acctng Data: 97 X 4930 FD20 000 00033 0 000033 2F00000000000000000 
 Increase:
$8,519,401.79 
 Total: $8,519,401.79 
 The following have been modified: 
 G-I Designation of Principal Contracting Officer

 The Principal Contracting Officer for this contract is: 
 Jay M. Standring, Contracting Officer (PM53/N1033e) 
 Department of the Navy

 Military Sealift Command 
 914 Charles Morris Court, SE, Bldg. 210 
 Washington Navy Yard, D.C. 20398-5540

 Phone: (202) 685-5833 
 Fax: (202) 685-5887 
 Email: jay.standring@navy.mil 

SECTION H - SPECIAL CONTRACT REQUIREMENTS 

The following have been modified: 
 SPECIAL CONTRACT REQUIREMENTS 
 H-37 Force Protection. Reserved – See H-28,
Ship Physical Security (MSC 5252.247-9845 (JUN 1998) & H-40 MSC Shipboard Antiterrorism-Force Protection Measures (MSC 5252.247-9845 (AUG 2005). 
 (End of Summary of Changes) 

  

					
	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	  	1. CONTRACT ID CODE	  	PAGE OF PAGES
	 	 	 
	 	  	J	  	1            
            7

									
	 	 	 	 
	
2. AMENDMENT/MODIFICATION NO.

                   
     P00007
	  	 
  
	3. EFFECTIVE DATE
 04 Jan 2011        
	  

  
	  	 4. REQUISITION/PURCHASE REQ. NO

SEE SCHEDULE
	  	 5. PROJECT NO.
(If applicable)

	 	 	 	 
	 6. ISSUED
BY                    CODE
	  	 	N00033	  	  	7. ADMINISTERED BY (IF OTHER THAN ITEM 6)	  	    CODE     N00033
	 	 
	 MILITARY SEALIFT COMMAND
N1033/PM5
 914 CHARLES MORRIS COURT SE
 WASHINGTON NAVY YARD DC 20398-5540
	   
   
   
	  	 MILITARY SEALIFT COMMAND,
N1023
 914 CHARLES MORRIS CT SE
 WASHINGTON NAVY YARD DC 20898-5640

																																							
	 	 	
	 8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State, and Zip Code)
  

AMERICAN PETROLEUM TANKERS LLC
 MR.
ROBERT KURZ
 345 PARK AVE. FL 29
 c/o BLACKSTONE CAPITAL PARTNERS V US
 NEW YORK, NY 10154-0004

 
	  	 	  	 9A. AMENDMENT OF SOLICITATION NO.

 

	  	 	  	 9B. DATED (SEE ITEM 11)
          
  

	  	x	  	 10A. MOD. OF CONTRACT/ORDER NO.

                         
   N00033-07-C-5416

	 	 	 	
	 CODE: 5SZC7
	  	FACILITY CODE: 5SZC7          	  	x	  	 10B. DATED (SEE ITEM 13)
                                 
06-Jul-2007

	
	 
	11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF
SOLICITATIONS
	 
	  ̈ The above numbered solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers
 ̈ is extended,  ̈ is not extended.
  

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following
methods:
  
 (a) By completing Items 8 and 15, and returning
           copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to
the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you
desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date
specified.

	 
	12. ACCOUNTING AND APPROPRIATION DATA
(If required)
	 
	 13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
 IT
MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14

																																							
	 	 
	
 ̈
	  	A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify Authority) THE
CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
	 	 
	
 ̈
	  	B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE
ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103 (B).
	 	 
	
 ̈
	  	C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY
OF:
	 	 
	
x
	  	 D. OTHER (Specify type of
modification and authority)                 
 Regulatory requirements.

													
	 	 	 	 	 	 	 
	 E. IMPORTANT:
Contractor
	  	 ̈	  	is not,	  	x	  	is required to sign this document and return	  	1	  	copies to the issuing office.
	 
	 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.

 
 Modification Control Number: bouchels 11743

 
 See attached.

 
 Except as provided herein, all terms and conditions of the document referenced in
Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

											
	 15A. NAME AND TITLE OF SIGNER (Type or print)

     Robert K. Kurz, CEO
	  	 	 	 	  	 16A. NAME AND TITLE OF CONTRACTING OFFICER

Jay Stanoring, Contracting Officer
  

TEL: (202) 685-5833      EMAIL: JAY STANORING@NAVY.MC
	
  
   

    

	 		 	 
	 15B. CONTRACTOR/OFFEROR
  
 /s/ Robert K. Kurz
	  	 	15C. DATE SIGNED	  	  	 16B. UNITED STATES OF AMERICA

 
 By /s/ Jay Stanoring
	  	 	16C. DATE SIGNED	  
	 	 	 	 
	(Signature of person authorized to sign)	  	 	1/10/11	  	  	(Signature of Contracting Officer)	  	 	10 JAN 2011	  

 

			
	EXCEPTION TO SF 30	  	STANDARD FORM 30 (REV. 10-83)       
	APPROVED BY OIRM 11-84	  	Prescribed by GSA FAR (48 CFR) 53.243

 N00033-07-C-5416 
 P00007 
 SECTION SF 30 BLOCK 14 CONTINUATION PAGE 

The following items are applicable to this modification: 
 OVERVIEW OF CHANGES 
 This modification updates the contract in accordance with current
regulatory and legislative requirements. 
 Clauses updated: 

 

					
	52.203-7	  	Anti-Kickback Procedures	  	OCT 2010
	52.203-12	  	Limitation On Payments To Influence Certain Federal Transactions	  	OCT 2010
	52.204-8	  	Annual Representations and Certifications	  	OCT 2010
	52.219-9 Alt II	  	Small Business Subcontracting Plan.Alt. II (OCT 2001)	  	OCT 2010
	52.222-35	  	Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and other Eligible Veterans	  	SEP 2010
	52.222-36	  	Affirmative Action For Workers with Disabilities	  	OCT 2010
	52.222-37	  	Employments Reports on Special Disabled Veterans, Veterans Of The Vietnam Era, And Other Eligible Veterans	  	SEP 2010
	52.248-1	  	Value Engineering	  	OCT 2010
	252.219-7003	  	Small, Small Disadvantaged and Women-Owned Small Business Subcontracting Plan (DoD Contracts)	  	OCT 2010

 Clauses added: 

 

					
	52.223-18	  	Contractor Policy to Ban Text Messaging While Driving	  	SEP 2010
	52.225-25	  	Prohibition on Engaging in Sanctioned Activities Relating to Iran – Certification	  	SEP 2010
	252.203-7003	  	Agency Office of the Inspector General	  	SEP 2010
	252.237-7010	  	Prohibition of Interrogation of Detainees by Contractor Personnel	  	NOV 2010
	252.244-7000	  	Subcontracts for Commercial Items and Commercial Components (DoD Contracts)	  	NOV 2010

 The parties hereby waive all rights, title
and interest, if any, to any claims that may have under this contract arising from the changes effected by this modification. 

 N00033-07-C-5416 
 P00007 
 SUMMARY OF CHANGES 
 SECTION I - CONTRACT CLAUSES 
 The following have been modified: 

CONTRACT CLAUSES 
 SECTION I - CONTRACT CLAUSES 
 I-1 FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE
(FEB 1998)  
 This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full
text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at these addresses: 
 farsite.hill.af.mil/ 
 http://www.arnet.gov 

I-1.1 FEDERAL ACQUISITION REGULATION (FAR) (48 CFR CHAPTER 1) CLAUSES  

 

					
	52.202-1	  	Definitions	  	JUL 2004
	52.203-3	  	Gratuities	  	APR 1984
	52.203-5	  	Covenant Against Contingent Fees	  	APR 1984
	52.203-6	  	Restrictions On Subcontractor Sales To The Government	  	JUL 1995
	52.203-7	  	Anti-Kickback Procedures	  	OCT 2010
	52.203-8	  	Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity	  	JAN 1997
	52.203-10	  	Price Or Fee Adjustment For Illegal Or Improper Activity	  	JAN 1997
	52.203-11	  	Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions	  	SEP 2005
	52.203-12	  	Limitation On Payments To Influence Certain Federal Transactions	  	OCT 2010
	52.204-2	  	Security Requirements	  	AUG 1996
	52.204-4	  	Printed or Copied Double-Sided on Recycled Paper	  	AUG 2000
	52.204-8	  	Annual Representations and Certifications	  	OCT 2010
	52.209-5	  	Certification Regarding Debarment, Suspension, Proposed Debarment and Other Responsibility Matters	  	DEC 2001
	52.209-6	  	Protecting the Government’s Interest When Subcontracting With Contractors Debarred, Suspended, or Proposed for Debarment	  	JAN 2005
	52.211-15	  	Defense Priority And Allocation Requirements	  	SEP 1990
	52.215-2	  	Audit and Records – Negotiation	  	JUN 1999
	52.215-8	  	Order of Precedence – Uniform Contract Format	  	OCT 1997
	52.215-10	  	Price Reduction for Defective Cost or Pricing Data	  	OCT 1997
	52.215-17	  	Waiver of Facilities Capital Cost of Money	  	OCT 1997
	52.215-20 Alt IV	  	Requirements for Cost and Pricing Data or Information Other than Cost or Pricing Data –Alternate IV	  	OCT 1997
	52.215-21 Alt IV	  	Requirements for Cost or Pricing Data or Information Other Than Cost or Pricing Data – Modifications Alternate IV	  	OCT 1997
	52.219-8	  	Utilization of Small Business Concerns	  	MAY 2004

 N00033-07-C-5416 
 P00007 
  

					
	52.219-9 Alt II	  	Small Business Subcontracting Plan.Alt. II (OCT 2001)	  	OCT 2010
	52.219-14	  	Limitation on Subcontracting	  	DEC 1996
	52.219-16	  	Liquidated Damages – Subcontracting Plan	  	JAN 1999
	52.222-01	  	Notice to the Government of Labor Disputes	  	FEB 1997
	52.222-26	  	Equal Opportunity	  	APR 2002
	52.222-29	  	Notification Of Visa Denial	  	JUN 2003
	52.222-35	  	Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and other Eligible Veterans	  	SEPT 2010
	52.222-36	  	Affirmative Action For Workers with Disabilities	  	OCT 2010
	52.222-37	  	Employments Reports on Special Disabled Veterans, Veterans Of The Vietnam Era, And Other Eligible Veterans	  	SEPT 2010
	52.222-39	  	Notification of Employee Rights Concerning Payment of Union Dues or Fees	  	DEC 2004
	52.222-41	  	Service Contract Act of 1965, as Amended	  	JUL 2005
	52.222-43	  	Fair Labor Standards Act and Service Contract Act – Price Adjustment (Multiple Year and Option Contracts)	  	MAY 1989
	52.222-44	  	Fair Labor Standards Act and Service Contract Act – Price Adjustment	  	FEB 2002
	52.223-3	  	Hazardous Material Identification And Material Safety Data	  	JAN 1997
	52.223-5	  	Pollution Prevention and Right-to-Know Information	  	AUG 2003
	52.223-6	  	Drug-Free Workplace	  	MAY 2001
	52.223-10	  	Waste Reduction Program	  	AUG 2000
	52.223-12	  	Refrigeration Equipment and Air Conditioners	  	MAY 1995
	52.223-14	  	Toxic Chemical Release Reporting	  	AUG 2003
	52.223-18	  	Contractor Policy to Ban Text Messaging While Driving	  	SEPT 2010
	52.224-1	  	Privacy Act Notification	  	APR 1984
	52.224-2	  	Privacy Act	  	APR 1984
	52.225-25	  	Prohibition on Engaging in Sanctioned Activities Relating to Iran – Certification	  	SEPT 2010
	52.227-1	  	Authorization and Consent	  	JUL 1995
	52.227-2	  	Notice And Assistance Regarding Patent And Copyright Infringement	  	AUG 1996
	52.227-3	  	Patent Indemnity	  	APR 1984
	52.227-14	  	Rights in Data - General	  	JUN 1987
	52.228-7	  	Insurance - Liability To Third Persons	  	MAR 1996
	52.229-3	  	Federal, State And Local Taxes	  	APR 2003
	52.229-6	  	Taxes – Foreign Fixed-Price Contracts	  	JUN 2003
	52.229-8	  	Taxes – Foreign Cost-Reimbursement Contracts	  	MAR 1990
	52.232-1	  	Payments	  	APR 1984
	52.232-4	  	Payments under Transportation Contracts and Transportation-Related Services Contracts	  	APR 1984
	52.232-8	  	Discounts For Prompt Payment	  	FEB 2002
	52.232-9	  	Limitation On Withholding Of Payment	  	APR 1984
	52.232-11	  	Extras	  	APR 1984
	52.232-17	  	Interest	  	JUN 1996
	52.232-18	  	Availability of Funds	  	APR 1984
	52.232-23	  	Assignment Of Claims	  	JAN 1986
	52.232-25	  	Prompt Payment	  	OCT 2003
	52.232-33	  	Payment by Electronic Funds Transfer – Central Contractor Registration	  	OCT 2003
	52.233-1 Alt I	  	Disputes Alternate I (DEC 1991)	  	JUL 2002
	52.233-3	  	Protest After Award	  	AUG 1996
	52.237-3	  	Continuity of Services	  	JAN 1991
	52.242-1	  	Notice of Intent to Disallow Costs	  	APR 1984

 N00033-07-C-5416 
 P00007 
  

					
	52.242-3	  	Penalties for Unallowable Costs	  	MAY 2001
	52.242-13	  	Bankruptcy	  	JUL 1995
	52.243-1 Alt II	  	Changes – Fixed-Price Alternate II (APR 1984)	  	APR 1987
	52.243-7	  	Notification of Changes	  	APR 1984
	52.244-5	  	Competition In Subcontracting	  	DEC 1996
	52.245-1	  	Property Records	  	APR 1984
	52.245-2	  	Government Property (Fixed Price Contracts)	  	MAY 2004
	52.246-20	  	Warranty of Services	  	MAY 2001
	52.246-25	  	Limitation of Liability – Services	  	FEB 1997
	52.247-63	  	Preference For U.S. Flag Air Carriers	  	JUN 2003
	52.247-64	  	Preference For Privately Owned U.S. Flagged Commercial Vessels	  	FEB 2006
	52.248-1	  	Value Engineering	  	OCT 2010
	52.249-2	  	Termination For Convenience Of The Government (Fixed-Price)	  	MAY 2004
	52.249-8	  	Default (Fixed-Price Supply and Service)	  	APR 1984
	52.251-1	  	Government Supply Sources	  	APR 1984
	52.253-1	  	Computer Generated Forms	  	JAN 1991

 I-1.2 DOD FEDERAL ACQUISITION REGULATION
SUPPLEMENT (DFARS) (48 CFR CHAPTER 2) CLAUSES 
  

					
	252.203-7001	  	Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies	  	DEC2004
	252.203-7002	  	Display Of DOD Hotline Poster	  	DEC 1991
	252.203-7003	  	Agency Office of the Inspector General	  	SEP 2010
	252.204-7000	  	Disclosure Of Information	  	DEC 1991
	252.204-7002	  	Payment For Subline Items Not Separately Priced	  	DEC 1991
	252.204-7003	  	Control Of Government Personnel Work Product	  	APR 1992
	252.204-7004	  	Alternate A	  	NOV 2003
	252.205-7000	  	Provisions Of Information To Cooperative Agreement Holders	  	DEC 1991
	252.209-7000	  	Acquisition From Subcontractors Subject to On-Site Inspection Under the Intermediate-Range Nuclear Forces (INF) Treaty	  	NOV 1995
	252.209-7004	  	Subcontracting with Firms That Are Owned or Controlled by the Government of a Terrorist Country	  	MAR 1998
	252.211-7003	  	Item Identification and Valuation	  	JUN 2005
	252.215-7000	  	Pricing Adjustments	  	DEC 1991
	252.219-7003	  	Small, Small Disadvantaged and Women-Owned Small Business Subcontracting Plan (DoD Contracts)	  	OCT 2010
	252.223-7001	  	Hazard Warning Labels	  	DEC 1991
	252.223-7002	  	Safety Precautions For Ammunition And Explosives	  	MAY 1994
	252.223-7003	  	Changes In Place Of Performance – Ammunition And Explosives	  	DEC 1991
	252.223-7004	  	Drug-Free Work Force	  	SEP 1988
	252.225-7001	  	Buy American Act And Balance Of Payments Program	  	JUN 2005
	252.225-7002	  	Qualifying Country Sources As Subcontractors	  	APR 2003
	252.225-7004	  	Reporting of Contract Performance Outside the United States and Canada	  	JUN 2005
	252.225-7005	  	Identification of Expenditures in the United States	  	JUN 2005
	252.225-7012	  	Preference for Certain Domestic Commodities	  	JUN 2004
	252.225-7025	  	Restriction on Acquisition of Forgings	  	APR 2003

 N00033-07-C-5416 
 P00007 
  

					
	252.225-7031	  	Secondary Arab Boycott Of Israel	  	APR 2003
	252.225-7040	  	Contractor Personnel Authorized to Accompany U.S. Armed Forces Deployed Outside the United States	  	JUN 2006
	252.227-7013	  	Rights in Technical Data – Noncommercial Items	  	NOV 1995
	252.227-7016	  	Rights in Bid or Proposal Information	  	JUN 1995
	252.227-7018	  	Rights in Noncommercial Technical Data and Computer Software – Small Business Innovation Research (SBIR) Program	  	JUN 1995
	252.227-7030	  	Technical Data – Withholding of Payment	  	MAR 2000
	252.227-7032	  	Rights in Technical Data And Computer Software (Foreign)	  	JUN 1975
	252.227-7037	  	Validation of Restrictive Markings on Technical Data	  	SEP 1999
	252.231.7000	  	Supplemental Cost Principals	  	DEC 1991
	252.237-7010	  	Prohibition of Interrogation of Detainees by Contractor Personnel	  	NOV 2010
	252.243-7001	  	Pricing of Contract Modifications	  	DEC 1991
	252.243-7002	  	Requests for Equitable Adjustment	  	MAR 1998
	252.244-7000	  	Subcontracts for Commercial Items and Commercial Components (DoD Contracts)	  	NOV 2010
	252.245-7000	  	Government-Furnished Mapping, Charting, and Geodesy Property	  	DEC 1991
	252.245-7001	  	Reports Of Government Property	  	MAY 1994
	252.247-7023	  	Transportation Of Supplies By Sea	  	MAY 2002
	252.247-7024	  	Notification Of Transportation Of Supplies By Sea	  	MAR 2000
	252.247-7025	  	Reflagging or Repair Work	  	(JUN 2005)
	252.249-7002	  	Notification of Anticipated Contract Termination or Reduction	  	DEC 1996

 N00033-07-C-5416 
 P00007 
 I-2 CLAUSES INCORPORATED BY FULL TEXT 

52.217-8 Option to Extend Services. (NOV 1999) 
 The Government may require continued performance of any services within the limits and at the rates specified in the contract. The option provision may be exercised more than once, but the total extension
of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor any time prior to redelivery of the vessel. 
 52.217-9 Option to Extend the Term of the Contract. (MAR 2000) 
 (a) The Government may
extend the term of this contract by written notice to the Contractor any time prior to redelivery of the vessel provided that the Government gives the Contractor a preliminary written notice of its intent to extend any time before
vessel redelivery. The preliminary notice does not commit the Government to an extension. 
 (b) If the Government exercises this option, the
extended contract shall be considered to include this option clause. 
 (c) The total duration of this contract, including the exercise of any
options under this clause, shall not exceed fifty-nine months. 
 52.217-7 Option for Increased Quantity - Separately Priced Line Item (MAR
1989) 
 The Government may require the delivery of the numbered line item, identified in the Schedule as an option item, in the quantity and
at the price stated in the Schedule. The Contracting Officer may exercise the option by written notice to the Contractor within 180 days of contract award. Delivery of added items shall continue at the same rate that like items are
called for under the contract, unless the parties otherwise agree. 
 (End of Summary of Changes)

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