Time Charter dated as of October 24, 2017 between Tampa Port Services, LLC and Savage Harvest Operations, LLC

This Time Charter (this “Agreement” or “Time Charter”) made and entered into as of the 24th day of October 2017, by and between Savage Harvest Operations, LLC (hereinafter “Demise Owner”), a limited liability company organized under the laws of the State of Delaware, with an address at 901 W. Legacy Center Way, Midvale, Utah 84047 and Tampa Port Services, LLC (hereinafter “Time Charterer”), a limited liability company organized under the laws of the State of Delaware, with its principal business address at 13830 Circa Crossing Dr., Lithia, FL 33547.

WHEREAS, Demise Owner is in the ship, tug and barge operating business specializing in operating and servicing U.S. documented vessels;

WHEREAS, Demise Owner is the owner pro hac vice of the U.S.-flag tug, ABUNDANCE, Official No. 1274665 (the “Tug”), and the U.S.-flag barge, HARVEST, Official No. 1271009 (the “Barge”, each of the Tug and Barge individually a “Vessel” and collectively the “Vessels”) pursuant to that certain bareboat charter with respect to the Vessels by and between the Vessel owner (“Owner”) and the Demise Owner dated on even date herewith (as amended and restated from time to time, the “Bareboat Charter”); and

WHEREAS, Time Charterer desires to time charter the Vessels from Demise Owner.

NOW, THEREFORE, in consideration of the foregoing and of the terms and conditions contained herein, the parties agree that Time Charterer shall hire the Vessels from Demise Owner on the following terms and conditions:

Subject to the terms and conditions of this Agreement, Demise Owner agrees to time charter the Vessels to Time Charterer, and Time Charterer agrees to time charter the Vessels from the Demise Owner on the Delivery Date as defined in the Bareboat Charter. Exhibit A contains a list and description of the Vessels covered by this Agreement.

(a)    Charter Term: This Agreement shall commence on the Delivery Date and end on December 31, 2024, unless this Agreement is otherwise terminated or extended as provided herein or by mutual agreement of the parties (the “Charter Term”).

(b)    Voyage: A “Voyage” is defined as one trip beginning immediately after the completion of discharge at the discharge port, continuing to the load port(s) and ending immediately after the completion of discharge at the next discharge port. In the event of termination of this Agreement, the parties agree to complete performance of the then-current Voyage.

(c)    Bareboat Charter Termination: Notwithstanding anything herein to the contrary, this Agreement will terminate upon termination of the Bareboat Charter. Time Charterer hereby acknowledges that the rights of Demise Owner hereunder have been collaterally assigned

by Demise Owner to the Collateral Agent, as assignee of Owner, subject to Time Charterer’s quiet enjoyment rights, Step-In Rights, and purchase option rights under Sections 7(k), 18 and 19 of this Time Charter and Sections 7(g), 7(h), and 21 of the Bareboat Charter.

(a)    Demise Owner shall deliver use of each Vessel to Time Charterer at the same time and place and in the same condition as such Vessel is delivered to Demise Owner under the Bareboat Charter (the “Delivery Date”). The Vessels shall be delivered in a seaworthy condition, in class and approved by the American Bureau of Shipping, and in all respects ready to perform this Time Charter.

(b)    Acceptance by Time Charterer of the Vessels as provided herein shall be deemed Time Charterer's confirmation that (i) Time Charterer has had a reasonable opportunity to inspect such Vessels, and (ii) such Vessels conform to the requirements of this Time Charter. Notwithstanding the nonconformity of any Vessel to the requirements of this Time Charter (and whether or not such nonconformity was discoverable by Time Charterer), Time Charterer agrees that acceptance of such Vessel by Time Charterer, as provided herein, shall constitute an irrevocable and unconditional acceptance of such Vessel under this Time Charter and a waiver of any rights that Time Charterer may have to revoke acceptance of such Vessels under this Time Charter.

(a)    Demise Owner shall be responsible for arranging for and paying the cost of all repairs, maintenance and dry-docking of the Vessels for any reason. Demise Owner shall exercise its best efforts to repair, maintain, and/or dry-dock a Vessel at the same time as the associated Tug or Barge, as applicable, customarily used with that Vessel is being repaired, maintained and/or dry-docked. Demise Owner shall also exercise its best efforts to repair, maintain, and/or dry-dock the Vessels in cooperation with Demise Owner’s Operational Obligations set forth in Exhibit B (“Operational Obligations”), and other Applicable Laws, regulations and standards. In the event of the loss of time from deficiency of men or stores, fire, breakdown or damages to hull machinery or equipment, grounding, detention by average accidents to ship or cargo, or by any other cause preventing the full working of the Vessel for more than fourteen (14) consecutive days, the Hire shall continue to be payable by Time Charterer, except that Management Hire shall cease and Demise Owner shall pass through to Time Charterer any savings in Charter Hire expenses, provided however, that if the event the loss of time is caused by Demise Owner’s gross negligence or willful misconduct, Management Hire and Charter Hire shall both cease. During any Vessel dry-docking which comes within Section 6 hereof, Hire shall be payable at the lay-up rate set forth therein unless the dry-docking is required due to Demise Owner’s gross negligence or willful misconduct in which case no Management Hire or Charter Hire or Reimbursement Hire shall be due and Time Charterer will not reimburse repair costs. Upon the Vessel’s return to service, all Hire shall return to the full rates.

(b)    Demise Owner shall be allowed a total of twelve (12) hours per month downtime for each Vessel, over and above the time the respective Tug or Barge, as applicable, is safely moored, said time to be used only in the event that maintenance and/or repair necessitates removal of the Tug from service. Unused downtime may be accumulated from month to month, but with a maximum of 48 hours from contract year to contract year, provided, however, that no more than a maximum of 48 hours of accumulated downtime per Vessel may be used in any one month.

(c)    Demise Owner shall immediately notify Time Charterer by e-mail and/or telephone whenever a Vessel is down and again when the Vessel is back in service. If the circumstances make immediate notification impossible, notice shall be given as soon thereafter as possible, but not later than arrival at the next port of call.

(d)    The provisions of this Section 4 shall not apply to, and downtime shall not accrue during, Vessel dry-dockings scheduled for class survey or government inspection/documentation, provided that thirty (30) days prior notice is given of the scheduled dry-docking and provided that no more than the designated time required for the outlined scope of work for the dry-docking (in addition to the time required to get the Vessel to and from the dry-docking location). In the event the scope of work is amended to include additional repairs for issues uncovered while the Vessel is dry-docked, Demise Owner and Time Charterer will discuss options for potential arrangement for additional time in dry-dock to make such repairs, but such additional time shall be for Demise Owner’s account, unless Demise Owner neither knew nor should a prudent vessel operator have known of such issues prior to the dry-docking, or unless mutually agreed otherwise. The provisions of this Section 4 apply to all other dry-dockings, whether for repairs, emergencies, government or class inspections or any other reason.

(a)    Time Charterer shall pay for the use and hire of the Vessels via the five (5) components of hire set forth in Schedule 1 hereto (“Basic Hire,” “Management Hire,” “Charter Hire,” “Reimbursement Hire,” and “Supplemental Hire” collectively, and as described and adjusted over time pursuant to Schedule 1 and Section 10, “Hire”).

(b)    Each payment of Basic Hire shall be made by Time Charterer monthly on or before the times and dates Demise Owner is required to make such payments under the Bareboat Charter. Payments of Basic Hire made by Time Charterer directly to Owner by wire transfer to the account of Owner designated in Section 4(b) of the Bareboat Charter or as Owner may otherwise direct in writing, and shall constitute payment by Time Charterer of such amounts to Demise Owner under this Time Charter.

(c)    Upon execution of this Agreement and no fewer than five (5) Business Days prior to the first of each month thereafter, Demise Owner shall invoice Time Charterer for Management Hire, Charter Hire and Reimbursement Hire for the upcoming month (or in the case of the first Monthly Funding Request the invoice shall be issued upon execution of the Agreement and shall cover the period through the month in which this Agreement is executed). Time Charterer shall pay Demise Owner all Management Hire, Charter Hire, and Reimbursement Hire then due upon receipt of such invoice. All payments of Management Hire, Charter Hire, and Reimbursement Hire shall be payable by Time Charterer to Demise Owner by ACH or wire transfer to a deposit account established by Demise Owner at Wells Fargo Bank, National Association (“Account Bank”) which account is to be subject to a deposit account control agreement with the Account Bank in favor of the Collateral Agent as assignee of Owner pursuant to the Principal Documents (the “Control Account”). The Control Account shall be interest bearing and the interest earned on the balance of the Control Account shall be accounted on a monthly basis as a credit to Time Charterer under Section 10 except for the portion of any balance remaining in the Control Account derived from Management Hire. In the event the Account Bank ceases to offer an interest bearing Control Account, the Demise Owner shall replace the Account Bank with a replacement account bank offering an interest bearing Control Account if requested by Time Charterer, and subject to commercial availability and the consent of Owner, not to be unreasonably withheld.

(a)    Time Charterer shall, upon at least thirty (30) days advance written notice to Demise Owner, have the right to lay-up (lay-up defined as “out of service”; not in stand-by) a Vessel for all or any portion of the Term of this Agreement. Time Charterer shall provide an estimate of the length of the lay-up period at the time of the giving of notice of the lay-up. If Time Charterer lays up a Vessel, Charter Hire shall be due in full until such time as the Vessel is certified to be gas free and the USCG approves a crew reduction for the lay-up period (unless USCG approval is not required to reduce the crew onboard during lay-up) and, thereafter, Charter Hire shall be reduced in the amount equal to the actual cost savings achieved by Demise Owner during lay-up. Hire shall return to full rates when the Vessels are placed back in service. In no event shall any lay-up give rise to any reduction or abatement or deferral of any Basic Hire or Supplemental Hire.

(b)    Lay-up time shall be included in the Charter Term of this Agreement; i.e., lay­up(s) shall not permit Time Charterer to extend the Charter Term of this Agreement.

(a)    Demise Owner hereby represents, warrants and covenants to Time Charterer as follows:

(i)    Demise Owner is the owner pro hac vice of the Vessels pursuant to the Bareboat Charter;

(ii)    Demise Owner will take no action, nor suffer any action to be taken, to alter or amend the Bareboat Charter or any Principal Document as defined therein in any manner

prejudicing the rights of the Time Charterer under the Bareboat Charter as a beneficiary thereof or under this Time Charter, nor will Demise Owner agree to any consent or waiver having a similar effect;

(b)    Demise Owner hereby represents, warrants and covenants to Time Charterer as of the date of this Agreement and throughout the term of this Agreement as follows:

(i)    Demise Owner will maintain the Tug in a seaworthy condition and in class throughout the Term of this Agreement: ABS XA1 Towing Service, XAMS, with all timely endorsements and with no outstanding conditions affecting class; and

(ii)    Demise Owner will maintain the Barge in a seaworthy condition and in class throughout the Term of this Agreement, ABS XA1 Chemical Tank Barge, with all timely endorsements and with no outstanding conditions affecting class.

(c)    Demise Owner hereby represents, warrants and covenants to Time Charterer that Demise Owner is, as of the date of this Agreement and at all times throughout the term of this Agreement, in compliance with the Demise Owner’s Operational Obligations.

(d)    Demise Owner hereby represents, warrants and covenants to Time Charterer that Demise Owner is, as of the date of this Agreement at all times throughout the term of this Agreement, a coastwise qualified U.S.-citizen, within the meaning of 46 U.S.C. § 50501 (a “Citizen”). In the event of any potential or contemplated change that could impact the citizenship of Demise Owner, Demise Owner shall provide advance written notice of such change to Time Charterer, not less than sixty (60) days prior to the effective date of any change.

(e)    The Demise Owner shall remain in compliance with the covenants set forth in Schedule 7 of the Bareboat Charter as if such Schedule 7 were set forth fully in writing herein.

(f)    Demise Owner hereby represents, warrants and covenants to Time Charterer that, at its expense, it shall man, maintain, equip and supply the Vessels so that the Vessels are in all respects fit and suitable for the purpose of this Agreement. Demise Owner shall operate the Tug and shall push, tow and maneuver the Barge in compliance with all applicable international, federal, state, local and maritime laws, rules, regulations, codes, ordinances and orders and in accordance with best industry practices. Demise Owner shall be responsible for and shall pay or cause to be paid all expenses for provisions, stores, insurance, wages and benefits of the Tug personnel, and all other reasonable and customary costs and expenses incident to the manning, maintenance, operation, equipping, supplying, victualing and navigation of the Tug and pushing, towing and maneuvering of the Barge.

(g)    It is the understanding of Demise Owner and Time Charterer that, notwithstanding anything to the contrary contained in this Agreement, (i) nothing in this Time Charter shall be deemed to create a demise of any of the Vessels to Time Charterer, (ii) Owner retains full legal title to the Vessels notwithstanding their delivery to and use by Time Charterer under this Time Charter, and Time Charterer obtains no rights in the Vessels other than those set

forth herein, and (iii) Demise Owner is the owner pro hac vice of each Vessel and shall have exclusive possession, command and navigation of the Vessels during the Charter Period.

(h)    Demise Owner is and shall be solely responsible for the employment and direction of the crew and for all other matters relating to the operation of the Vessels. Demise Owner shall provide a crew for the Tug fully competent to properly perform its obligations under this Agreement and in compliance with all applicable international, federal, state, local and maritime laws, rules, regulations, codes, ordinances and orders. Without limiting the foregoing, Demise Owner shall provide sufficient and fully competent personnel to:

(i)    Perform all necessary repairs and maintenance;

(ii)    Use the telemetry system to monitor the cargo and auxiliaries;

(iii)    Start/stop machinery; open/close valves and vent dampers; replace defective parts, clean/change filters; replace defective lighting, maintain batteries; top off liquid levels (lube oil, fuel oil, fresh water, thermal oil) and perform all other activities necessary and sufficient to perform its obligations hereunder;

(iv)    With line handlers on shore, moor/unmoor the Barge and assist in monitoring the mooring wires and ropes during loading and discharge;

(v)    Maintain all log books required by Time Charterer and report on such particulars of each Voyage as to which Time Charterer or its agent may reasonably require. The Tug shall at all times be crewed with one appropriately licensed master or pilot and a sufficient number of appropriately trained deckhands arranged in such watches, rotations or shifts so as to prudently operate the Tug in compliance with all applicable international, federal, state, local and maritime laws, rules, regulations, codes, ordinances and orders. Demise Owner shall, from time to time, make reasonable inquiry as to whether the Coast Guard has taken any suspension and revocation actions against the license of any licensed personnel employed to navigate the Tug and otherwise satisfy itself that all licensed personnel are qualified, skillful and prudent mariners.

(i)    It is the express intent of the parties to this Agreement that the master and crew of the Tug shall be employees of Demise Owner or its affiliate and shall not be employees or borrowed servants of Time Charterer or its agents. If Time Charterer shall have any reason to be dissatisfied with the conduct of any of the Tug’s crew, Demise Owner shall, on receiving particulars of the complaint, fully investigate the complaint. Time Charterer may require Demise Owner to make a change in the crew appointments or practices causing Time Charterer’s dissatisfaction.

(j)    In performance of the services of this Agreement, Demise Owner warrants and covenants that the Vessels and crew shall, at a minimum:

(i)    Display all required navigation lights on the Vessels.

(ii)    Make a reasonable inspection of the Barge and all lines or wires prior to pushing, towing or maneuvering the Barge and after mooring the Barge.

(iii)    Use only appropriate and serviceable wires and equipment.

(iv)    Ensure that the crews aboard the Vessels wear life jackets (work vests) in accordance with the Vessels’ policies and procedures during the performance of any duties outside of the wheel house.

(v)    Comply with all other applicable international, federal, state, local and maritime laws, rules, regulations, codes, ordinances and orders.

(k)    Demise Owner hereby covenants that during the Charter Period, if, and so long as, no Time Charterer Event of Default shall have occurred and be continuing, Time Charterer shall have all the rights of quiet enjoyment of the Vessels without hindrance or molestation by Demise Owner or any other person claiming the same by, through or under the Demise Owner as a result of acts or omissions of the Demise Owner.

(l)    Demise Owner hereby covenants that it will maintain that certain guaranty of certain of the obligations of Demise Owner to Time Charterer to be executed by the Demise Owner Parent in favor of the Time Charterer dated on even date herewith (“Demise Owner Parent Time Charter Guaranty”) in full force and effect throughout the duration of this Agreement.

(m)    Absent a Time Charterer Event of Default and exercise of remedies, Demise Owner will not (i) claim depreciation deductions with respect to either Vessel for U.S. Federal, state or local income tax purposes, or (ii) take any position on any U.S. Federal, state or local income tax return that is inconsistent with the Time Charterer’s treatment of the Vessels from U.S. Federal, state or local income tax purposes.

(n)    The Demise Owner hereby covenants that it will provide notice to Time Charterer of (i) any notice it receives or provides under the Bareboat Charter to any Person, and (ii) the occurrence of any Event of Default to which it is aware hereunder or under any Principal Document, or the occurrence of any event that, with the passage of time and the failure to cure would be reasonably likely to become an Event of Default hereunder or under any Principal Document to which Demise Owner is a party, within three (3) Business Days after such event or occurrence becomes known to a Responsible Officer of the Demise Owner.

(o)    Demise Owner hereby represents, warrants and covenants that it will comply with the Anti-Corruption Law obligations set forth in Sections 5(m) and 26 of the Bareboat Charter as if those obligations were set forth herein and applied for the benefit of the Time Charterer.

(p)    Demise Owner hereby represents, warrants and covenants that it will comply with the Anti-Terrorism Law and Sanctions obligations set forth in Sections 5(m) and 26 of the Bareboat Charter as if those obligations were set forth herein and applied for the benefit of the Time Charterer.

(q)    The Demise Owner is a limited liability company duly organized, validly existing and in good standing under the laws of the state of Delaware and has all company powers and all material governmental licenses, authorizations, consents and approvals with power and

authority to conduct its business as such business is presently being conducted, to own or hold under charter or lease its properties and to enter into and perform its obligations under the Principal Documents to which it is a party. The Demise Owner is duly qualified to do business and is in good standing as a foreign entity in all states where its failure to so qualify would have a materially adverse effect on its ability to perform its obligations under any Principal Document. The Demise Owner is controlled by the Demise Owner Parent and is not less than a majority-owned subsidiary of the Demise Owner Parent.

(r)    The Demise Owner is not in violation of any terms of its Organizational Documents, or, of any material term of any agreement, instrument, judgment, decree, franchise, permit, order, law, statute, rule or governmental regulation presently applicable to it; and the execution, delivery and performance by the Demise Owner of the Principal Documents to which it is a party and the consummation by the Demise Owner of the transactions contemplated thereby (i) have been duly authorized by all necessary action on the part of the Demise Owner, (ii) do not require any shareholder or member approval or the consent of any trustee or holder of any indebtedness or obligation of the Demise Owner (or, if so required, such approval or consent has been obtained), (iii) under present law do not and will not result in any violation of its Organizational Documents or any agreement, instrument, judgment, decree, franchise, permit, order, law, statute, rule or governmental regulation applicable to it including, without limitation, the laws governing the use of the Vessels in the coastwise trade of the United States, and (iv) are not in conflict with and do not constitute a default under any term or any provision of, or subject the Vessels or any part thereof to any Lien of, any indenture, mortgage, lease, contract or other agreement or instrument (other than this Bareboat Charter and as permitted hereunder) to which the Demise Owner is a party or by which it or its property is bound or affected.

(s)    The execution, delivery and performance by the Demise Owner of the Principal Documents to which it is a party do not require any consent, authorization or approval of, or any filing or registration with, or the taking of any other action in respect of, any federal, state or other Governmental Authority or agency, recordation of the Mortgage, recordation of the Memorandum of Bareboat Charter, and filings of the Financing Statements with the appropriate Governmental Authority (other than approval to be obtained from the NVDC by the Owner and the Demise Owner as required under 46 U.S.C. § 12119 and applicable regulations).

(t)    There are no actions, suits or proceedings pending or, to the best of the Demise Owner's knowledge, threatened before any court, administrative agency, environmental council, arbitrator or governmental body which (i) questions or challenges the validity of the Principal Documents or the rights or remedies of the Participants, the Administrative Agent or the Collateral Agent with respect to the Demise Owner, the Vessels or the Collateral under the Principal Documents, or (ii) if determined adversely to the Demise Owner, is reasonably likely to materially adversely affect its ability to perform its obligations under the Principal Documents, including the operation or use of the Vessels as contemplated by this Bareboat Charter.

(a)    Time Charterer hereby represents and warrants to Demise Owner as follows:

(i)    The Time Charterer is a limited liability company duly organized, validly existing and in good standing under the laws of the state of Delaware and has all requisite organizational power and authority to own and operate its properties, to carry on its business as now conducted, and to enter into and perform its obligations under this Time Charter.

(ii)    The Time Charterer is qualified to do business and is in good standing in each jurisdiction where its failure to so qualify would have a materially adverse effect on its ability to perform its obligations under this Time Charter.

(iii)    The execution and delivery by the Time Charterer of this Agreement and the performance by the Time Charterer of its obligations hereunder have been duly authorized by all necessary organizational action on the part of Time Charterer and do not contravene any material provision of law presently applicable to Time Charterer or any provision of Time Charterer's Organizational Documents, or any contractual restriction binding on Time Charterer or its assets which would reasonably be expected to result in a Time Charterer Material Adverse Effect.

(iv)    The Time Charter is the legally valid and binding obligation of the Time Charterer, enforceable against the Time Charterer in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles.

(v)    All consents, authorizations, and approvals of, and registrations and declarations with, any Governmental Authority necessary for the due execution and delivery by the Time Charterer of this Agreement and the performance of its obligations have been obtained and remain in full force and effect and all conditions thereof have been duly complied with, and no other action by and no notice to or filing with any Governmental Authority is required in connection with the execution, delivery, or performance of this Agreement (other than the filing of a current report on Form 8-K and other reports filed with the U.S. Securities and Exchange Commission or other reports to Governmental Authorities).

(vi)    There are no legal proceedings pending or, to the best of the Time Charterer's knowledge, threatened before any arbitrator or Government Authority which (i) involve the Principal Documents or (ii) if determined adversely to the Time Charterer, are reasonably likely to have a materially adverse effect on its ability to perform its obligations under this Time Charter.

(vii)    The Time Charterer is an indirect wholly-owned subsidiary of the Time Charterer Parent.

(viii)    No representation or warranty of Time Charterer Parent or Time Charterer contained in the Confidential Information Memorandum dated May 2017 (excluding the Excluded Information, as defined in the authorization letter of Time Charterer Parent included therein and dated May 15, 2017) or in any other document, certificate or written statement furnished to the Owner or any Lender by or on behalf of Time Charterer Parent or Time Charterer for use in connection with the transactions contemplated by the Principal Documents, as of the date furnished (excluding estimates, projections and pro forma financial information referred to in the following sentence), contains any untrue statement of a material fact or omits to state a material fact (known

to Time Charterer Parent or Time Charterer, in the case of any information not furnished by it) necessary in order to make the statements contained therein not misleading in light of the circumstances in which the same were made. Any estimates, projections and pro forma financial information contained in such materials were based upon good faith estimates and assumptions believed by Time Charterer Parent and Time Charterer to be reasonable at the time made, it being recognized by the Owner and the Lenders that such estimates and projections as to future events are not to be viewed as facts and that actual results during the period or periods covered by any such estimate or projections may differ from the estimated or projected results.

(b)    Time Charterer hereby covenants to Demise Owner as follows:

(i)    Time Charterer will maintain that certain guaranty of the payment and performance obligations of the Time Charterer arising under the Time Charter executed by the Time Charterer Parent in favor of the Owner on even date herewith, as such agreement may be amended, restated or otherwise modified in accordance with its terms, and any substitutions or replacements therefore (the “Time Charterer Parent Guaranty”) in full force and effect throughout the duration of this Agreement.

(ii)    Time Charterer will comply with the requirements of all applicable laws, rules, regulations and orders of any Government Authority, except where noncompliance would not reasonably be expected, individually or in the aggregate, to have a Time Charterer Material Adverse Effect.

(iii)    Time Charterer will use and operate all of its facilities and properties in compliance with all Environmental Laws applicable to Time Charter, except for such non-compliance which, individually or in the aggregate, would not reasonably be expected to result in a Time Charterer Material Adverse Effect.

(iv)    Time Charterer will maintain in effect and enforce policies and procedures, which may be policies and procedures established by Time Charterer Parent that apply to Time Charterer, designed to promote and achieve compliance by Time Charterer and its directors, officers and employees with applicable Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.

For the purposes of this Time Charter, the following terms shall have the following meanings:

"Anti-Corruption Laws" means all laws, rules, and regulations of any jurisdiction applicable to Time Charterer from time to time concerning or relating to bribery or corruption, including, without limitation, the United States Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder.

"Anti-Money Laundering Laws" means any and all laws, statutes, regulations or obligatory government orders, decrees, ordinances or rules applicable to Time Charterer related to terrorism financing or money laundering, including any applicable provision of the Act and The Currency and Foreign Transactions Reporting Act (also known as the "Bank Secrecy Act," 31 U.S.C. §§ 5311-5330 and 12 U.S.C. §§ 1818(s), 1820(b) and 19511959).

"Sanctioned Country" means at any time, a country, region or territory which is itself the subject or target of any Sanction that broadly prohibits trade or investment with that country, region or territory (including, as of the date hereof, the Crimea region of Ukraine, Cuba, Iran, North Korea, Sudan and Syria).

"Sanctioned Person" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or Her Majesty's Treasury, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned directly or indirectly 50% or more by any such Person or Persons described in clauses (a) and (b).

"Sanctions" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government (including those administered by OFAC), the European Union or Her Majesty's Treasury.

"Time Charterer Material Adverse Effect" means a material adverse effect upon (a) the business, operations or assets of Time Charterer, except for matters arising prior to the date of execution of this Time Charter solely from general factors relating to the industries in which Time Charter is principally engaged and general economic factors relating to the markets in which Time Charterer is principally engaged in business, which matters, in any such event, do not have a disproportionate impact on Time Charterer, (b) Time Charterer's ability to perform its obligations under this Time Charter, or (c) the validity and enforceability of this Time Charter or the rights and remedies of the Demise Owner hereunder.

(a)    Demise Owner agrees that it will operate the Tug and tow the Barge in compliance with the United States Anti-Drug Abuse Act of 1986, the Drug-Free Workplace Act of 1988, the U.S. Coast Guard’s zero tolerance policy on controlled substances and all other international, federal, state, local and maritime laws, rules, regulations, codes, orders or ordinances with respect to the use or possession of or trafficking in controlled substances. Demise Owner agrees to take those actions reasonably available to reduce the risks of the illegal presence of controlled substances on board the Vessels, including but not limited to the following:

(i)    Posting a zero tolerance notice in a visible public place on board the Tug;

(ii)    Having each crew member sign a statement that he or she will not possess or use controlled substances on board the Vessels;

(iii)    Having each crew member sign an agreement authorizing drug screenings prior to employment; as soon as practicable after any injury, accident, spill or other casualty; and at random, unscheduled, unannounced intervals;

(iv)    Requiring each crew member to submit to a drug screening prior to employment; as soon as practicable after any injury, accident, spill or other casualty; and at random, unscheduled, unannounced intervals; and

(v)    Securing the Vessels to minimize public access to the Vessels.

(b)    In the event that the U.S. Coast Guard or other law enforcement agency shall board a Vessel for the purpose of searching for controlled substances, the Master or Demise Owner shall immediately inform Time Charterer. If controlled substances are discovered on board a Vessel, Demise Owner shall indemnify and hold harmless each Time Charterer Indemnitee (defined in Section 16) from any and all Damages (defined in Section 16) which any such Time Charterer Indemnitee may suffer and Demise Owner shall be required to immediately obtain the release of the Vessel.

(a)    Time Charterer shall reimburse Demise Owner, on a direct pass-through basis, for expenses related to the operation, repair or maintenance of the Vessels incurred by Demise Owner during the Charter Period for performance of this Agreement (excluding Basic Hire, Supplemental Hire, and excluding the expenses in consideration of Management Hire and Charter Hire), including: (i) inspection and maintenance of the Vessels, (ii) vessel dry docking, (iii) all fuel, lubes, and grease, (iv) port fees, entry and clearance charges, dockage, wharfage, agency fees, customs fees, import duties and other similar charges, duties or levies of the Vessels or cargo at ports of loading or discharge, (v) cargo hoses, (vi) charts, publications & plotting, (vii) consumables, (viii) Homeland Security requirements, (x) vessel lifesaving equipment, (xi) nitrogen, (xii) pollution equipment, (xiii) vessel safety equipment, (xiv) shackles, (xv) slings & hardware, (xvi) large tools, (xvii) U.S. Coast Guard and American Bureau of Shipping fees – vessel regulatory compliance and regulatory attendance, (xviii) crew and safety recognition awards, (xix) parts, supplies, repairs and maintenance (labor and materials), (xx) cost of lay-berths, (xxi) rigging consumed by the Vessels, (xxii) any changes or modifications of the Vessels required to meet regulatory requirements, (xxiii) cost of professional services approved in advance by Time Charterer (accounting, tax, legal), (xxiv) additional bank fees for maintaining the required Control Account, (xxv) ad valorem property taxes assessed against the cargo or Vessels as a result of the Time Charterer’s direction of the vessel, (xxvi) testing analysis for cargo and (xxvii) costs of redelivering the Vessels in the required condition for redelivery (“Reimbursement Hire”). Time Charterer shall also reimburse Demise Owner up to an aggregate $50,000 per year of deductible costs (not insurance premium costs) across all insurances for claims arising outside the reasonable control of Demise Owner and despite Demise Owner’s exercise of due care and due diligence.

(b)    Upon execution of this Agreement and thereafter on or before October 1 of each year for the upcoming calendar year (January 1–December 31), Demise Owner shall prepare and deliver to Time Charterer a budget of such anticipated Reimbursement Hire (an “Annual Budget”). Each Annual Budget shall be subject to review and approval by Time Charterer. In the event an Annual Budget is not approved prior to the commencement of the applicable calendar year, the Annual Budget in effect for the prior year shall continue to apply for a period of up to six (6) months so long as the parties continue to negotiate in good faith. The prior year annual budget, only when

applicable pursuant to this Section 10(b), shall be subject to escalation at the commencement of such calendar year by applying component 2 of Tug Charter Hire in Schedule 1 to 50% of the Annual Budget and component 3 of Tug Charter Hire in Schedule 1 to 50% of the Annual Budget.

(c)    On the date of execution of this Agreement Time Charterer shall make an initial deposit into the Control Account of an amount approximating three (3) months of estimated Reimbursement Hire and Charter Hire (the “Initial Deposit”). The Initial Deposit shall be (i) three (3) times (ii) the sum of (A) one twelfth of the initial Annual Budget, plus (B) one (1) month of Charter Hire set forth in Schedule 1(3). No fewer than five (5) Business Days prior to the first day of the calendar month falling 15 or more days after the Delivery Date, and the first day of each month thereafter, Demise Owner shall prepare and furnish to Time Charterer a funding request (each, a “Monthly Funding Request”) of estimated Reimbursement Hire for the upcoming month (the “Estimated Reimbursement Hire”). On or before the first day of each calendar month following each Monthly Funding Request, Time Charterer shall deposit the Estimated Reimbursement Hire requested in each Monthly Funding Request into the Control Account for disbursement by Demise Owner in accordance with the Monthly Funding Request and in compliance with this Section 10 (each payment an “Estimated Reimbursement Hire Payment”).

(d)    Demise Owner shall have no authority to, nor shall it spend or commit to spend, an amount in excess of the Monthly Funding Request without the express written authority of Time Charterer unless such amount is required to be expended for Demise Owner to avoid breach of an obligation under the Bareboat Charter or the Time Charter and avoid a breach within the Monthly Funding Request period of the obligations under the Bareboat Charter or the Time Charter. Any extraordinary expenses not anticipated by the Monthly Funding Request shall, if approved by Time Charterer in advance (such approval not to be unreasonably withheld or delayed), be reimbursed to Demise Owner promptly upon receipt of invoice, and, if desired by Time Charterer, such amounts may be funded by Time Charterer directly to the payee with respect thereto. If requested by Demise Owner, Time Charterer will pay any funding request that corresponds to Supplemental Hire due under the Bareboat Charter, within three (3) Business Days of the request. If Reimbursement Hire for any month materially exceeds the estimated amount included on the Monthly Funding Request for such month, Demise Owner may send to Time Charterer a supplemental or modified Monthly Funding Request, and if approved by Time Charterer, not to be unreasonably withheld or delayed, Time Charterer will promptly fund such amount.

(e)    As promptly as possible (but not more than five (5) Business Days) after the end of each month Demise Owner shall render to Time Charterer a written statement for the preceding month showing (i) the Estimated Reimbursement Hire for such month, and (ii) all money received and disbursed for the account of Demise Owner (or Time Charterer) pursuant to Section 10(a), and in accordance with Section 10(b), during the preceding period or month, together with all supporting invoices or documents (“Actual Reimbursable Hire Expenses” and each such statement, a “Reimbursement Hire Statement”); it being agreed that for the period from the Delivery Date until the date of the first Reimbursement Hire Statement, the Estimated Reimbursement Hire applicable to such period shall be deemed the portion of the Initial Deposit equal to 1/365 of the Annual Budget, multiplied by the number of days in such period, or such other reasonable amount that the parties agree in good faith is appropriate for such period. The next Monthly Funding Request shall include

a reconciliation of each prior month’s activity showing (i) a credit to the extent that the Estimated Reimbursement Hire for such prior period or month exceeded the Actual Reimbursement Hire Expense as shown on the Reimbursement Hire Statement (each, an “Excess Funding”), and (ii) a credit to the extent of the interest actually earned during such period by Demise Owner on the Control Account Balance, including balances derived from the Initial Deposit. Each Monthly Funding Request shall include a certification, the form of which is attached to Exhibit B, signed by a Responsible Officer of the Demise Owner that any invoices submitted for reimbursement reconciliation have been paid when due; a statement by the Demise Owner listing the Demise Owner’s accounts payable items that are at that time overdue in excess of thirty (30) days (and if applicable, each item outstanding more than sixty (60) days, and so forth for each 30 day period thereafter, specifically identified as such); and the certification that Demise Owner is in material compliance with Service Standards required to be reported to Time Charterer under Section 15 and/or Exhibit B of this Agreement. If any item of disbursement is questioned by Time Charterer, Time Charterer shall reimburse or credit in reconciliation Demise Owner for the expenditures so reported, and the parties shall diligently set about to resolve the questioned item(s) in good faith for a period of up to three months.

(f)    Within 30 days of the end of each fiscal quarter of Demise Owner during the Charter Term Demise Owner shall prepare and deliver to Time Charterer a certification, the form of which is attached to Exhibit B, signed by a Responsible Officer of the Demise Owner that:

(i)    in the course of the performance by such Responsible Officer of his or her duties as an officer of Demise Owner, such Responsible Officer would normally obtain knowledge of any default by Demise Owner of its obligations under any Principal Document to which Demise Owner is a party;

(ii)    the Demise Owner is in compliance in all material respects with its obligations under each Principal Document to which it is a party;

(iii)    such Responsible Officer of the Demise Owner has no knowledge of any Event of Default under any Principal Document to which it is a party, or of the occurrence of any default under any Principal Document to which it is a party that, with the passage of time and the failure to cure, would be reasonably likely to become an Event of Default hereunder or under any Principal Document to which Demise Owner is a party;

(iv)    there are no outstanding Liens on the Vessels other than Permitted Liens, so long as paid within the period provided for Permitted Liens; and

(v)    the compliance audit and disclosure report, materially in the form set forth in Exhibit B, provided by Demise Owner to Time Charterer, is true and correct as of the date executed.

(g)    Demise Owner shall keep proper and detailed books and records of Demise Owner sufficient to satisfy the records retention and audit provisions of this Agreement, to demonstrate compliance with the terms of this Agreement, and in compliance bookkeeping and/or accounting standards applicable to Demise Owner as of the date of this Agreement.

(h)    Time Charterer shall have the right to examine and audit the books and records of Demise Owner at any reasonable time, which shall include vessel records described in Section 12 below and all records sufficient to substantiate and audit the Time Charterer’s compliance with its obligations under the Time Charter, and to make copies (including electronic copies of computer records) and obtain print-outs of such books and records.

(i)    The Demise Owner shall, during the Charter Period, deliver to Time Charterer (i) reviewed or audited annual financial statements of the Demise Owner, within 90 days after the end of each fiscal year of the Demise Owner, (ii) unaudited, management-prepared interim financial statements of the Demise Owner, within 45 days after each fiscal quarter of the Demise Owner other than the fourth fiscal quarter, and (iii) all other information requested by Time Charterer which Time Charterer deems reasonably necessary to determine the current financial condition of the Demise Owner and the faithful performance of the terms of this Time Charter and the other Principal Documents. Each financial statement submitted to Time Charterer shall be prepared in accordance with GAAP consistently applied (except that unaudited interim financial statements may exclude footnotes), and shall fairly and accurately present the financial condition and results of operations of the Demise Owner at the date and for the periods indicated therein (subject to year-end adjustments required by GAAP). All information submitted by the Demise Owner under clause (iii) of this paragraph shall be provided to Time Charterer within thirty (30) days after being requested.

(j)    The Demise Owner shall give Owner reasonably prompt notice and copies of all tax notices, reports or inquiries, claims of liens, and of any damage, loss, seizure, attachment or judicial process which may affect the use, maintenance, operation, possession or ownership of either Vessel; provided, however, that except as provided in Section 13, no such notice need be given for any damage or loss which does not materially affect the use, maintenance or operation of either Vessel and which is repaired or remediated in the ordinary course of business of the Demise Owner. The Demise Owner shall provide notice to Owner and Time Charterer of the occurrence of any Step-In Default or Demise Owner Event of Default hereunder, or the occurrence of any event that, with the passage of time and the failure of the Demise Owner to cure would become a Step-In Default or Demise Owner Event of Default hereunder, within three (3) Business Days after such event or occurrence becomes known to a Responsible Officer of the Demise Owner.

(k)    If and when requested by Time Charterer, Demise Owner shall provide berthing, provisions and domestic services on the Tug - to the same extent provided to the Tug’s officers - for up to two representatives of Time Charterer or its agents and shall use its best efforts to accommodate such other additional representatives of Time Charterer or its agents as may be required from time to time by Time Charterer. Charges to Time Charterer for these services shall be $40.00 per person per day payable in accordance with Section 10(c).

Time Charterer may dispatch the Tug and Barge to and from any ports, to and from any ports in the U.S. domestic trade and foreign ports in the Gulf of Mexico, Brazil, and Caribbean Basin ports in countries within the United States-Caribbean Basin Trade Partnership Act of 2000, as amended (Harmonized Tariff Schedule of United States, General Note 17), trading in such lawful trades and carrying such lawful cargoes and operating to the extent permitted by the Vessels’

insurance, Certificate of Inspection, the Bareboat Charter, and Applicable Law. The Vessels may be navigated outside the Exclusive Economic Zone of the United States, provided (i) such navigation is permitted by the Vessels’ insurance, Certificate of Inspection, and Applicable Law; and (ii) the Vessels shall not trade with Venezuela or any country designated in 15 C.F.R. Part 746. If the Vessels are operated in an area other than the Atlantic coast of North and South America from Cape Hatteras to the southern border of Argentina, including the Caribbean and the Gulf of Mexico, Hire shall be adjusted to reflect the actual increase or decrease in Demise Owner’s operating costs if not otherwise reimbursed pursuant to Section 10. The parties agree to renegotiate in good faith the provisions of this Agreement that might be affected by operating the Vessels in such areas.

Upon the request of Time Charterer, Time Charterer shall have access to all of the Vessels’ logs and records; cargo records; crew lists; Vessel repair and maintenance records and invoices; navigation charts; publications and other navigation records; communications between Demise Owner’s personnel and/or agents and/or Time Charterer’s personnel and/or agents; and other documents relating to the operation of the Vessels and Demise Owner’s performance hereunder. The logs and records shall include entries relating to inspection of the Vessels and its cargo, barge equipment and auxiliaries, damages, accidents or any unusual incident encountered by the Vessels, sea passage reports indicating mean sea speed and fuel oil/lube oil/grease consumption, detentions, charges to be reimbursed by Time Charterer pursuant to Section 10 hereof, and all other routine and non-routine matters that are normally recorded in the logs of a working tug and its tow.

In the event of an injury, accident, spill or other casualty, including any incidents which potentially involve personal injury, loss of life and/or property or cargo damage (a “Notice Event”), and from time to time to confirm compliance hereunder, the parties agree to permit their representatives to board the vessels as soon as practicable to inspect the Tug and/or Barge, including but not limited to, interview the crew and to inspect and copy all records. Demise Owner shall provide Time Charterer with proper written notice of any Notice Event in Demise Owner’s daily reporting, or sooner.

(a)    During the first eighteen (18) months of the Charter Term (the "Proving Period") Demise Owner, in cooperation with Time Charterer, will establish the speed and fuel consumption targets for administering this Section 14 of the Agreement.

(b)    Unless otherwise directed by Time Charterer, Demise Owner shall operate the Vessels, and Demise Owner warrants that the Tug shall tow/push the Barge, at the speeds established during the Proving Period, hereinafter defined as the “Operating Speed Warranty”. The Operating Speed Warranty shall be suspended when winds reach or exceed Beaufort Force 4 but only for such time as a Tug is unable to operate safely in the notch due to winds and seas. Compliance with the Operating Speed Warranty shall be determined using the average speed of the Vessels on sea passages from sea buoy to sea buoy.

(c)    Demise Owner’s compliance with the Operating Speed Warranty may be reviewed by Time Charterer every Voyage. If, in respect of any Voyage, it is found that a Tug has failed to comply with the Operating Speed Warranty, Hire shall be adjusted as follows: For each knot below the Operating Speed Warranty, a credit against Management Hire of $50.00 per day shall be allowed. For any fraction of a knot, the credit shall be adjusted proportionally.

(d)    If there is unreasonable or an unanticipated deviation in fuel consumption due to some condition of the Tug or the fault or negligence of Demise Owner, Demise Owner shall have thirty (30) days to correct the deficiency. If, after the expiration of thirty (30) days, the deficiency has not been corrected, Time Charterer may exercise its rights under Section 19 of this Agreement.

(e)    In addition to the other warranties set forth in this Section 14, Demise Owner represents, warrants, covenants and guarantees that the Tug shall achieve and maintain the fuel consumptions established during the Proving Period in laden and ballast conditions on all sea passages, from sea buoy to sea buoy.

(f)    The Tug’s consumption of fuel will be reviewed at the end of each six month period (January 1–June 30 and July 1–December 31). The calculation of fuel consumption shall exclude for the purposes of this Section:

(i)    any day on which winds of Beaufort Force 4 are encountered for more than 6 hours;

(ii)    any time during which the Tug’s speed is deliberately reduced to comply with Time Charterer’s requirements;

(iii)    any time during which the Tug’s speed is deliberately reduced for reasons of safety while navigating or when assisting a vessel in distress;

(iv)    any complete sea passage of less than 12 hours. If for any 6 month period, it is found that the Tug’s fuel consumption was greater than guaranteed herein, Demise Owner shall, within thirty (30) days after the end of such 6 month period, reimburse Time Charterer an amount equal to the costs of the extra fuel consumed.

(a)    In the event Demise Owner fails to comply with Operational Obligations in Exhibit B, whether as reported on the quarterly compliance audit and disclosure reports, monthly certifications of Demise Owner, or otherwise reported by Demise Owner or known to Time Charterer, Demise Owner shall take the following actions:

(i)    For non-compliance with safety-related Operational Obligations in Sections a-d of Exhibit B, or accidents or incidents reportable under Sections 10 and 13, Demise Owner shall (A) promptly investigate, (B) report to Time Charterer the results of the investigation, (C) recommend and implement improvements in the applicable SMS, EMS, or other procedures,

and (D) conduct services and training at the expense of Demise Owner to mitigate further occurrences of non-compliance;

(ii)    For non-compliance with maintenance and condition Operational Obligations in Sections j-k, or in the event of U.S. Coast Guard deficiencies or classification society deficiencies, Demise Owner shall within thirty (30) days implement improvements to the appropriate plans and procedures and on a second or subsequent violation implement a third party audit and reporting process acceptable to Time Charterer to mitigate future occurrences of non-compliance;

(iii)    For non-compliance with Operational Obligations under Sections e, l-s, and u-z of Exhibit B (e.g., transit times, loading/discharging delays, customer service complaints, etc.), Demise Owner shall within thirty (30) days implement improvements to applicable plans and procedures and on a second or subsequent violation implement a third party audit (e.g., of loading/discharging processes) at the expense of the Demise Owner; and

(iv)    For non-compliance with financial and budgeting related obligations in Section 10 and Section t of Exhibit B, Demise Owner shall within thirty (30) days implement improvements in plans and procedures to address the non-compliance and on a second or subsequent violation Demise Owner shall agree to, depending upon the nature of the non-compliance, reimburse pre-approval procedures and enhance access to financial records and third party auditing of Demise Owner’s financial and operational records at the expense of Demise Owner.

(b)    No action or inaction under this Section 15 shall be construed as a waiver of any other right or remedy of Time Charterer hereunder.

(a)    It is agreed and understood that it is in the best interest of the parties that certain risks should be identified and allocated between them. It is, therefore, the intent of this Section to provide for a hold harmless, indemnification and defense undertaking by Demise Owner to the maximum extent permitted by law and to support such undertaking by the insurance coverage required by Section 25 hereof.

(b)    Demise Owner agrees to fully protect, defend, indemnify and hold harmless Time Charterer, its parent, subsidiary and affiliated companies, joint venturers, contractors, subcontractors, guests and invitees and any and all vessels which they own and/or operate together with any person(s) to which any of the foregoing are under contract or for which they are rendering services and any person(s) who or which may be designated by Time Charterer to Demise Owner, in writing, and the respective directors, officers, employees, agents and representatives of all of the foregoing (collectively, the “Time Charterer Indemnitees”) from and against any and all losses, damages, demands, liabilities, injuries, claims, debts, suits, causes of action, administrative proceedings, liens, demands, judgments, fines, penalties, costs and expenses (including attorney’s, consultant’s, investigator’s and expert’s fees and costs)(collectively, “Damages”), which may be brought, asserted or claimed against any one or more Time Charterer Indemnitees by any person, whether arising out of injury, illness, death or loss of, loss of use of or damage to property (including the Tug, Barge or any other vessel) or otherwise (including, but not limited to, Damages claimed

by any Time Charterer Indemnitee or by Demise Owner, its parent, subsidiary and/or affiliated companies, their contractors, subcontractors, guests invitees and/or the respective directors, officers, employees, agents and representatives of any of the foregoing, incident to or arising out of, in connection with, or resulting, directly or indirectly, from (i) the work activities, operation or preparation for the work, activities or operations of any of the Time Charterer Indemnitees or of Demise Owner or Demise Owner’s parent, subsidiary and/or affiliated companies, their contractors, subcontractors, guests, invitees and/or their respective directors, officers, employees, agents and representatives, in any way arising out of, in relation to, or in connection with the activities conducted pursuant to this Agreement or (ii) any defective condition of any equipment of Demise Owner or Time Charterer employed in connection with this Agreement, regardless of whether such negligence, fault, absolute or strict liability, lack of due diligence, other action or inaction, unseaworthiness or defective condition be active or passive, primary or secondary, technical or vicarious and regardless of whether based on any violation by any international, federal, state, local or maritime law, rule, regulation, code, ordinance or order.

(c)    Without limitation, the foregoing indemnification shall extend to Damages, whether civil, criminal or administrative, relating to pollution or contamination of the waters or air or earth (including without limitation natural resource damages, clean-up, remedial or removal costs, fines and penalties). This Section is inapplicable if such Damages are caused wholly, entirely and proximately by the gross negligence or willful misconduct of Time Charterer or its officers, directors, employees, or agents.

(d)    Demise Owner shall promptly report to Time Charterer as soon as practicable all accidents, incidences or occurrences which might give rise to an obligation of Demise Owner to indemnify any Time Charterer Indemnitee hereunder. Demise Owner shall, if and when requested, furnish Time Charterer a copy of reports made by Demise Owner to Demise Owner’s insurer or to others of such accidents, incidences and occurrences together with any other relevant documents including witness statements and any other investigative material.

(e)    Time Charterer shall have the option of either tendering its defense to Demise Owner under this Agreement or of providing its own defense. If any Time Charterer Indemnitee tenders defense to Demise Owner, and Demise Owner accepts, defense counsel shall be reasonably acceptable to Time Charterer and the Time Charterer Indemnitee and shall keep Time Charterer fully informed of the status of the defense. Demise Owner shall have the right in its reasonable discretion, to settle any claims being defended by Demise Owner provided (i) Demise Owner shall consult with Time Charterer and the affected Time Charterer Indemnitees prior to making any settlement offers or agreeing to any settlement, (ii) Demise Owner shall be fully capable of performing the conditions of the settlement, including any financial considerations to be paid, (iii) no Time Charterer Indemnitee shall have any obligations under such settlement, and (iv) such settlement shall not act as an admission of liability or violation or serve to create a violations history or adverse precedent against the Time Charterer Indemnitee. If Time Charterer elects to provide its own defense, Time Charterer shall not be entitled to recover from Demise Owner any costs and expenses in doing so.

(f)    Demise Owner’s liability under this Section 16 shall be limited to the amounts or types of insurance coverage required in Section 25 hereof, except in the case of the Demise Owner's gross negligence or willful misconduct.

(g)    Except to the extent provided in Section 16(h), Time Charterer agrees to pay, defend, indemnify and hold harmless each Indemnitee from and against any and all present and future Claims of whatsoever nature and all reasonable costs and expenses (including, but not limited to, reasonable attorneys' and consultants' fees and disbursements) directly or indirectly relating to or in any way arising out of:

(i)    any Time Charterer Event of Default or any Time Charterer default or Time Charterer Parent default under any Principal Document to which Time Charterer or Time Charterer Parent is a party (including, without limitation, any amendments, supplements, consents, waivers or modifications relating thereto whether or not entered into) or the enforcement in default of any of the terms thereof;

(ii)    the manufacture, design, construction, purchase, sale, ownership by any entity, financing, ordering, delivery, return, acquisition, title on acquisition, charter, subcharter, rejection, installation, possession, documentation, titling, retitling, registration, custody by the Owner, the Demise Owner or the Time Charterer of title and registration documents, use, non-use, misuse, operation, transportation, inspection, repair, maintenance, overhaul, testing, storage, fleeting, control or disposition of any Vessel, including, without limitation, any claims arising under the doctrine of strict liability in tort; any claims arising with respect to injury to person or property, and claims based on patent, trademark, trade name or copyright infringement;

(iii)    any misrepresentation by the Time Charterer or the Time Charterer Parent contained in the Time Charter, or in any other Principal Documents to which such person is a party;

(iv)    any defaults, breaches, violations or non-compliance by the Time Charterer of (A) the Bareboat Charter, the Time Charter, the other Principal Documents to which the Time Charterer is a party or by which it is bound, or (B) any Applicable Laws of any Governmental Authority, and all other requirements having the force of law applicable at any time to the Vessels (including, without limitation, any Environmental Laws or the rules and regulations of the United States Coast Guard, Customs and Border Protection, or the United States Maritime Administration);

(v)    any Trigger Event expressly including, but not limited to, failure to pay when due Basic Hire or Supplemental Hire, or resulting in any exercise of remedies by any Indemnitee in connection with such Trigger Event or Time Charterer Event of Default;

(h)    Notwithstanding the foregoing Section 16(g), the Time Charterer shall not be required to pay, defend, indemnify and hold harmless any Indemnitee against any claim, demand or liability to the extent that it:

(i)    arises out of the willful misconduct or gross negligence of such Indemnitee or out of such Indemnitee's violation of, or failure to perform its express obligations under, any of the Principal Documents to which it is a party and by which it is bound;

(ii)    is imposed for any period, or with respect to any act and/or event occurring, after the expiration or earlier termination of the Time Charter and/or the satisfaction of all the obligations of the Time Charterer under this Agreement, including, if applicable, the redelivery of all of the Vessels to the Owner or its designee at the location specified in, or otherwise in accordance with, the Bareboat Charter and this Agreement, unless the Time Charterer shall have acquired the Vessels in accordance with Section 18 of this Agreement;

(iii)    results from a voluntary disposition by such Indemnitee of all or any part of its interest in the Vessels (other than as a result of the occurrence of any Event of Default under the Bareboat Charter) or results from an involuntary disposition thereof in connection with any bankruptcy or other proceeding for the relief of debtors in which such Indemnitee is the debtor or any foreclosure by a creditor of such Indemnitee with respect thereto other than a bankruptcy or other proceeding or a foreclosure caused by an Event of Default hereunder; or

(iv)    is for expenses which are to be borne by such Indemnitee pursuant to the express provisions of the Principal Documents.

(i)    The Time Charterer shall give the Indemnitees and the Demise Owner prompt notice of any occurrence, event or condition known to the Time Charterer as a consequence of which any Indemnitee may be entitled to indemnification hereunder. The Time Charterer further agrees that, with respect to any payment or indemnity hereunder, such payment or indemnity shall include any amount necessary to hold the Indemnitee harmless, on an After-Tax Basis.

(j)    Each Indemnitee agrees to give the Time Charterer prompt notice of any occurrence, event or condition known to a Responsible Officer of such Indemnitee and as a consequence of which such Indemnitee may be entitled to indemnification hereunder; provided, however, that any failure to give such notice shall not relieve the Time Charterer from any liability hereunder except if such failure shall have materially prejudiced the Time Charterer and then only to the extent of actual damages caused solely and directly by such failure. In case any action, suit or proceeding is brought against any Indemnitee in connection with any claim indemnified against hereunder, such Indemnitee will, promptly after receipt of notice of the commencement of such action, suit or proceeding, notify the Time Charterer thereof, enclosing a copy of all papers served upon such Indemnitee, but failure to give such notice or to enclose such papers shall not relieve the Time Charterer from any liability hereunder except if such failure shall have materially prejudiced the Time Charterer and then only to the extent of actual damages caused solely and directly by such failure.

(k)    The Time Charterer may, and upon such Indemnitee's request will, at the Time Charterer's sole cost and expense, resist and defend such action, suit or proceeding, or cause the same to be resisted or defended by counsel selected by the Time Charterer and reasonably satisfactory to such Indemnitee and in the event of any failure by the Time Charterer to do so, the Time Charterer shall pay all costs and expenses (including, without limitation, reasonable attorneys'

fees and expenses) incurred by such Indemnitee in connection with such action, suit or proceeding; provided, that prior to the Time Charterer resisting or defending such action, suit or proceeding, or causing the same to be resisted or defended, the Time Charterer shall have acknowledged in writing to the relevant Indemnitee its responsibility to indemnify against such action, suit or proceeding (and any and all liability relating thereto) in full and shall keep such Indemnitee fully apprised of the status of such proceeding and shall provide such Indemnitees with all information with respect thereto that such Indemnitee shall reasonably request. Notwithstanding any of the foregoing to the contrary, the Time Charterer shall not be entitled to assume responsibility for and control of any such judicial or administrative proceedings (i) if it shall have failed to employ counsel reasonably satisfactory to the relevant Indemnitee in a timely manner, (ii) the relevant Indemnitee shall have been advised by counsel that there are actual or potential conflicting interests between Time Charterer, and shall have notified Time Charterer of such advice, such Indemnitee including situations in which there are one or more legal defenses available to such Indemnitee that are different from or additional to those available to Time Charterer, or (iii) during any time while a Time Charterer Event of Default shall have occurred and be continuing, or if any criminal liability could be imposed on such Indemnitee by such proceedings. Any Indemnitee may participate at its own expense and with its own counsel in any judicial or administrative proceeding controlled by the Time Charterer. Notwithstanding the foregoing, Time Charterer shall not consent to the terms of any compromise or settlement of any action defended by Time Charterer in accordance with the foregoing without the prior written consent of such Indemnitee unless such compromise or settlement (x) includes a release of such Indemnitee from all liability arising out of such action and (y) does not include a statement as to or an admission of fault, guilt, culpability by or on behalf of such Indemnitee.

(l)    To the extent that the Time Charterer indemnifies any Indemnitee with respect to and indefeasibly pays in full any Claim indemnified by the Time Charterer pursuant to this Section 16, then the Time Charterer shall be subrogated, and shall receive the benefit of, any insurance policy (other than insurance carried for the Indemnitee's own account), including, without limitation, guarantees and causes of action against third parties to which such Indemnitee may be entitled with respect to the matter which gave rise to the rights of indemnification hereunder, up to but not to exceed the amount which the Time Charterer had to pay, and such Indemnitee shall cooperate with the Time Charterer at the Time Charterer's sole cost and expense in seeking to obtain the benefit for the Time Charterer of such insurance policies, guarantees, or causes of action.

(m)    No provision of this Section 16 shall be construed to be a waiver on the part of the Owner, the Demise Owner or the Time Charterer of the benefit of any limitation of, or exemption from, liability accorded the owner or charterer of a vessel by any applicable statute or rule of law, provided that the terms of this sentence shall not in any way affect in any manner whatsoever: (A) the obligation of the Time Charterer to each Indemnitee under the indemnities provided for in Section 16(g); (B) the obligation of Demise Owner to each Time Charterer Indemnitee provided for in Section 16(b); or (C) the obligations of any indemnitee to the Time Charterer as expressly set forth in the Principal Documents to which any such indemnitee is a party. Time Charterer’s payments to any Indemnitee under Section 16(g) (including, without limitation, indemnity payments construed or paid as Supplemental Hire or Reimbursement Hire) shall not be construed as a satisfaction or waiver of any indemnity obligation or payment due from Demise Owner to any Time Charterer Indemnitee.

(n)    Other than as expressly provided to the contrary in Section 16(h)(ii) above, the indemnities contained in this Section 16 shall survive the expiration or earlier cancellation or termination of this Agreement and any and all of the other Principal Documents. The indemnities contained in this Section 16 shall not be construed as a guarantee by the Time Charterer of the useful life or residual value of any Vessel.

The failure of Time Charterer or Demise Owner to insist in any one or more instances upon performance of any of the terms, covenants or conditions of this Agreement shall not be construed as a waiver or relinquishment of the future performance of any such term, covenant or condition and shall not establish a practice or course of dealing, and Demise Owner’s or Time Charterer’s obligations with respect to such future performance shall continue in full force and effect.

(a)    Early Termination and Purchase Option: If (i) a Step-In Default occurs and is continuing, or (ii) following the occurrence and continuation of a Step-In Default (x) Time Charterer elects within ninety (90) days of such Step-In Default not to exercise Step-In Rights under Section 19 herein, or elects to exercise such Step-In Rights but abandons such exercise subsequent thereto, or (y) Time Charterer’s election to exercise Step-In Rights under Section 19 fails to obtain the required consent of Owner under the Bareboat Charter, or (z) Time Charterer’s election to exercise Step-In Rights under Section 19 does not result in a substitute demise owner within ninety (90) days of the Step-In Default at issue; or (iii) one or both of the Vessels sustains an Event of Loss (as defined in the Bareboat Charter); or (iv) Demise Owner and Time Charterer receive Owner’s notice described in Section 21(b)(iv) of the Bareboat Charter, and in the case of each of clauses (i), (ii), (iii) and (iv) above, except upon a Trigger Event constituting a Time Charterer Event of Default described in Section 20(b)(v) hereof, then the Time Charterer or its designee may elect its right to purchase all of the Vessels pursuant to the terms and ETP Price set forth in Section 21(b) of the Bareboat Charter.

(b)    Mid-Term Purchase Option: Assuming no Trigger Event has occurred and is continuing, and subject to adherence to applicable notification periods, Time Charterer shall have the option to terminate the Time Charter and purchase all of the Vessels after the third anniversary of the Delivery Date pursuant to the terms of the early buy out option set forth in Section 21(b)(i) of the Bareboat Charter.

(c)    End of Term Purchase Option: Subject to adherence to all applicable notification periods, Time Charterer shall have the option to purchase all of the Vessels pursuant to the end of term purchase option set forth in Section 21(a) of the Bareboat Charter.

(d)    In the absence of a Trigger Event occurring and continuing, upon one year advance written notice Time Charterer or Demise Owner may terminate this Time Charter on the third anniversary of the Delivery Date, in which case Time Charterer’s notice of termination pursuant to this Section 18(d) shall require Time Charterer to exercise Step-In Rights set forth in Section 19 as if it were following a Step-In Default.

(e)    Notwithstanding the foregoing provisions of this Section 18, the exercise of any purchase option provided above by the Time Charterer or its designee, and the sale of the Vessels to and the purchase of the Vessels by the Time Charterer or its designee pursuant to such option, shall be subject to the approval of the United States Maritime Administration, to the extent that such approval is required under Applicable Law at the time of any exercise of the option.

(a)    In the event of a Step-In Default under this Time Charter or upon Time Charterer providing a timely notice pursuant to Section 18(d) of this Time Charter, Time Charterer shall have the right, subject to the further provisions of this Section 19, to replace the Demise Owner in order to protect the quiet enjoyment rights of Time Charterer under the Time Charter. Time Charterer will provide Owner with written notice of its election to exercise Step-In Rights during the period to elect Step-In Rights, or sixty (60) days in advance in the case of a termination under Section 18(d) above. After receipt by Owner of Time Charterer’s notice of election to exercise Step-In Rights, Owner and Time Charterer will consult and, subject to approval of Owner (not to be unreasonably withheld, it being agreed that it would not be unreasonable for Owner to withhold its consent on the basis of lack of internal credit approval, know your customer restrictions or other underwriting criteria), Time Charterer may identify a substitute bareboat charterer who will agree to be assigned and to assume the performance of the obligations of Demise Owner under the Bareboat Charter and the Time Charter. Any such substitute demise owner shall be a Citizen of the United States eligible to operate vessels in the coastwise trade. Notwithstanding the foregoing provisions of this Section 19, the Time Charterer shall not be permitted to exercise Step-In Rights under this Section during any period that a Time Charterer Event of Default under Section 20(b) has occurred and is continuing, (i) if such Time Charterer Event of Default constitutes a Trigger Event, or (ii) if as a result of such Time Charterer Event of Default a lien (other than a Permitted Lien as defined under the Bareboat Charter) has been claimed against any Vessel, or (iii) with respect to any Time Charterer Event of Default other than a default referenced in clauses (i) or (ii) of this Section, unless the exercise of the Step-In Right by the Time Charterer will effect the cure of such Time Charterer Event of Default.

(a)    Events of Default. The following events shall constitute events of default of the identified party:

(b)    Time Charterer Events of Default:

(i)    any payment of (A) Basic Hire shall fail to be made as the same shall become due and payable, or (B) Supplemental Hire (other than Stipulated Loss Value and ETP Price as to which there is no grace period) shall fail to be made as the same shall become due and payable, and such failure shall continue for three (3) Business Days; or

(ii)    any payment of Management Hire, Charter Hire, or Reimbursement Hire (except as set forth in 20(b)(i)) shall fail to be made as the same shall become due and payable and such failure shall continue for fourteen (14) Business Days; or

(iii)    any representation or warranty made by Time Charterer herein or in any other Principal Document to which it is a party or in any document or certificate furnished to Demise Owner or Owner in connection herewith or therewith or pursuant hereto or thereto shall prove at any time to be incorrect in any material respect as of the date made and such event shall not have been remedied within thirty (30) days of notice thereof; or

(iv)    Time Charterer defaults or shall fail to perform or observe any other covenant, condition or agreement to be performed or observed by it hereunder or under any other Principal Document to which it is a party and (if capable of remedy) such failure shall not have been remedied within thirty (30) days after notice of such default or failure to perform or observe; or

(v)    Time Charterer or Time Charterer Parent becomes insolvent, makes an assignment for the benefit of creditors, or consents to the appointment of a trustee or receiver; a general failure to pay or admittance in writing by Time Charterer or Time Charterer Parent of its inability to pay its debts as they become due or voluntary commencement of any case or proceeding, or filing any petition under any bankruptcy, insolvency or similar law, or seeking dissolution, liquidation, or reorganization or the appointment of receiver, trustee or custodian or liquidator by Time Charterer or Time Charterer Parent; or an involuntary proceeding or petition is commenced or filed against Time Charterer or Time Charterer Parent under any bankruptcy, insolvency or similar law that is not resolved within sixty (60) days, or

(vi)    Time Charterer ceases to remain a direct or indirect wholly-owned consolidated subsidiary of The Mosaic Company, or

(vii)    (A) Time Charterer fails to maintain the Time Charterer Parent Guaranty in full force and effect, or the Time Charterer or Time Charterer Parent attempts to repudiate or terminate the Time Charterer Parent Guaranty, (B) any of the representations or warranties set forth in Section 7 of the Time Charterer Parent Guaranty (I) that are subject to materiality qualifications shall be incorrect or misleading in any respect when made, and in any such case shall not have been remedied (if capable of remedy) within thirty (30) days of notice thereof and (II) that are not subject to materiality qualifications shall be incorrect or misleading in any material respect when made, and in any such case shall not have been remedied (if capable of remedy) within thirty (30) days of notice thereof, or (C) Time Charterer Parent fails to comply with the covenants set forth in Section 8 or obligations set forth in Sections 10 and 12 of the Time Charterer Parent Guaranty, and such non-compliance under Sections 8 or 12 shall not have been remedied (if capable of remedy) within thirty (30) days of notice thereof, and such non-compliance under Section 10 continues

uncured or un-remedied after the thirty (30) day period provided for in the Time Charterer Parent Guaranty;

(viii)    A Demise Owner Event of Default shall have occurred and is continuing or the Bareboat Charter is terminated other than as permitted in the Bareboat Charter; or

(ix)    Time Charterer Parent (A) dissolves, liquidates, or ceases or suspends the conduct of business, or (B), any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”), directly or indirectly, of more than 50% of the equity securities of Time Charterer Parent entitled to vote for members of the board of directors or equivalent governing body of Time Charterer Parent on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right) or (C) during any period of 12 consecutive months, a majority of the members of the board of directors of Time Charterer Parent ceases to be composed of individuals (i) who were members of the board of directors on the first day of such period, (ii) whose election or nomination to the board of directors was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of the board of directors or (iii) whose election or nomination to the board of directors was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of the board of directors or any individual whose initial nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors; or

(x)    Acceleration of or failure to pay at maturity any Debt by the Time Charterer Parent or any Subsidiary thereof in an aggregate amount in excess of $100,000,000. “Debt” means (without duplication) with respect to any Person, whether recourse is to all or a portion of the assets of such Person and whether or not contingent, (i) every obligation of such Person for money borrowed, (ii) every obligation of such Person evidenced by bonds, debentures, notes or other similar instruments, including obligations incurred in connection with the acquisition of property, assets or businesses, (iii) every reimbursement obligation of such Person with respect to letters of credit, bankers’ acceptances or similar facilities issued for the account of such Person, (iv) every obligation of such Person issued or assumed as the deferred purchase price of property or services, (v) every capital lease obligation of such Person determined in accordance with U.S. generally accepted accounting principles, and (vi) every obligation of the type referred to in the foregoing clauses (i) through (v) of another Person and all dividends of another Person the payment of which, in either case, such Person has guaranteed or secured or is responsible or liable, directly or indirectly, as obligor, guarantor or otherwise. Notwithstanding any terms of this definition to

the contrary “Debt” shall not include any trade accounts payable or accrued liabilities arising in the ordinary course of business.

(c)    Demise Owner Events of Default:

(i)    (A) any payment due from Demise Owner to Time Charterer under the Time Charter or (B) any payment due from Demise Owner to Owner under the Bareboat Charter, shall fail to be made as the same shall become due and payable past any applicable period of cure or grace; or

(ii)    (A) a Vessel experiencing more than six (6) trip delays during any rolling twelve (12) month period, each trip delay lasting more than twenty-four (24) consecutive hours, during which time the Vessels are unable to transfer or transport cargo, or (B) failure to take or employ applicable corrective measures following a non-compliance event set forth in Sections 15(a)(i)-(iv) and such failure continues for thirty (30) days after notice from Time Charterer or (C) following the timely implementation of applicable corrective measures, a subsequent non-compliance event of the same subsection of 15(a) occurs within a three month period following the implementation of the corrective measures; or

(iii)    any representation or warranty made by Demise Owner herein or in any other Principal Document or in any document or certificate furnished to Demise Owner or Owner in connection herewith or therewith or pursuant hereto or thereto shall prove at any time to be incorrect in any material respect as of the date made; or

(iv)    Demise Owner or the Savage Companies (the “Demise Owner Parent”) defaults or shall fail to perform or observe any other covenant, condition or agreement to be performed or observed by it hereunder or under any other Principal Document (as defined in the Bareboat Charter) and (if capable of remedy) such failure shall not have been remedied within thirty (30) days after notice of such default or failure to perform or observe; or

(v)    Demise Owner or Demise Owner Parent becomes insolvent, makes an assignment for the benefit of creditors, or consents to the appointment of a trustee or receiver; a general failure to pay or admittance in writing by Demise Owner or Demise Owner Parent of its inability to pay its debts as they become due or voluntary commencement of any case or proceeding, or filing any petition under any bankruptcy, insolvency or similar law, or seeking dissolution, liquidation, or reorganization or the appointment of receiver, trustee or custodian or liquidator by Demise Owner Parent; or an involuntary proceeding or petition is commenced or filed against Demise Owner Parent under any bankruptcy, insolvency or similar law, or

(vi)    Demise Owner fails to remain a direct or indirect majority-owned and Controlled consolidated subsidiary of the Demise Owner Parent; or

(vii)    (A) the occurrence and continuance of an Event of Default under the Bareboat Charter or (B) termination of the Bareboat Charter (other than a termination in connection with Time Charterer’s exercise of its early termination purchase option or Step-In Rights under Sections 18(a) or 19); or

(viii)    failure to meet Demise Owner’s Operational Obligations pursuant to Section 7(c), or

(ix)    any events which could reasonably expected to have a material adverse effect on the operations, business, assets, properties or conditions of Demise Owner, or

(x)    Demise Owner ceases to be a coastwise qualified Citizen; or

(xi)    Demise Owner fails to comply with the representations, warranties and covenants set forth in Schedule 7 of the Bareboat Charter, which is incorporated herein as if set forth fully in writing herein, and such non-compliance shall not have been remedied within thirty (30) days of Demise Owner’s Knowledge or notice of such non-compliance to Demise Owner, unless a shorter period of grace or cure expressly applies, or unless such non-compliance results in an earlier Event of Default under the Bareboat Charter (For the purposes of this provision, the term “Demise Owner Knowledge” means the actual or constructive knowledge of the Managers of Demise Owner, or other Persons serving in a similar capacity pursuant to the Demise Owner’s organizational documents, or the Persons appointed as officers of Demise Owner, and persons in similar capacities with respect to the Demise Owner Guarantor, and any Affiliates of Demise Owner Guarantor performing operations or activities with respect to the Principal Documents or the Vessel), or

(xii)    Demise Owner fails to maintain the Demise Owner Parent Time Charter Guaranty and Demise Owner Parent Guaranty in full force and effect or the Demise Owner Parent attempts to repudiate or terminate the Demise Owner Parent Time Charter Guaranty or Demise Owner Parent Guaranty or defaults under the Demise Owner Parent Time Charter Guaranty or Demise Owner Parent Guaranty and, to the extent applicable, such default continues uncured after any required notices thereof and expiration of any applicable cure period, or

(xiii)    Demise Owner Parent (A) dissolves, liquidates, or ceases or suspends the conduct of business, (B), sells or transfers all, substantially all, or any substantial portion of its assets to any Person; engages in any sale of its securities or enters into a merger or consolidation or other transaction resulting in a change in 50% or more of the total voting power of Demise Owner Parent’s outstanding voting securities as of the Delivery Date, except in connection with a Demise Owner Permitted Transaction.

(xiv)     Demise Owner Events of Default Definitions:

(A)    “Demise Owner Change of Control” shall be deemed to have occurred (i) should Demise Owner (or, following a Demise Owner Permitted Transaction, the Demise Owner Surviving Person, if different from the Demise Owner) cease to be the direct or indirect majority-owned Subsidiary of Demise Owner Parent, or (ii) upon any investment in Demise Owner (whether in respect of capital, equity, debt or otherwise) by any individual or entity that, or any individual or entity owned (directly or indirectly) by an individual or entity that, is conducting, or is otherwise engaged in, any of the principal businesses of Time Charterer or Time Charterer Parent or any business that competes with any of the principal businesses of the Time Charterer or Time Charterer Parent, or (iii) upon any change that causes Demise Owner to fail to be a Citizen.

(B)    “Demise Owner Permitted Transaction” means a merger or consolidation of the Demise Owner Parent or sale by the Demise Owner Parent of all or any substantial portion of its assets, so long as, either Demise Owner Parent is the surviving entity with respect to a merger or consolidation or the Demise Owner Surviving Person is the surviving entity or acquirer of such assets and:

A.    the Demise Owner Surviving Person is a corporation, limited partnership or limited liability company organized or existing under the laws of the United States, any state of the United States or the District of Columbia and otherwise qualifies as a Citizen;

B.    the Demise Owner Surviving Person assumes all of the obligations of the Demise Owner Parent under each Principal Document to which Demise Owner Parent is a party and under each Demise Owner Parent Guaranty (or issues a replacement guaranty at the request of the beneficiaries thereof) in writing to the satisfaction of the beneficiaries thereof;

C.    the Demise Owner Surviving Person has a net worth or debt rating at least equal to or greater than that of the Demise Owner Parent on the Delivery Date, as determined by Owner, and Demise Owner remains the majority-owned subsidiary of Demise Owner Surviving Person and no change has been made to its organizational documents other than to reflect a new member;

D.    the Demise Owner Surviving Person does not conduct, or otherwise engage in, any of the principal businesses of Time Charterer or Time Charterer Parent or any business that competes with any of the principal businesses of the Time Charterer or Time Charterer Parent; and

E.    immediately after such transaction no Default or Event of Default exists under the Bareboat Charter, Time Charter or any Principal Document.

(C)    “Demise Owner Surviving Person” shall mean, with respect to a Demise Owner Permitted Transaction, the Person that is the survivor of a merger or consolidation with the Demise Owner Parent or the acquirer of assets from the Demise Owner Parent in a Demise Owner Permitted Transaction.

(d)    “Trigger Event” shall mean the occurrence and continuation of any Financing Default; any event described in Section 18(a)(ii); any Event of Default described in Sections 20(b)(i), (ii), (v), (vi), (vii), or (x); and any Event of Default described in Sections 20(c)(i)(B), (v), (vi), (vii)(B), (x), and (xi), in any such case not cured within any applicable time for cure.

(e)    “Step-In Default” shall mean (i) the occurrence and continuation of any Demise Owner Event of Default that is not a Trigger Event, or (ii) the occurrence of an indemnity claim pursuant to Section 10(p) of the Bareboat Charter for reasons other than an actual Demise Owner Event of Default thereunder resulting in a Supplemental Hire obligation hereunder in excess of the sum of 3/12 annual Management Hire.

(a)    If any Step-In Default shall have occurred and be continuing, Time Charterer may exercise the Step-In Rights set forth in Section 19 of this Time Charter and reflected in Section 7(h) of the Bareboat Charter.

(b)    If any Trigger Event shall have occurred and be continuing, (other than a Trigger Event which constitutes a Time Charterer Event of Default under Sections 20(b)(i), 20(b)(ii) or 20(b)(v), so long as such Time Charterer Event of Default remains uncured), Time Charterer may elect to exercise the early termination purchase option in Section 18(a) of this Time Charter and reflected in Section 21(b) of the Bareboat Charter.

(c)    If any Demise Owner Event of Default shall have occurred and be continuing, whether Time Charterer elects or declines to elect remedies set forth in Sections 18(a) or 19, shall not affect Time Charterer's rights and remedies available at law or equity, including to proceed either at law, in admiralty or in equity to enforce performance by Demise Owner of the applicable provisions of this Time Charter, to terminate all rights of the Demise Owner under the Time Charter, and to recover damages for the breach thereof;

(d)    If any Time Charterer Event of Default shall have occurred and be continuing, Owner, as assignee of Demise Owner’s rights hereunder pursuant to the Bareboat Charter, may declare this Time Charter to be in default, and at any time thereafter, so long as Time Charterer shall not have remedied all outstanding Events of Default, Demise Owner may exercise any one or more of the following rights and remedies:

(i)    Demise Owner may proceed either at law, in admiralty or in equity to enforce performance by Time Charterer of the applicable provisions of this Time Charter or to recover damages for the breach thereof; and

(ii)    Demise Owner may declare that all Basic Hire payable by Time Charterer over the remainder of the term of this Time Charter to be immediately due and payable and proceed either at law, in admiralty or in equity to collect the accelerated Basic Hire from Time Charterer; and

(iii)    Demise Owner may terminate all rights of Time Charterer under this Time Charter with respect to the Vessels, by notice in writing to Time Charterer (except that in the case of any Event of Default in subsections 20(b)(i) such termination shall be automatic without the requirement of such written notice), whereupon all rights of Time Charterer to the use of the Vessels shall absolutely cease and terminate, but Time Charterer shall remain liable for all of its obligations resulting from such termination, including, but not limited to, the payment of Management Hire, Charter Hire and

Reimbursement Hire, that have accrued under this Time Charter up to the date of such termination; and for accelerated Basic Hire under Section 21(d)(ii); and

(iv)    Owner, as assignee of Demise Owner’s rights hereunder pursuant to the Bareboat Charter, may enforce the Security Agreements.

(e)    The remedies in this Time Charter shall not be deemed exclusive, but shall be cumulative, and shall be in addition to all other remedies in its favor under the Principal Documents existing at law, in admiralty or in equity; provided, however, that notwithstanding this Section 21(e), and Sections 21(c) and (d) of this Agreement, a party may not seek or recover damages for a breach of this Agreement by the other party if the Event of Default giving rise to such breach by such other party (except in the event of an Event of Default arising from the failure to pay Basic Hire) is caused by an act or acts of God; acts of war; acts of public enemies, pirates or assailing thieves; arrest or restraint of princes, rules or people; plant closure; strike, lockout, work stoppage or restraint of labor from whatever cause, either partial or general; riot or civil commotion; closures of any navigable waterway by act of any governmental agency or authority; or any other cause or causes not reasonably within control of the party affected which, despite the exercise of due diligence, such party is unable to prevent or overcome; provided, however, that (i) neither party is obligated to settle strikes, lockouts or other labor disturbances by acceding to the demands of an opposing party when such course is inadvisable in the sole discretion of the party experiencing the interference and (ii) in no case shall a seizure by a governmental authority as a result of the presence of controlled substances aboard the Vessels entitle Demise Owner to invoke the benefits of this clause.

(f)    The failure of a party to exercise the rights granted it hereunder, or the partial exercise of such rights, upon any occurrence of any of the contingencies set forth herein shall not constitute a waiver of any such rights upon the continuation or recurrence of any such contingencies or similar contingencies or preclude any other or further exercise of such rights or of any other rights. No express or implied waiver by a party of any Event of Default or right of such party shall in any way be, or be construed to be, a waiver of any future or further Event of Default or right of such party.

(a)    Time Charterer shall have the right to assign this Agreement to the Time Charterer Parent or any solvent wholly-owned subsidiary or affiliate of Time Charterer Parent organized under a State within the United States without the consent of Demise Owner, but with the consent of Owner (not to be unreasonably withheld, it being agreed that it would not be unreasonable for Owner to withhold its consent on the basis of know your customer restrictions); provided that any such assignment shall not release or relieve Time Charterer Parent of its obligations under the Time Charterer Parent Guaranty (which shall be reaffirmed in writing at the request of Owner) or relieve Time Charterer of its obligations hereunder unless such obligations are assumed by such assignee. Time Charterer shall provide Demise Owner prompt notice of any such assignment. Time Charterer shall be permitted to subcharter the Vessels under the following conditions: (i) no Event of Default shall have occurred and be continuing or occur immediately after giving effect thereto; (ii) the term of any subcharter in no event shall be for a period of greater than six (6) months, the subcharter may not be a demise charter, and in no event shall extend beyond the termination of the Charter Period; (iii) each subcharter shall be in writing, a copy of which shall be furnished to Demise Owner and Owner, at least thirty (30) days prior to the effective date of the subcharter; (iv) the subcharterer under each such subcharter shall expressly agree in such written subcharter that its rights in such subcharter are subject and subordinate to the rights of Demise Owner and Owner hereunder and under the Bareboat Charter, and that, with respect to the Vessels subject to said

subcharter, upon an Event of Default, Demise Owner or Owner or their respective assignees shall have the right to take possession of said Vessels free and clear of any rights of the subcharterer under the subcharter; (v) Time Charterer will duly and punctually perform and observe all covenants and agreements on its part to be performed and observed under such subcharter, and will enforce due and punctual performance and observance under such subcharter of all covenants and agreements on the subcharterer's part to be performed and observed under such subcharter; (vi) no subcharter shall release or relieve Time Charterer Parent of its obligations under the Time Charterer Parent Guaranty (which shall be reaffirmed in writing at the request of Owner) or release or relieve Time Charterer from any of its obligations pursuant to this Time Charter; (vii) no subcharter will grant the subcharterer any greater rights than Time Charterer has under this Time Charter, including the provisions relating to assignments, sub-subchartering, purchase or renewal options; (viii) if Demise Owner or Owner so requires, Time Charterer shall assign all of its right, title and interest in and to the relevant subcharter to Demise Owner and Owner as security for the Time Charterer's obligations owed to Demise Owner and Owner hereunder; and (xi) such subcharter shall be in compliance with Applicable Law, the Bareboat Charter, and applicable insurance policies.

(b)    Demise Owner may not assign this Agreement or any rights hereunder without the express prior written consent of Owner and Time Charterer. Upon consent of all required parties to any such assignment, the Basic Hire, Management Hire, Charter Hire and Reimbursement Hire and other sums payable by Time Charterer hereunder which are the subject matter of the assignment shall be paid to or upon the written order of the assignee. No such assignee shall be obligated to perform any duty, covenant or condition required to be performed by Demise Owner under the terms of this Time Charter unless such assignee expressly assumes such obligation and Demise Owner shall thereupon be relieved of any further liability hereunder. Any such assignee upon assignment and assumption of this Time Charter shall become the “Demise Owner” hereunder and shall have all rights, powers and remedies given to Demise Owner by this Time Charter.

(c)    Successor Demise Owner. Demise Owner may be replaced under this Time Charter and the Bareboat Charter by a successor demise owner in accordance with the provisions of Section 19 of this Time Charter and Section 7(h) of the Bareboat Charter.

The provisions of this Agreement are severable. If any term, covenant or condition of this Agreement shall be deemed invalid, in whole or in part, such invalidity shall not affect any other terms, covenants or conditions herein that can be given effect without the invalid term, covenant or condition.

(a)    During the Charter Period, Demise Owner will maintain, or cause to be maintained, all insurance as required under the Bareboat Charter and all insurance set forth in Exhibit C (so long as such insurance or terms would not impair, conflict with or violate the requirements of the Bareboat Charter). All insurance proceeds shall be applied in accordance with the terms of the Bareboat Charter. Any notices required to be given to Demise Owner’s insurers, shall be given by Demise Owner with a copy delivered to Time Charterer.

(b)    Time Charterer may carry insurance in respect of any Vessel in addition to the insurance required under this Section 25 at its own expense, provided such additional Time Charterer’s insurance is permitted by the terms of the insurance required in this Section 25 and would not impair, conflict with or violate such insurance, and in the case of protection and indemnity and pollution, spillage or leakage insurance shall include the Demise Owner, the Owner, and any mortgagee of the Vessels as additional insureds therein.

Except as otherwise provided herein, any notice required or permitted to be given hereunder shall be given in writing and delivered personally or by overnight courier or sent by U.S. registered or certified mail, postage prepaid or by e-mail, to the following addresses or e-mail addresses:

Notices shall be effective when delivered or, if sent by e-mail when transmitted and confirmation received. A change of address, number, or e-mail address shall be noticed to the other party and shall become effective thereupon. Any notice to the Owner required under the terms of this Agreement shall be forwarded to Owner in the manner and at the then-current address for notices set forth in the Bareboat Charter.

(a)    Time Charterer and Demise Owner hereby irrevocably consent that any legal action or proceeding against it or any of its assets with respect to this Time Charter may be brought in any jurisdiction where Time Charterer or Demise Owner or any of its respective assets may be found, or in any Federal court of the United States of America located in New York, New York, United States of America, and by execution and delivery of this Time Charter, Time Charterer and Demise Owner hereby irrevocably submit to and accepts with regard to any such action or proceeding, for itself and in respect of its respective assets, generally and unconditionally, the non-exclusive jurisdiction of the aforesaid courts. Time Charterer and Demise Owner irrevocably consent to the service of process out of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to the address set forth in Section 26 hereof for the other party, such service to become effective thirty (30) days after such mailing. Nothing herein shall affect the right of Time Charterer or Demise Owner to serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against the other party in any other jurisdiction. Time Charterer and Demise Owner further agree that final judgment against the other party in any action or proceeding in connection with this Time Charter shall be conclusive and may be enforced in any other jurisdiction within or outside the United States of America by suit on the judgment, a certified or exemplified copy of which shall be conclusive evidence of the fact and the amount of its indebtedness. Time Charterer and Demise Owner hereby irrevocably waive any objection which it may now or hereafter have to the laying of venue of any of the aforesaid actions or proceedings arising out of or in connection with this Time Charter brought in the courts referred to above and hereby further irrevocably waives and agrees not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum.

(b)    Waiver of Jury Trial. TIME CHARTERER AND DEMISE OWNER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY

LEGAL ACTION OR PROCEEDING RELATING TO OR ARISING OUT OF THIS TIME CHARTER AND FOR ANY COUNTERCLAIM THEREIN.

(c)    Waiver of Consequential Damages. TIME CHARTERER AND DEMISE OWNER AGREE THAT NEITHER SHALL BE ENTITLED TO RECOVER, AND HEREBY DISCLAIMS, AND WAIVES ANY RIGHT THAT IT MAY OTHERWISE HAVE TO RECOVER, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR INDIRECT DAMAGES AS A RESULT OF ANY BREACH OR ALLEGED BREACH BY THE OTHER PARTY OF ANY OF THE AGREEMENTS, REPRESENTATIONS OR WARRANTIES OF THE OTHER PARTY CONTAINED IN THIS TIME CHARTER.

(a)    This Agreement shall not be construed to be a demise or bareboat charter, nor to be or to give rise to a personal contract or to any agency relationship. Demise Owner shall be an independent contractor with respect to operations of the Vessels and to the performance of all services hereunder. Neither Demise Owner nor anyone employed by Demise Owner shall be deemed for any purpose to be the employee, agent, servant or representative of Time Charterer in the performance of any service, or part thereof, in any manner dealt with under this Agreement. Time Charterer shall have no direction or control of Demise Owner or its employees and agents except in the results to be obtained. The actual performance and superintendence of all operations and services shall be by Demise Owner subject to the general right of inspection by Time Charterer to determine the satisfactory performance thereof by Demise Owner.

(b)    This Time Charter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns and shall inure to the benefit of, and shall be enforceable by, Owner and, with respect to Sections 8 and 16 hereof, shall inure to the benefit of, and shall be enforceable by each Indemnitee as a third party beneficiary hereof. Time Charterer acknowledges that Owner and Demise Owner are entering into certain transactions in reliance on the Time Charterer’s performance of its obligations set forth herein. Time Charterer acknowledges that the Demise Owner has consented to the Owner collaterally assigning its rights under the Time Charter for the benefit of certain Lenders, and that the Demise Owner has entered into an agreement with the Owner and such Lenders concerning the collateral assignment and rights of quite enjoyment under the Bareboat Charter and Time Charter.

Demise Owner agrees that it will not file or consent to the filing of any petition in bankruptcy or any petition or request for the appointment of a trustee or receiver for any of Demise Owner’s assets for a period of at least 120 days after the expiration of the Term of this Agreement, unless Demise Owner has immediately notified Time Charterer, in writing, of either an intent to file or knowledge of a filing with sufficient opportunity for Time Charterer to assist Demise Owner prior to such filing. Additionally, Demise Owner agrees upon knowledge or notice of any attempts to foreclose on property of Demise Owner, that Demise Owner shall provide immediate written notice to Time Charterer of any such events.

During the Term of this Agreement as well as for a period of five (5) years thereafter, each party agrees to keep confidential (i) the terms, conditions, covenants and agreements contained herein and/or any other agreement between the parties and/or their affiliates and (ii) any and all information which may have been disclosed to such party by the other party and/or its affiliates or which may have been gained from or learned about the other party and/or its affiliates in the course of performing this Agreement (collectively, “Confidential Information”) and agrees not to disclose any of such Confidential Information to any third party nor use any of such Confidential Information for any purpose other than to perform its obligations under this Agreement, subject to the remainder of this Section 30. The information referred to in Section 13 hereof shall be considered Confidential Information of Time Charterer. The parties also agree that no public disclosures relating to this Agreement shall be made by either party, without the prior written consent of the other party, except for disclosures required by Time Charterer, Time Charterer Parent, Demise Owner or Demise Owner Parent to comply with any Applicable Law or exchange rule or requirement or other securities laws, including making any such disclosure in a prospectus, registration statement or other offering document.

All Confidential Information disclosed hereunder will remain the sole property of the disclosing party.

The above confidentiality and nonuse obligations shall not or no longer apply if and to the extent:

(a)    such information is general or public knowledge at the time of disclosure or at a later date becomes general or public knowledge through no fault of the receiving party or any breach of this Agreement by the receiving party;

(b)    such information can be shown by the receiving party to have been in its possession prior to the receipt thereof from the disclosing party;

(c)    such information is made available to the receiving party hereto from an unrelated third party not under any obligation of confidentiality or non-use vis-a-vis the disclosing party;

(d)    such information is or has been independently developed by or for the receiving party by person(s) who have not received and have had no access to such Confidential Information;

(e)    such information is disclosed pursuant to the contemplated (in good faith) or actual sale or other transfer (directly or indirectly) of all or substantially all of the assets or equity ownership interests of a party;

(f)    such information is disclosed to consultants, accountants, bankers or other investors, attorneys or other representatives with a need to know such information, provided that

the disclosing party will remain liable for any use or disclosure by such receiving person which the disclosing party was not otherwise permitted to make pursuant to this Time Charter;

(g)    such information is disclosed as may be necessary in any legal proceeding seeking enforcement of this Time Charter; or

(h)    such information is disclosed as may be necessary in connection with arranging or complying with any loan or financing transaction; provided that in each case of permitted disclosure, the disclosing party will take reasonable precautions to maintain the confidentiality of the information disclosed.

If the receiving party is required by law or court order to disclose Confidential Information of the disclosing party, the receiving party shall give the disclosing party prompt notice of such requirement so that the disclosing party may seek any appropriate protective order or other remedy and the receiving party shall cooperate with the disclosing party to obtain said protective order or other remedy.

Upon termination of this Agreement, each party will, upon request of the other party, return all written Confidential Information of the requesting party, including any copies thereof, and cease its use, or, upon request, promptly destroy the same and certify such return and/or destruction. The receiving party may, at its option, retain one copy of such Confidential Information for legal-archival purposes only.

The following provisions shall survive the termination hereof: 9, 16, 22, 24, 27, 28, 30, and 31. Upon termination of this Agreement, each Party will retain all claims or rights of action that arose before or at the time of termination, and each other Party will retain any and all defenses thereto.

Capitalized terms used herein which are not defined herein but which are defined in the Schedule X of the Bareboat Charter shall have the respective meanings therein.

This Agreement and Exhibits A, B, and C and Schedule 1, together with the other documents to which Demise Owner and Time Charterer are or are to be parties, constitute the entire agreement between the parties with respect to the subject matter hereof (without regard to other Principal Documents to which Demise Owner may be a party but to which Time Charterer is not a party), and supersede all prior agreements, understandings, representations and statements, if any, regarding the subject matter contained herein, oral or written. No amendment or waiver of any provision of this Agreement shall be valid and binding upon the parties unless made in writing and signed on behalf of each of the parties by their respective authorized officers (or by the waiving party in the case of a waiver). No amendment or waiver of any provision of the Bareboat Charter affecting the

rights of any party hereto or the right of Time Charterer shall be effective without the prior written consent of the opposing party.

This Amendment may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. The parties may execute this Amendment by delivery of facsimile or pdf. signatures, which shall have the same effect as original signatures.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and date, first hereinabove written.

The Tug: The articulated tug ABUNDANCE is an ocean going, twin fixed pitch propeller raised pilot house tug currently being built at Nichols Bros. Boat Builders in Langley, Washington. The tug was designed by Ocean Tug & Barge Engineering Corp. (OTBE) of Milford, MA in accordance with the American Bureau of Shipping (ABS) Rules for Steel Vessels under 90 Meters in length (2015) and SOLAS.

The tug is designed to push the ammonia barge HARVEST and uses an Articouple Type K system.

The Barge: The HARVEST is a double skin, independent tank, ocean service refrigerated gas tank barge, fully equipped and specifically classed for the transport of anhydrous ammonia (NH3) cargo (only) as part of an articulated tug barge system. The barge was designed by Ocean Tug & Barge Engineering Corp. (OTBE) of Milford, MA in accordance with the American Bureau of Shipping (ABS) Rules for Steel Barge Rules (2014) and where applicable Steel Vessel Rules. The barge was built at Vigor in Portland, Oregon. The barge is designed to accommodate a cargo of NH3 in 4 type “A” prismatic and insulated cargo tanks.

and arranging for an orderly transfer of responsibility for the Vessels in accordance with facility and/or regulatory requirements.

satellite system, all significant malfunctions relating to the Vessels, their equipment and auxiliaries that are detected and suspected. If Time Charterer shall have any reason to be dissatisfied with the conduct of any of the Tug’s crew, Demise Owner shall, on receiving particulars of the complaint, fully investigate the complaint. Time Charterer may require Demise Owner to make a change in the crew appointment or practices causing Time Charterer’s dissatisfaction.

I am the duly elected ___________________ of Demise Owner and as such am a “Responsible Officer” of the Company as defined in the Time Charter. In the course of the performance of my duties as an officer of Demise Owner, I normally obtain knowledge of any default by Demise Owner of its obligations under any Principal Document to which Demise Owner is a party.

requested by Time Charterer, and compensated as set forth in the Time Charter). The Demise Owner shall be entitled to carry insurance at the Demise Owner’s expense on the Demise Owner’s equipment, fuel and stores and other property of the Demise Owner as part of the basic insurance; provided that no other such policy of insurance shall be written so as to decrease coverage under any other policy maintained pursuant to this Section 10 for the benefit of the Owner

waived, (v) with the exception of Employer’s Liability and Worker’s Compensation shall be primary and without right of contribution from any other insurance which is carried by the Owner, the Lenders, the Agents, and/or the Time Charterer, (vi) with the exception of Employer’s Liability and Worker’s Compensation and Marine General Liability, expressly provide that all of the provisions thereof, except the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured, (vii) with the exception of the Workers’ Compensation and Marine Liability Policies, provide a waiver of set off, counterclaim or other deduction, whether by attachment or otherwise, in respect of any liability of the Demise Owner, from or against any payment due or to become due to the Owner, Collateral Agent (for the benefit of the Lenders), and/or the Time Charterer under such policies (provided, however, that this clause (viii) will apply in the case of P&I insurance issued by a mutual P&I association or club under which the Owner, the Lenders, the Agents, or the Time Charterer has been named as a joint entrant (or in the case of Time Charterer named as co-assured) along with the Demise Owner, only to the extent such waiver is permitted under the rules of the applicable association or club), and (ix) provide that underwriters or insurers shall have no recourse against the Owner, the Lenders, the Agents, or the Time Charterer for the payment of premiums, club calls, assessments or advances (provided, however, that this clause (ix) will apply in the case of P&I insurance issued by a mutual P&I association or club under which the Owner or Collateral Agent have been named as joint entrants along with the Demise Owner, only to the extent such non-recourse is permitted under the rules of the applicable association or club and provided further, if applicable association or club rules do not permit non-recourse, the liability of the Owner or Collateral Agent as joint entrants shall be limited to payment of calls, assessments or advances solely in connection with the Vessels, whether based on relative tonnage, relative values or other metric, and shall not extend to payments in respect of any other vessel in the fleet of the Demise Owner and its Affiliates). As between the Owner, Lenders and Agents and the Demise Owner, the cost of procuring and maintaining all insurance and endorsements required to be maintained by the Demise Owner under this Exhibit C shall be for the sole account of the Demise Owner. As between the Owner, Lenders and Agents and the Demise Owner, none of the Owner, Lenders and Agents shall be responsible for the payment of premiums, commissions, deductibles, club calls, assessments, advances or other sums with respect to any insurance so required hereunder. To the extent that the policies or entries do not provide that there shall be no recourse against the Owner, the Lenders, the Agents for the payment of such premiums, commissions, deductibles, club calls, assessments, advances or other sums, the Demise Owner shall hold harmless, defend and indemnify the Owner, Lenders and Agents from and against any liability for, and costs (including reasonable attorneys’ fees) incurred in connection with, the assessment and payment (by the Owner, Lenders and Agents) of such amounts, and shall promptly reimburse the Owner, Lenders and Agents for any such premiums, commissions, deductibles, club calls, assessments, advances or other amounts paid by the Owner, Lenders and Agents.

area where it would not be covered, under the insurance policies in effect without first covering such Vessel with insurance complying with provisions of this Exhibit C. The Demise Owner will promptly advise the Owner, the Agents and the Time Charterer in writing of any default in the payment of any premium and of any other act or omission on the part of the Demise Owner or any other Person of which it has knowledge which might invalidate or render unenforceable, in whole or in part, any insurance on either Vessel. In the event that the Demise Owner shall fail to maintain insurance as herein provided, the Owner, Lenders and Agents or the Time Charterer may at its option (but shall not be obliged to) provide such insurance at Demise Owner’s cost. Any such advance by the Owner, Lenders and Agents under this subsection (E) shall be Supplemental Hire.

P&I deductibles:    

$25,000 - each accident or occurrence.

H&M deductibles:    

$100,000 - each accident or occurrence for each Vessel

or certificates evidencing that insurance policies for such tug(s) are equivalent to the marine policies required of Demise Owner.

Hire shall be comprised of five (5) components: (1) Basic Hire, (2) Management Hire, (3) Charter Hire, (4) Reimbursement Hire, and (5) Supplemental Hire, as described below:

(1) “Basic Hire” shall be an amount equal to the amount payable by Demise Owner to Owner as Basic Charter Hire under the Bareboat Charter. Basic Hire is payable on a hell or high water basis, and no payments to be made by the Time Charterer under this Time Charter during the Charter Period shall be subject to any abatement, reduction, adjustment, right of set off, counterclaim, recoupment or defense due to any present or future claims of the Time Charterer against the Demise Owner under this Time Charter or otherwise, or against the Owner or any Indemnitee under any Principal Document or otherwise due to any lay-up, Tug Replacement Event, Event of Loss, damage, unavailability, repair or other circumstance, including, without being limited to, any Claims as a result of any other business dealings by any Indemnitee, the Demise Owner and/or the Time Charterer; any breach of any covenant, representation or warranty of, or any act or omission of, or breach by the Demise Owner under this Agreement or any other agreement at any time existing between the Demise Owner and the Time Charterer; any Claims as a result of any other business dealings by the Demise Owner and/or the Time Charterer; any reorganization, arrangement, insolvency, readjustment of debt, bankruptcy, dissolution or liquidation proceeding involving any Indemnitee, the Demise Owner or the Time Charterer; any defect in or damage to, or loss or destruction of, any of the Vessels from any cause; the requisitioning, seizure or other taking of title or use of any of the Vessels by any government or governmental authority or otherwise whether or not by reason of any act or omission of the Demise Owner; the invalidity or unenforceability or lack of due authorization or other infirmity of this Agreement or the Bareboat Charter or any other Principal Document; the lack of right, power or authority of the Demise Owner to enter into this Agreement or the Owner to enter into the Bareboat Charter; or for any other cause whether similar or dissimilar to the foregoing, any present or future law to the contrary notwithstanding, nor shall the Time Charterer be entitled to retain any interest in or with respect to Basic Hire (whether paid by the Demise Owner, the Time Charterer or any other Person) which has already been paid to the Owner or any other Indemnitee or to assert any right to any refund or adjustment of any amount which has already been paid to the Owner or any other Indemnitee the event of termination of this Time Charter or otherwise.

(2) “Management Hire” shall mean the lump sum fee paid to Demise Owner in consideration of Demise Owner’s shore-side management costs relating to the maintenance and operation of the Vessels in connection with the services contained in Exhibit B of the Time Charter, limited to shore-side payroll, payroll tax, medical, benefits, travel, training, safety management systems development, security management systems development, operator regulatory compliance, and marketing related expenses.

Time Charterer shall pay Demise Owner Management Hire in the amount of one thousand two hundred thirty two dollars and eighty eight cents ($1,232.88) per day ($450,000.00 annually and adjusted annually as described below) allocated to each Vessel on the following basis:

Tug        $275,000.00 or $753.42 / day

Barge        $175,000.00 or $479.45 / day

For providing additional management support and technical services at the request and advanced approval of Time Charterer (Demise Owner’s presence at a port other than Tampa to supervise the loading / discharge operation of any Vessel or technical support to attend a Vessel that is dry docked for survey or major repairs at a shipyard other than one located in Tampa, Florida), Time Charterer shall pay Demise Owner four hundred fifteen dollars ($415.00) per day per person plus travel expenses (the “Additional Management Fee”).

Management Hire and the Additional Management Fee shall be adjusted annually beginning July 1, 2018 and annually thereafter at a rate of 1.5%.

(3) “Charter Hire” shall mean the lump sum fee paid to Demise Owner in consideration of Demise Owner’s Vessel-related costs that are typically either fixed or have low variability, and do not necessarily move in a linear fashion with vessel operations or utilization, excluding costs included in the calculation of Management Hire, limited to costs in consideration of: (i) the Vessel’s crew (payroll, payroll taxes, medical, benefits, travel, groceries, drug testing, crew consumables, personal safety equipment, and small tools), and (ii) insurance premiums (for COFR, Hull & Machinery, War Hull & Machinery, and P&I insurance premiums). During the Proving Period, Demise Owner shall provide in advance a monthly estimate of Charter Hire to Time Charterer for the upcoming month, and reconcile actual Charter Hire expenses on a monthly basis, in a manner materially similar to the process provided for in Section 10 pertaining to Reimbursement Hire. Charter Hire will be determined on the following basis:

Charter Hire (Tug Charter Hire and Barge Charter Hire) shall be adjusted annually beginning January 1, 2020 and annually thereafter based on the following criteria:

and pumping equipment (Series ID: PCU333911333911) as first published monthly by the U.S. Department of Labor, Bureau of Labor Statistics. The immediately preceding November index will be used for each January adjustment.

(4) “Reimbursement Hire” shall mean the amount and manner of reimbursable expenses set forth in Section 10 of this Time Charter.