the Berth Agent shall have the rights, benefits and the obligations and responsibilities provided in such agreement.

ART. 10. Delegation of authority. Wherever and whenever herein any right, power or authority is granted or given to the United States, such right, power or authority may be exercised in all cases by the National Shipping Authority or such agent or agents as the United States may appoint, and the act or acts of such agent or agents when taken, shall constitute the act of the United States hereunder. In performing its services hereunder, the Berth Agent may rely upon the instructions and directions of the Director, National Shipping Authority, his officers and responsible employees, or any person or agency authorized by him. Wherever practicable, instructions and directions to the Berth Agent shall be in writing and oral instructions or directions given shall be confirmed promptly in writing. No directions, orders or regulations shall have retroactive effect without the written consent of the Berth Agent.

ART. 11. Warranty against contingent fees. The Berth Agent warrants that it has not employed any person to solicit or secure this Agreement upon any agreement for a commission, percentage, brokerage or contingent fee. Breach of this warranty shall give the United States the right to annul this Agreement or in its discretion to deduct from any amount payable hereunder the amount of such commission, percentage, brokerage or contingent fee.

ART. 12. Nondiscrimination in Employment. During the performance of this agreement, the Berth Agent agrees as follows:

(a) The Berth Agent will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Berth Agent will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Berth Agent agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the National Shipping Authority setting forth the provisions of this nondiscrimination clause.

(b) The Berth Agent will, in all solicitations or advertisements for employees placed by or on behalf of the Berth Agent, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin.

(c) The Berth Agent will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the National Shipping Authority, advising the labor union or workers' representative of the Berth Agent's commitments under section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

(d) The Berth Agent will comply with all provisions of Executive Order No. 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

(e) The Berth Agent will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to its books, records, and accounts by the National Shipping Authority and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

(f) In the event of the Berth Agent's noncompliance with the nondiscrimination clauses of this agreement or with any of such rules, regulations, or orders, this Agreement may be canceled, terminated, or suspended in whole or in part and the Berth Agent may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

(g) The Berth Agent will include the provisions of paragraphs (a) through (g) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The Berth Agent will take such action with respect to any subcontract or purchase order as the National Shipping Authority may direct as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, That in the event the Berth Agent becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the National Shipping Authority the Berth Agent may request the United States to enter into such litigation to protect the interests of the United States.

ART. 13. Members or delegates of Congress. No person elected or appointed a member of

or delegate to Congress or a Resident Commissioner, directly or indirectly, himself or by any other person in trust for him, or for his use or benefit, or on his account shall hold or enjoy this Agreement in whole or in part, except as provided in section 206, Title 18, U.S.C. The Berth Agent shall not employ any member of Congress, either with or without compensation, as an attorney, agent, officer or director.

ART. 14. Right of Comptroller General to examine books and records. The Comptroller General of the United States or any of his duly authorized representatives shall have access to and the right to examine any pertinent books, documents, papers and records of the Berth Agent or any of its subcontractors engaged in the performance of and involving transactions related to this Agreement or any subcontracts thereunder.

ART. 15. Termination. (a) The United States shall have the right to terminate this Agreement at any time as to any or all vessels assigned to the Berth Agent and to assume control forthwith of any or all said vessels upon fifteen (15) days' written or telegraphic notice unless action is required at an earlier date to protect the interest of the United States.

(b) Upon giving to the United States thirty (30) days' written or telegraphic notice, the Berth Agent shall have the right to terminate this Agreement as to any or all vessels assigned to the Berth Agent, but unless otherwise agreed, termination by the Berth Agent shall not become effective as to any vessel until her arrival and discharge at a continental United States port.

(c) No such termination of this Agreement shall relieve either party of liability to the other in respect of matters arising prior to the date of such termination or of any obligation hereunder to indemnify the other party in respect of any claim or demand thereafter asserted, arising out of any matter done or omitted prior to the date of such termination.

(d) This Agreement may be terminated, modified or amended at any time by mutual consent.

ART. 16. Duration of agreement. This Agreement is effective as of the day and year of the first acceptance by the Berth Agent of any vessel assigned hereunder and shall extend until terminated as herein elsewhere provided.

ART. 17. Assignment or transfer. Without the consent of the United States, the Berth Agent shall not sell, assign or transfer, either directly or indirectly, or through any reorganization, merger or consolidation, this Agreement or any interest therein, nor make any agreement or arrangement whereby the service to be performed hereunder is to be performed by any other person, whether an agent or otherwise, except as provided in Article 3 hereof.

ART. 18. Additional or substitute compensation and reimbursement. The Berth Agent shall also be entitled to payment or credit for any service, loss, cost or expense, whether or not specifically provided for, or excepted herein, if, and to the extent that such payment or credit is found by the Director, National Shipping Authority, in his sole discretion to be fair and equitable and in accordance with the basic principles or intent of this Berth Agency Agreement.

ART. 19. Renegotiation. This contract shall be deemed to contain all the provisions required by section 104 of the Renegotiation Act of 1951.

The contractor (which term as used in this sentence means the party contracting to perform the work or furnish the materials required by this contract) shall, in compliance with said section 104, insert the provisions of this Article in each subcontract and purchase order made or issued in carrying out this contract.

ART. 20. Headnotes. The use of headnotes at the beginning of the articles of this Agreement is for the purpose of description only and shall not be construed as limiting or in any other manner affecting the substance of the articles themselves.

In witness whereof, the parties hereto have executed this Agreement in triplicate as of the day and year first above written. UNITED STATES OF AMERICA, DEPARTMENT OF TRANSPORTATION, MARITIME ADMINISTRATION, Director, National Shipping Authority. By:

Sec. 3. Addendum to GAA 3-19-51.

Each party holding a General Agency Agreement (GAA 3-19–51) shall be required to execute an addendum in form approved by the Office of General Counsel, Maritime Administration, amending the agreement to conform with the provisions of section 2(a).

(E.O. 11246, 3 CFR, 1964-1965 Comp. p. 339, as amended by E.O. 11375, 3 CFR, 1967 Comp. p. 320)

[NSA Order 1, Amdt. 3, 34 FR 6522, Apr. 16, 1969. Redesignated at 45 FR 44587, July 1, 1980]

Sec. 2. General considerations.

In determining whether to approve the application, the Director will take into consideration the applicant's financial resources, credit standing, ownership of vessels, practical experience in the operation of vesseis, and any other factors that would be considered by a prudent businessman in entering into a transaction involving the responsibilities of an agent as contained in said agreement; and the Director will not enter into such agreements with any applicant applying who lacks sufficient capital, credit, and experience to fulfill the terms of said agreement. If the application is rejected by the Director, the applicant will be so advised.

amount deemed by the Director to be adequate to protect the interests of the owner but in no event less than $50,000.

Sec. 5. Execution of application.

(a) Any citizen of the United States as defined in section 2 of the Shipping Act, 1916, as amended, and section 905(c) of the Merchant Marine Act of 1936, as amended, may apply to the Director to act as general agent, agent or berth agent. The application to receive consideration should be substantially in the form indicated in this order (section 6). One (1) executed copy and five (5) conformed copies of the application should be filed with the Director, National Shipping Authority, Maritime Administration, Department of Transportation, Washington, DC, 20590.

(b) Each application should contain sufficient information to enable the Director to make all necessary determinations as to the qualifications of the applicant, including those as to citizenship, ability, experience, and financial resources.

(c) If any information called for by the application is not furnished, an explanation of the omission should be given. Detailed descriptions of exhibits need not be given. The applicant may furnish such relevant information as it may desire in addition to that specified in the form.

(d) Whenever any material change or changes occur which affect the ownership or organization of the applicant, including officers, the executive personnel management, citizenship, vessel ownership and financial resources, the applicant is required to file promptly a report of such change or changes with the Director, Nation Shipping Authority.

[AGE-2, 16 FR 2888, April 3, 1951, as amended by Amdt. 1, 19 FR 6164, Sept. 25, 1954. Redesignated at 45 FR 44587, July 1, 1980]

Sec. 6. Form of application.

The form of application should be substantially as follows:

APPLICATION

FOR APPOINTMENT AS GENERAL AGENT, AGENT AND/OR BERTH AGENT OF THE

NATIONAL SHIPPING AUTHORITY

MARITIME ADMINISTRATION

DEPARTMENT OF COMMERCE

Filed by

A citizen of

The undersigned hereby applies for appointment as:

*(1) General Agent

*(2) Agent

*(3) Berth Agent □

* Indicate service or services for which application is made.

of the National Shipping Authority, in accordance with the provisions of NSA Order No. 1 (AGE-1) (herein called the "regulations"), which the applicant agrees shall be binding in all transactions in connection with this application. Applicant also agrees that any amendment or modification of the rules and regulations (approved by the Director), after the date of publication of such amendment or modification shall be binding in all transactions.

In order to induce the Director to act favorably upon this application, the applicant submits in support thereof the following information:

A. As to the applicant: its citizenship and affiliations.

1. Exact name.

2. Form or type of organization.

3. State or other sovereign power under the laws of which organized.

4. Address of principal executive offices. 5. A brief description of (a) the shipping business of the applicant: and (b) any other business activities of the applicant during the preceding ten years. If within such period the applicant has acquired the business of any other person or has been reorganized, there should be included a brief description of such acquisition or reorganization.

6. A list of (a) all subsidiaries, (b) parent company, and (c) all other affiliated interests of the applicant, together with an indication of the nature of the business transacted during the past ten years by each. This information may be furnished in the form of a chart, indicating clearly the relationships between the persons named, and the nature and extent of control.

7. The following information with respect to each officer and director of the applicant:

Name and address.

Office.
Nationality.

Capital shares owned.

A brief description should be submitted of the principal business activities during the past ten years of each officer and director, name and title of each other principal supervisory shoreside official with statement of the responsibility and experience, and number of employees in each department including but not limited to operating manager, port captain, port engineer, port steward, traffic manager, purchasing agent, principal accountant, and treasurer. If applicant has more than one class of stock, the information requested should be furnished for each class of stock.

8. Applicant represents that it is a citizen of If applicant claims United States citizenship, submit three affidavits of United States citizenship in form prescribed by the Maritime Administration, Department of Transportation, as set forth in 46 CFR Part 355 (General Order 89, Rev.) (73 Stat. 597; 46 U.S.C. 11, 802, 888, 1244) [AGE-2, 16 FR 2888, Apr. 3, 1951, as amended by Amdt. 5, 35 FR 19351, Dec. 22, 1970. Redesignated at 45 FR 44587, July 1, 1980]

Sec. 4. Posting of bond.

The General Agent shall retain an executed copy of each such bond in its principal office for examination by the National Shipping Authority at any time.

[Amdt. 1, 16 FR 9527, Sept. 19, 1951. Redesignated at 45 FR 44587, July 1, 1980]

Sec. 5. Measures to protect ship's payrolls.

(a) General Agents are not required to consider the amount of the payroll delivered to the Master at the conclusion of a voyage in determining the amount of bond required for any one person filling a bonded position hereunder. However, the person paying off the crew should be either the Master, or purser, or some other member of the ship's personnel acting for the Master who has been bonded pursuant to this order. If, however, the person paying off is a shoreside employee of the General Agent, such employee shall be bonded under the General Agents' general fidelity bond.

(b) The principal risk involved where payrolls are delivered to a vessel at the conclusion of a voyage is loss through hold-up. Therefore, reasonable protection shall be taken by all General Agents where payrolls are delivered to a vessel or elsewhere. Because the circumstances of each case will vary, the General Agents shall use their best judgment in determining whether armored car service, armed guards or similar types of protection should be employed (in other words, the General Agents should follow their usual prac

tices). The cost of these services may be included in vessel operating expenses.

(c) General Agents are not required to purchase hold-up insurance, since subject to the terms, conditions and limitations of Service Agreement "G.A.A., 3/19/51" losses resulting from this exposure are assumed by the National Shipping Authority.

Sec. 6. Surety and form of bond.

Each bond provided for by this order shall be duly executed by an authorized surety appearing on the current approved list of companies acceptable as sureties on Federal bonds published by the U.S. Treasury Department. The form of bond required by the National Shipping Authority to be used by the General Agents shall be as follows:

DEPARTMENT OF TRANSPORTATION

MARITIME ADMINISTRATION, NATIONAL

SHIPPING AUTHORITY

Position Fidelity Schedule Bond

In consideration of the annual premium (hereafter called the "Surety") hereby agrees to pay to or its successors (hereafter called the "Agent”) or the United States of America, (hereafter called the "United States"), represented by the Director, National Shipping Authority of the Maritime Administration, Department of Transportation (hereafter called the "Director"), as their interests may appear, the amount of any pecuniary loss of money or slop chest property caused, solely or in part, by reason of the dishonesty or lack of care of any person in the performance of the duties of any position, now or hereafter listed in the Schedule of Positions and Amounts forming part hereof (hereafter called the "Schedule"), on any and all vessels from time to time allocated to the Agent by the Director. This bond is executed and accepted subject to the following agreements, limitations and conditions:

First. Liability under this bond begins with the day of 19--in respect of each person then filling any position named in the Schedule on any and all vessels then allocated to the Agent by the Director. As to any position or positions bearing the same designation as that of any position or positions named in the Schedule on any vessel or vessels thereafter allocated to the Agent by the Director, liability under this bond shall automatically begin as soon as such position or positions are filled, pro