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(Give sequence of majority ownership and control by all owning or controlling corporations or other owners, if any, and furnish full information as to each; if above space is not adequate, continue on back of this Form)

a corporation organized and existing under the laws of the State of

(Where incorporated) the majority (51% or more) of the stock of which corporation is owned and controlled by citizens of the United States;

That of the stock interests shown above to be owned and controlled by United States citizens, none is held beneficially for a noncitizen.

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NOTE: The United States Criminal Code makes it a criminal offense for any person knowingly to make a false statement or representation to, or to conceal a material fact from, any department or agency of the United States as to any matter within its Jurisdiction (18 U.S.C. 1001), or to file a false, fictitious or fraudulent claim against the United States (18 U.S.C. 287).

(Certificates of Citizenship to be submitted, in duplicate, with insurance application.) § 308.5 Form of voluntary Contract of Commitment.

All applications for insurance under category (b) (1) shall be accompanied by an executed Contract of Commitment, in triplicate, in the following form, executed by the vessel owner. This same form of contract (adapted to include both the vessel owner and the long-term charterer as signatories) shall be jointly executed by the owner and charterer, in triplicate, and submitted with applications for insurance under category (b) (2). All Contracts of Commitment shall be executed and submitted on standard contract forms which may be obtained from the Underwriting Agent, American War Risk Agency, 99 John Street, New York, New York, 10038, or from the U.S. Maritime Administration, Washington, D.C., 20235. (Note: effective date of Contract of Commitment will be the effective date of the binder and will be inserted by the Maritime Administration.)

Contract MA.

OWNER'S CONTRACT OF COMMITMENT (Pan-Hon-Lib vessels)

This agreement, made as of

19. by and between the United States of America, acting by and through the Department of Commerce, Maritime Administration or its successor (herein called the "United States"), and a corporation organized and existing under the laws of (herein called the "Owner"), and having its principal place of business at

WITNESSETH

Whereas, on November 23, 1959, the Maritime Administrator found that vessels in certain categories under Panamanian, Honduran or Liberian registry are engaged in services deemed to be in the interest of the national defense of the United States, and

Whereas, by reason of the aforesaid finding, such vessels became eligible for interim war risk insurance as authorized by the

Maritime Administration on September 28, 1959 (24 F.R. 8093), pursuant to Title XII, Merchant Marine Act, 1936, as amended, provided such vessels maintain their eligibility at all times in compliance with the requirements of the Maritime Administration under General Order 75, as amended, including inter alia the requirement that the ship-owning corporation or the longterm charterer shall be majority-owned and controlled by United States citizens, and that such vessel shall be made available to the United States upon request in the event of national emergency, as described in Article (1) hereof, pursuant to a voluntary Contract of Commitment, and

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Whereas, based upon the representations and warranties contained in the Owner's application for interim war risk insurance, it has been determined that the Vessel qualifies for such insurance within the eligibility category designated by the Owner, and the parties hereto desire to enter into a voluntary Contract of Commitment covering availability of such Vessel to the United States in the event of national emergency as described in Article (1) hereof;

Now therefore, in consideration of the premises and other good and valuable considerations hereinafter set forth, the parties hereto mutually agree as follows:

(1) The Owner hereby commits itself to make the Vessel available to the United States during any period in which vessels may be requisitioned under section 902 of the Merchant Marine Act, 1936, as amended, 1.e., whenever the President of the United States of America shall proclaim that the security of the national defense makes it advisable or during any national emergency which may have been declared by proclamation of the President of the United States, and expressly agrees that any charter or other contract covering the use of the Vessel during the period covered by the interim war risk insurance binder and the period of any insurance attaching thereunder shall be subject to termination or suspension without notice in the event the United States requests the use of the Vessel under this voluntary Contract of Commitment.

(2) Upon the request of the United States, acting through the Department of Commerce, Maritime Administration, or its successor, or through the Department of the Navy, pursuant to authorization from the Department of Commerce, Maritime Administration, the Vessels shall be made available as directed by such Department, wherever the Vessel may then be, whether at sea or in port, at the option of such Department.

for purchase or for use (under a time or bareboat form of charter) for such period or periods of time as required by the United States.

(3) In the event the Department of the Navy exercises the authority referred to in Article (2) above, it is understood that (a) if time permits, the Maritime Administrator, upon advice by the Chief of Naval Operations, will notify the Owner and also the Master of the Vessel to make the Vessel available to Naval authority, and will also direct the Master to report to the appropriate Naval Commander for operational control or (b) if time does not permit, and the Senior Naval Commander in or for the area or his authorized representative shall have found it necessary, he will take immediate operational control of the Vessel, after which the Maritime Administrator, upon receipt of advice of such action from the Chief of Naval Operations, will confirm such action to the Owner and also to the Master; with such confirmation to be retroactive to and effective as of the day and hour when control was assumed by the Naval authorities.

(4) As soon as practicable after the United States has assumed operational control of the Vessel as aforesaid, either through the Maritime Administration directly, or through the Department of the Navy, the Maritime Administration will tender to the Owner an agreement containing the same terms and conditions upon which a vessel of the United States could be requisitioned for purchase or charter in accordance with the applicable provisions of section 902(a), Merchant Marine Act, 1936, as amended.

(5) This voluntary Contract of Commitment is not intended, nor shall it be deemed, to affect or modify in any respect the terms and obligations contained in any other agreement or contract of whatsoever nature under which the Vessel is or may hereafter become separately committed to the use of the United States during the period described in Article (1) hereof.

(6) Subject to the various warranties, agreements and representations of the Owner as contained in the Owner's application for interim war risk insurance, submitted with this Contract, the United States hereby undertakes and agrees to provide such war risk insurance on the Vessel pursuant to regulations published in the FFDERAL REG(General Order 75), as amended from time to time.

ISTER

(7) It is the intention and understanding of the parties hereto that the period of this Contract of Commitment shall be coextensive with the period of the interim war risk insurance binder and any insurance issued thereunder.

In witness whereof, this voluntary Contract of Commitment has been executed in triplicate by the United States on the

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(Corporate Seal) § 308.6

(Secretary)

Period of interim binders and renewal procedure.

(a) All interim binders issued in accordance with Subparts B, C, and D of this part and expiring midnight, September 7, 1969, G.m.t. are eligible for renewal, upon compliance with the requirements set forth in this part, upon the payment of binding fees as prescribed and the filing of applications in form as prescribed in §§ 308.101. 308.201, and 308.301 (standard forms of applications to be used for renewal). Applications shall be accompanied by a statement in triplicate. which sets forth the former binder number, the name of the vessel and official number and a list of the documents previously submitted with a certification of their completeness and accuracy as of the date of reapplication. In the event any previously submitted documents are no longer complete and accurate, as required, or if any required document(s) was not previously submitted, said document(s) must be submitted, attached to this statement and accompany the renewal application(s).

(b) The binders as set forth in §§ 308.106, 308.206, and 308.305, may be terminated by the assured, on written request, as of the date of receipt of such

request by the Maritime Administration, Division of Insurance, Washington, D.C., 20235, provided insurance has not attached.

(c) All interim binders, subject to determination of eligibility by the Maritime Administration (as required) shall become effective as of the date of receipt by the Maritime Administration or its Underwriting Agent of the proper applications with necessary attachments (as specified in § 308.3) and check for the binding fees prescribed.

(d) (1) An interim binder that became effective prior to midnight, September 7, 1965, G.m.t., shall remain in effect until midnight, September 7, 1970, G.m.t., unless insurance thereunder shall have attached prior to that date and provided that payment of an additional binder fee in the amount specified in § 308.102, § 308.202, or § 308.302, is received by the American War Risk Agency, 99 John Street, New York, N.Y. 10038, prior to September 8, 1969. Checks in payment of the binder fees should be made payable to "Maritime Adm.-Commerce" and should be accompanied by the name of the vessel, its official number, and the war risk binder number.

(2) An interim binder that became effective prior to August 15, 1969, but after midnight, September 7, 1965, G.m.t., shall remain in effect until midnight, September 7, 1970, G.m.t., unless insurance thereunder shall have attached prior to that date.

(3) Interim binders will be issued on and after August 15, 1969, upon payment of the binder fees set forth in § 308.102, § 308.202, and § 308.302. Such binders will automatically expire at midnight, September 7, 1970, G.m.t., unless insurance thereunder shall have attached prior to that date.

[G.O. 75, 2nd Rev., 26 F.R. 4541, May 26, 1961, as amended by Amdt. 19, 34 F.R. 2309, Feb. 18, 1969; Amdt. 20, 34 F.R. 13278, Aug. 15, 1969]

§ 308.7 Premiums and payment thereof.

Rate to be fixed promptly upon the happening of the event causing the "American Institute War Risks and Strikes and Automatic Termination and Cancellation Clauses (Time)-Hulls(March 7, 1961)" of any war risk policies to become operative and premium shall be payable within ten days after receipt of notice of the amount thereof by the assured. Premiums shall be paid to the Underwriting Agent that issued

the binders by check payable to the order of "Maritime Adm.-Commerce." In the event that it is subsequently determined that insurance under interim binders did not attach, premiums paid will be refunded by the Maritime Administrator. § 308.8

War risk insurance underwriting agency agreement.

The following is the standard form of underwriting agency agreement applicable with respect to agreements made after June 7, 1961, which will be executed by the Maritime Administrator and domestic insurance companies or groups of domestic insurance companies authorized to do a marine insurance business in any States of the United States, appointing such companies or groups of companies as Underwriting Agents to issue binders and policies covering hull, protection and indemnity, and Second Seamen's war risk insurance under Subparts B, C, and D of this part:

Form MA-355 (Revised 5-61)

UNITED STATES OF AMERICA

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Whereas, pursuant to Title XII of the Merchant Marine Act, 1936, as amended (herein called the "act"), the Secretary is authorized under certain circumstances to provide marine insurance and reinsurance against loss or damage by the risks of war, and to employ domestic companies or groups of domestic companies authorized to do a marine insurance business in any State of the United States to act as his Underwriting Agent; and

Whereas, the Secretary has delegated authority to the Administrator to perform the functions vested in the Secretary by title XII of the act (Section 8.01, subsection 3 of

Department Order No. 117 (Revised), published in the FEDERAL REGISTER July 21, 1960, 25 FR. 6934); and

Whereas, the Administrator has determined to employ the Underwriting Agent as an underwriting agent in providing war risk insurance as set forth in paragraphs (a). (c), (d), (e), and (f) of section 1203 of the act upon the terms and conditions herein set forth:

Now, therefore, in consideration of the premises and of the mutual covenants and agreements, and upon the terms and conditions herein set forth, the parties hereto agree as follows:

1. Appointment of agent. The Administrator hereby authorizes the Underwriting Agent, as an agent acting on behalf of the Administrator and not as an independent contractor, to utilize its offices and facilities to make available the insurance which the Secretary is authorized to provide pursuant to paragraphs (a), (c), (d), (e), and (f) of section 1203 of the act and to perform the functions hereinafter provided for, upon the terms and conditions hereinafter set forth and in accordance with the rules, regulations and instructions which will be issued from time to time to the Underwriting Agent by the Administrator. The Underwriting Agent hereby agrees to utilize its offices and facilities to make such insurance available, as agent for the Administrator, and to perform the functions hereinafter provided for to the best of its ability. The Underwriting Agent may act through its home office, branch offices or agencies which are authorized to write insurance on its behalf.

2. Duties of agent. The duties of the Underwriting Agent shall be as follows:

(a) Receive applications and issue binders and policies. The Underwriting Agent shall receive applications for insurance, subject to the rates and conditions specified by the Administrator upon forms prescribed by the Administrator. After determining that the applications have been submitted in complete and proper form and are accompanied by remittances in the amount of the premiums required for the insurance applied for, the Underwriting Agent shall countersign binders or policies of insurance, or both binders and policies of insurance, subject to the rules, rates, terms and conditions specified by the Administrator on forms prescribed by the Administrator. The insurer under such policies shall be the United States.

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(c) Receive money and reports. The Underwriting Agent shall receive checks made payable to the order of the Maritime Adm.Commerce for the premiums and charges involved, which checks shall be deposited by the Underwriting Agent in the Federal Reserve Bank nearest to its office, or in such other bank as may be authorized by the Administrator to receive such deposits. The Underwriting Agent shall receive from the bank in which the deposits are made receipts therefor in such number as may be prescribed in instructions to the Underwriting Agent and handle the receipts so received in accordance with such instructions.

(d) Report monthly. The Underwriting Agent shall prepare a monthly report, in summary form, of all applications received, and binders and policies issued or cancelled by the Underwriting Agent on a standard form approved by the Administrator, and transmit them, together with receipts for deposits made as above provided, to the Administrator.

(e) Other

reports. The Underwriting Agent shall prepare and transmit such other reports as may be required by the Administrator.

(f) Process ciaims for return premiums. The Underwriting Agent shall receive from holders of policies issued by such Underwriting Agent any claims for return premiums on a standard form prescribed by the Administrator and shall certify thereon, if such is the fact, that the amounts with respect to which such return is claimed were previously paid and that based upon the statements included in such application by the assured the return premium applied for is payable in accordance with the regulations of the Administrator. Such applications and certifications shall be transmitted promptly to the Administrator.

(g) Process claims for losses. The Underwriting Agent shall receive reports of losses on vessels and disbursements (insured pursuant to paragraphs (a) and (c), section 1203 of the act), assemble all pertinent documents and facts relating thereto required to determine the validity of the claims, including the amounts thereof, and submit the same to the Administrator with its recommendation as to payment.

(h) Help establish advisory committee. The Underwriting Agent shall, if requested by the Administrator, cooperate with the Administrator to establish and maintain an advisory underwriting committee to consult with and advise the Administrator in connection with specific underwriting problems, subject to the rules, regulations and instructions of the Administrator, and to establish and maintain such other advisory committees as may be deemed necessary from time to time to safeguard the interests of the Administrator, including a loss committee to act as a recipient for information concerning losses and to pass upon any recommendations made by the Underwriting

Agent as to losses and payments of claims arising therefrom in excess of an amount to be fixed by the Administrator.

3. Compensation—(a) Fair and reasonable. The Underwriting Agent shall receive for its services such amount as the Administrator and the Underwriting Agent may, from time to time, agree to be fair and reasonable compensation. In addition to such fair and reasonable compensation, the Underwriting Agent shall receive reimbursement for outof-pocket expenditures reasonably incurred, meaning payments to persons not regularly employed by the Underwriting Agent but excluding payments to attorneys unless such employment has been authorized by the Administrator: Provided, however, That all such expenditures shall be subject to the review of the Administrator, and further provided that, except as authorized by section 1209 (d) of the act, such expenditures shall not include any fee or other consideration paid to an insurance broker or any person acting in a similar intermediary capacity for services by virtue of his participation in arranging any of such insurance nor include any payment on account of solicitation for or stimulation of such insurance.

(b) Paid monthly. A statement of the compensation due to the Underwriting Agent (including reimbursement for out-of-pocket expenses as herein provided) shall be submitted by the Underwriting Agent to the Administrator monthly or at such other intervals as the Administrator may direct, with an appropriate voucher, and the amount of such compensation, if approved, shall be promptly paid to the Underwriting Agent. 4. Standard of performance. In the discharge of its duties and obligations pursuant to this Agreement, the Underwriting Agent shall conform to a standard of performance and accuracy reasonably to be expected of an insurance company in the administration of its own business and consistent with the highest degree of good faith. It is agreed. however, that the Underwriting Agent shall not be responsible for errors or omissions of agents or employees in whose selection and supervision it has exercised reasonable care, provided, however, that the Underwriting Agent. in any such case, shall have conformed to the standards of performance required hereunder, and provided further, that the Underwriting Agent assumes full and complete responsibility for the disposition of any funds received by it or its agents or employees under and pursuant to this Agreement. The exercise of reasonable care in the selection of agents and employees by the Underwriting Agent shall be deemed to include a determination by the Underwriting Agent that the agents or employees so selected are experienced in the transaction of such phases of the marine insurance business as may be delegated to such agents or employees by the Underwriting Agent.

5. Writing insurance for own account. It is understood that the Participating Members

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