Addendum No. 1 Contract No. MA/CCF-478 ADDENDUM TO MARITIME ADMINISTRATION CAPITAL CONSTRUCTION FUND AGREEMENT WITH NATIONAL STEEL AND SHIPBUILDING COMPANY THIS AGREEMENT, made by and between the Maritime Administrator, Department of Transportation (the 'Maritime Administrator') and National Steel and Shipbuilding Company (the 'Party'), a citizen of the United States, as an Addendum to that certain agreement, Contract No. MA/CCF-478. WHEREAS: 1. On September 13, 1988 the parties hereto entered into a Capital Construction Fund Agreement (the 'Agreement'), under section 607 of the Merchant Marine Act, 1936, as amended (the 'Act'); 2. The parties hereto desire to amend the Agreement in the manner hereinafter set forth; and 3. The parties hereto have agreed to said amendment and desire to incorporate the same into the Agreement. NOW, THEREFORE, in consideration of the premises, the Maritime Administrator and the Party agree as follows: I. Effective , 1988, the Agreement is amended by replacing the existing Schedules A, B, C, and D with the annexed revised Schedules A, B, C and D to (i) add the S. S. WORTH to Schedule A as an eligible vessel; (ii) to modify and increase the deposit ceilings, program objectives and minimum deposits as set out in the annexed revised Schedules B and D; and (iii) designate Idaho First National Bank and Bank of America N.T. & S.A. as depositories, at the same time deleting Morgan Guaranty Trust Company, as set out in Schedule C, and eliminating dated information concerning sources of funds. II. Except as herein otherwise expressly provided, the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the Maritime Administrator and the party have executed this Addendum No. 1 in quadruplicate, on the dates indicated below, to be effective on the 13th day of September, 1988. - 2 - UNITED STATES OF AMERICA SECRETARY OF TRANSPORTATION NATIONAL STEEL AND MARITIME ADMINISTRATOR SHIPBUILDING COMPANY By: /s/ James J. Zok By: /s/ James M. Temenak -------------------------- --------------------------- (Contracting Officer) Name: James M. Temenak -------------------------- (print or type) Title: Vice President ------------------------- (print or type) ATTEST: ATTEST: DISTRICT OF COLUMBIA: By: [SIGNATURE ILLEGIBLE] By: /s/ Sharon G. Maliska -------------------------- --------------------------- Secretary My Commission Expires March 31, 1991 Maritime Administration Date: Name: Sharon G. Maliska -------------------------- (print or type) Title: Notary Public ------------------------- (print or type) (SEAL) (SEAL) Date: Sept. 13, 1988 -------------------------- APPROVED as to form: By: /s/ Edmund T. Sommer, Jr. -------------------------- For Assistant Chief Counsel Maritime Administration ADDENDUM NO. 1 MA/CCF-478 Schedule A ELIGIBLE AGREEMENT VESSELS DATE AND NAME AND SPECIFIC CAPACITY PLACE DATE AREA OF DETAILS OF I.D. NO. TYPE [GROSS TONS] OWNER CONSTRUCTED DOCUMENTED OPERATION SERVICE --------- -------- ------------ ------ ----------- ---------- ------------- ---------- SS WORTH Tanker 89,700 NASSCO 2-19-75 (a) To NASSCO U. S. Foreign Crude Oil 7600548 San Diego, CA 10-03-84 Trade Transport SS ROSE CITY Tanker 89,700 NASSCO 7-23-76 (b) To NASSCO U. S. Foreign Crude Oil 7607891 San Diego, CA 10-13-85 Trade Transport MR. ED Harbor 25 NASSCO 1976 To NASSCO U.S. Coastwise Harbor Service 575765 Supply Vessel Brazoria, TX 6-09-81 Trade and Supply Transport THE HAPPY Harbor 17 NASSCO 1929 To NASSCO U.S. Coastwise Harbor Service 228709 Service Vessel North Bend, OR 5-10-79 Trade and Supply Transport (a) Reconstructed at San Diego and delivered 12-19-86, accepted 8-19-87. (b) Reconstructed at San Diego. A number of disputes exist between NASSCO and the Navy with respect to workmanship and performance and must be resolved before the Navy will accept the vessel. As of this date, no tentative acceptance date has yet been agreed upon. ADDENDUM NO. 1 MA/CCF-478 SCHEDULE B PROGRAM OBJECTIVES ACQUISITION OR CONSTRUCTION OF VESSELS Amount Program Vessel to be Approximate Date Objective Name & General Vessel Withdrawn of Anticipated No. Number Characteristics Cost From Fund (a) Contract Delivery Area of Oper --------- --------- --------------- ------ -------------- -------- ---------- --------------- 1 Unknown Alaska Class Tanker $130 million $70 million 1/89 1/91 Alaska to Pan 209,000 DWT, (approx.) As (approx.) identical to EXXON alternative VALDEZ and EXXON to Programs LONG BEACH 2 and 3 2 Unknown Passenger cruise $225 million $70 million 1/89 6/91 Inter-Island ship of about 1,800 (approx.) As (approx.) Cruise ship, passenger capacity alternative Hawaiian for operation to Programs Islands inter-island Hawaii 1 and 3 3 Unknown Two 2,000 TEU $200 million $70 million 1/89 3/91 West Coast Container Ships (approx.) As (approx.) Mainland alternative U.S. to to Programs 6/91 Hawaiian 1 and 2 Islands ___________________________________ (a) Represents maximum profit estimated to be received upon sale of vessels listed in Schedule A. Interest earnings on the $70 million may, of course, increase the amount available for program objective. The amounts required to be deposited under Schedule D represent minimums. ADDENDUM NO. 1 MA/CCF-478 SCHEDULE C DEPOSITORIES ------------ NAME AND ADDRESS ACCOUNTS ---------------- -------- Idaho First National Bank Savings and Trustee Accounts 101 South Capital Street established pursuant to P.O. Box 7938 46 C.F.R. Section 390.7 Boise, Idaho 83707 Bank of America N.T. & S.A. Savings and Trustee Accounts 450 B Street established pursuant to San Diego, California 92038 46 C.F.R. Section 390.7 ADDENDUM NO. 1 MA/CCF-478 September __, 1998 SCHEDULE D MINIMUM DEPOSITS - EXPLANATION ORDINARY INTEREST CAPITAL INCOME(a) INCOME(a) GAIN DEPRECIATION TOTAL(a) 1987-89 $10,000,000 -- -- -- $10,000,000 1990-92 -- -- -- -- -- 1992-95 -- -- -- -- -- (a) NASSCO will make a minimum deposit of at least $10 million (and may deposit as much as $37 million) upon this Addendum No. 1 becoming effective on September __, 1988. As indicated on Schedule B, 'Program Objectives', NASSCO estimates that approximately $70 million will be received as profit on the sale of vessels listed on Schedule A and could be employed in meeting Schedule B objectives. Thus NASSCO anticipates that a substantial additional amount, perhaps in the neighborhood of $30 million to $40 million, may be deposited. In addition, of course, interest income will accrue on amounts on deposit.
Capital Construction Fund Agreement - US Department of Transportation, Maritime Administration, and National Steel and Shipbuilding Co.
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