BP America Production Company

• 16 pages
• May 2010

ARTICLE 13. INSURANCE

A. VESSEL OWNER confirms that it will maintain In place any insurance policies it is carrying as of the date immediately prior to entering into this CHARTER or that it routinely carries for its usual operations

B. The insurance coverage referred to in Paragraph A above shall remain in effect during the CHARTER TERM. when the VESSEL is on HIRE for training as directed by CHARTERER. or the VESSEL is on HIRE for oil spill response. The time of coverage shall be from dispatch until termination of dispatch by either the VESSEL OWNER or CHARTERER.

C. Insurance coverage may be activated for VESSELS that choose to travel to a remote site the day prior to an exercise or drill with prior approval by the CHARTERER. The VESSEL will only be considered on HIRE for the purpose of insurance and will not receive any compensation.

D. In the event of any happening that may result in a claim against the coverage afforded in Paragraph A, prompt notice thereof shall be given to the any first aware of such claim in order to afford both parties an immediate opportunity to investigate the facts and circumstance giving rise to the potential claim.

E. The parties understand and agree that the insurance coverage summarized in Paragraph A is more
particularly described in the insurance policies, the terms. conditions and exclusions of …..which shall
control.

Copies of the insurance policies summarized in Paragraph A are available upon request

F. VESSEL OWNER warrants that during the term of this CHARTER that as to the insurance described in
Paragraph A of this Clause 13. it shall:

1. Pay all premiums to keep such insurance policies in full force and effect on the terms and conditions
more particularly described in such policies.

2. Will not modify. amend or otherwise agree to any reduction in coverage afforded under the policies.

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ARTICLE 17. VESSEL OWNER IS INPEPENDENT

A. VESSEL OWNER and its employees and any approved Subcontractors and their employees are independent contractors and are not employees, partners, or joint ventures with CHARTERER VESSEL OWNER and Subcontractors and their respective employees will not represent CHARTERER in performance of SERVICES uncler this CHARTER or engage in any conduct that would imply that VESSEL OWNER and Subcontractors and their respective employees are other than independent contractors.

B. VESSEL OWNER is responsible lor the manner, means and methods of performing SERVICES under this CHARTER.

C. VESSEL OWNER shall pay all federal and state taxes, contributions and/or assessments associated with the performance of SERVICES, including, but not limited to, income taxes and self-employment taxes, and shall be responsible for providing its own employee benefit plans.

D. VESSEL OWNER acknowledges and understands that as an independent contractor. VESSEL OWNER and its employees and Subcontractors and their employees are not eligible lor any employee benefits under any plans maintained by CHARTERER, including. but not limited 10, the CHARTERER Savings and Investment Plan, Pension Plan, Sick Pay Plan. Long Term Disability Insurance Plan, Voluntary Personal Accident Insurance Plan, Severance Plan, Group Life Insurance Plan, Dental Plan. Occupational Death Plan, Business Travel Plan and Medical Plan.

E. VESSEL OWNER will indemnify, defend and hold CHARTERER and Its respective employees and agents harmless from and against any and all claims, demands, actions, losses, expenses and/or liabilities resulting from or related to:

1. My claim, demand, and/or determination that VESSEL OWNER, its employees and/or Subcontractors and their employees are not independent contractors in connection with the performance of SERVICES under this CHARTER, including, but not limited to, any claims or liabilities for regular or overtime wages, salaries, taxes, contributions, and/or assessments: and/or

2. Any claim , demand. and/or determination that VESSEL OWNER, its employees and/or Subcontractors and their employees are entitled to benefits in connection with the performances of SERVICES under this CHARTER under any employee benefit plans maintained by CHARTERER; and/or

3. Any claim. demand, and/or determination that VESSEL OWNER’S employees or SUbcontractors’ employees are entitled to additional compensation or benefits as a result of VESSEL OWNER’S employment policies and practices; and/or

4. Any claim, demand, and/or determination that VESSEL OWNER’S employees or Subcontractors’ employees are entitled to additional compensation or benefits. of whatever kind or character, or damages, of whatever kind or character, based on whole or in part upon theories that they are direct, dual, loaned, borrowed, and/or co- employees of CHARTERER, in addition to being employees of VESSEL OWNER or SUbcontractor.

F. Should VESSEL OWNER or Subcontractor assume the defense of CHARTERER pursuant to Paragraph

E. CHARTERER shall also be entitled to separate defense and representation of its interests through counsel acceptable 10 CHARTERER.

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