Common use of Long Term Contracts Clause in Contracts

Long Term Contracts. a. TCL will not, without the prior written consent of each Participant, enter into any Long-term Contract with respect to any Participant’s Tankers, or the performance of which requires any Participant’s Tanker. If TCL does so with the consent of the Participants, the Participant that owns the applicable Tanker shall not terminate this Agreement until the Long-term Contract has been fully performed, always subject to Clause 29(b) hereof. b. If the requirements of any Long-term Contract cannot be met because a Tanker has been withdrawn from the Pool, or has been off-hire as defined in Clause 14 hereof for a period of at least forty (40) consecutive days, then the Participant that committed the Tanker shall provide at its expense a suitable substitute tanker, to be approved by the other Participants, such approval not to be unreasonably withheld, for the remaining period of the Long-term Contract, unless TCL as Commercial Manager is able to substitute that Tanker with any other of the Tankers which TCL as Commercial Manager will use reasonable endeavours to do. If the Participant is not able to provide such a substitute Tanker, the Participant shall be liable to TCL for the costs of chartering in such substitute Tanker (off-set by the earnings of such substitute Tanker) until the requirements of the Long-term Contract are met. TCL shall not require the consent of any Participant to enter into such Long-term Contracts with respect to TCL tankers alone.