(a) TSP Operating Agreement. Each TSP Operating Agreement will require that, during the period a fleet vessel is operating under that TSP Operating Agreement, the fleet vessel must:

1. (1) Be documented as a vessel of the United States under 46 U.S.C. chapter 121;

2. (2) Operate exclusively in:

   1. (i) Foreign commerce;
   2. (ii) Mixed foreign commerce and domestic trade permitted under a registry endorsement issued under 46 U.S.C. 12111, and to those points identified in 46 U.S.C. 55101(b);
   3. (iii) Foreign-to-foreign commerce; or
   4. (iv) Under charter to the United States, except as provided in 46 U.S.C. 53404(b); and
3. (3) Not otherwise operate in the coastwise trade of the United States;
4. (4) Not receive payments during a period in which the Agreement Holder owns, operates, or charters a vessel engaged in noncontiguous domestic trade, unless the Agreement Holder is a section 50501 citizen, applying the 75 percent ownership requirements of 46 U.S.C. 50501; and
5. (5) Enroll, for vessels 15 years or older, in their classification society's CAP and maintain a CAP rating of 2 or better.

(e) United States Merchant Marine Academy cadet training. The Agreement Holder must agree:

1. (1) To carry on the fleet vessel two United States Merchant Marine Academy cadets, if available, on each voyage; and
2. (2) To implement prior to accepting an Operating Agreement appropriate policies, programs, and criteria necessary to comply with all MARAD cadet safety guidelines that address sexual harassment, sexual assault, and other inappropriate conduct.
3. (3) Upon a finding of non-compliance, the Administrator may require the Agreement Holder to take corrective actions or find such failure to constitute a violation of the TSP Operating Agreement.