TIDEWATER INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years ended March 31, 2010, 2009, and 2008  Future Minimum Lease Payments  (10) COMMITMENTS AND CONTINGECIES  Compensation Commitments  Vessel Construction Commitments  As of March 31, 2010, the future minimum lease payments for the vessels under the operating lease terms  are as follows:  The company expensed approximately $15.1 million, $7.0 million, and $4.7 million on these bareboat  charter arrangements during fiscal 2010, 2009 and 2008, respectively.  Compensation continuation agreements exist with all of the company’s officers whereby each receives  compensation and benefits in the event that their employment is terminated following certain events relating  to a change in control of the company. The maximum amount of cash compensation that could be paid  under the agreements, based on present salary levels, is approximately $32.8 million. At March 31, 2010, the company had commitments to acquire five vessels and build 31 vessels at a number  of different shipyards around the world (one of which is being constructed in the United States by the  company’s wholly-owned shipyard, Quality Shipyards, L.L.C.) at a total cost, including contract costs and  other incidental costs, of approximately $742.4 million, including contract costs and other incidental costs, of  which costs for the 31 new-build vessels totaled $681.8 million. In particular, the company is committed to  the construction of 13 anchor handling towing supply vessels ranging between 5,150 and 13,570 brake  horsepower (BHP), 16 platform supply vessels ranging between 2,965 and 5,400 deadweight tons of cargo  capacity, and two crewboats. Scheduled delivery for these vessels began in April 2010 with delivery of the  final vessel expected in July 2012. The company also had at such date binding agreements to purchase five  anchor handling towing supply vessels for a total cost of approximately $60.6 million. In April 2010, the  company took possession of three of these five anchor handling towing supply vessels, and plans to take  possession of the fourth and fifth anchor handling towing supply vessels in May and June of 2010,  respectively. At March 31, 2010, the company had invested $271.9 million in progress payments towards  the construction of 31 vessels, and no payments have been made on the purchase of five anchor handling  towing supply vessels. The remaining expenditures necessary to complete construction of the 31 vessels  currently under construction (based on contract prices), and to fund the acquisition of the five anchor  handling towing supply vessels was $470.5 million at March 31, 2010.  The company’s vessel construction program has been designed to replace over time the company’s older  fleet of vessels with fewer, larger and more efficient vessels, while also opportunistically revamping the size  and capabilities of the company’s fleet. The majority of the company’s older vessels, its supply and towing- supply vessels, were constructed between 1976 and 1983. As such, virtually all of this class exceeds  25 years of age and could require replacement within the next several years, depending on the strength of  the market during this time frame. In addition to age, market conditions also help determine when a vessel is  no longer economically viable. The company anticipates using future operating cash flows, existing  borrowing capacity, new borrowings or lease arrangements to fund current and future commitments in  connection with the fleet renewal and modernization program. The company continues to evaluate its fleet  renewal program, whether through new construction or acquisitions, relative to other investment F-34 Fiscal 2010  Fiscal 2006  Fiscal year ending (In thousands) Sale/Leaseback  Sale/Leaseback  Total  2011 $ 10,702 6,924 17,626 2012 10,702 6,924 17,626 2013 10,703 6,924 17,627 2014 10,703 6,906 17,609 2015  2,836 7,547 10,383 Thereafter --- --- --- Total future lease payments  $  45,646  35,225  80,871 