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                                                                 EXHIBIT 10.9b

                              EMPLOYMENT AGREEMENT



         This Agreement, originally made as of the 27th day of November, 1996
between Statia Terminals Group N. V., a Netherlands Antilles corporation, having
a registered office at L.B. Smithplein 3, Curacao, Netherlands Antilles (the
"Company"); Statia Terminals, Inc., a Delaware corporation, with offices at 800
Fairway Drive, Suite 295, Deerfield Beach, Florida 33441 (the "Subsidiary"); and
John D. Franklin, an individual with an address of 9601 Orange Drive, Davie,
Florida 33328 (the "Employee"), and amended and restated, effective April 28,
1999, and further amended and restated August 29, 2001, is hereby further
amended and restated in its entirety, effective November 12, 2001.



                                 R E C I T A L S


         WHEREAS, the Company has entered into a certain Amended and Restated
Stock Purchase and Sale Agreement dated as of November 4, 1996, among the
Company and certain other corporations (the "Purchase and Sale Agreement")
pursuant to which the Company acquired, directly or indirectly, all of the
issued and outstanding shares of the common stock of the Subsidiary;

         WHEREAS, the Employee has been and is presently in the employ of the
Subsidiary and is presently serving as Vice President--Marine Fuel Marketing of
the Subsidiary;

         WHEREAS, the Employee possesses an intimate knowledge of the business
and affairs of the Subsidiary and its policies, procedures, methods and
personnel;

         WHEREAS, the Company desires to secure the continued services and
employment of the Employee on behalf of the Subsidiary, and the Employee desires
to be employed by the Subsidiary, upon the terms and conditions hereinafter set
forth.

         NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, the parties hereto, each intending to be legally bound hereby,
agree as follows:

         1.       Employment. The Company hereby agrees to cause the Subsidiary
to employ and continue to employ the Employee as Vice President--Marine Fuel
Marketing of the Subsidiary and the Subsidiary hereby agrees to employ and
continue to employ the Employee as Vice President--Marine Fuel Marketing, and
the Employee accepts such employment for the term of the employment specified in
Section 3 hereof (the "Employment Term"). During the Employment Term, the
Employee shall serve as the Vice President--Marine Fuel Marketing of the
Subsidiary, performing such duties and having such authority as shall be
reasonably required of an executive-level employee of the Subsidiary, reporting
only to the Subsidiary's President and Chief Executive Officer and the Board of
Directors of the Subsidiary (the "Board"), and shall have such other powers and
perform such other additional executive duties as may from time to time be
assigned to him by such President and Chief Executive Officer or the Board.


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Such duties being performed and such authority being exercised shall be at least
commensurate with the duties being performed and authority being exercised by
the Employee immediately prior to the date of this Agreement.

         2.       Performance. The Employee will serve the Subsidiary faithfully
and to the best of his ability and will devote substantially all of his time,
energy, experience and talents during regular business hours and as otherwise
reasonably necessary to such employment, to the exclusion of all other business
activities; provided, however, that such exclusion shall not prohibit the
Employee from attending to the Employee's personal matters and/or financial and
investment affairs (which financial or investment affairs shall not conflict
with the business of the Subsidiary or the Company and is subject to the
provisions of Section 13 hereof) during regular business hours as may from time
to time be reasonably necessary so long as attendance to such matters and
affairs does not interfere with the performance of the Employee's duties
hereunder.

         3.       Employment Term. Subject to earlier termination pursuant to
Section 7 hereof the Employment Term shall begin on November 12, 2001, and
continue until December 31, 2004; provided, however, that beginning on January
1, 2003, and on each anniversary of such date, the Employment Term shall
automatically renew for an additional one year beyond the end of the then
current term, unless, at least 90 days before January 1, 2003, or January 1 of
any succeeding year, either party gives notice to the other of his or its desire
to terminate this Agreement, in which case the Employment Term shall terminate
as of December 31, 2004, or the end of the then-current term, as applicable.

         4.       Compensation.

                  (a)      Salary. During the Employment Term, the Company shall
cause the Subsidiary to pay the Employee a base salary, payable in equal
bi-weekly installments, subject to withholding and other applicable taxes, at an
annual amount of not less than one hundred sixty-five thousand U.S. Dollars
($165,000). Such base salary shall be reviewed by the Board in January, 2002,
and at least annually thereafter, and shall be increased annually, effective
January 1 of the applicable year, but may not be reduced, from the amount in
effect for the immediately preceding year, at an annual rate not less than the
annual rate of increase in the Consumer Price Index as measured by the United
States Department of Labor, Bureau of Labor Statistics (the "BLS"), All Items,
Consumer Price Index for All Urban Consumers (the "CPI-U"), and any such
increased base salary shall be the Employee's "base salary" for purposes of this
Agreement. In determining the rate of such annual increase, the base shall be
the CPI-U for the first day of the calendar year preceding the year for which
the base salary increase is being calculated and such base shall be compared
with the CPI-U as of the last day of such year. If the CPI-U is no longer
published in substantially its current form by the BLS, then a successor index
shall be substituted by mutual agreement of the Company and the Employee.

                  (b)      Cash Incentive Bonus. For the calendar year 2001 and
for each subsequent calendar year, or portion thereof, during the Employment
Term, a reasonable target EBITDA (as defined below) for each calendar year and a
target bonus for the Employee for such
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calendar year, which target bonus shall be at least equal to seventy-five
percent (75%) of the Employee's annual base salary in effect for such calendar
year, shall be submitted to the Board by the chief executive officer, or the
highest ranking officer then in service, of the Subsidiary (the "CEO") and
agreed to by the Board and the CEO, and as soon as practicable after the end of
each such calendar year as the actual EBITDA achieved for such calendar year has
been determined, the Company shall cause the Subsidiary to pay to the Employee a
lump-sum bonus determined as described in this Section 4(b). No portion of such
bonus will be paid if less than 85% of the target EBITDA is achieved in the
applicable calendar year. Payment of 85% of the target bonus would be made if
85% of the target EBITDA is achieved, and if the actual EBITDA for the
applicable calendar year exceeds 85% of the target EBITDA for such year, the
percentage of the target bonus paid shall be the percentage of the target EBITDA
so achieved in such year. For example, if 92% of the target EBITDA is achieved
in a calendar year, 92% of the target bonus would be paid for such year, or if
160% of the target EBITDA is achieved in a calendar year, 160% of the target
bonus would be paid for such year. If during the course of any calendar year,
the Company shall sell or otherwise dispose of five percent (5%) or more of the
total assets of the Company and its subsidiaries, the CEO and the Board shall
establish a revised EBITDA target for such calendar year after receiving
management's recommendation.

         "EBITDA" shall mean for any period, the (i) net income (or net loss) of
the Company and its subsidiaries plus (ii) the sum of (A) interest expense, (B)
income tax expense, (C) depreciation expense, (D) amortization expense, (E)
extraordinary or unusual losses deducted in calculating net income (or net
loss), and (F) other non-cash charges less (iii) extraordinary or unusual gains
and other non-cash income items added in calculating net income (or net loss),
in each case determined in accordance with generally accepted accounting
principles at the end of each such calendar year for the Company and its
subsidiaries on a consolidated basis, and plus (iv) any fees paid to or expenses
incurred by the Company pursuant to any management or similar agreement between
the Company and any stockholder holding 50 percent or more of the capital stock
of the Company or an Affiliate thereof.

                  (c)      Closing Bonus. The Employee shall be entitled to
receive a cash bonus equal to four hundred thousand U.S. Dollars ($400,000) upon
the closing of a Change in Control (as defined in Section 8 hereof), payable in
a single lump-sum by the Subsidiary on the closing of the Change in Control
(such bonus, the "Closing Bonus").

                  (d)      Employee Benefits. The Employee shall be entitled to
and shall receive employee benefits or participate in plans and programs
maintained by or on behalf of the Company or the Subsidiary which are otherwise
made available to employees of the Subsidiary, including, but not limited to,
medical, health, dental, accident and disability plan, cafeteria plan,
retirement plan and 401(k) plan.

                  (e)      Additional Benefits. In addition to the other
compensation payable to the Employee hereunder, during the Employment Term, the
Company shall cause the Subsidiary to furnish at its expense an automobile, or a
reasonable allowance in lieu thereof at the option of the Subsidiary, office,
reasonable secretarial services, professional association dues, continuing
professional education expenses and such other supplies, equipment, facilities,

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services and emoluments appropriate to such Employee's position. The types,
terms and conditions of the benefits and perquisites provided to the Employee in
accordance with paragraph (d) and this paragraph (e) of Section 4 shall not be
less favorable than those provided to the Employee as of the date of this third
amendment and restatement of this Agreement.

                  (f)      Paid Time Off. The Employee shall be entitled to paid
vacation, holidays, and sick leave during each calendar year of employment in
accordance with current policies of the Subsidiary. Vacation may only be taken
at times mutually convenient for the Subsidiary and the Employee. The Subsidiary
may elect to pay out all accrued and unused vacation time as of December 31 of
any calendar year in January of the following calendar year. Such pay out will
be at the prevailing rate of annual compensation at the end of the immediately
preceding calendar year.

                  5.       Expenses. The Employee shall be entitled to be
reimbursed by the Subsidiary for all reasonable expenses incurred by him in
connection with the performance of his duties hereunder in accordance with
policies established by the Board from time to time and upon receipt of
appropriate documentation.

                  6.       Secret Processes and Confidential Information. For
the Employment Term and thereafter (a) the Employee will not divulge, transmit
or otherwise disclose (except as legally compelled by court order, and then only
to the extent required, after prompt notice to both the Company and the
Subsidiary of any such order), directly or indirectly, other than in the regular
and proper course of business of the Company and/or the Subsidiary, any
confidential knowledge or information with respect to the operations or finances
of the Subsidiary or the Company or any of their subsidiaries or Affiliates, or
with respect to confidential or secret processes, services, techniques,
customers or plans with respect to the Company and/or the Subsidiary, and (b)
the Employee will not use, directly or indirectly, any confidential information
for the benefit of anyone other than the Company and/or the Subsidiary;
provided, however, that the Employee has no obligation, express or implied, to
refrain from using or disclosing to others any such knowledge or information
which is or hereafter shall become available to the public other than through
disclosure by the Employee.

         To the greatest extent possible, any Work Product (as hereinafter
defined) shall be deemed to be "work made for hire" (as defined in the Copyright
Act, 17 U.S.C.A. ss. 101 et seq., as amended) and owned exclusively by the
Subsidiary. The Employee hereby unconditionally and irrevocably transfers and
assigns to the Subsidiary all right, title and interest the Employee may
currently have or in the future may have by operation of law or otherwise in or
to any Work Product, including, without limitation, all patents, copyrights,
trademarks, service marks and other intellectual property rights. The Employee
agrees to execute and deliver to the Subsidiary any transfers, assignments,
documents or other instruments which the Company may deem necessary or
appropriate to vest complete title and ownership of any Work Product, and all
rights therein, exclusively in the Subsidiary.

         During the term of this Agreement and thereafter, Employee shall not
take any action to disparage or criticize to any third parties any of the
services of the Company and/or the

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Subsidiary or to commit any other action that injures or hinders the business
relationships of the Company and/or the Subsidiary.

         All files, records, documents, memorandums, notes or other documents
relating to the business of Company and/or the Subsidiary, whether prepared by
Employee or otherwise coming into his possession in the course of the
performance of his services under this Agreement, shall be the exclusive
property of Company and shall be delivered to Company and not retained by
Employee upon termination of this Agreement for any reason whatsoever.

         7.       Termination.

                  (a)      Mutual Agreement. The employment of the Employee
hereunder may be terminated at any time by the mutual agreement of the parties
hereto.

                  (b)      Termination for Substantial Cause. The Subsidiary may
at any time upon thirty (30) days prior written notice to the Employee,
terminate the employment of the Employee for Substantial Cause (as hereinafter
defined).

                  (c)      Termination by the Employee. The Employee shall be
entitled to terminate his employment without being in violation of any provision
of this Agreement upon 30 days prior written notice to the Subsidiary (i) for
Good Reason; (ii) upon "normal retirement" under any then-effective plan or
policy of the Subsidiary, or, in the absence of any such plan or policy, under
the terms of the CBI Pension Plan, as amended effective August 1, 1996, as if
the Employee participated in such plan (whether or not he actually so
participated); or (iii) at any time and for any reason after the Employee has
attained the age of sixty (60) years.

                  (d)      Termination by Death or Disability. The employment of
the Employee shall terminate upon the death of the Employee or the inability of
the Employee to perform his duties as a result of physical or mental disability
for an aggregate of 90 days in any 180 day period, as determined in good faith
by the Board ("Disability").

         8.       Definitions. For purposes of this Agreement:

                  (a)      "Business" shall mean the business of owning, leasing
or operating petroleum and other bulk liquid blending, transshipment, storage or
processing facilities or providing related terminaling services such as supply
of bunker fuel for vessels, emergency and spill response services; brokering of
product trades and vessel representation.

                  (b)      "Competing Entity" shall mean any Person which
presently or hereafter during the term hereof is materially engaged in the
Business; provided, however, that "Competing Entity" shall not include Statia
Terminals Cayman, Inc. or its subsidiaries or other affiliates owned, directly
or indirectly, by Statia Terminals Cayman, Inc.

                  (c)      "Territory" shall mean the Caribbean and the area
within a three hundred mile radius of (a) the terminal facility operated by an
Affiliate of the Subsidiary at Point Tupper, Nova Scotia, and (b) any terminal
hereafter operated by the Subsidiary or any Affiliate

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of the Subsidiary excluding terminals or facilities operated by Statia Terminals
Cayman, Inc. or its subsidiaries or other affiliates owned, directly or
indirectly, by Statia Terminals Cayman, Inc.

                  (d)      "Substantial Cause" shall mean:

                           (i)      Conviction of the Employee of a crime
                  constituting a felony in the jurisdiction in which committed,
                  or for any other criminal act against the Subsidiary or the
                  Company involving dishonesty or willful misconduct intended to
                  injure the Subsidiary or the Company or any Affiliate of
                  either of them in any substantial way (whether or not a felony
                  and whether or not criminal proceedings are initiated);

                           (ii)     Failure or refusal of the Employee in any
                  material respect to perform his obligations under this
                  Agreement or the duties of his employment or to follow the
                  lawful and proper directives of the Board, other than by
                  reason of a Disability provided such duties or directives are
                  consistent with this Agreement, and such failure or refusal
                  continues uncured for a period of thirty (30) days after
                  written notice thereof from the Subsidiary to the Employee
                  which specifies (A) the nature of such failure or refusal, and
                  (B) the reasonable action of the Employee necessary for cure;
                  or

                           (iii)    Any willful or intentional misconduct of the
                  Employee (A) in violation of any written policy of the
                  Subsidiary providing for termination of employment in the
                  event of violation of such policy or (B) committed for the
                  purpose, or having the reasonably foreseeable effect, of
                  injuring in a substantial way the Company, the Subsidiary, or
                  any Affiliate of either of them, or their respective
                  businesses or reputations, including, without limitation,
                  causing the Subsidiary or any of its Affiliates to violate a
                  state or federal law relating to the workplace environment.

                  (e)      "Good Reason" shall mean:

                           (i)      a significant reduction in the authorities,
                  duties or responsibilities of the Employee;

                           (ii)     assignment to an office location which is
                  more than 100 miles from the office location of the Employee
                  as of the date of this Agreement;

                           (iii)    material breach of this Agreement by the
                  Subsidiary or the Company which is not cured within thirty
                  (30) days after written notice of such breach is given by the
                  Employee to the Company and the Subsidiary; or

                           (iv)     any failure of any successor to all or
                  substantially all of the assets or business of the Company or
                  the Subsidiary, by purchase, merger, consolidation or
                  otherwise, to fully assume the obligations of the Company or
                  the Subsidiary, as applicable, under this Agreement.

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As applied to the Employee, the parties hereto agree that any position other
than Vice President--Marine Fuel Marketing of the Subsidiary or its successor,
or other than any superior position with the Subsidiary or its successor, would
constitute a significant reduction in the authorities, duties or
responsibilities of the Employee.

                           (f)      "Change in Control" shall mean the
occurrence of either of the following: (1) Castle Harlan Partners II L.P. and
its Affiliates and their partners ("CHP") cease to own or control at least fifty
percent (50%) of the aggregate number of the Company's outstanding class A
common shares and class B subordinated shares owned or controlled, directly or
indirectly, by such Persons as of August 29, 2001; provided, however, that, the
foregoing to the contrary notwithstanding, in no event shall any Change in
Control be deemed to occur, for purposes of this Agreement, as the direct or
indirect result of (i) the occurrence of any of the transactions contemplated
under the Purchase and Sale Agreement, (ii) a public distribution of any such
Company shares owned by CHP (including any distribution of such shares to the
partners of Castle Harlan Partners II L.P.), or (iii) a sale or other
distribution to any Competing Entity, in one or more transactions, by CHP of not
more than seven percent (7%) of the aggregate number of the Company's
outstanding class A common shares and class B subordinated shares (provided,
however, that a sale or distribution of more than seven percent (7%) of such
shares to a Competing Entity will be deemed to be a Change in Control), or (2)
the liquidation or dissolution of the Subsidiary or the sale or other
disposition in one or a series of related transactions of all or substantially
all of the assets or business of the Company or the Subsidiary.

                           (g)      "Affiliate" shall mean, with respect to any
Person, any entity that directly or indirectly through one or more
intermediaries controls, is controlled by or is under common control with such
Person.

                           (h)      "Person" shall mean any corporation,
partnership, limited liability company, joint venture, association, joint stock
company, trust, unincorporated organization or other entity or organization.

                           (i)      "Work Product" shall mean work product,
property, data documentation or information of any kind relating to the
Business, prepared, conceived, discovered, developed or created by the Employee
for the Subsidiary or any of the Subsidiary's Affiliates, clients or customers
while the Employee is employed by the Subsidiary.

                           (j)      "Disability" shall have the meaning
                                    specified in Section 7(d) hereof.

                  9.       Insurance and Indemnification.

                           (a)      Life Insurance. The Subsidiary may purchase
insurance on the life of the Employee, and if it does so, the Employee shall
cooperate fully by performing all the requirements of the life insurer which are
necessary conditions precedent to the issuance of the life insurance policy
issued by it.

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                           (b)      Directors and Officers Insurance and
Indemnification. The Subsidiary shall provide directors and officers insurance
covering the Employee for events occurring during the Employment Term on terms
at least as favorable as coverage for Directors of the Company, and the
Subsidiary shall provide indemnification to the Employee to the full extent
allowed by the law of its jurisdiction of incorporation, such indemnification to
continue as to the Employee even if the Employee ceases to be an officer,
director, employee or agent of the Subsidiary or the Company, and shall inure to
the benefit of the Employee's heirs, executors and administrators. The insurance
and indemnification provided by the Subsidiary under this Section 9(b) shall
apply to any indemnifiable or insurable acts or omissions of the Employee as an
officer, director or employee of the Subsidiary or the Company or any of their
respective subsidiaries or affiliates, and the obligations of the Subsidiary
under this Section 9(b) shall continue during the Employment Term and, after the
Employee ceases to be a director, officer, employee or agent of the Subsidiary
or the Company, during any period which the Employee may be liable for acts or
omissions as an officer, director or employee of the Subsidiary or the Company
or their respective subsidiaries or affiliates.

                  10.      Severance

                           (a)      Subject to the limitations set forth in
Section 13, if the Employee's employment is terminated by the Subsidiary without
Substantial Cause (including, without limitation, upon termination of this
Agreement following notice thereof by the Company or the Subsidiary pursuant to
Section 3 hereof) or by the Employee for Good Reason, then, without further
liability of the Subsidiary or the Company, except for their obligations
pursuant to this Section 10(a) and their obligations to pay or provide any
salary and expenses accrued to the termination date, any unpaid bonus referred
to in Section 4(b) hereof, any Closing Bonus (whether payable before or after
such termination of employment) pursuant to Section 4(c) hereof, and such rights
and benefits of participation of or in respect of the Employee under employee
benefit plans, programs and arrangements of the Company, the Subsidiary and
their Affiliates, in accordance with the terms and provisions of such plans,
programs and arrangements, (i) the Employee shall be entitled to severance
compensation for the Severance Period (as hereinafter defined) following any
such termination, payable in equal monthly installments, subject to withholding
and other applicable taxes, at an annual rate equal to the Employee's base
salary for the year of termination, as such annual rate is increased from year
to year in accordance with Section 4(a) hereof; (ii) as additional severance
compensation following any such termination, the Employee shall be entitled to
the bonus compensation referred to in Section 4(b) hereof for the Severance
Period, payable as and when ordinarily determined for the applicable year, with
a bonus not less than seventy-five percent (75%) of his rate of annual base
salary in effect for the year of termination; (iii) the Employee and the
Employee's spouse and Dependent Children (as hereinafter defined) shall be
entitled to medical and dental benefits as provided immediately prior to the
date of termination which shall continue for the Severance Period (which
benefits shall be terminated sooner to the extent provided by another employer
and shall be subject to coordination with Medicare payments in accordance with
the terms of the applicable benefit plan); (iv) the Employee shall be entitled
to receive, during the Severance Period, the benefits described in Section 4(d)
hereof and the automobile rights and perquisites described in Section 4(e)
hereof, provided, however, if any such benefit is not available to the

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Employee under applicable law or the terms of any plan, program or arrangement
because he is not an employee, or otherwise, the Subsidiary shall pay the
Employee, within ten (10) days following such termination, a lump-sum cash
payment equal to the value of such benefits, and the types, terms and conditions
of the benefits, rights and perquisites provided to the Employee under clauses
(iii) and (iv) of this Section 10(a) shall be not less favorable than the most
favorable of (x) those provided to the Employee as of the date of this third
amendment and restatement of this Agreement and (y) those provided to the
Employee immediately prior to the date of termination of his employment; and (v)
the Employee shall be entitled to reasonable outplacement services selected by
the Employee at the Subsidiary's expense. Following expiration of the period
within which the Employee is entitled to receive medical and dental benefits
pursuant to clause (iii) of the first sentence of this Section 10(a), other than
by reason of receiving such benefits from another employer or coordination of
such benefits with Medicare payments, the Employee shall be entitled to elect to
further continue any such benefits for himself, his spouse and his Dependent
Children until the Employee's death so long as the Employee pays the applicable
premiums otherwise payable by former employees of the Subsidiary generally for
continuation coverage under the applicable plans. If a Change in Control occurs,
and (I) at the time of such occurrence, any such severance compensation is being
paid or required to be paid in the future to the Employee or (II) such
termination of employment occurs following the Change in Control, the aggregate
gross severance compensation payable under clauses (i) and (ii) of this Section
10(a) for the Severance Period, or the previously unpaid portion thereof, as the
case may be, shall be paid by the Company or the Subsidiary in a lump-sum cash
payment, as of the date of the Change in Control (in the case of clause (I)
immediately preceding) or such termination of employment (in the case of clause
(II) immediately preceding) and no provision shall be made for any future
increases in base salary pursuant to Section 4(a) hereof nor shall any discount
be taken with regard to payment pursuant to Section 4 because of payment in a
lump sum rather than as specified in clauses (i) through (iv) of this Section
10(a); provided, however, that, for purposes of determining the bonus
compensation payable under clause (ii) of this Section 10(a), (a) if the
termination occurs during the calendar year in which the Change in Control
occurs, the bonus compensation with respect to such calendar year shall be
determined in accordance with Section 4(b) hereof, except that the actual EBITDA
achieved shall be deemed to be the EBITDA for the portion of the calendar year
through the date of the transaction giving rise to the Change in Control, and
such EBITDA shall be annualized if necessary by multiplying such EBITDA by a
factor of 365 divided by the number of days of the calendar year elapsed as of
the date of the transaction giving rise to the Change in Control, and (b) in all
other cases, the bonus shall be equal to seventy-five percent (75%) of the
greater of (x) the Employee's rate of annual base salary in effect immediately
prior to the date of such termination and (y) his rate of annual base salary in
effect during the calendar year immediately preceding such termination. For the
purposes of this Agreement, (x) "Severance Period" shall mean a period
commencing on the date of any such termination of the Employee's employment and
ending on the expiration of the Employment Term (determined as of the date of
termination of the Employee's employment without giving effect to such
termination); provided, however, that the Severance Period shall not be less
than one year; and (y) "Dependent Children" shall include any child of the
Employee while such child is residing with the Employee, or attending any
educational institution and not attained age twenty-five (25), or is permanently
and totally

                                      -9-
<PAGE>

disabled (within the meaning of Section 22(e)(3) of the Internal Revenue Code of
1986, as amended (the "Code")) and continuing until the later of the date such
child (1) no longer resides with the Employee, (2) attains age twenty-five (25)
(in the case of a child attending an educational institution prior to attainment
of age twenty-five), or (3) is no longer permanently and totally disabled (in
the case of a child who is permanently and totally disabled.

                           (b)      If the Employee's employment is terminated
under any circumstances not described in Section 10(a) hereof, then, without
further liability of the Subsidiary or the Company, the Employee shall be
entitled to the salary, expenses and benefits accrued to the termination date;
all rights and benefits of participation under employee benefit plans, programs
and arrangements of the Company, the Subsidiary and their Affiliates; and any
unpaid bonus referred to in Section 4(b) hereof; provided, however, that, in the
event of termination of the Employee's employment as described in Section
7(c)(ii) or (iii) hereof or on account of the Employee's death or Disability as
described in 7(d) hereof, the Employee (or the deceased Employee's estate or
personal representative) shall also be entitled to receive the bonus referred to
in Section 4(b) hereof for the calendar year in which such termination occurs
(such bonus shall be pro-rated based on the number of days the Employee is
employed by the Subsidiary during such calendar year of termination and shall be
paid as and when ordinarily determined for such year) and any Closing Bonus
(whether payable before or after such termination of employment) pursuant to
Section 4(c) hereof; provided, further, however, that in the event of
termination of the Employee's employment on account of Disability or death, the
Employee or the deceased Employee's estate or personal representative, as the
case may be, shall be entitled to receive a lump-sum benefit in the amount of
one-year's annual base salary at the rate in effect for the year of such
termination.

                  11.      Certain Taxes. Notwithstanding anything in this
Agreement to the contrary, the amount of any cash payment to be received by the
Employee pursuant to this Agreement shall be reduced (but not below zero) by the
amount, if any, necessary to prevent any part of any payment or benefit in the
"nature of compensation" received or to be received by or for the benefit of the
Employee in connection with a change in the ownership or effective control of
the Company or a change in the ownership of a substantial portion of the
Company's assets (within the meaning of Section 280G of the Code), and the
regulations or proposed regulations thereunder) (whether pursuant to the terms
of this Agreement (but without regard to this Section 11), any other agreement,
contract, plan or arrangement of the Company or the Subsidiary or any affiliate
of either or any person whose action results in such a change in ownership or
effective control or change in ownership of assets or any affiliate of such
person) (such foregoing payments or benefits referred to collectively as the
"Total Payments"), from being treated as an "excess parachute payment" within
the meaning of Section 280G(b)(1) of the Code, but only if and to the extent
that such reduction will also result in, after taking into account all
applicable state, local and Federal taxes (computed at the highest applicable
marginal rate) including any taxes payable pursuant to Section 4999 of the Code
(and any similar tax that may hereafter be imposed under any successor provision
or by any taxing authority), a greater after-tax benefit to the Employee than
the after-tax benefit to the Employee of the Total Payments computed without
regard to any such reduction. For purposes of the foregoing, (i) no portion of
the Total Payments shall be taken into account which in the opinion of
nationally-recognized tax counsel selected by the Employee ("Tax Counsel")
either (A) does not constitute either a "parachute payment" within the meaning
of Section 280G(b)(2) of the Code, (B) represents reasonable compensation within
the meaning of Section 280G(b)(4) of the Code or (C) is not otherwise subject to
the excise tax imposed by Section 4999 of the Code; (ii) the value of any
non-cash benefits or of any deferred or accelerated payments or benefits
included in the Total Payments shall be determined by a nationally-recognized
public accounting firm, selected by the Employee, in accordance with the
principles of Sections 280G(d)(3) and (4) of the Code and the regulations or
proposed regulations thereunder; and (iii) in the event of any uncertainty as to
whether a reduction in Total Payments to the Employee is required pursuant
hereto, the Company or the Subsidiary shall initially make all payments
otherwise required to be paid to the Employee hereunder, and any amounts so paid
which are ultimately determined not to have been payable hereunder other than as
a loan to the Employee, either (x) upon mutual agreement of the Employee and the
Company or the Subsidiary, as applicable, or (y) upon Tax Counsel furnishing the
Employee with its written opinion setting forth the amount of such payments not
to have been so payable other than as a loan to the Employee under this Section
11, or (z) in the event a portion of the Total Payments shall be finally
determined by a court or an Internal Revenue Service proceeding to have
otherwise been an "excess parachute payment," the amounts so determined in (x),
(y) or (z) shall constitute a loan by the Company or the Subsidiary, as
applicable, to the Employee under this Section 11, and the Employee shall repay
to the Company within ten (10) business days after the time of such mutual
agreement, such opinion is so furnished to the Employee, or of such
determination, as applicable, the amount of such loan plus interest thereon at
the rate provided in Section 1274(b)(2)(B) of the Code for the period from the
date of the initial payments to the Employee to the date of such repayment by
the Employee. All fees and expenses of any Tax Counsel or accounting firm
selected under this Section 11 shall be borne solely by the Company or the
Subsidiary.
                                      -10-

<PAGE>

                  12.      Notice. Any notices required or permitted hereunder
shall be in writing, signed and shall be deemed to have been given when
personally delivered or when mailed, certified or registered mail, postage
prepaid, to the following addresses:

                           If to the Employee:

                           John D. Franklin
                           9601 Orange Drive
                           Davie, Florida 33328

                           If to the Subsidiary:

                           Statia Terminals, Inc.
                           800 Fairway Drive
                           Suite 295
                           Deerfield Beach, Florida 33441
                           Attention:  Board of Directors


                                      -11-
<PAGE>

                           With a copy to:

                           Castle Harlan Partners II, L.P.
                           150 East 58th Street
                           37th Floor
                           New York, New York 10015
                           Attention:  David B. Pittaway

                           and a copy to:

                           Schulte Roth & Zabel LLP
                           900 3rd Avenue
                           New York, New York 10022
                           Attention:  Andre Weiss, Esq.

                           If to the Company:

                           Statia Terminals Group N. V.
                           c/o Statia Terminals Inc.
                           800 Fairway Drive
                           Suite 295
                           Deerfield Beach, Florida 33441
                           Attention: Board of Directors

                           With a copy to:

                           Castle Harlan Partners II, L.P.
                           150 East 58th Street
                           37th Floor
                           New York, New York 10015
                           Attention:  David B. Pittaway

                           and a copy to:

                           Schulte Roth & Zabel LLP
                           900 3rd Avenue
                           New York, New York 10022
                           Attention:  Andre Weiss, Esq.

                  Each of the Employee, the Subsidiary and the Company may
change its address as for purposes of this Section by sending notice to the
other parties.

                  13. Non-Competition. The Employee shall not, at any time
during the Employment Term and for a period (the "Restricted Period") of three
(3) years thereafter, directly or indirectly, except where specifically
contemplated by the terms of his employment or


                                      -12-
<PAGE>

this Agreement, (a) be employed by, engage in or participate in the ownership,
management, operation or control of, or act in any advisory or other capacity
for, any Competing Entity which conducts its business within the Territory;
provided, however, that notwithstanding the foregoing, the Employee may make
solely passive investments in any Competing Entity the common stock of which is
publicly held and of which the Employee shall not own or control, directly or
indirectly, in the aggregate securities which constitute 5% or more of the
voting rights or equity ownership of such Competing Entity; or (b) solicit or
divert any business or any customer from the Subsidiary or any Affiliate of the
Subsidiary or assist any person, firm or corporation in doing so or attempting
to do so; or (c) cause or seek to cause any person, firm or corporation to
refrain from dealing or doing business with the Subsidiary or any Affiliate of
the Subsidiary or assist any person, firm or corporation in doing so. The
Employee agrees that, notwithstanding any other provision of this Agreement to
the contrary, if he breaches any of his covenants contained in this Section 13,
then, in addition to any other remedy which may be available at law or in
equity, the Company and the Subsidiary shall be entitled to (1) cease or
withhold payment or provision of any severance compensation and benefits to
which the Employee is otherwise entitled pursuant to Section 10(a), and (2)
receive reimbursement from the Employee of any lump-sum payments previously made
to the Employee of any severance compensation payable under Section 10(a) and
any Closing Bonus theretofore paid to the Employee, and the Employee shall
forfeit his right to receive any such severance compensation and Closing Bonus;
provided, however, that any obligation of the Employee to reimburse the Company
or the Subsidiary for any lump-sum payments and Closing Bonus pursuant to clause
(2) of this sentence shall lapse on a pro rata basis as follows: the portion of
such lump-sum payments and Closing Bonus that may be required to be so
reimbursed by the Employee shall be the total of all such lump-sum payments and
Closing Bonus multiplied by a fraction, the numerator of which shall be the
number of days remaining in the Restricted Period following the date on which
the Employee first engages in such breach of his covenants contained in this
Section 13 and the denominator of which shall be the total number of days
comprising the Restricted Period.

                  14.      General.

                           (a)      Governing Law; Captions. The terms of this
Agreement shall be governed by and construed under the laws of the State of
Florida. Paragraph and Section captions used herein are for convenience of
reference only, and shall not in any way affect the meaning or interpretation of
this Agreement.

                           (b)      Assignability. The Employee may not assign
his interest in or delegate his duties under this Agreement. Notwithstanding
anything else in this Agreement to the contrary, the Subsidiary may assign this
Agreement and all rights and obligations of the Subsidiary hereunder shall inure
to the benefit of and bind the assignee or any person, firm or corporation
succeeding to all or substantially all of the business or assets of the
Subsidiary by purchase, merger or consolidation.

                           (c)      Dispute Resolution. With the exception of
the Company's or the Subsidiary's right to elect to seek injunctive relief
pursuant to paragraph (g) of this Section 14, in


                                     -13-
<PAGE>

the event of any dispute between either the Company or the Subsidiary and the
Employee arising out of or relating to this Agreement or its termination or any
other aspect of Employee's employment, the parties hereby agree to submit such
dispute to a non-binding mediation under the American Arbitration Association's
National Rules for the Resolution of Employment Disputes; Arbitration and
Mediation Rules (the "Rules") within sixty (60) days of notice from any one of
the parties to another. Unless the parties can agree on a mediator within thirty
(30) days of such notice, mediation shall proceed pursuant to the Rules. In the
event any such dispute is not resolved by mediation, any party hereto may
initiate an action or claim to enforce any provision or term of this Agreement.
Each party shall bear its or his own costs and expenses (including attorney's
fees) associated with any mediation, action, or claim. If any contest or dispute
shall arise under this Agreement involving the employment or the termination of
employment of the Employee with the Subsidiary and its affiliates or involving
the failure or refusal of the Subsidiary or the Company to perform fully in
accordance with the terms hereof, subject to the Company's and the Subsidiary's
rights under the final sentence of Section 13 hereof, the Subsidiary shall
continue to pay or provide the Employee's base salary, bonus and other
compensation and benefits, at the rate and terms in effect from time to time
pursuant to Section 4(a) hereof, until resolution thereof and, within ten (10)
days of presentation of invoices or other appropriate documentation, pay in
advance all expenses, costs and fees (including, without limitation, fees and
disbursements of counsel) incurred by the Employee in connection with such
contest or dispute or in any other effort to establish the entitlement of the
Employee to any compensation and benefits under this Agreement; provided,
however, that upon a final determination by a court that the Employee is not
entitled to retain any above-mentioned advances, the Employee shall reimburse
the Subsidiary for any such disallowed advances.

                           (d)      Binding Effect. This Agreement is for the
employment of Employee, personally, and the services to be rendered by him must
be rendered by him and no other person. This Agreement shall be binding upon and
inure to the benefit of the Company, the Subsidiary, and the Employee and, as
the case may be, their respective successors and assigns, personal
representatives, heirs and legatees.

                           (e)      Entire Agreement; Modification. This
Agreement constitutes the entire agreement of the parties hereto with respect to
the subject matter hereof and may not be modified or amended in any way except
in writing by the parties.

                           (f)      Duration. Notwithstanding the Employment
Term hereunder, this Agreement shall continue for so long as any obligations
remain under this Agreement, including without limitation any obligations of the
Company or the Subsidiary under Sections 9(b), 10 or 14 of this Agreement.

                           (g)      Survival. The covenants set forth in
Sections 6 and 13 of this Agreement shall survive and shall continue to be
binding upon Employee notwithstanding the termination of this Agreement for any
reason whatsoever. The covenants set forth in Section 6 and Section 13 of this
Agreement shall be deemed and construed as separate agreements independent of
any other provision of this Agreement. The existence of any claim or cause of
action by Employee against Company and/or Subsidiary, whether predicated on this
Agreement

                                      -14-
<PAGE>

or otherwise, shall not constitute a defense to the enforcement by Company or
Subsidiary of any or all covenants. It is expressly agreed that the remedy at
law for the breach of any such covenant is inadequate and that injunctive relief
shall be available to prevent the breach or any threatened breach thereof.

                           (h)      Severability. In case any provision in this
Agreement shall be held invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions hereof will not in any
way be affected or impaired thereby and the parties shall in good faith agree on
a modification of the invalid, illegal or unenforceable provision which renders
it valid, legal or enforceable (as the case may be) and which as closely as
possible reflects the original intent of the parties.

                           (i)      Guaranty of Company. The Company hereby
unconditionally guarantees to Employee the full and timely performance by
Subsidiary of its obligations under this Agreement.

                                      -15-

<PAGE>

         IN WITNESS WHEREOF, the parties hereto, intending to be legally bound,
have hereunto executed this Agreement the day and year first written above.



                             Statia Terminals, Inc.



Date:    November 12, 2001    By: /s/ James G. Cameron
                                  ---------------------------------------------
                                   Name:  James G. Cameron
                                   Title: Chairman of the Board and President



                              Statia Terminals Group N.V.



Date:    November 12, 2001    By: /s/ David B. Pittaway
                                  ---------------------------------------------
                                   Name:  David B. Pittaway
                                   Title: Director



Date:    November 12, 2001    By: /s/ James G. Cameron
                                  --------------------
                                   Name:  James G. Cameron
                                   Title: Director



                              EMPLOYEE



Date:    November 12, 2001    /s/ John D. Franklin
                              -------------------------------------------------
                                    John D. Franklin


                                      -16-