Document:

Exhibit 10.11

 

EXECUTION COPY

 

EMPLOYMENT
AGREEMENT (this “Agreement”) dated as of July 26, 2005, between
DOUBLE HULL TANKERS, INC., a corporation incorporated under the laws of the
Republic of the Marshall Islands (“Employer”), and EIRIK UBØE, an
individual (“Executive”).

 

WHEREAS Employer intends to consummate an initial
public offering of its common stock (the “IPO”);

 

WHEREAS Employer desires to employ Executive as its
Chief Financial Officer upon the consummation of the IPO; and

 

WHEREAS Executive is willing to serve in the employ of
Employer for the period and upon the other terms and conditions of this
Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and
the respective representations, warranties, covenants and agreements set forth
herein, the parties hereto agree as follows:

 

ARTICLE I

 

Employment

 

SECTION 1.01.  Effectiveness.  This Agreement shall become effective on June 15,
2005; provided, however, that this Agreement shall be null and
void and of no further force and effect if the consummation of the IPO (the “Closing”)
does not occur by November 30, 2005; provided, further that
this Agreement shall be null and void and of no further force and effect upon
such earlier date that the Employer affirmatively determines to cancel the IPO (it
being understood that, in the event this Agreement becomes null and void
pursuant to the preceding part of this sentence, Executive shall not be subject
or entitled to any of the provisions set forth in this Agreement, including,
without limitation, the termination provisions of Article III; provided,
however, that (a) Executive shall be entitled to (i) receive
his Salary through the earlier of the first anniversary of the date on which
the Employer affirmatively determines to cancel the IPO and November 30,
2006 and (ii) the amounts referred to in Section 3.02 and (b) the
provisions of Article IV shall apply, except that the provisions of Section 4.05
shall only apply for the period during which Executive is entitled to receive
his Salary pursuant to (a) of this proviso).

 

SECTION 1.02.  Term.  The term of Executive’s employment under this
Agreement (the “Term”) shall commence on June 15, 2005 (the “Commencement
Date”), and, unless earlier terminated pursuant to the provisions of Article III,
shall terminate on the third anniversary of the Commencement Date, provided
that such term may be 

 

 

extended by Employer, in
its sole discretion, for a term to be determined by Employer upon giving
six months’ prior written notice to Executive of its intent to so extend.

 

SECTION 1.03.  Position.  During the Term, Employer shall employ
Executive, and Executive shall serve, as Chief Financial Officer, reporting to
the Chief Executive Officer.  Executive
shall have the duties, responsibilities and authority as are typical for such
position at companies of comparable size to Employer and within Employer’s industry,
including general executive authority over Employer’s affairs arising in the
ordinary course of business, and shall perform the other services and duties as
determined from time to time by the Board of Directors of Employer (the “Board”).

 

SECTION 1.04.  Time and Effort.  Executive shall serve Employer faithfully,
loyally, honestly and to the best of Executive’s ability.  Executive shall devote substantially all of
Executive’s business time to the performance of Executive’s duties on behalf of
Employer.  During the Term, Executive
shall not, directly or indirectly, engage in any employment or other activity
that, in the sole discretion of the Board, is competitive with or adverse to
the business, practice or affairs of Employer or any of its affiliates, whether
or not such activity is pursued for profit or other advantage, or that would
conflict or interfere with the rendition of Executive’s services or duties, provided
that Executive may serve on civic or charitable boards or committees and serve
as a non-employee member of a board of directors of a corporation as to which
the Board has given its consent.  Prior
to the Closing, Executive shall resign from or terminate all positions,
relationships and activities that would be inconsistent with the foregoing.

 

SECTION 1.05.  Location and Travel.  During the Term, Executive shall be
physically present at Employer’s offices in St. Helier, Jersey, Channel Islands
when discussing, deliberating over or making any material decision regarding or
affecting Employer or its business or affairs (whether or not such activity
includes or involves the Board), as determined by the Board in its discretion.  Executive acknowledges and agrees that his
duties and responsibilities to Employer will require him to travel worldwide
from time to time, including to Employer’s offices in the Channel Islands.

 

ARTICLE II

 

Compensation

 

SECTION 2.01.  Salary.  As compensation for all services rendered by
Executive to Employer and all its affiliates in any capacity and for all other
obligations of Executive hereunder, Employer shall pay Executive a salary (“Salary”)
during the Term at the annual rate of $275,000, payable monthly to a bank
account specified by Executive.

 

SECTION 2.02.  Annual Bonus.  During the Term, Executive shall be eligible
to receive an annual cash bonus in such amount and subject to such terms and
conditions as the Board may determine in its discretion.

 

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SECTION 2.03.  Equity Awards.  Upon the pricing date of the IPO, Executive
shall receive, pursuant to an incentive compensation plan to be adopted by
Employer prior to the IPO, stock options with respect to Employer’s common
stock (“Options”) and restricted shares of Employer’s common stock (“Restricted
Stock”) having an aggregate grant-date value of $75,000 (the “Initial Grants”).  The Initial Grants shall be divided equally
between Options, which will vest pro-rata over three years, and Restricted
Stock, which will vest pro rata over four years.  In the event the Closing fails to occur for
any reason by November 30, 2005, then the Initial Grants will be
automatically canceled and the Executive will be entitled to no benefits or
payments with respect thereto.  The
Initial Grants and the other terms and conditions thereof shall be evidenced by
award agreements to be entered into by Executive and Employer.  During the Term, Executive shall be eligible
to receive other awards of equity interests in Employer in such amounts and
subject to such terms and conditions as the Board may determine in its
discretion.

 

SECTION 2.04.  Benefits.  During the Term, Executive shall not be
entitled to receive, and Employer shall have no obligation to provide, any
employee benefits (including health, welfare, disability, pension, retirement
and death benefits), fringe benefits or perquisites, except as otherwise set
forth herein.

 

SECTION 2.05.  Vacation.  During each calendar year of the Term, Executive
shall be entitled to four weeks of paid vacation from Employer, pro rated for
any partial calendar year.

 

SECTION 2.06.  Business Expenses.  Employer shall reimburse Executive for all
necessary and reasonable “out-of-pocket” business expenses incurred by
Executive in the performance of Executive’s duties hereunder, provided
that Executive furnishes to Employer adequate records and other documentary
evidence required to substantiate such expenditures and otherwise complies with
any travel and expense reimbursement policy established by the Board from time
to time.

 

SECTION 2.07.  Withholdings.  Employer and its affiliates may withhold or
deduct from any amounts payable under this Agreement such taxes, fees,
contributions and other amounts as may be required to be withheld or deducted
pursuant to any applicable law or regulation.

 

ARTICLE III

 

Termination

 

SECTION 3.01.  General; Exclusive Rights.  Subject to the provisions of this Article III,
Executive’s employment with Employer may be terminated by Executive or Employer
at any time and for any reason, which termination shall be effective on the
date specified by Executive or Employer, as the case may be.  In the event that Executive’s employment with
Employer is terminated, whether by Employer or Executive, at any time and for
any reason, Executive shall have no further rights to any 

 

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compensation, payments or
any other benefits under this Agreement or any other contract, plan, policy or
arrangement with Employer or its affiliates, except as set forth in this Article III.

 

SECTION 3.02.  Accrued Rights.  Upon the termination of Executive’s
employment with Employer, whether by Employer or Executive, at any time and for
any reason, Executive shall be entitled to receive (a) Salary earned
through the date of termination that remains unpaid as of such date and (b) reimbursement
of any unreimbursed business expenses incurred by Executive prior to the date
of termination to the extent such expenses are reimbursable under Section 2.06
(all such amounts, the “Accrued Rights”).

 

SECTION 3.03.  Termination by Employer Other Than
for Cause.  (a)  If (i) Employer
elects to terminate Executive’s employment during the Term for any reason other
than Cause (as defined below) or (ii) Employer elects not to extend the
Term in accordance with Section 1.02 and Employer would not at such time
have Cause to terminate Executive’s employment, then (A) Employer shall
continue to pay Executive’s Salary through the later of (1) the third
anniversary of the Commencement Date and (2) the first anniversary of the
effective date of Executive’s termination of employment and (B) in the
event of a termination pursuant to clause (i), all equity-based
compensation granted to Executive pursuant to Section 2.03 (including the
Initial Grants) shall immediately vest and become exercisable, subject to the
other terms and conditions of such grants, provided that Employer shall
not be obligated to commence any payment under this Section 3.03, and Executive
shall not be entitled to any such acceleration, until such time as Executive
has provided an irrevocable waiver and general release of claims, including
Executive’s right to notice pursuant to the Employment (Jersey) Law, 2003, as
amended (other than Executive’s rights under this Agreement ), in favor of
Employer, its affiliates, and their respective directors, officers, employees,
agents and representatives in form and substance acceptable to Employer; provided,
further, that Employer shall be entitled to cease making, and Executive
shall forfeit any entitlement to receive, such payments in the event that
Executive breaches any of his obligations under Article IV.

 

(b)  For
purposes of this Agreement, the term “Cause” shall mean (i) Executive’s  failure to
perform those duties that Executive is required or expected to perform pursuant
to this Agreement, (ii) Executive’s dishonesty or breach of any fiduciary
duty to Employer in the performance of Executive’s duties hereunder, (iii) Executive’s
conviction of, or a plea of guilty or nolo contendere to, a misdemeanor
involving moral turpitude, fraud, dishonesty, theft, unethical business conduct
or conduct that impairs the reputation of Employer or any of its affiliates or
any felony (or the equivalent thereof in any jurisdiction), (iv) Executive’s
gross negligence or willful misconduct in connection with Executive’s duties
hereunder or any act or omission that is injurious to the financial condition
or business reputation of Employer or any of its affiliates or (v) Executive’s
breach of the provisions of Article IV of this Agreement.

 

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SECTION 3.04.  Termination upon Death or
Disability.  (a)  Executive’s
employment with Employer shall terminate immediately upon Executive’s death or
Disability (as defined below).  In the
event Executive’s employment terminates due to death or Disability, then
Employer shall continue to pay Executive’s Salary through the first anniversary
of the effective date of such termination of employment.

 

(b)  For
purposes of this Agreement, the term “Disability” shall mean the
inability of Executive, due to illness, accident or any other physical or
mental incapacity, to perform Executive’s duties in a normal manner for a
period of 120 days (whether or not consecutive) in any twelve-month period
during the Term.   The Board shall
determine, on the basis of the facts then available, whether and when the
Disability of Executive has occurred. 
Such determination shall take into consideration the expert medical
opinion of a physician mutually agreeable to Employer and Executive based upon
such physician’s examination of Executive. 
Executive agrees to make himself available for such examination upon the
reasonable request of Employer.

 

SECTION 3.05.  Termination by Executive.  If Executive terminates his employment with
Employer for any reason, Executive shall provide written notice to Employer at
least 30 days prior to the effective date of such termination.

 

SECTION 3.06.  Change of Control.  (a)  In the event that Executive’s
employment is terminated by Executive for Good Reason within one year following
a Change of Control, Executive shall be entitled to receive the continuation of
his Salary through the later of (i) the third anniversary of the
Commencement Date and (ii) the first anniversary of the effective date of
Executive’s termination of employment.

 

(b)  For
purposes of this Agreement, the term

 

(i) “Change
of Control” shall mean the occurrence of any of the following events, not including
any events occurring prior to or in connection with the IPO (including the
occurrence of such IPO):

 

(A) the
consummation of (1) a merger, consolidation, statutory share exchange or
similar form of corporate transaction involving (x) Employer or (y) any
entity in which Employer, directly or indirectly, possesses 50% or more of the
total combined voting power of all classes of its stock, but in the case of
this clause (y) only if Employer Voting Securities (as defined below) are
issued or issuable in connection with such transaction (each of the
transactions referred to in this clause (1) being hereinafter referred to
as a “Reorganization”) or (2) the sale or other disposition of all or
substantially all the assets of Employer to an entity that is not an affiliate
(a “Sale”) if such Reorganization or Sale requires the approval of Employer’s
stockholders under the law of Employer’s jurisdiction of organization (whether
such approval is required for such Reorganization or Sale or for the issuance
of securities of Employer in such Reorganization or 

 

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Sale), unless,
immediately following such Reorganization or Sale, (I) all or
substantially all the individuals and entities who were the “beneficial owners”
(as such term is defined in Rule 13d-3 under the Exchange Act (or a
successor rule thereto)) of the Shares or other securities eligible to
vote for the election of the Board (collectively, the “Employer Voting
Securities”) outstanding immediately prior to the consummation of such
Reorganization or Sale beneficially own, directly or indirectly, more than 50%
of the combined voting power of the then outstanding voting securities of the
entity resulting from such Reorganization or Sale (including, without limitation,
an entity that as a result of such transaction owns Employer or all or
substantially all the Employer’s assets either directly or through one or more
subsidiaries) (the “Continuing Entity”) in substantially the same proportions
as their ownership, immediately prior to the consummation of such
Reorganization or Sale, of the outstanding Employer Voting Securities
(excluding any outstanding voting securities of the Continuing Entity that such
beneficial owners hold immediately following the consummation of the
Reorganization or Sale as a result of their ownership prior to such
consummation of voting securities of any entity involved in or forming part of
such Reorganization or Sale other than Employer and its affiliates) and (II) no
Person beneficially owns, directly or indirectly, 30% or more of the combined
voting power of the then outstanding voting securities of the Continuing Entity
immediately following the consummation of such Reorganization or Sale;

 

(B) the
stockholders of Employer approve a plan of complete liquidation or dissolution
of Employer; or

 

(C) any “person”
or “group” (as such terms are used in Sections 13(d) and 14(d)(2) of
the Exchange Act, respectively) (other than Employer or an affiliate) becomes
the beneficial owner, directly or indirectly, of securities of Employer
representing 50% or more of the then outstanding Employer Voting Securities; provided
that for purposes of this subparagraph (C), any acquisition directly from
Employer shall not constitute a Change of Control; and

 

(ii) “Good
Reason” shall mean the occurrence of any of the following events or
circumstances (without the prior written consent of Executive):  (A) a material reduction by Employer of
Executive’s authority or a material change in Executive’s functions, duties or
responsibilities, (B) a reduction in Executive’s Salary, (C) a
requirement that Executive report to anyone other than the Board, (D) a
requirement that Executive relocate his residence (it being understood that the
requirements set forth in Section 1.05 do not constitute a requirement to
relocate) or (E) a breach by Employer of any material obligation of
Employer under this Agreement (which breach has not been cured within 30 days
after written notice 

 

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thereof is provided to
Employer by Executive specifically identifying such breach in reasonable
detail).

 

ARTICLE IV

 

Executive Covenants

 

SECTION 4.01.  Employer’s Interests.  Executive acknowledges that Employer has
expended substantial amounts of time, money and effort to develop business
strategies, substantial customer and supplier relationships, goodwill, business
and trade secrets, confidential information and intellectual property and to
build an efficient organization and that Employer has a legitimate business
interest and right in protecting those assets as well as any similar assets
that Employer may develop or obtain following the Commencement Date.  Executive acknowledges and agrees that the
restrictions imposed upon Executive under this Agreement are reasonable and
necessary for the protection of such assets and that the restrictions set forth
in this Agreement will not prevent Executive from earning an adequate and
reasonable livelihood and supporting his dependents without violating any provision
of this Agreement.  Executive further
acknowledges that Employer would not have agreed to enter into this Agreement
without Executive’s agreeing to enter into, and to honor the provisions and
covenants of, this Article IV. 
Therefore, Executive agrees that, in consideration of Employer’s
entering into this Agreement and Employer’s obligations hereunder and other
good and valuable consideration, the receipt of which is hereby acknowledged by
Executive, Executive shall be bound by, and agrees to honor and comply with,
the provisions and covenants contained in this Article IV following the
Commencement Date.

 

SECTION 4.02.  Scope of Covenants.  For purposes of this Article IV, the
term “Employer” includes Employer’s affiliates, and its and their predecessors,
successors and assigns.

 

SECTION 4.03.  Non-Disclosure of Confidential
Information.  (a)  Executive
acknowledges that, in the performance of his duties as an employee of Employer,
Executive may be given access to Confidential Information (as defined below).  Executive agrees that all Confidential
Information has been, is and will be the sole property of Employer and that
Executive has no right, title or interest therein.  Executive shall not, directly or indirectly,
disclose or cause or permit to be disclosed to any person, or utilize or cause
or permit to be utilized, by any person, any Confidential Information acquired
pursuant to Executive’s employment with Employer (whether acquired prior to or
subsequent to the execution of this Agreement or the Commencement Date) or
otherwise, except that Executive may (i) utilize and disclose Confidential
Information as required in the discharge of Executive’s duties as an employee
of Employer in good faith, subject to any restriction, limitation or condition
placed on such use or disclosure by Employer, and (ii) disclose
Confidential Information to the extent required by applicable law or as ordered
by a court of competent jurisdiction.

 

7

 

(b)  For
purposes of this Agreement, “Confidential Information” shall mean trade
secrets and confidential or proprietary information, knowledge or data that is
or will be used, developed, obtained or owned by Employer relating to the
business, operations, products or services of Employer or of any customer,
supplier, employee or independent contractor thereof, including products,
services, fees, pricing, designs, marketing plans, strategies, analyses,
forecasts, formulas, drawings, photographs, reports, records, computer software
(whether or not owned by, or designed for, Employer), operating systems,
applications, program listings, flow charts, manuals, documentation, data,
databases, specifications, technology, inventions, developments, methods,
improvements, techniques, devices, products, know-how, processes, financial
data, customer or supplier lists, contact persons, cost information, regulatory
matters, employee information, accounting and business methods, trade secrets,
copyrightable works and information with respect to any supplier, customer,
employee or independent contractor of Employer, in each case whether patentable
or unpatentable, whether or not reduced to writing or other tangible medium of
expression and whether or not reduced to practice, and all similar and related
information in any form; provided, however, that Confidential
Information shall not include information that is generally known to the public
other than as a result of disclosure by Executive in breach of this Agreement
or in breach of any similar covenant made by Executive or any other duty of
confidentiality.

 

SECTION 4.04.  Non-Disparagement.  After the date hereof, Executive shall not,
whether in writing or orally, criticize or disparage Employer, its business or
any of its customers, clients, suppliers or vendors or any of its current or
former, stockholders, directors, officers, employees, agents or representatives
or any affiliates, directors, officers or employees of any of the foregoing, provided
that Executive may provide critical assessments of Employer to Employer during
the Term.

 

SECTION 4.05.  Non-Competition.  (a)  For the Restricted Period (as
defined below), Executive shall not directly or indirectly, without the prior
written consent of the Board:

 

(i) engage in any activity or business, or establish any new
business, in any location that is involved with the voyage, chartering or time
chartering of crude oil tankers, including assisting any person in any way to
do, or attempt to do, any of the foregoing;

 

(ii) (A) solicit any person that is a customer or client
(or prospective customer or client) of Employer or any of its affiliates to
purchase any goods or services of the type sold by Employer or any of its
affiliates from any person other than Employer or any of its affiliates or to
reduce or refrain from doing (or otherwise change the terms or conditions of)
any business with Employer or any of its affiliates, (B) interfere with or
damage (or attempt to interfere with or damage) any relationship between
Employer or any of its affiliates and their respective employees, customers,
clients, vendors or suppliers (or any person that Employer or any of its
affiliates have approached or have made significant plans to approach as a
prospective employee, customer, client, vendor or supplier) or 

 

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any governmental
authority or any agent or representative thereof or (C) assist any person
in any way to do, or attempt to do, any of the foregoing; or

 

(iii) form, or acquire a two (2%) percent or greater equity
ownership, voting or profit participation interest in, any Competitor.

 

(b)  For
purposes of this Agreement, the term “Restricted Period” shall mean a
period commencing on the date of the Commencement Date and terminating one year
from the date Executive ceases to be an employee of Employer for any
reason.  The Restricted Period shall be
tolled during (and shall be deemed automatically extended by) any period in
which Executive is in violation of this Section 4.07.

 

(c)  For
purposes of this Agreement, the term “Competitor” means any person that engages in any activity, or owns or
controls a significant interest in any person that engages in any activity, in
the voyage, chartering and time chartering of crude oil tankers; provided
that a Competitor shall not include any person who the Board has deemed,
through its prior written approval, not to be a Competitor.

 

SECTION 4.06.  Records.  All memoranda, books, records, documents,
papers, plans, information, letters, computer software and hardware, electronic
records and other data relating to Confidential Information, whether prepared
by Executive or otherwise, in Executive’s possession shall be and remain the
exclusive property of Employer, and Executive shall not directly or indirectly
assert any interest or property rights therein. 
Upon termination of employment with Employer for any reason, and upon
the request of Employer at any time, Executive will immediately deliver to
Employer all such memoranda, books, records, documents, papers, plans, information,
letters, computer software and hardware, electronic records and other data, and
all copies thereof or therefrom, and Executive will not retain, or cause or
permit to be retained, any copies or other embodiments of such materials.

 

SECTION 4.07.  Specific Performance.  Executive agrees that any breach by Executive
of any of the provisions of this Article IV shall cause irreparable harm
to Employer that could not be adequately compensated by monetary damages and
that, in the event of such a breach, Executive shall waive the defense in any
action for specific performance that a remedy at law would be adequate, and
Employer shall be entitled to (a) specifically enforce the terms and
provisions of this Article IV without the necessity of proving actual damages
or posting any bond or providing prior notice and (b) cease making any
payments or providing any benefit otherwise required by this Agreement
(including payments under Section 3.03), in each case in addition to any
other remedy to which Employer may be entitled at law or in equity.  Without limiting the generality of the
foregoing, in any proceeding in which Employer seeks enforcement of this
Agreement or seeks relief from Executive’s violation of this Agreement and
Employer prevails in such proceeding, Employer shall be entitled to recover
from Executive all litigation costs and attorneys’ fees and expenses incurred
by Employer in any suit, action or proceeding arising out of or relating to
this Agreement.

 

9

 

SECTION 4.08.  Executive Representations and
Warranties.  Executive represents and
warrants to Employer that the execution and delivery of this Agreement by
Executive and the performance by Executive of Executive’s duties hereunder
shall not constitute a breach of, or otherwise contravene, or conflict with the
terms of any contract, agreement, arrangement, policy or understanding to which
Executive is a party or otherwise bound.

 

SECTION 4.09.  Cooperation.  Following the termination of Executive’s employment,
Executive shall provide reasonable assistance to and cooperation with Employer
in connection with any suit, action or proceeding (or any appeal therefrom)
relating to acts or omissions that occurred during the period of Executive’s
employment with Employer.  Employer shall
reimburse Executive for any reasonable expenses incurred by Executive in
connection with the provision of such assistance and cooperation.

 

ARTICLE V

 

Miscellaneous

 

SECTION 5.01.  Assignment.  This Agreement is personal to Executive and
shall not be assignable by Executive. 
The parties agree that any attempt by Executive to delegate Executive’s
duties hereunder shall be null and void. 
Employer may assign this Agreement and its rights and obligations
thereunder, in whole or in part, to any person that is an affiliate, or a
successor in interest to substantially all the business or assets, of
Employer.  Upon such assignment, the
rights and obligations of Employer hereunder shall become the rights and
obligations of such affiliate or successor person, and Executive agrees that
Employer shall be released and novated from any and all further liability
hereunder.  For purposes of this
Agreement, the term “Employer” shall mean Employer as hereinbefore defined in
the recitals to this Agreement and any permitted assignee to which this
Agreement is assigned.

 

SECTION 5.02.  Successors.  This Agreement shall be binding upon and
shall inure to the benefit of the successors and permitted assigns of Employer
and the personal and legal representatives, executors, administrators,
successors, distributees, devisees and legatees of Executive.  Executive acknowledges and agrees that all
Executive’s covenants and obligations to Employer, as well as the rights of
Employer under this Agreement, shall run in favor of and will be enforceable by
Employer, its affiliates and their successors and permitted assigns.

 

SECTION 5.03.  Entire Agreement.  This Agreement contains the entire
understanding of Executive, on the one hand, and Employer and its affiliates,
on the other hand, with respect to the subject matter hereof, and all oral or
written agreements or representations, express or implied, with respect to the
subject matter hereof are set forth in this Agreement.

 

10

 

SECTION 5.04.  Amendment.  This Agreement may not be altered, modified
or amended except by written instrument signed by the parties hereto.

 

SECTION 5.05.  Notice.  All notices, requests, demands and other
communications required or permitted to be given under the terms of this
Agreement shall be in writing and shall be deemed to have been duly given when
delivered by hand or overnight courier, return receipt requested, postage
prepaid, addressed to the other party as set forth below:

 

	
  If to Employer:

  	
   

  	
  Double Hull Tankers, Inc.

  
	
   

  	
   

  	
  26 New Street

  
	
   

  	
   

  	
  St. Helier, Jersey JE23RA

  
	
   

  	
   

  	
  Channel Islands

  
	
   

  	
   

  	
  Attn: Board of Directors

  
	
   

  	
   

  	
   

  
	
  If to Executive:

  	
   

  	
  Eirik Ube

  
	
   

  	
   

  	
  Jacob Neumannsvei 42

  
	
   

  	
   

  	
  1384 Asker, Norway

  

 

The parties may change the address to which notices under this
Agreement shall be sent by providing written notice to the other in the manner
specified above.

 

SECTION 5.06.  Governing Law; Jurisdiction; Waiver
of Jury Trial.  This Agreement shall
be governed by and construed in accordance with the laws of Jersey, without
regard to the conflicts of law principles thereof, and both Employer and
Executive submit to the non-exclusive jurisdiction of the Royal Court of Jersey
in all matters arising out of or in connection with this Agreement.

 

SECTION 5.07.  Severability.  If any term, provision, covenant or condition
of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable in any jurisdiction, then such provision,
covenant or condition shall, as to such jurisdiction, be modified or restricted
to the extent necessary to make such provision valid, binding and enforceable,
or, if such provision cannot be modified or restricted, then such provision
shall, as to such jurisdiction, be deemed to be excised from this Agreement and
any such invalidity, illegality or unenforceability with respect to such
provision shall not invalidate or render unenforceable such provision in any
other jurisdiction, and the remainder of the provisions hereof shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

 

SECTION 5.08.  Survival.  Subject to Section 1.01, the rights and
obligations of Employer and Executive under the provisions of this Agreement,
including Articles IV and V of this Agreement, shall survive and remain
binding and enforceable, notwithstanding any termination of Executive’s
employment with Employer for any reason, to the extent necessary to preserve
the intended benefits of such provisions.

 

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SECTION 5.09.  No Waiver.  The failure of a party to insist upon strict
adherence to any term of this Agreement on any occasion shall not be considered
a waiver of such party’s rights or deprive such party of the right thereafter
to insist upon strict adherence to that term or any other term of this
Agreement.

 

SECTION 5.10.  Counterparts.  This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

 

SECTION 5.11.  Construction.  (a)  The headings in this Agreement are
for convenience only, are not a part of this Agreement and shall not affect the
construction of the provisions of this Agreement.

 

(b)  For
purposes of this Agreement, the words “include” and “including”, and variations
thereof, shall not be deemed to be terms of limitation but rather will be
deemed to be followed by the words “without limitation”.

 

(c)  For
purposes of this Agreement, the term “person” means any individual,
partnership, company, corporation or other entity of any kind.

 

(d)  For
purposes of this Agreement, the term “affiliate”, with respect to any person,
means any other person that controls, is controlled by or is under common
control with such person.

 

REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

 

12

 

IN WITNESS WHEREOF, the parties have duly executed
this Agreement as of the date first written above.

 

 

	
   

  	
  DOUBLE HULL TANKERS, INC.,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Erik A. Lind

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Erik A. Lind

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chairman

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EIRIK UBØE,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Eirik Ube

  	
   

  

 

13Exhibit
10.11.1

 

EXECUTION COPY

 

INDEMNIFICATION
AGREEMENT (the “Agreement”) effective from June 15, 2005, between
Double Hull Tankers, Inc., a corporation incorporated under the laws of
the Republic of the Marshall Islands (the “Corporation”), and EIRIK UBØE,
an individual (the “Covered Person”).

 

WHEREAS, the
Corporation desires to employ the Covered Person as its Chief Financial Officer
upon the consummation of an initial public offering of the common stock of the
Corporation;

 

WHEREAS, the
Covered Person is willing to serve as the Chief Financial Officer pursuant to
the terms of an employment agreement between the Corporation and the Covered
Person and this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing and the terms set forth herein,
the parties hereto hereby agree as follows:

 

SECTION 1.01. Right to
Indemnification.  The Corporation
shall indemnify and hold harmless, to the fullest extent permitted by
applicable law as it presently exists or may hereafter be amended, the Covered
Person against all liability and loss suffered, and expenses (including
attorneys’ fees) actually and reasonably incurred, by such Covered Person in
connection with any action, suit, claim, inquiry or proceeding, whether civil,
criminal, administrative or investigative (including an action by or in the
right of the Corporation) and whether formal or informal (a “Proceeding”)
and by reason of the fact that he, or a person for whom he is the legal
representative, is or was a director or officer of the Corporation or, while a
director or officer of the Corporation, is or was serving at the request of the
Corporation as a director, officer, employee, trustee or agent of another
corporation or of a partnership, joint venture, trust, nonprofit entity or
other entity, including service with respect to employee benefit plans.  Notwithstanding the preceding sentence,
except as otherwise provided in Section 1.03, the Corporation shall be
required to indemnify or advance expenses to a Covered Person in connection
with a Proceeding (or part thereof) commenced by such Covered Person (and not
by way of defense) only if the commencement of such Proceeding (or part
thereof) by the Covered Person (i) was authorized in the specific case by
the Board, or (ii) was brought to establish or enforce a right to
indemnification under this Agreement, the Corporation’s Bylaws, the Corporation’s
Amended and Restated Articles of Incorporation, any other agreement, the
Business Corporation Act of the Republic of the Marshall Islands or otherwise.

 

SECTION 1.02. Prepayment
of Expenses.  The Corporation shall
to the fullest extent not prohibited by applicable law pay the expenses
(including attorneys’ fees) actually and reasonably incurred by the Covered
Person who was or is made or is threatened to be made a party to or a witness
in or is otherwise involved in any Proceeding, by reason of the fact that he,
or a person for whom he is the legal representative, is or was a director or
officer of the Corporation or, while a director or officer of the Corporation,
is or was serving at the request of the Corporation as a director, officer,
employee, trustee or agent of another corporation or of a partnership, 

 

 

joint venture, trust, nonprofit entity or other entity, including
service with respect to employee benefit plans in advance of its final
disposition, provided, however, that, to the extent required by law, such
payment of expenses in advance of the final disposition of the proceeding shall
be made only upon receipt of an undertaking by the Covered Person to repay all
amounts advanced if it should be ultimately determined that the Covered Person
is not entitled to be indemnified under this Agreement or otherwise.

 

SECTION 1.03. Claims.  If a claim for indemnification (following the
final disposition of such action, suit or proceeding) or advancement of
expenses under this Agreement is not paid in full within thirty days after a
written claim therefor by the Covered Person has been presented to the
Corporation, the Covered Person may file suit against the Corporation to
recover the unpaid amount of such claim and, if successful in whole or in part,
shall be entitled to be paid the expense of prosecuting such claim.  In addition, the Covered Person may file suit
against the Corporation to establish a right to indemnification or advancement
of expenses.  In any such action the
Corporation shall have the burden of proving by clear and convincing evidence
that the Covered Person is not entitled to the requested indemnification or
advancement of expenses under applicable law.

 

SECTION 1.04. Nonexclusivity
of Rights.  The rights conferred on the
Covered Person by this Agreement shall not be exclusive of any other rights
which such Covered Person may have or hereafter acquire under any statute,
provision of the certificate of incorporation, the bylaws of the Corporation, any
other agreement, vote of stockholders or disinterested directors or otherwise.

 

SECTION 1.05. Other
Sources.  The Corporation’s
obligation, if any, to indemnify or to advance expenses to any Covered Person
who was or is serving at its request as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust, enterprise or
nonprofit entity shall be reduced to the extent such Covered Person has
otherwise actually received payment (under any insurance policy or otherwise)
of the amounts otherwise payable by the Corporation.

 

ARTICLE II

 

GENERAL PROVISIONS

 

SECTION 2.01. Amendments.  This Agreement may not be amended, added to,
altered or repealed except by written instrument signed by each of the parties
hereto.

 

SECTION 2.02. Severability.  If any term, provision or covenant of this
Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable in any jurisdiction, then such term, provision or
covenant shall, as to such jurisdiction, be modified or restricted to the
extent necessary to make such provision valid, binding and enforceable, or, if
such provision cannot be modified or restricted, then such provision shall, as
to such jurisdiction, be deemed to be excised from this Agreement and any such
invalidity, illegality or unenforceability with respect to such 

 

 

provision shall not invalidate or render unenforceable such provision
in any other jurisdiction, and the remainder of the provisions hereof shall
remain in full force and effect an shall in no way be affected, impaired or
invalidated.

 

SECTION 2.03. Survival.  The rights and obligations of each party to
the this Agreement shall survive and remain binding and enforceable,
notwithstanding any termination of the Covered Person’s employment with the
Corporation, to the extent necessary to preserve the intended benefits of such
provisions.

 

SECTION 2.04. Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the Republic of The
Marshall Islands.

 

SECTION 2.05. Counterparts.  This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

 

SECTION 2.06. No Waiver.  The failure of a party to insist upon strict
adherence to any term of this Agreement on any occasion shall not be considered
a waiver of such party’s rights or deprive such party of the right thereafter
to insist upon strict adherence to that term or any other term of this
Agreement.

 

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
July 26, 2005.

 

 

	
   

  	
  DOUBLE HULL
  TANKERS, INC.,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Erik A. Lind

  	
   

  
	
   

  	
   

  	
   

  	
  Erik Lind, on behalf of the Board of Directors of Double Hull Tankers,

  Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Eirik Uboe

  	
   

  
	
   

  	
   

  	
   

  	
  EIRIK UBØE

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