Document:

Exhibit 10.5

 

 

CHARTER
FRAMEWORK AGREEMENT

 

by and
among

 

DOUBLE
HULL TANKERS, INC.,

 

AND

 

OSG
INTERNATIONAL, INC.

 

AND

 

EACH OF
THE CHARTERERS NAMED HEREIN

 

 

 

THIS CHARTER FRAMEWORK
AGREEMENT is entered into as of October 6, 2005 by and among Double Hull
Tankers, Inc., a Marshall Islands corporation (the “Company”), OSG
International, Inc. (“OIN”), and each of the owners (the “Owners”)
and the charterers (the “Charterers”) named on Schedule A
hereto.  The Company, the Owners, OIN and
the Charterers are collectively referred to herein as the “Parties.”

 

 RECITALS:

 

 WHEREAS, the Owners are the owners of those
vessels (the “Vessels”) set forth opposite their names on Schedule A
hereto;

 

WHEREAS,
pursuant to the Memoranda of Agreement, wholly owned subsidiaries of OIN have
agreed to sell to the Owners, and the Owners have agreed to purchase from such
subsidiaries, the Vessels on the terms and subject to the conditions set forth
therein;

 

WHEREAS,
pursuant to the Time Charters, each of the Owners has agreed to charter its
Vessel to one of the Charterers, as set forth on Schedule A, on the terms
and subject to the conditions set forth therein;

 

WHEREAS, the
Parties desire to enter into this Agreement to evidence the Parties’
understanding with respect to the calculation and payment of certain profit
sharing payments related to the Time Charters;

 

 NOW, THEREFORE, in consideration of the
premises and the covenants, conditions, and agreements contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

(a) “Additional Hire Payment Amount”
is defined in Section 2.01.

 

(b) “Affiliate” of a Person means
any Person directly or indirectly controlling, controlled by, or under common
control with such Person.

 

(c) “Aframax” means the Overseas Cathy, the Overseas Sophie,
the Rebecca and the Ania.

 

(d) “Agreement” means this
Charter Framework Agreement, as it may be amended, modified, or supplemented
from time to time.

 

2

 

(e) “Basic Hire” shall have the
meaning set forth in Clause 99 of each of the Time Charters.

 

(f) “Broker Panel” means The
Association of Shipbrokers and Agents Tanker Broker Panel or another panel of
brokers mutually acceptable to the Company and OIN.

 

(g)  “Business Day” means any day
other than (a) Saturday or Sunday or (b) any other day on which banks
in New York, New York are permitted or required to be closed.

 

(h) “Calculated Additional Hire”
means:

 

(A) if the Aggregate TCE Revenue exceeds
the Aggregate Basic Hire Paid, an amount equal to (x) the difference of the
Aggregate TCE Revenue minus the Aggregate Basic Hire Paid, times (y) 40%; and

 

(B) if the Aggregate TCE Revenue is less
than the Aggregate Basic Hire Paid, zero dollars.

 

(i) “Calculation Period” is
defined in Section 4.02(a) for the period commencing on the Effective
Date through September 30, 2006 and in Section 4.03(a) for
periods after September 30, 2006.

 

(j) “Effective Date” means the date on
which the Owners have completed the purchase from OIN’s subsidiaries of the
Vessels and the Time Charters become effective.

 

(k)  “GAAP”
means United States generally accepted accounting principles set forth in the
opinions and pronouncements of the Public Company Accounting Oversight Board
and statements and pronouncements of the Financial Accounting Standards Board
or in such other statements by such other entity as have been approved by a
significant segment of the accounting profession, which are in effect from time
to time.

 

(l) “Memoranda of Agreement” means
those certain Memoranda of Agreement, dated as of September 20, 2005,
between certain subsidiaries of OIN and the Owners.

 

(m) “Monthly Pool Revenue” is defined
in Section 3.02(c).

 

(n) “Offhire Adjustment” is defined in
Section 2.03(b).

 

(o) “Operated in a Pool” is defined in
Section 3.02.

 

(p) “Owners” means the vessel owning
subsidiaries named on Schedule A hereto.

 

3

 

(q) “Person” means any individual,
corporation, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization, limited liability company, government or
any agency or political subdivision thereof or any other entity.

 

(r) “Pool” means the Aframax
International Pool, the Tankers International Pool and any other pooling
arrangement that OIN subsequently selects to perform the commercial management
of the Vessels on behalf of a Charterer or Charterers.

 

(s) “Pool Revenue” is defined in Section 3.02(b) when
a Vessel is Operated in a Pool for all of a calendar quarter and in Section 3.02(c) when
a Vessel is Operated in a Pool for part of a calendar quarter within a Pool.

 

(t) “Spot Revenue” is defined in Section 3.04.

 

(u) “Time Charters” means those
certain Time Charters, dated as of October 6, 2005, between the Charterers
and the Owners, in each case with respect to the Vessel owned by each such
Owner, as set forth on Schedule A.

 

(v) “Time Charter Revenue” is
defined in Section 3.03.

 

(w) “Transferee” is defined in Section 4.01(b).

 

(x) “Vessels” is defined in the first
recital.

 

(y) “VLCC” means the Overseas Ann, the Overseas Chris
and the Regal Unity.

 

ARTICLE II

 

ADDITIONAL HIRE

 

SECTION 2.01. Payment of Additional Hire.  OIN hereby agrees to pay to the Company
charter hire in addition to the Basic Hire payable under the Time Charter in
accordance with the terms and conditions of this Agreement.  Any such additional charter hire is referred
to herein as “Additional Hire.” 
Any Additional Hire that is payable hereunder shall be paid quarterly in
an amount equal to the “Additional Hire Payment Amount”, as that amount
is calculated in accordance with Sections 4.02 and 4.03.  OIN shall pay to the Company the Additional
Hire Payment Amount on the 35th day following the last day of such calendar
quarter (the “Additional Hire Payment Date”); provided that if
such date is not a Business Day, then the Additional Hire Payment Date shall be
the next succeeding Business Day following such date. Such payments shall be
made by wire transfer of immediately available funds to the wire transfer
address of the Company.  All calculations
necessary to determine the Additional Hire Payment Amount shall be made by
OIN.  All references to “days”, “months”,
“quarters” or other time

 

4

 

periods
shall be interpreted to be references to such time periods or to any pro rata
portion thereof, for purposes of the calculations set forth herein.

 

SECTION 2.02. Sample Calculations.  Schedules B-1 and B-2 set forth sample
calculations that illustrate the calculations that are used to determine both
the Additional Hire Payment Amount and the Spot Revenue.  These Schedules  shall be interpreted to clarify, but not
contradict, the terms set forth in this Agreement.

 

SECTION 2.03. Offhire Adjustment.  (a)  Although the parties contemplate
that the Vessels shall be employed in such a manner that there shall not be any
discrepancy between off-hire under the Time Charters and any employment of the
Vessels by the Charterers, in the event of any such discrepancy, the Aggregate
Basic Hire Paid shall be subject to an Offhire Adjustment during any quarter in
which any Vessel: 

 

(i) was
on-hire while it Operated in a Pool or under a subcharter for a greater period
than it was on-hire under its Time Charter or

 

(ii) was
on-hire under its Time Charter for a greater period than it was on-hire while
it Operated in a Pool or under a subcharter.

 

(b) The Offhire Adjustment shall be
calculated for each Vessel to which Section 2.03(a) applies as
follows:

 

(i) in the case of a Vessel to which Section 2.03(a)(i) applies,
its share of Aggregate Basic Hire Paid shall be deemed to be equal to the
amount of Basic Hire actually paid with respect to the Vessel increased by an
amount equal to:

 

(A) the number of days the Vessel was
on-hire while it Operated in a Pool or on-hire under a sub time charter minus
the number of days the Vessel was on-hire under its Time Charter times (B) the
Basic Hire rate for that Vessel for the relevant time period.

 

(ii) in the case of a Vessel to which Section 2.03(a)(ii) applies,
its share of the Aggregate Basic Hire Paid shall be deemed to be equal to the
amount of Basic Hire actually paid with respect to the Vessel decreased by an
amount equal to:

 

(A) the number of days the Vessel was
on-hire under its Time Charter minus the number of days the Vessel was on-hire
while it Operated in a Pool or on-hire under a sub time charter times (B) the
Basic Hire rate for that Vessel for the relevant time period.

 

(c) For the avoidance of doubt, the
Offhire Adjustment shall be used only for the purpose of determining the
Additional Hire Payment Amount and shall not affect the payment of Basic Hire
to the Owners under the Time Charters.

 

5

 

ARTICLE III

 

CALCULATION OF REVENUE CONTRIBUTION BY TYPE
OF EMPLOYMENT

 

SECTION 3.01. Each calendar quarter, OIN
shall determine Additional Hire by referring to the type of employment that each
Vessel engaged in during the relevant time period:

 

(a) for the days during the quarter that
a Vessel Operated in a Pool, if any, Pool Revenue shall be calculated for the
quarter;

 

(b) for the days during the quarter that
a Vessel operated outside of a Pool and was subchartered under a time charter,
if any, Time Charter Revenue shall be calculated for the quarter; and

 

(c) for the days during the quarter that
a Vessel was operated outside of a Pool and not subchartered under a time
charter, if any, Spot Revenue shall be calculated for the quarter.

 

SECTION 3.02. Pool Revenue.

 

(a) As of the date hereof, each Vessel
is being “Operated in a Pool,” meaning that the Vessel has been entered
into a Pool and not withdrawn, regardless of whether the Vessel has been put
off-hire by the Pool.  Schedule C
sets forth a description of the method used by Tankers International Pool and
Aframax International Pool in determining the amount of pool earnings that are
allocated to vessels Operated in a Pool, and OIN represents and warrants the
accuracy of the description in Schedule C as of the date hereof.  Promptly upon the occurrence of any event
that would result in a material change to the description contained in Schedule C,
or upon the entry of a Vessel into any Pool other than, or withdrawal from,
Tankers International Pool or Aframax International Pool, OIN shall inform the
Company of such change and shall provide an updated Schedule C.

 

(b) For any quarter during which a
Vessel is Operated in a Pool for all of such quarter, Pool Revenue shall be
equal to:

 

(i) the time charter equivalent revenue
allocated to the Vessel by the manager of the Pool reduced by any
administrative or other expenses allocated to the Vessel by the manager of the
Pool, in each case for the calendar year to date ended on the last day of such
quarter; less

 

(ii) the time charter equivalent revenue
allocated to the Vessel by the manager of the Pool reduced by any
administrative or other expenses allocated to the Vessel by the manager of the
Pool, in each case for the

 

6

 

calendar year to date ended on the last day of the prior quarter,
unless the quarter in question is the first quarter of the calendar year in
which case there is no subtraction;

 

(iii) plus (or minus) any downward (or
upward) net revenue adjustments subsequent to the Effective Date related to
periods (x) prior to the Effective Date or (y) subsequent to the sale of the
Vessel, as determined by the manager of the Pool, to reverse any adjustments in
the net revenue allocated to the Vessel by the manager of the Pool that are not
attributable to the time period after the Effective Date.

 

(c) For any quarter during which a
vessel is Operated in a Pool for part but not all of such quarter, Pool Revenue
shall be calculated on a monthly basis and shall be equal to the sum of Monthly
Pool Revenue for each whole or partial month in such quarter in which a Vessel
is Operated in a Pool.  “Monthly Pool
Revenue” shall be equal to:

 

(i) the time charter equivalent revenue
allocated to the Vessel by the manager of the Pool reduced by any
administrative or other expenses allocated to the Vessel by the manager of the
Pool, in each case for the calendar year to date ended on the last day of the
month in question; less

 

(ii) the time charter equivalent revenue
allocated to the Vessel by the manager of the Pool reduced by any
administrative or other expenses allocated to the Vessel by the manager of the
Pool, in each case for the calendar year to date ended on the last day of the
immediately preceding month;

 

(iii) plus (or minus) any downward (or
upward) net revenue adjustments subsequent to the Effective Date related to
periods (x) prior to the Effective Date or (y) subsequent to the sale of the
Vessel, as determined by the manager of the Pool, to reverse any adjustments in
the net revenue allocated to the Vessel by the manager of the Pool that are not
attributable to the time period after the Effective Date;

 

(iv) if the Vessel was in a Pool for
only a portion of a month and the manager of the Pool allocates time charter
equivalent revenue for the full month to the Vessel (as in the month in which
the Effective Date occurs or the month in which a Transfer occurs), then the
result is multiplied by a fraction, the numerator of which is the number of
days the Vessel was on hire in the Pool in such month and the denominator of
which is the number of days in such month; and

 

(v) if the vessel was in a Pool for only
a portion of a month and the manager of the Pool allocates time charter
equivalent revenue on a pro-rata

 

7

 

based on the number of days elapsed in the month, then the above Section 3.02(c)(iv) shall
not apply.

 

SECTION 3.03. Time Charter Revenue.  For any quarter during which a Vessel is not
Operated in a Pool and is subchartered by its Charterer under a time charter,
Time Charter Revenue shall be calculated. 
“Time Charter Revenue” shall be equal to the actual time charter
revenue recorded by a Charterer in respect of a Vessel during such period,
calculated in accordance with GAAP, less actual shipbroker commissions and
commercial management fees incurred by such Charterer with respect to such time
charters; provided that such shipbroker commissions shall not exceed
2.5% of the actual time charter revenue recorded by the Charterer in the
applicable time period and such commercial management fees shall not exceed
1.25% of the actual time charter revenue recorded by such Charterer in the
applicable time period.

 

SECTION 3.04. Spot Revenue.  For any quarter during which a Vessel (i) is
not Operated in a Pool and (ii) is not subchartered by its Charterer under
a time charter, Spot Revenue shall be calculated for that Vessel by reference
to the number of days the Vessel was on-hire under its Time Charter.  “Spot Revenue” for each Vessel shall
be equal to the Weighted Average TCE Rate multiplied by the number of days in the
Spot Period for that Vessel.

 

(a) For purposes of determining the Spot
Revenue, the following definitions shall be used:

 

(i) “Weighted Average TCE Rate”
means:

 

(A) for the VLCCs, the sum of (x) the
Average TCE Spot Rate for Route A for the Spot Period multiplied by 50%, (y)
the Average TCE Spot Rate for Route B for the Spot Period multiplied by 46% and
(z) the Average TCE Spot Rate for Route C for the Spot Period multiplied by 4%;
and

 

(B) for the Aframaxes, the sum of (x)
the Average TCE Spot Rate for Route D for the Spot Period multiplied by 50%,
(y) the Average TCE Spot Rate for Route E for the Spot Period multiplied by 25%
and (z) the Average TCE Spot Rate for Route F for the Spot Period multiplied by
25%.

 

(ii) “Spot
Period” is the number of days in a quarter during which a Vessel is not
Operated in a Pool, is not subchartered by its Charterer under a time charter
and is on-hire under its Time Charter.

 

(iii) “Average TCE Spot Rate” is
calculated for each Vessel and the Routes applicable to it and is an amount
expressed as US dollars per day obtained by dividing Net Freight Income by
Voyage Duration.

 

8

 

(iv) “Route” means Routes A, B
and C for the VLCCs and Routes D, E and F for the Aframaxes and “Cargo Size”
means the amount corresponding to the applicable Route in the table below:

 

	
  Route

  	
   

  	
  Port Descriptions

  	
   

  	
  Cargo Size

  	
   

  
	
  VLCC Routes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Route A

  	
   

  	
  Ras Tanura
  to Chiba (1)

  	
  250,000 tons

  	
   

  
	
  Route B

  	
   

  	
  Ras Tanura
  to LOOP  (2),(3)

  	
  280,000 tons

  	
   

  
	
  Route C

  	
   

  	
  Offshore
  Bonny to LOOP (3)

  	
  260,000 tons

  	
   

  
	
  Aframax Routes

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Route D

  	
   

  	
  Puerto la Cruz to Corpus Christi

  	
   

  	
  70,000 tons

  	
   

  
	
  Route E

  	
   

  	
  Sullom Voe
  to Wilhelmshaven

  	
   

  	
  80,000 tons

  	
   

  
	
  Route F

  	
   

  	
  Banias to
  Lavera

  	
   

  	
  80,000 tons

  	
   

  

 

(1) Via
Straits of Malacca

(2) Via Cape of Good Hope

(3) Bunkering stop in St. Eustatius

 

(v) “Voyage Duration” shall be
expressed in days, rounded to the nearest 1/100, and, for any Route, shall be
equal to the number of days that the Vessel would travel the Voyage Distance of
a Route on a round trip (with one leg being laden and one leg being in ballast)
at the Voyage Speed  plus Time in
Port.

 

(vi) “Voyage Distance” for each
Route shall be equal to the distance published for such Route from time to time
in the “World-Wide Marine Distance Tables” published by British Petroleum, plc.
and adjusted, as necessary, to a one-way basis for each leg of the Route as the
Route is defined.

 

(vii) “Voyage Speed” shall equal:

 

(A) for the Overseas Cathy and Overseas
Sophie: 13.875 knots (which is calculated by using 15 knots in laden
condition and in ballast condition less a steaming allowance of 7.5 % to allow
for weather and navigation).

 

(B) for the Rebecca and the Ania:
12.3025 knots (which is calculated by using 13.3 knots in laden condition and
in ballast condition less a steaming allowance of 7.5% to allow for weather and
navigation).

 

(C) for the VLCCs: 13.64375 knots in
laden condition and 14.56875 knots in ballast condition (which is calculated by
using 14.75

 

9

 

knots in laden condition and 15.75 knots in ballast condition less a
steaming allowance of 7.5% to allow for weather and navigation).

 

(viii) “Time in Port” means:

 

(A) for Aframaxes: 2 days loading, 2
days discharging and 1 day idling time, for a total of 5 days; and

 

(B) for VLCCs: 3 days loading, 3 days
discharging and 1.5 days idling time, for a total of 7.5 days.

 

(ix) “Freight Income” is the
product of (A) the average of the daily spot rates, expressed in
Worldscale Points, for the days in the Spot Period, as determined by the Broker
Panel, for the Vessel’s class on each Route applicable to the Vessel (the “Average
WS Spot Rate”), (B) the Worldscale flat rate for the applicable
Routes, as set forth in the New Worldwide Tanker Nominal Freight Scale issued
by the Worldscale Association for the Spot Period times 0.01, and (C) the
Cargo Size for the applicable Routes.

 

(x) “Net Freight Income” means Freight
Income minus the sum of (A) Freight Income times 0.0375 (which consists of
brokerage commissions of 2.5% and commercial management costs of 1.25%), (B) Bunker
Costs and (C) the sum of port tariffs, tugs and other port call expenses
for loading and discharging at the ports described in the definition of Route
for the applicable Routes, converted to US Dollars at the spot exchange rate in
effect on the last calendar day of the Spot Period.

 

(xi) “Bunker Costs” means Bunkers Used
by a Vessel for each Route applicable to it multiplied by the Bunker Price.

 

(xii) “Bunkers Used” is expressed in
tons and means the sum of:

 

(A) Load Port Bunkers Used, being:

 

(1) for the Overseas
Cathy and the Overseas Sophie:
20 tons,

 

(2) for the Rebecca
and the Ania: 20 tons,

 

(3) for the VLCCs: 50 tons;

 

plus

 

(B) Laden Leg Bunkers Used, being the
amount equal to the product of (x) the Voyage Distance of that Route divided by
the product of (i) the Voyage Speed of the Vessel in laden condition times

 

10

 

(ii) 24 (the number of hours in a day),
multiplied by (y) the amount equal to:

 

(1) for the Overseas
Cathy and Overseas Sophie:
60 tons per day,

 

(2) for the Rebecca
and the Ania: 37 tons per day,

 

(3) for the VLCCs: 105 tons per day;

 

plus

 

(C) Discharge Port Bunkers Used, being:

 

(1) for the Overseas
Cathy and the Overseas Sophie:
20 tons,

 

(2) for the Rebecca
and the Ania: 20 tons,

 

(3) for the VLCCs: 200 tons;

 

plus

 

(D) Ballast Leg Bunkers Used, being the
amount equal to the product of (x) the Voyage Distance of that Route divided by
the product of (i) the Voyage Speed of the Vessel in ballast condition
times (ii) 24 (the number of hours in a day), multiplied by (y) the amount
equal to:

 

(1) for the Overseas
Cathy and Overseas Sophie:
60 tons per day,

 

(2) for the Rebecca
and the Ania: 37 tons per day,

 

(3) for the VLCCs: 100 tons per day.

 

(xiii) “Bunker Price” means:

 

(A) for Aframaxes: the average of the
daily mean prices in effect during the Spot Period for Marine Fuel Oil grade
IFO 380 CST, for the following ports and weighted as indicated:

 

(1) Houston (50% weighting),

 

(2) Rotterdam (25% weighting), and

 

(3) Gibraltar (25% weighting);

 

11

 

(B) for VLCCs: the average of the daily
mean prices in effect during the Spot Period for Marine Fuel Oil grade IFO 380
CST, for the following ports and weighted as indicated:

 

(1) Fujairah (50% weighting), and

 

(2) Houston (50% weighting),

 

as published by Platts Bunkerwire, or a similar publication or
quotation service mutually acceptable to the Company and OIN.  Prices that are not expressed on a delivered
basis shall be increased by the amount of average barge delivery charges in the
applicable port for the Spot Period in question.

 

SECTION 3.05. Special Provisions Regarding
the Calculation of Spot Revenue:

 

(a) If, in OIN’s reasonable opinion, the
Routes cease to represent routes on which very large crude carriers or aframaxes
generally operate on, then OIN may request the approval of the Company, which
may not be unreasonably withheld, to instruct the Broker Panel to select
alternative notional routes, which shall be proposed by OIN to the Broker
Panel, that most closely match alternative routes then being used by very large
crude carriers or Aframaxes, as the case may be, and such alternative routes
shall be substituted for the Routes;

 

(b) If, in OIN’s reasonable opinion, it
becomes impractical or dangerous for very large crude carriers or Aframaxes to
operate on the Routes due to war, hostilities, warlike operations, civil war,
civil commotion, revolution or terrorism (“Hostilities”), then OIN may
request the approval of the Company, which may not be unreasonably withheld, to
instruct the Broker Panel to select alternative notional routes that reasonably
reflect realistic alternative routes, which shall be proposed by OIN to the
Broker Panel, as substitutes for the Routes for the duration of such
Hostilities;

 

(c) If a Route is substituted pursuant
to clauses (a) or (b) above, or if in OIN’s reasonable opinion the
bunkering ports for which bunker prices are used for the purpose of determining
the Bunker Price cease to be representative of bunkering practice for a Route
or Routes, the bunkering ports may, on the request of OIN, the approval of the
Company for which may not be unreasonably withheld, be changed and appropriate
weights assigned to reflect the changed circumstances.

 

(d) If the New Worldwide Tanker Nominal
Freight Scale issued by the Worldscale Association ceases to be published, the
Broker Panel shall use its best judgment in determining the nearest alternative
method of assessing the market rates on the specified voyages.

 

12

 

(e) For periods in which a Vessel or
Vessel is earning Spot Revenue, Voyage Speed and bunker consumption rates used
to calculate Bunkers Used shall be recalculated by OIN per industry convention
on an annual basis for the vessel class (as outlined in the definitions of
Bunkers Used and Voyage Speed) of each Vessel earning Spot Revenue.  Voyage Speed and/or bunker consumption rates
for a given vessel class shall be updated to the newly remeasured value or
values for changes equal to or greater than 0.5 knots or 5 tons per day,
respectively, from the pre-existing value or values to be used prospectively in
the calculation of Spot Revenue.

 

(f) On the last day of any calendar
quarter which contains a Spot Period for any Vessel during such quarter, or the
next succeeding Business Day if such date is not a Business Day, OIN shall
instruct the Broker Panel to determine the applicable Average WS Spot Rates for
the relevant Spot Period(s) for each such Vessel.  OIN shall instruct the Broker Panel to deliver
the Average WS Spot Rates no later than the fifth Business Day following the
day on which it makes its request.  Upon
receipt of the Broker Panel’s determination of the Average WS Spot Rates, OIN
shall calculate the Spot Revenue for each such Vessel for the quarter.  Within five Business Days following the
receipt of the Average WS Spot Rates from the Broker Panel, OIN shall send a
notice to the Company, which shall include the Broker Panel’s determination of
the Average WS Spot Rates, that sets forth, in reasonable detail, the
calculations made by OIN in determining the Spot Revenue for each such
Vessel.  When it receives all the
necessary information, OIN shall calculate the Additional Hire Payment Amount
and, if requested, OIN shall provide such additional supporting schedules and
records as are reasonably requested by the Company so that it may independently
confirm the accuracy of the Additional Hire Payment Amount.  On the Additional Hire Payment Date, OIN shall
provide a final certified schedule that that sets forth, in reasonable
detail, the calculations made by OIN in determining the Additional Hire Payment
Amount.

 

ARTICLE IV

 

CALCULATION OF ADDITIONAL HIRE

 

SECTION 4.01. General Provisions.  The following provisions shall apply to the
calculation of the Additional Hire Payment Amount at all times:

 

(a) Aggregate Calculations.  The Additional Hire Payment Amount shall be
calculated in respect of each Calculation Period on a fleetwide basis, as set
forth in Sections 4.02 and 4.03.

 

(b) Additional Hire Payment Amount
with Respect to a Transferred Vessel. 
If there is a transfer to a third party of a Vessel or of the company
that owns a Vessel (the “Transfer”), then the Charterer of such Vessel
shall pay

 

13

 

Additional Hire to such transferee (the “Transferee”) for the
time period beginning on the date of the Transfer and shall cease paying
Additional Hire to the Company with respect to that Vessel on such date.  In the event of a Transfer, the parties hereto
agree that the following provisions shall apply:

 

(i) with respect to the Transferee, the
calculation of Aggregate TCE Revenue and Aggregate Basic Hire Paid for the
Vessel subject to the Transfer shall include only the Pool Revenue, Time
Charter Revenue, Spot Revenue and Basic Hire associated with such transferred
Vessel for the entire Calculation Period (and the Calculation Period shall not
be affected by the Transfer);

 

(ii) with respect to the Company, the
calculation of Aggregate TCE Revenue and Aggregate Basic Hire Paid for the
remaining Vessels owned by the Owners shall include the Pool Revenue, Time
Charter Revenue, Spot Revenue and Basic Hire associated with the transferred
Vessel for the portion of the Calculation Period prior to the Transfer;

 

(iii) OIN and the Charterers agree with
the Company that they shall, if required by the Transferee, execute a charter
framework agreement with the Transferee on substantially the same terms as this
Agreement;

 

(iv) if more than one Vessel is
transferred to the same Transferee, or to an Affiliate of a Transferee,
Additional Hire shall be calculated on a fleetwide basis for that Transferee,
and only one charter framework shall be required for such Transferee;

 

(v) if a Vessel is transferred to an
Affiliate of DHT, the transferee shall be treated as though it is an Owner
under this Agreement.

 

SECTION 4.02. Additional Hire Calculations
for the First Four Fiscal Quarters.  For the period commencing on the Effective
Date through September 30, 2006, the Additional Hire Payment Amount shall
be calculated following the end of each Calculation Period (as defined below)
as follows:

 

(a) The Calculation Periods shall be:

 

(i) for purposes of calculating the
first Additional Hire Payment Amount, the time period commencing on the
Effective Date and ending on December 31, 2005;

 

(ii) for purposes of calculating the
second Additional Hire Payment Amount, the time period commencing on the
Effective Date and ending on March 31, 2006;

 

14

 

(iii) for purposes of calculating the
third Additional Hire Payment Amount, the time period commencing on the
Effective Date and ending on June 30, 2006;

 

(iv) for purposes of calculating the
fourth Additional Hire Payment Amount, the time period commencing on the
Effective Date and ending on September 30, 2006.

 

(b) For each Calculation Period, if the
Calculated Additional Hire exceeds the Prior Additional Hire Payment Amount,
the Additional Hire Payment Amount shall equal the excess of the Calculated
Additional Hire over the Prior Additional Hire Payment Amount.  If the Prior Additional Hire Payment Amount
exceeds the Calculated Additional Hire, the Additional Hire Payment Amount
shall equal zero dollars.

 

(c) The following definitions shall apply
to this Section 4.02 only:

 

(i)  “Aggregate TCE Revenue”
means the sum of (a) the cumulative Pool Revenue earned by the Vessels in
respect of the relevant Calculation Period, (b) the cumulative Time
Charter Revenue earned by the Vessels in respect of the relevant Calculation
Period and (c) the cumulative Spot Revenue earned by the Vessels in
respect of the relevant Calculation Period;

 

(ii) “Aggregate Basic Hire Paid”
means the cumulative amount of Basic Hire paid by the Charterers to the Owners
pursuant to the terms of each Time Charter in the Calculation Period for which
the Additional Hire Payment Amount is being calculated, as adjusted by any
applicable Offhire Adjustment.

 

(iii) “Prior Additional Hire Payment
Amount” means the aggregate of the Additional Hire Payment Amounts paid to
the Company for the prior quarters in the Calculation Period (excluding the
calendar quarter for which the Additional Hire Payment Amount calculation is
being made).

 

(d) Any excess of Prior Additional Hire
Payment Amount over Calculated Additional Hire for the Calculation Period
ending on September 30, 2006 (“Year 1 Deficit Carryforward”) shall
be carried forward for up to the following four fiscal quarters and serve to
reduce, but not to below zero, the Additional Hire Payment Amount in each of
those quarters, as set forth below.

 

SECTION 4.03. Additional Hire Calculations
for Periods Subsequent to September 30, 2006.  For all periods following September 30,
2006, the Additional Hire Payment Amount shall be calculated following the end
of each Calculation Period (as defined below) as follows:

 

15

 

(a) Each Calculation Period shall
consist of the four consecutive calendar quarters ending on the last day of the
calendar quarter for which the Additional Hire calculation is being made.

 

(b) For each Calculation Period, the
Additional Hire Payment Amount shall equal the Calculated Additional Hire for
that Calculation Period, minus the Additional Hire Payment Offset; provided
that, if the deduction of the Additional Hire Payment Offset would result in a
negative number, the Additional Hire Payment Amount shall be reduced by that
portion of the Additional Hire Payment Offset that reduces the Additional Hire
Payment Amount to zero.

 

(c) The following definitions shall
apply to this Section 4.03 only:

 

(i) “Additional Hire Payment Offset”
for the Calculation Period ending December 31, 2006, shall be equal to the
Year 1 Deficit Carryforward.  For each
Calculation Period thereafter ending on or prior to September 30, 2007,
the Additional Hire Payment Offset shall equal the Year 1 Deficit Carryforward
minus the cumulative amount of Additional Hire Payment Offsets previously used
to reduce the Additional Hire Payment Amount. 
The Additional Hire Payment Offset shall be zero for all Calculation
Periods ending after September 30, 2007.

 

(ii) “Aggregate TCE Revenue”
means the sum of the Rolling Average TCE Revenue for each of the Vessels in the
quarter for which the Additional Hire Payment Amount is being calculated.

 

(iii) “Aggregate Basic Hire Paid”
means the total amount of Basic Hire paid by the Charterers to the Owners
pursuant to the terms of each Time Charter in the quarter for which the
Additional Hire Payment Amount is being calculated as adjusted by any
applicable Offhire Adjustment.

 

(iv) “Rolling Average TCE Revenue”
is calculated separately for each Vessel for the last calendar quarter in any
Calculation Period and is equal to the product of (i) the Rolling Average
TCE Rate calculated for the applicable calendar quarter and (ii) the
number of days the Vessel was on hire under its Time Charter in such calendar
quarter.

 

(v) “Rolling Average TCE Rate” is
calculated separately for each Vessel for the last calendar quarter in any
Calculation Period and is equal to the sum of (i) all Pool Revenue, plus (ii) all
Time Charter Revenue, plus (iii) all Spot Revenue, earned by a Vessel in
the applicable Calculation Period; divided by the number of days the Vessel was
on hire under its Time Charter in such Calculation Period.

 

16

 

ARTICLE V

 

GENERAL PROVISIONS

 

SECTION 5.01. Marketing; Preferential
Treatment.  During the
term of this Agreement, OIN and the Charterers shall use their commercial best
efforts to subcharter the Vessels on market terms, including, without
limitation, ensuring that preferential treatment is not given to any other
vessels owned, managed by or under control of OIN or any of its or any of its
affiliates (including, without limitation, Overseas Shipholding Group, Inc.)
when subchartering any of the Vessels.

 

SECTION 5.02. Broker Panel Determinations
and Expenses. 
Determinations of the Broker Panel shall be binding on the Company, the
Charterers and OIN.  The Company and OIN
shall each be responsible for 50% of the expenses of the Broker Panel (and any
experts engaged by the Broker Panel) as they relate to the Vessels or any other
matter covered by the terms of this Agreement.

 

SECTION 5.03. Term.  This Agreement shall commence on the
Effective Date and terminate upon the termination of the last Time Charter then
in effect; provided, however, that the termination of this
Agreement shall not impair any rights or obligations of any Party arising
hereunder prior to such termination.

 

SECTION 5.04. Choice of Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, USA.

 

SECTION 5.05. Arbitration.  Any dispute arising under this Agreement
shall be resolved by arbitration in accordance with the provisions set forth in
the Time Charter for the Vessel Overseas Ann,
substituting OIN for the Charterer and the Company for the Owner.

 

SECTION 5.06. Entire Agreement.  This Agreement constitutes the entire
agreement of the Parties relating to the matters contained herein, superseding
all prior contracts or agreements, whether oral or written, relating to the
matters contained herein.

 

SECTION 5.07. Amendment or Modification.  This Agreement may be amended or modified
from time to time only by the written agreement of all of the Parties.

 

SECTION 5.08. Assignment; Joinder.  (a)  No Party shall have the right to
assign its rights or obligations under this Agreement without the consent of
the other Parties hereto, it being understood that this Agreement shall be
binding upon the Transferee of a Vessel as provided in Section 4.01(b).

 

SECTION 5.09. Notices.  Unless otherwise provided herein, any notice,
request, consent, instruction or other document to be given hereunder by any
Party to another Party shall be in writing and shall be deemed given (a) when
received if delivered

 

17

 

personally
or by courier; or (b) on the date receipt is acknowledged if delivered by
certified mail, postage prepaid, return receipt requested or (c) on the
day of transmission if sent by facsimile transmission and receipt thereof is
confirmed, as follows:

 

(i) if to the Company, addressed to: 

                                                Double
Hull Tankers, Inc.

                                                26
New Street

                                                St.
Helier, Jersey JE23RA

                                                Channel
Islands

                                                Attention:
Chief Executive Officer

                                                Telephone:
+44 (0) 1534 639759

                                                Facsimile:

 

(ii) if to OIN or any Charterer, c/o of
OSG Ship Management, Inc. at:

                                                OSG
Ship Management, Inc.

                                                666
Third Avenue

                                                New
York, NY 10017

                                                Attention:  Treasurer

                                                Telephone:
212-953-4100

                                                Facsimile:
212-578-1832

 

or to such other place and with such other copies as any Party may
designate as to itself by written notice to the others in accordance with this Section 5.09.

 

SECTION 5.10. Counterparts.  This Agreement may be executed in any number
of counterparts with the same effect as if all signatory parties had signed the
same document.  All counterparts shall be
construed together and shall constitute one and the same instrument.

 

SECTION 5.11. Severability.  If any provision of this Agreement or the
application thereof to any entity or circumstance shall be held invalid or
unenforceable to any extent, the remainder of this Agreement and the
application of such provision to other Persons or circumstances shall not be
affected thereby and shall be enforced to the greatest extent permitted by law.

 

SECTION 5.12. U.S. Currency.  All sums and amounts payable to or to be
payable pursuant to the provisions of this Agreement shall be payable currency
of the United States of America that, at the time of payment, is legal tender
for the payment of public and private debts in the United States of America.

 

18

 

IN WITNESS
WHEREOF, the Parties have caused this Agreement to be duly executed by their
duly authorized representatives as of the day and year first above written.

 

 

	
  DOUBLE HULL TANKERS, INC.,

  	
   

  	
  OSG INTERNATIONAL, INC.,

  
	
   

  	
   

  	
   

  	
   

  
	
  By: /s/ Ole Jacob Diesen

  	
   

  	
  By

  	
  /s/ Myles R. Itkin

  
	
   

  	
  Ole Jacob
  Diesen

  	
   

  	
   

  	
  Myles R. Itkin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ANN TANKER CORPORATION

  	
   

  	
  DHT ANN VLCC CORP.,

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ole Jacob Diesen

  	
   

  	
  By

  	
  /s/ Myles R. Itkin

  
	
   

  	
  Ole Jacob
  Diesen

  	
   

  	
   

  	
  Myles R. Itkin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHRIS TANKER CORPORATION

  	
   

  	
  DHT CHRIS VLCC CORP.,

  
	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Ole Jacob Diesen

  	
   

  	
  By

  	
  /s/ Myles R. Itkin

  
	
   

  	
  Ole Jacob
  Diesen

  	
   

  	
   

  	
  Myles R. Itkin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REGAL
  UNITY TANKER CORPORATION

  	
   

  	
  DHT REGAL UNITY VLCC CORP.,

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ole Jacob Diesen

  	
   

  	
  By

  	
  /s/ Myles R. Itkin

  
	
   

  	
  Ole Jacob
  Diesen

  	
   

  	
   

  	
  Myles R. Itkin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CATHY TANKER CORPORATION

  	
   

  	
  DHT CATHY AFRAMAX CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ole Jacob Diesen

  	
   

  	
  By

  	
  /s/ Myles R. Itkin

  
	
   

  	
  Ole Jacob
  Diesen

  	
   

  	
   

  	
  Myles R. Itkin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SOPHIE TANKER CORPORATION

  	
   

  	
  DHT SOPHIE AFRAMAX CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ole Jacob Diesen

  	
   

  	
  By

  	
  /s/ Myles R. Itkin

  
	
   

  	
  Ole Jacob
  Diesen

  	
   

  	
   

  	
  Myles R. Itkin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REBECCA TANKER CORPORATION

  	
   

  	
  DHT REBECCA AFRAMAX CORP.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ole Jacob Diesen

  	
   

  	
  By

  	
  /s/ Myles R. Itkin

  
	
   

  	
  Ole Jacob Diesen

  	
   

  	
   

  	
  Myles R. Itkin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ANIA AFRAMAX CORPORATION

  	
   

  	
  DHT ANIA AFRAMAX CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Ole Jacob Diesen

  	
   

  	
  By

  	
  /s/ Myles R. Itkin

  
	
   

  	
  Ole Jacob
  Diesen

  	
   

  	
   

  	
  Myles R. Itkin

  
									

 

19

 

SCHEDULE A

 

	
  VESSEL

  	
   

  	
  OWNER

  	
   

  	
  CHARTERER

  	
   

  
	
  Overseas Ann

  	
   

  	
  Ann Tanker
  Corporation

  	
   

  	
  DHT Ann VLCC
  Corp.

  	
   

  
	
  Overseas Chris

  	
   

  	
  Chris Tanker Corporation

  	
   

  	
  DHT Chris VLCC Corp.

  	
   

  
	
  Regal Unity

  	
   

  	
  Regal Unity Tanker Corporation

  	
   

  	
  DHT Regal Unity VLCC Corp.

  	
   

  
	
  Overseas Cathy

  	
   

  	
  Cathy Tanker Corporation

  	
   

  	
  DHT Cathy Aframax Corp.

  	
   

  
	
  Overseas Sophie

  	
   

  	
  Sophie Tanker Corporation

  	
   

  	
  DHT Sophie Aframax Corp.

  	
   

  
	
  Rebecca

  	
   

  	
  Rebecca Tanker Corporation

  	
   

  	
  DHT Rebecca Aframax Corp.

  	
   

  
	
  Ania

  	
   

  	
  Ania Aframax Corporation

  	
   

  	
  DHT Ania Aframax Corp.

  	
   

  

 

 

SCHEDULE B-1

EXAMPLE OF ADDITIONAL HIRE CALCULATION USING CERTAIN
OPERATING ASSUMPTIONS

 

GENERAL
DATA

“Effective Date”: 10/17/05

 

	
   

   

  	
   

  	
  for calendar quarter (or part thereof) ended

  	
   

  
	
   

  	
   

  	
  12/31/05

  	
   

  	
  3/31/06

  	
   

  	
  6/30/06

  	
   

  	
  9/30/06

  	
   

  	
  12/31/06

  	
   

  	
  3/31/07

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available revenue
  days

  	
   

  	
  76

  	
   

  	
  90

  	
   

  	
  91

  	
   

  	
  92

  	
   

  	
  92

  	
   

  	
  90

  	
   

  
	
  Number of days in
  “Calculation Period”

  	
   

  	
  76

  	
   

  	
  166

  	
   

  	
  257

  	
   

  	
  349

  	
   

  	
  92

  	
   

  	
  90

  	
   

  
	
  Pool earnings
  assumption for 100-point vessel ($/day)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLCC (TI Pool)

  	
   

  	
  40,000

  	
   

  	
  45,000

  	
   

  	
  30,000

  	
   

  	
  39,000

  	
   

  	
  45,000

  	
   

  	
  40,000

  	
   

  
	
  Aframaxes (TI
  Pool)

  	
   

  	
  30,000

  	
   

  	
  32,500

  	
   

  	
  22,500

  	
   

  	
  20,000

  	
   

  	
  32,500

  	
   

  	
  24,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Basic Hire” rate from Time Charters (steps up each
  October 17th)
  (1)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Overseas
  Ann/Chris, Regal Unity

  	
   

  	
  37,200

  	
   

  	
  37,200

  	
   

  	
  37,200

  	
   

  	
  37,200

  	
   

  	
  37,400

  	
   

  	
  37,400

  	
   

  
	
  Overseas
  Cathy/Sophie

  	
   

  	
  24,500

  	
   

  	
  24,500

  	
   

  	
  24,500

  	
   

  	
  24,500

  	
   

  	
  24,700

  	
   

  	
  24,700

  	
   

  
	
  Rebecca/Ania

  	
   

  	
  18,500

  	
   

  	
  18,500

  	
   

  	
  18,500

  	
   

  	
  18,500

  	
   

  	
  18,700

  	
   

  	
  18,700

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VESSEL-LEVEL
  CALCULATIONS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Overseas Ann

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On-hire days

  	
   

  	
  76

  	
   

  	
  90

  	
   

  	
  91

  	
   

  	
  80

  	
   

  	
  92

  	
   

  	
  90

  	
   

  
	
  Pool earnings
  ($/day)

  	
  pool points (2): 99.4%

  	
   

  	
  39,760

  	
   

  	
  44,730

  	
   

  	
  29,820

  	
   

  	
  38,766

  	
   

  	
  44,730

  	
   

  	
  39,760

  	
   

  
	
  Revenue

  	
   

  	
  3,021,760

  	
   

  	
  4,025,700

  	
   

  	
  2,713,620

  	
   

  	
  3,101,280

  	
   

  	
  4,115,160

  	
   

  	
  3,578,400

  	
   

  
	
  Effective TCE
  rate / “Rolling Average TCE Rate” (3)

  	
   

  	
  39,760

  	
   

  	
  44,730

  	
   

  	
  29,820

  	
   

  	
  38,766

  	
   

  	
  39,535

  	
   

  	
  38,268

  	
   

  
	
  TCE Revenue /
  “Rolling Average TCE Revenue” (4)

  	
   

  	
  3,021,760

  	
   

  	
  4,025,700

  	
   

  	
  2,713,620

  	
   

  	
  3,101,280

  	
   

  	
  3,637,195

  	
   

  	
  3,444,083

  	
   

  
	
  “Basic Hire”

  	
   

  	
  2,827,200

  	
   

  	
  3,348,000

  	
   

  	
  3,385,200

  	
   

  	
  2,976,000

  	
   

  	
  3,437,600

  	
   

  	
  3,366,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Overseas Chris

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On-hire days

  	
   

  	
  76

  	
   

  	
  90

  	
   

  	
  91

  	
   

  	
  92

  	
   

  	
  81

  	
   

  	
  90

  	
   

  
	
  Pool earnings
  ($/day)

  	
  pool points:
  99.4%

  	
   

  	
  39,760

  	
   

  	
  44,730

  	
   

  	
  29,820

  	
   

  	
  38,766

  	
   

  	
  44,730

  	
   

  	
  39,760

  	
   

  
	
  Revenue

  	
   

  	
  3,021,760

  	
   

  	
  4,025,700

  	
   

  	
  2,713,620

  	
   

  	
  3,566,472

  	
   

  	
  3,623,130

  	
   

  	
  3,578,400

  	
   

  
	
  Effective TCE
  rate / “Rolling Average TCE Rate”

  	
   

  	
  39,760

  	
   

  	
  44,730

  	
   

  	
  29,820

  	
   

  	
  38,766

  	
   

  	
  39,347

  	
   

  	
  38,084

  	
   

  
	
  TCE Revenue /
  “Rolling Average TCE Revenue”

  	
   

  	
  3,021,760

  	
   

  	
  4,025,700

  	
   

  	
  2,713,620

  	
   

  	
  3,566,472

  	
   

  	
  3,187,126

  	
   

  	
  3,427,531

  	
   

  
	
  “Basic Hire”

  	
   

  	
  2,827,200

  	
   

  	
  3,348,000

  	
   

  	
  3,385,200

  	
   

  	
  3,422,400

  	
   

  	
  3,026,200

  	
   

  	
  3,366,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Regal Unity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On-hire days

  	
   

  	
  76

  	
   

  	
  90

  	
   

  	
  91

  	
   

  	
  92

  	
   

  	
  92

  	
   

  	
  76

  	
   

  
	
  Pool earnings
  ($/day)

  	
  pool points:
  98.8%

  	
   

  	
  39,520

  	
   

  	
  44,460

  	
   

  	
  29,640

  	
   

  	
  38,532

  	
   

  	
  44,460

  	
   

  	
  39,520

  	
   

  
	
  Revenue

  	
   

  	
  3,003,520

  	
   

  	
  4,001,400

  	
   

  	
  2,697,240

  	
   

  	
  3,544,944

  	
   

  	
  4,090,320

  	
   

  	
  3,003,520

  	
   

  
	
  Effective TCE
  rate / “Rolling Average TCE Rate”

  	
   

  	
  39,520

  	
   

  	
  44,460

  	
   

  	
  29,640

  	
   

  	
  38,532

  	
   

  	
  39,271

  	
   

  	
  37,994

  	
   

  
	
  TCE Revenue /
  “Rolling Average TCE Revenue”

  	
   

  	
  3,003,520

  	
   

  	
  4,001,400

  	
   

  	
  2,697,240

  	
   

  	
  3,544,944

  	
   

  	
  3,612,929

  	
   

  	
  2,887,572

  	
   

  
	
  “Basic Hire”

  	
   

  	
  2,827,200

  	
   

  	
  3,348,000

  	
   

  	
  3,385,200

  	
   

  	
  3,422,400

  	
   

  	
  3,437,600

  	
   

  	
  2,842,400

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Overseas Cathy

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On-hire days

  	
   

  	
  76

  	
   

  	
  90

  	
   

  	
  91

  	
   

  	
  92

  	
   

  	
  92

  	
   

  	
  88

  	
   

  
	
  Pool earnings
  ($/day)

  	
  pool points:
  107.13%

  	
   

  	
  32,139

  	
   

  	
  34,817

  	
   

  	
  24,104

  	
   

  	
  21,426

  	
   

  	
  34,817

  	
   

  	
  25,711

  	
   

  
	
  Revenue

  	
   

  	
  2,442,564

  	
   

  	
  3,133,553

  	
   

  	
  2,193,487

  	
   

  	
  1,971,192

  	
   

  	
  3,203,187

  	
   

  	
  2,262,586

  	
   

  
	
  Effective TCE
  rate / “Rolling Average TCE Rate”

  	
   

  	
  32,139

  	
   

  	
  34,817

  	
   

  	
  24,104

  	
   

  	
  21,426

  	
   

  	
  28,771

  	
   

  	
  26,530

  	
   

  
	
  TCE Revenue /
  “Rolling Average TCE Revenue”

  	
   

  	
  2,442,564

  	
   

  	
  3,133,553

  	
   

  	
  2,193,487

  	
   

  	
  1,971,192

  	
   

  	
  2,646,933

  	
   

  	
  2,334,655

  	
   

  
	
  “Basic Hire”

  	
   

  	
  1,862,000

  	
   

  	
  2,205,000

  	
   

  	
  2,229,500

  	
   

  	
  2,254,000

  	
   

  	
  2,269,200

  	
   

  	
  2,173,600

  	
   

  

 

 

	
   

  	
   

  	
  for
  calendar quarter (or part thereof) ended

  	
   

  
	
   

  	
   

  	
  12/31/05

  	
   

  	
  3/31/06

  	
   

  	
  6/30/06

  	
   

  	
  9/30/06

  	
   

  	
  12/31/06

  	
   

  	
  3/31/07

  	
   

  
	
  Overseas Sophie

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On-hire days

  	
   

  	
  76

  	
   

  	
  88

  	
   

  	
  91

  	
   

  	
  92

  	
   

  	
  92

  	
   

  	
  90

  	
   

  
	
  Pool earnings
  ($/day)

  	
  pool points:
  107.13%

  	
   

  	
  32,139

  	
   

  	
  34,817

  	
   

  	
  24,104

  	
   

  	
  21,426

  	
   

  	
  34,817

  	
   

  	
  25,711

  	
   

  
	
  Revenue

  	
   

  	
  2,442,564

  	
   

  	
  3,063,918

  	
   

  	
  2,193,487

  	
   

  	
  1,971,192

  	
   

  	
  3,203,187

  	
   

  	
  2,314,008

  	
   

  
	
  Effective TCE
  rate / “Rolling Average TCE Rate”

  	
   

  	
  32,139

  	
   

  	
  34,817

  	
   

  	
  24,104

  	
   

  	
  21,426

  	
   

  	
  28,738

  	
   

  	
  26,526

  	
   

  
	
  TCE Revenue /
  “Rolling Average TCE Revenue”

  	
   

  	
  2,442,564

  	
   

  	
  3,063,918

  	
   

  	
  2,193,487

  	
   

  	
  1,971,192

  	
   

  	
  2,643,868

  	
   

  	
  2,387,311

  	
   

  
	
  “Basic Hire”

  	
   

  	
  1,862,000

  	
   

  	
  2,156,000

  	
   

  	
  2,229,500

  	
   

  	
  2,254,000

  	
   

  	
  2,269,200

  	
   

  	
  2,223,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rebecca

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On-hire days

  	
   

  	
  76

  	
   

  	
  90

  	
   

  	
  91

  	
   

  	
  86

  	
   

  	
  92

  	
   

  	
  90

  	
   

  
	
  Pool earnings
  ($/day)

  	
  pool points:
  90.93%

  	
   

  	
  27,279

  	
   

  	
  29,552

  	
   

  	
  20,459

  	
   

  	
  18,186

  	
   

  	
  29,552

  	
   

  	
  21,823

  	
   

  
	
  Revenue

  	
   

  	
  2,073,204

  	
   

  	
  2,659,703

  	
   

  	
  1,861,792

  	
   

  	
  1,563,996

  	
   

  	
  2,718,807

  	
   

  	
  1,964,088

  	
   

  
	
  Effective TCE
  rate / “Rolling Average TCE Rate”

  	
   

  	
  27,279

  	
   

  	
  29,552

  	
   

  	
  20,459

  	
   

  	
  18,186

  	
   

  	
  24,525

  	
   

  	
  22,587

  	
   

  
	
  TCE Revenue /
  “Rolling Average TCE Revenue”

  	
   

  	
  2,073,204

  	
   

  	
  2,659,703

  	
   

  	
  1,861,792

  	
   

  	
  1,563,996

  	
   

  	
  2,256,254

  	
   

  	
  2,032,817

  	
   

  
	
  “Basic Hire”

  	
   

  	
  1,406,000

  	
   

  	
  1,665,000

  	
   

  	
  1,683,500

  	
   

  	
  1,591,000

  	
   

  	
  1,717,200

  	
   

  	
  1,683,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ania

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On-hire days

  	
   

  	
  76

  	
   

  	
  90

  	
   

  	
  91

  	
   

  	
  92

  	
   

  	
  92

  	
   

  	
  84

  	
   

  
	
  Pool earnings
  ($/day)

  	
  pool points:
  90.93%

  	
   

  	
  27,279

  	
   

  	
  29,552

  	
   

  	
  20,459

  	
   

  	
  18,186

  	
   

  	
  29,552

  	
   

  	
  21,823

  	
   

  
	
  Revenue

  	
   

  	
  2,073,204

  	
   

  	
  2,659,703

  	
   

  	
  1,861,792

  	
   

  	
  1,673,112

  	
   

  	
  2,718,807

  	
   

  	
  1,833,149

  	
   

  
	
  Effective TCE
  rate / “Rolling Average TCE Rate”

  	
   

  	
  27,279

  	
   

  	
  29,552

  	
   

  	
  20,459

  	
   

  	
  18,186

  	
   

  	
  24,420

  	
   

  	
  22,526

  	
   

  
	
  TCE Revenue /
  “Rolling Average TCE Revenue”

  	
   

  	
  2,073,204

  	
   

  	
  2,659,703

  	
   

  	
  1,861,792

  	
   

  	
  1,673,112

  	
   

  	
  2,246,669

  	
   

  	
  1,892,190

  	
   

  
	
  “Basic Hire”

  	
   

  	
  1,406,000

  	
   

  	
  1,665,000

  	
   

  	
  1,683,500

  	
   

  	
  1,702,000

  	
   

  	
  1,717,200

  	
   

  	
  1,570,800

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FLEET-LEVEL CALCULATIONS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aggregate of
  revenue contributions (5)

  	
   

  	
  18,078,576

  	
   

  	
  23,569,676

  	
   

  	
  16,235,037

  	
   

  	
  17,392,188

  	
   

  	
  20,230,975

  	
   

  	
  18,406,160

  	
   

  
	
  Aggregate of
  “Basic Hire”

  	
   

  	
  15,017,600

  	
   

  	
  17,735,000

  	
   

  	
  17,981,600

  	
   

  	
  17,621,800

  	
   

  	
  17,874,200

  	
   

  	
  17,224,800

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Aggregate TCE
  Revenue” (6)

  	
   

  	
  18,078,576

  	
   

  	
  41,648,252

  	
   

  	
  57,883,289

  	
   

  	
  75,275,477

  	
   

  	
  20,230,975

  	
   

  	
  18,406,160

  	
   

  
	
  “Aggregate Basic
  Hire Paid”

  	
   

  	
  15,017,600

  	
   

  	
  32,752,600

  	
   

  	
  50,734,200

  	
   

  	
  68,356,000

  	
   

  	
  17,874,200

  	
   

  	
  17,224,800

  	
   

  
	
  Excess revenue

  	
   

  	
  3,060,976

  	
   

  	
  8,895,652

  	
   

  	
  7,149,089

  	
   

  	
  6,919,477

  	
   

  	
  2,356,775

  	
   

  	
  1,181,360

  	
   

  
	
  DHT profit share
  percentage@ 40%

  	
   

  	
  x 40

  	
  %

  	
  x 40

  	
  %

  	
  x 40

  	
  %

  	
  x 40

  	
  %

  	
  x 40

  	
  %

  	
  x 40

  	
  %

  
	
  “Calculated
  Additional Hire” (7)

  	
   

  	
  1,224,390

  	
   

  	
  3,558,261

  	
   

  	
  2,859,635

  	
   

  	
  2,767,791

  	
   

  	
  942,710

  	
   

  	
  472,544

  	
   

  
	
  Less:

  	
  “Prior Additional
  Hire Payment Amount”

  	
   

  	
  —

  	
   

  	
  1,224,390

  	
   

  	
  3,558,261

  	
   

  	
  3,558,261

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
  “Additional Hire
  Payment Offset”

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  790,470

  	
   

  	
  —

  	
   

  
	
  “Additional Hire
  Payment Amount” (8)

  	
   

  	
  1,224,390

  	
   

  	
  2,333,870

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  152,240

  	
   

  	
  472,544

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Year 1 Deficit
  Carryforward”

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  790,470

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
																

 

 

Notes to Schedule B-1

 

This sample calculation assumes that each Vessel Operates in a Pool for
the entire time period covered and that no Offhire Adjustment applies.  This Schedule is for illustration
purposes only.  See Schedule B-2 for
a sample calculation of Spot Revenue.  If
Spot Revenue or Time Charter Revenue were earned by a Vessel, the revenue would
be included in the “Revenue” line for each Vessel.

 

1)              The Basic Hire Rate
(as defined in Clause 99 of each Time Charter) steps up on each anniversary of
the Effective Date, so that each fourth fiscal quarter (ending on December 31)
will have two Basic Hire Rates in effect. 
For the purposes of this Exhibit, drydock off-hire periods occurring in
such quarters containing a step-up in the Basic Hire Rate are assumed to take
place in the latter portion of such quarter, reducing Basic Hire that would
otherwise be earned at the higher rate.

 

2)              Pool points are used
in the determination of time charter equivalent revenue by the manager of the
Pool and are shown here for illustration purposes only.  In this example, pool earnings are derived by
multiplying pool points times the assumed earnings for a 100 point vessel.  The pool earnings shown on this Schedule are
as per those in effect for the Vessels on the Effective Date as determined by
the manager of the respective Pool.  Pool
points are subject to change by the manager of the respective pool (on a
semiannual basis for both Pools as of the Effective Date).  For purposes of this Schedule, Pool Revenue
is equal to the Revenue line (as all Vessels are assumed to only Operate in
Pools), which is equal to pool earnings times on-hire days, without adjustment.

 

3)              For periods prior to
September 30, 2006, the TCE Rate is shown on this Schedule, and is the
same as “pool earnings.”  The TCE Rate is
not a defined term in this Agreement. 
For periods after September 30, 2006, the Rolling Average TCE Rate
applies.  The Rolling Average TCE Rate
for Pool Revenue is functionally equal to the weighted average of the TCE rates
reported by the pool manager for the four quarters ending on the last day of
such quarter.  In this Schedule, the
Rolling Average TCE Rate is equal to the sum of Revenue for the previous four
quarters divided by the sum of on-hire days.

 

4)              For periods prior to
September 30, 2006, TCE Revenue is shown on this Schedule, and is the same
as “Revenue.”  TCE Revenue is not a
defined term in this Agreement.  For
periods after September 30, 2006, Rolling Average TCE Revenue applies and
is obtained by multiplying the Rolling Average TCE Rate by the number of
on-hire days in the Calculation Period for the Vessel.

 

5)              Aggregate of revenue
contributions is the sum of the TCE Revenue / Rolling Average TCE Revenue for
all Vessels.

 

6)              Aggregate TCE
Revenue is calculated as:

 

 

a)              for the each of the
first four fiscal quarters (including stub first quarter), the cumulative
amount of aggregate revenue contributions earned for the Calculation Period or

 

b)             for each calendar
quarter thereafter, the aggregate amount of revenue contributions earned for
the current quarter.

 

 Aggregate Base Hire Paid is then calculated on
the same basis from Basic Hire.

 

7)              Calculated
Additional Hire is calculated as 40% of any excess revenue (Aggregate TCE
Revenue less Aggregate Base Hire Paid).

 

8)              Additional Hire
Payment Amount is calculated as:

 

a)              for the each of the
first four fiscal quarters (including stub first quarter), the excess, if any,
of Calculated Additional Hire (which has been earned on a cumulative basis for
the Calculation Period commencing on the Effective Date through the last day of
the quarter in question), over Prior Additional Payment Amount, which is
defined as the cumulative Additional Hire Payment Amount paid since the
Effective Date.  Any excess of Prior
Additional Payment Amount over Calculated Additional Hire existing as at September 30,
2006, which would result from no additional hire payment being made in respect
of that quarter and possibly other preceding quarters, will create a deficit
balance called Year 1 Deficit Carryforward that can be carried forward and
drawn against in future quarters (through September 30, 2007) to reduce
(in the form of an Additional Hire Payment Offset) the additional hire payments
otherwise payable in respect of such quarters

 

b)             for any calendar
quarter thereafter, Calculated Additional Hire (which has been earned for the
quarter in question on the basis of the four-quarter average TCE rates) as
reduced, but not below zero, by any remaining balance in the Year 1 Deficit
Carryforward which, on such reduction, shall be reduced by an equal amount.  Any Year 1 Deficit Carryforward existing as
at September 30, 2007 after any Additional Hire Payment Offset is taken in
respect of the quarter ending on such date will be cancelled at such time.

 

 

SCHEDULE B-2

SAMPLE
CALCULATION OF SPOT MARKET REVENUE

OVERSEAS
ANN/CHRIS

 

	
  Route

  	
   

  	
  Route A

  	
   

  	
  Route B

  	
   

  	
  Route C

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Loading port

  	
   

  	
  Ras Tanura

  	
   

  	
  Ras Tanura

  	
   

  	
  Offshore Bonny

  	
   

  
	
  Discharge port

  	
   

  	
  Chiba

  	
   

  	
  LOOP

  	
   

  	
  LOOP

  	
   

  
	
  “Voyage Distance” (in nm)

  	
   

  	
  6,652

  	
   

  	
  12,392

  	
   

  	
  6,020

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Voyage Speed” (laden, in knots)

  	
   

  	
  14.75

  	
   

  	
  14.75

  	
   

  	
  14.75

  	
   

  
	
  “Voyage Speed” (ballast, in knots)

  	
   

  	
  15.75

  	
   

  	
  15.75

  	
   

  	
  15.75

  	
   

  
	
  Steaming allowance

  	
   

  	
  7.5

  	
  %

  	
  7.5

  	
  %

  	
  7.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Average WS Spot Rate” (From Broker Panel)

  	
   

  	
  110

  	
   

  	
  100

  	
   

  	
  120

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VOYAGE CALCULATION

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Worldscale Flat Rate” (in $/mt)

  	
   

  	
  $

  	
  13.39

  	
   

  	
  $

  	
  22.26

  	
   

  	
  $

  	
  11.30

  	
   

  
	
  x “Average WS Spot Rate” / 100

  	
   

  	
  1.10

  	
   

  	
  1.00

  	
   

  	
  1.20

  	
   

  
	
  Freight rate (in $/mt)

  	
   

  	
  $

  	
  14.729

  	
   

  	
  $

  	
  22.260

  	
   

  	
  $

  	
  13.560

  	
   

  
	
  x “Cargo Size” (in mt)

  	
   

  	
  250,000

  	
   

  	
  280,000

  	
   

  	
  260,000

  	
   

  
	
  “Freight Income” (in $)

  	
   

  	
  $

  	
  3,682,250.00

  	
   

  	
  $

  	
  6,232,800.00

  	
   

  	
  $

  	
  3,525,600.00

  	
   

  
	
  - Brokerage/Comm Mgmt (@ 3.75%)

  	
   

  	
  (138,084.38

  	
  )

  	
  (233,730.00

  	
  )

  	
  (132,210.00

  	
  )

  
	
  - “Bunker Costs”

  	
   

  	
  (1,049,714.75

  	
  )

  	
  (1,902,964.00

  	
  )

  	
  (955,965.50

  	
  )

  
	
  - “Port Charges” (see below)

  	
   

  	
  (147,000.00

  	
  )

  	
  (37,000.00

  	
  )

  	
  (25,000.00

  	
  )

  
	
  Net freight income

  	
   

  	
  $

  	
  2,347,450.88

  	
   

  	
  $

  	
  4,059,106.00

  	
   

  	
  $

  	
  2,412,424.50

  	
   

  
	
  / “Voyage Duration” (in days)

  	
   

  	
  46.83

  	
   

  	
  80.78

  	
   

  	
  43.10

  	
   

  
	
  “Average TCE Spot Rate” (in $/day)

  	
   

  	
  $

  	
  50,127.07

  	
   

  	
  $

  	
  50,248.90

  	
   

  	
  $

  	
  55,972.73

  	
   

  
	
  X Weighting factor

  	
   

  	
  0.50

  	
   

  	
  0.46

  	
   

  	
  0.04

  	
   

  
	
  Weighted amounts

  	
   

  	
  $

  	
  25,063.54

  	
   

  	
  $

  	
  23,114.49

  	
   

  	
  $

  	
  2,238.91

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Σ = “Weighted Average TCE Rate” (in
  $/day)

  	
   

  	
   

  	
   

  	
  $

  	
  50,416.94

  	
   

  	
   

  	
   

  

 

	
  Vessel

  	
   

  	
  O’seas Ann

  	
   

  	
  O’seas Chris

  	
   

  	
  Regal Unity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Weighted Average TCE Rate” (in $/day)

  	
   

  	
  $

  	
  50,416.94

  	
   

  	
  $

  	
  50,416.94

  	
   

  	
  $

  	
  50,416.94

  	
   

  
	
  “Spot Market Days” (in days)

  	
   

  	
  92.00

  	
   

  	
  83.50

  	
   

  	
  92.00

  	
   

  
	
  “Spot Market Revenue” (in $)

  	
   

  	
  $

  	
  4,638,358.41

  	
   

  	
  $

  	
  4,209,814.43

  	
   

  	
  $

  	
  4,638,358.41

  	
   

  

 

 

VOYAGE
CALCULATION INPUTS

 

	
   

  	
   

  	
  Route A

  	
   

  	
  Route B

  	
   

  	
  Route C

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Laden Leg

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Voyage Distance” (nm)

  	
   

  	
  6,652

  	
   

  	
  12,392

  	
   

  	
  6,020

  	
   

  
	
  / “Voyage Speed” (laden, in kts, net of
  steaming allowance)

  	
   

  	
  13.64

  	
   

  	
  13.64

  	
   

  	
  13.64

  	
   

  
	
  Voyage duration (laden leg, in hrs)

  	
   

  	
  487.55

  	
   

  	
  908.25

  	
   

  	
  441.23

  	
   

  
	
  Voyage duration (laden leg, in days)

  	
   

  	
  20.31

  	
   

  	
  37.84

  	
   

  	
  18.38

  	
   

  
	
  x Laden Leg Consumption (in mt/day)

  	
   

  	
  105.00

  	
   

  	
  105.00

  	
   

  	
  105.00

  	
   

  
	
  “Laden Leg Bunkers Used” (in mt)

  	
   

  	
  2,132.55

  	
   

  	
  3,973.20

  	
   

  	
  1,929.90

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ballast Leg

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Voyage Distance” (nm)

  	
   

  	
  6,652

  	
   

  	
  12,392

  	
   

  	
  6,020

  	
   

  
	
  / “Voyage Speed” (ballast, in kts, net of
  steaming allowance)

  	
   

  	
  14.57

  	
   

  	
  14.57

  	
   

  	
  14.57

  	
   

  
	
  Voyage duration (ballast leg, in hrs)

  	
   

  	
  456.59

  	
   

  	
  850.59

  	
   

  	
  413.21

  	
   

  
	
  Voyage duration (ballast leg, in days)

  	
   

  	
  19.02

  	
   

  	
  35.44

  	
   

  	
  17.22

  	
   

  
	
  x Ballast Leg Consumption (in mt/day)

  	
   

  	
  100.00

  	
   

  	
  100.00

  	
   

  	
  100.00

  	
   

  
	
  “Ballast Leg Bunkers Used” (in mt)

  	
   

  	
  1,902.00

  	
   

  	
  3,544.00

  	
   

  	
  1,722.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bunker Costs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Load Port Bunkers Used” (in mt)

  	
   

  	
  50.00

  	
   

  	
  50.00

  	
   

  	
  50.00

  	
   

  
	
  + “Laden Leg Bunkers Used” (in mt)

  	
   

  	
  2,132.55

  	
   

  	
  3,973.20

  	
   

  	
  1,929.90

  	
   

  
	
  + “Discharge Port Bunkers Used” (in mt)

  	
   

  	
  200.00

  	
   

  	
  200.00

  	
   

  	
  200.00

  	
   

  
	
  + “Ballast Leg Bunkers Used” (in mt)

  	
   

  	
  1,902.00

  	
   

  	
  3,544.00

  	
   

  	
  1,722.00

  	
   

  
	
  “Bunkers Used” (in mt)

  	
   

  	
  4,284.55

  	
   

  	
  7,767.20

  	
   

  	
  3,901.90

  	
   

  
	
  x “Bunker Price” (in $/mt, see below)

  	
   

  	
  $

  	
  245.00

  	
   

  	
  $

  	
  245.00

  	
   

  	
  $

  	
  245.00

  	
   

  
	
  “Bunker Costs” (in $)

  	
   

  	
  $

  	
  1,049,714.75

  	
   

  	
  $

  	
  1,902,964.00

  	
   

  	
  $

  	
  955,965.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Voyage Duration

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Time in Port” (loading, in days)

  	
   

  	
  3.00

  	
   

  	
  3.00

  	
   

  	
  3.00

  	
   

  
	
  + Voyage duration (laden leg, in hrs)

  	
   

  	
  20.31

  	
   

  	
  37.84

  	
   

  	
  18.38

  	
   

  
	
  + “Time in Port” (discharging, in days)

  	
   

  	
  3.00

  	
   

  	
  3.00

  	
   

  	
  3.00

  	
   

  
	
  + Voyage duration (ballast leg, in days)

  	
   

  	
  19.02

  	
   

  	
  35.44

  	
   

  	
  17.22

  	
   

  
	
  + “Time in Port” (idling, in days)

  	
   

  	
  1.50

  	
   

  	
  1.50

  	
   

  	
  1.50

  	
   

  
	
  “Voyage Duration”

  	
   

  	
  46.83

  	
   

  	
  80.78

  	
   

  	
  43.10

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Port Charges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Port charges (load port, in $)

  	
   

  	
  $

  	
  32,000.00

  	
   

  	
  $

  	
  32,000.00

  	
   

  	
  $

  	
  20,000.00

  	
   

  
	
  Port charges (discharge port, in $)

  	
   

  	
  115,000.00

  	
   

  	
  5,000.00

  	
   

  	
  5,000.00

  	
   

  
	
  “Port Charges”

  	
   

  	
  $

  	
  147,000.00

  	
   

  	
  $

  	
  37,000.00

  	
   

  	
  $

  	
  25,000.00

  	
   

  

 

	
  Calculation of “Bunker Price”

  	
   

  	
  Average Price

  	
   

  	
  Weighting

  	
   

  	
  Weighted Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fujairah Price (in $/mt)

  	
   

  	
  $

  	
  240.00

  	
   

  	
  0.500

  	
   

  	
  $

  	
  120.00

  	
   

  
	
  Houston Price (in $/mt)

  	
   

  	
  $

  	
  250.00

  	
   

  	
  0.500

  	
   

  	
  125.00

  	
   

  
	
  “Bunker Price” (in $/mt)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  245.00

  	
   

  

 

 

SAMPLE
CALCULATION OF SPOT MARKET REVENUE

OVERSEAS
CATHY/SOPHIE

 

	
  Route

  	
   

  	
  Route D

  	
   

  	
  Route E

  	
   

  	
  Route F

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Loading port

  	
   

  	
  Puerto la Cruz

  	
   

  	
  Sullom Voe

  	
   

  	
  Banias

  	
   

  
	
  Discharge port

  	
   

  	
  Corpus Christi

  	
   

  	
  Wilhelmshaven

  	
   

  	
  Lavera

  	
   

  
	
  “Voyage Distance” (in nm)

  	
   

  	
  2,161

  	
   

  	
  600

  	
   

  	
  1,672

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Voyage Speed” (laden, in knots)

  	
   

  	
  15.00

  	
   

  	
  15.00

  	
   

  	
  15.00

  	
   

  
	
  “Voyage Speed” (ballast, in knots)

  	
   

  	
  15.00

  	
   

  	
  15.00

  	
   

  	
  15.00

  	
   

  
	
  Steaming allowance

  	
   

  	
  7.5

  	
  %

  	
  7.5

  	
  %

  	
  7.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Average WS Spot Rate” (From Broker Panel)

  	
   

  	
  250

  	
   

  	
  200

  	
   

  	
  220

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VOYAGE CALCULATION

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Worldscale Flat Rate” (in $/mt)

  	
   

  	
  $

  	
  5.49

  	
   

  	
  $

  	
  4.45

  	
   

  	
  $

  	
  5.35

  	
   

  
	
  x “Average WS Spot Rate” / 100

  	
   

  	
  2.50

  	
   

  	
  2.00

  	
   

  	
  2.20

  	
   

  
	
  Freight rate (in $/mt)

  	
   

  	
  $

  	
  13.725

  	
   

  	
  $

  	
  8.900

  	
   

  	
  $

  	
  11.770

  	
   

  
	
  x “Cargo Size” (in mt)

  	
   

  	
  70,000

  	
   

  	
  80,000

  	
   

  	
  80,000

  	
   

  
	
  “Freight Income” (in $)

  	
   

  	
  $

  	
  960,750.00

  	
   

  	
  $

  	
  712,000.00

  	
   

  	
  $

  	
  941,600.00

  	
   

  
	
  - Brokerage/Comm Mgmt (@ 3.75%)

  	
   

  	
  (36,028.13

  	
  )

  	
  (26,700.00

  	
  )

  	
  (35,310.00

  	
  )

  
	
  - “Bunker Costs”

  	
   

  	
  (211,864.50

  	
  )

  	
  (66,240.00

  	
  )

  	
  (166,221.00

  	
  )

  
	
  - “Port Charges”

  	
   

  	
  (85,000.00

  	
  )

  	
  (220,000.00

  	
  )

  	
  (155,000.00

  	
  )

  
	
  Net freight income

  	
   

  	
  $

  	
  627,857.38

  	
   

  	
  $

  	
  399,060.00

  	
   

  	
  $

  	
  585,069.00

  	
   

  
	
  / “Voyage Duration” (in days)

  	
   

  	
  17.98

  	
   

  	
  8.60

  	
   

  	
  15.04

  	
   

  
	
  “Average TCE Spot Rate” (in $/day)

  	
   

  	
  $

  	
  34,919.77

  	
   

  	
  $

  	
  46,402.33

  	
   

  	
  $

  	
  38,900.86

  	
   

  
	
  x Weighting factor

  	
   

  	
  0.50

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  
	
  Weighted amounts

  	
   

  	
  $

  	
  17,459.88

  	
   

  	
  $

  	
  11,600.58

  	
   

  	
  $

  	
  9,725.22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Σ = “Weighted Average TCE Rate” (in
  $/day)

  	
   

  	
   

  	
   

  	
  $

  	
  38,785.68

  	
   

  	
   

  	
   

  

 

	
  Vessel

  	
   

  	
  O’seas Cathy

  	
   

  	
  O’seas Sophie

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Weighted Average TCE Rate” (in $/day)

  	
   

  	
  $

  	
  38,785.68

  	
   

  	
  $

  	
  38,785.68

  	
   

  	
   

  	
   

  
	
  “Spot Market Days” (in days)

  	
   

  	
  92.00

  	
   

  	
  92.00

  	
   

  	
   

  	
   

  
	
  “Spot Market Revenue” (in $)

  	
   

  	
  $

  	
  3,568,282.56

  	
   

  	
  $

  	
  3,568,282.56

  	
   

  	
   

  	
   

  

 

 

VOYAGE
CALCULATION INPUTS

 

	
   

  	
   

  	
  Route D

  	
   

  	
  Route E

  	
   

  	
  Route F

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Laden Leg

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Voyage Distance” (nm)

  	
   

  	
  2,161

  	
   

  	
  600

  	
   

  	
  1,672

  	
   

  
	
  / “Voyage Speed” (laden, in kts, net of
  steaming allowance)

  	
   

  	
  13.88

  	
   

  	
  13.88

  	
   

  	
  13.88

  	
   

  
	
  Voyage duration (laden leg, in hrs)

  	
   

  	
  155.75

  	
   

  	
  43.24

  	
   

  	
  120.50

  	
   

  
	
  Voyage duration (laden leg, in days)

  	
   

  	
  6.49

  	
   

  	
  1.80

  	
   

  	
  5.02

  	
   

  
	
  x Laden Leg Consumption (in mt/day)

  	
   

  	
  60.00

  	
   

  	
  60.00

  	
   

  	
  60.00

  	
   

  
	
  “Laden Leg Bunkers Used” (in mt)

  	
   

  	
  389.40

  	
   

  	
  108.00

  	
   

  	
  301.20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ballast Leg

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Voyage Distance” (nm)

  	
   

  	
  2,161

  	
   

  	
  600

  	
   

  	
  1,672

  	
   

  
	
  / “Voyage Speed” (ballast, in kts, net of
  steaming allowance)

  	
   

  	
  13.88

  	
   

  	
  13.88

  	
   

  	
  13.88

  	
   

  
	
  Voyage duration (ballast leg, in hrs)

  	
   

  	
  155.75

  	
   

  	
  43.24

  	
   

  	
  120.50

  	
   

  
	
  Voyage duration (ballast leg, in days)

  	
   

  	
  6.49

  	
   

  	
  1.80

  	
   

  	
  5.02

  	
   

  
	
  x Ballast Leg Consumption (in mt/day)

  	
   

  	
  60.00

  	
   

  	
  60.00

  	
   

  	
  60.00

  	
   

  
	
  “Ballast Leg Bunkers Used” (in mt)

  	
   

  	
  389.40

  	
   

  	
  108.00

  	
   

  	
  301.20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bunker Costs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Load Port Bunkers Used” (in mt)

  	
   

  	
  20.00

  	
   

  	
  20.00

  	
   

  	
  20.00

  	
   

  
	
  + “Laden Leg Bunkers Used” (in mt)

  	
   

  	
  389.40

  	
   

  	
  108.00

  	
   

  	
  301.20

  	
   

  
	
  + “Discharge Port Bunkers Used” (in mt)

  	
   

  	
  20.00

  	
   

  	
  20.00

  	
   

  	
  20.00

  	
   

  
	
  + “Ballast Leg Bunkers Used” (in mt)

  	
   

  	
  389.40

  	
   

  	
  108.00

  	
   

  	
  301.20

  	
   

  
	
  “Bunkers Used” (in mt)

  	
   

  	
  818.80

  	
   

  	
  256.00

  	
   

  	
  642.40

  	
   

  
	
  x “Bunker Price” (in $/mt)

  	
   

  	
  $

  	
  258.75

  	
   

  	
  $

  	
  258.75

  	
   

  	
  $

  	
  258.75

  	
   

  
	
  “Bunker Costs” (in $)

  	
   

  	
  $

  	
  211,864.50

  	
   

  	
  $

  	
  66,240.00

  	
   

  	
  $

  	
  166,221.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Voyage Duration

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Time in Port” (loading, in days)

  	
   

  	
  2.00

  	
   

  	
  2.00

  	
   

  	
  2.00

  	
   

  
	
  + Voyage duration (laden leg, in hrs)

  	
   

  	
  6.49

  	
   

  	
  1.80

  	
   

  	
  5.02

  	
   

  
	
  + “Time in Port” (discharging, in days)

  	
   

  	
  2.00

  	
   

  	
  2.00

  	
   

  	
  2.00

  	
   

  
	
  + Voyage duration (ballast leg, in days)

  	
   

  	
  6.49

  	
   

  	
  1.80

  	
   

  	
  5.02

  	
   

  
	
  + “Time in Port” (idling, in days)

  	
   

  	
  1.00

  	
   

  	
  1.00

  	
   

  	
  1.00

  	
   

  
	
  “Voyage Duration”

  	
   

  	
  17.98

  	
   

  	
  8.60

  	
   

  	
  15.04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Port Charges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Port charges (load port, in $)

  	
   

  	
  $

  	
  60,000.00

  	
   

  	
  $

  	
  135,000.00

  	
   

  	
  $

  	
  30,000.00

  	
   

  
	
  Port charges (discharge port, in $)

  	
   

  	
  25,000.00

  	
   

  	
  85,000.00

  	
   

  	
  125,000.00

  	
   

  
	
  “Port Charges”

  	
   

  	
  $

  	
  85,000.00

  	
   

  	
  $

  	
  220,000.00

  	
   

  	
  $

  	
  155,000.00

  	
   

  

 

	
  Calculation of “Bunker Price”

  	
   

  	
  Average Price

  	
   

  	
  Weighting

  	
   

  	
  Weighted Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Houston Price (in $/mt)

  	
   

  	
  $

  	
  260.00

  	
   

  	
  0.500

  	
   

  	
  $

  	
  130.00

  	
   

  
	
  Rotterdam Price (in $/mt)

  	
   

  	
  $

  	
  255.00

  	
   

  	
  0.250

  	
   

  	
  63.75

  	
   

  
	
  Gibraltar Price (in $/mt)

  	
   

  	
  $

  	
  260.00

  	
   

  	
  0.250

  	
   

  	
  65.00

  	
   

  
	
  “Bunker Price” (in $/mt)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  258.75

  	
   

  

 

 

SAMPLE
CALCULATION OF SPOT MARKET REVENUE

ANIA AND
REBECCA

 

	
  Route

  	
   

  	
  Route D

  	
   

  	
  Route E

  	
   

  	
  Route F

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Loading port

  	
   

  	
  Puerto la Cruz

  	
   

  	
  Sullom Voe

  	
   

  	
  Banias

  	
   

  
	
  Discharge port

  	
   

  	
  Corpus Christi

  	
   

  	
  Wilhelmshaven

  	
   

  	
  Lavera

  	
   

  
	
  “Voyage Distance” (in nm)

  	
   

  	
  2,161

  	
   

  	
  600

  	
   

  	
  1,672

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Voyage Speed” (laden, in knots)

  	
   

  	
  13.30

  	
   

  	
  13.30

  	
   

  	
  13.30

  	
   

  
	
  “Voyage Speed” (ballast, in knots)

  	
   

  	
  13.30

  	
   

  	
  13.30

  	
   

  	
  13.30

  	
   

  
	
  Steaming allowance

  	
   

  	
  7.5

  	
  %

  	
  7.5

  	
  %

  	
  7.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Average WS Spot Rate” (From Broker Panel)

  	
   

  	
  250

  	
   

  	
  200

  	
   

  	
  220

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VOYAGE CALCULATION

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Worldscale Flat Rate” (in $/mt)

  	
   

  	
  $

  	
  5.49

  	
   

  	
  $

  	
  4.45

  	
   

  	
  $

  	
  5.35

  	
   

  
	
  x “Average WS Spot Rate” / 100

  	
   

  	
  2.50

  	
   

  	
  2.00

  	
   

  	
  2.20

  	
   

  
	
  Freight rate (in $/mt)

  	
   

  	
  $

  	
  13.725

  	
   

  	
  $

  	
  8.900

  	
   

  	
  $

  	
  11.770

  	
   

  
	
  x “Cargo Size” (in mt)

  	
   

  	
  70,000

  	
   

  	
  80,000

  	
   

  	
  80,000

  	
   

  
	
  “Freight Income” (in $)

  	
   

  	
  $

  	
  960,750.00

  	
   

  	
  $

  	
  712,000.00

  	
   

  	
  $

  	
  941,600.00

  	
   

  
	
  - Brokerage/Comm Mgmt (@ 3.75%)

  	
   

  	
  (36,028.13

  	
  )

  	
  (26,700.00

  	
  )

  	
  (35,310.00

  	
  )

  
	
  - “Bunker Costs”

  	
   

  	
  (150,509.70

  	
  )

  	
  (49,219.43

  	
  )

  	
  (118,724.85

  	
  )

  
	
  - “Port Charges”

  	
   

  	
  (85,000.00

  	
  )

  	
  (220,000.00

  	
  )

  	
  (155,000.00

  	
  )

  
	
  Net freight income

  	
   

  	
  $

  	
  689,212.18

  	
   

  	
  $

  	
  416,080.58

  	
   

  	
  $

  	
  632,565.15

  	
   

  
	
  / “Voyage Duration” (in days)

  	
   

  	
  19.64

  	
   

  	
  9.06

  	
   

  	
  16.32

  	
   

  
	
  “Average TCE Spot Rate” (in $/day)

  	
   

  	
  $

  	
  35,092.27

  	
   

  	
  $

  	
  45,925.01

  	
   

  	
  $

  	
  38,760.12

  	
   

  
	
  x Weighting factor

  	
   

  	
  0.50

  	
   

  	
  0.25

  	
   

  	
  0.25

  	
   

  
	
  Weighted amounts

  	
   

  	
  $

  	
  17,546.13

  	
   

  	
  $

  	
  11,481.25

  	
   

  	
  $

  	
  9,690.03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Σ = “Weighted Average TCE Rate” (in
  $/day)

  	
   

  	
   

  	
   

  	
  $

  	
  38,717.42

  	
   

  	
   

  	
   

  

 

	
  Vessel

  	
   

  	
  Ania

  	
   

  	
  Rebecca

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Weighted Average TCE Rate” (in $/day)

  	
   

  	
  $

  	
  38,717.42

  	
   

  	
  $

  	
  38,717.42

  
	
  “Spot Market Days” (in days)

  	
   

  	
  92.00

  	
   

  	
  86.00

  
	
  “Spot Market Revenue” (in $)

  	
   

  	
  $

  	
  3,562,002.34

  	
   

  	
  $

  	
  3,329,697.84

  

 

 

VOYAGE
CALCULATION INPUTS

 

	
   

  	
   

  	
  Route D

  	
   

  	
  Route E

  	
   

  	
  Route F

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Laden Leg

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Voyage Distance” (nm)

  	
   

  	
  2,161

  	
   

  	
  600

  	
   

  	
  1,672

  	
   

  
	
  / “Voyage Speed” (laden, in kts, net of
  steaming allowance)

  	
   

  	
  12.30

  	
   

  	
  12.30

  	
   

  	
  12.30

  	
   

  
	
  Voyage duration (laden leg, in hrs)

  	
   

  	
  175.66

  	
   

  	
  48.77

  	
   

  	
  135.91

  	
   

  
	
  Voyage duration (laden leg, in days)

  	
   

  	
  7.32

  	
   

  	
  2.03

  	
   

  	
  5.66

  	
   

  
	
  x Laden Leg Consumption (in mt/day)

  	
   

  	
  37.00

  	
   

  	
  37.00

  	
   

  	
  37.00

  	
   

  
	
  “Laden Leg Bunkers Used” (in mt)

  	
   

  	
  270.84

  	
   

  	
  75.11

  	
   

  	
  209.42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ballast Leg

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Voyage Distance” (nm)

  	
   

  	
  2,161

  	
   

  	
  600

  	
   

  	
  1,672

  	
   

  
	
  / “Voyage Speed” (ballast, in kts, net of
  steaming allowance)

  	
   

  	
  12.30

  	
   

  	
  12.30

  	
   

  	
  12.30

  	
   

  
	
  Voyage duration (ballast leg, in hrs)

  	
   

  	
  175.66

  	
   

  	
  48.77

  	
   

  	
  135.91

  	
   

  
	
  Voyage duration (ballast leg, in days)

  	
   

  	
  7.32

  	
   

  	
  2.03

  	
   

  	
  5.66

  	
   

  
	
  x Ballast Leg Consumption (in mt/day)

  	
   

  	
  37.00

  	
   

  	
  37.00

  	
   

  	
  37.00

  	
   

  
	
  “Ballast Leg Bunkers Used” (in mt)

  	
   

  	
  270.84

  	
   

  	
  75.11

  	
   

  	
  209.42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bunker Costs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Load Port Bunkers Used” (in mt)

  	
   

  	
  20.00

  	
   

  	
  20.00

  	
   

  	
  20.00

  	
   

  
	
  + “Laden Leg Bunkers Used” (in mt)

  	
   

  	
  270.84

  	
   

  	
  75.11

  	
   

  	
  209.42

  	
   

  
	
  + “Discharge Port Bunkers Used” (in mt)

  	
   

  	
  20.00

  	
   

  	
  20.00

  	
   

  	
  20.00

  	
   

  
	
  + “Ballast Leg Bunkers Used” (in mt)

  	
   

  	
  270.84

  	
   

  	
  75.11

  	
   

  	
  209.42

  	
   

  
	
  “Bunkers Used” (in mt)

  	
   

  	
  581.68

  	
   

  	
  190.22

  	
   

  	
  458.84

  	
   

  
	
  x “Bunker Price” (in $/mt)

  	
   

  	
  $

  	
  258.75

  	
   

  	
  $

  	
  258.75

  	
   

  	
  $

  	
  258.75

  	
   

  
	
  “Bunker Costs” (in $)

  	
   

  	
  $

  	
  150,509.70

  	
   

  	
  $

  	
  49,219.43

  	
   

  	
  $

  	
  118,724.85

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Voyage Duration

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Time in Port” (loading, in days)

  	
   

  	
  2.00

  	
   

  	
  2.00

  	
   

  	
  2.00

  	
   

  
	
  + Voyage duration (laden leg, in hrs)

  	
   

  	
  7.32

  	
   

  	
  2.03

  	
   

  	
  5.66

  	
   

  
	
  + “Time in Port” (discharging, in days)

  	
   

  	
  2.00

  	
   

  	
  2.00

  	
   

  	
  2.00

  	
   

  
	
  + Voyage duration (ballast leg, in days)

  	
   

  	
  7.32

  	
   

  	
  2.03

  	
   

  	
  5.66

  	
   

  
	
  + “Time in Port” (idling, in days)

  	
   

  	
  1.00

  	
   

  	
  1.00

  	
   

  	
  1.00

  	
   

  
	
  “Voyage Duration”

  	
   

  	
  19.64

  	
   

  	
  9.06

  	
   

  	
  16.32

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Port Charges

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Port charges (load port, in $)

  	
   

  	
  $

  	
  60,000.00

  	
   

  	
  $

  	
  135,000.00

  	
   

  	
  $

  	
  30,000.00

  	
   

  
	
  Port charges (discharge port, in $)

  	
   

  	
  25,000.00

  	
   

  	
  85,000.00

  	
   

  	
  125,000.00

  	
   

  
	
  “Port Charges”

  	
   

  	
  $

  	
  85,000.00

  	
   

  	
  $

  	
  220,000.00

  	
   

  	
  $

  	
  155,000.00

  	
   

  

 

	
  Calculation of “Bunker Price”

  	
   

  	
  Average Price

  	
   

  	
  Weighting

  	
   

  	
  Weighted Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Houston Price (in $/mt)

  	
   

  	
  $

  	
  260.00

  	
   

  	
  0.500

  	
   

  	
  $

  	
  130.00

  	
   

  
	
  Rotterdam Price (in $/mt)

  	
   

  	
  $

  	
  255.00

  	
   

  	
  0.250

  	
   

  	
  63.75

  	
   

  
	
  Gibraltar Price (in $/mt)

  	
   

  	
  $

  	
  260.00

  	
   

  	
  0.250

  	
   

  	
  65.00

  	
   

  
	
  “Bunker Price” (in $/mt)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  258.75

  	
   

  

 

 

SCHEDULE C

Description of Pool Allocation

 

Calculation of Pool Earnings

 

Pool Earnings in respect of all pool vessels in any one pool year are
equal to pool gross revenues, as described below, less pool expenses, as
described below.

 

Pool gross revenues are comprised principally of:

 

(i)                                     each
pool vessel’s total voyage income (including without limitation freight and
demurrage);

 

(ii)                                  hire
received for pool vessels fixed on time charters;

 

(ii)                                  the
pool share of any salvage money;

 

(iv)                              interest
earned by the pool;

 

(v)                                 insurance
money paid out under policies taken out by the pool; and

 

(vi)                              all
income of any  nature due to the pool
arising out of the operation of or in any way connected to the pool vessels.

 

Any expenses payable by the charterer under a transportation contract or
COA are treated as income and then deducted below as pool expenses.

 

Pool expenses are comprised principally of:

 

(i)                                     each
pool vessel’s total voyage expenses payable under the applicable transportation
contract or COA including without limitation, agents, tugs, port expenses,
wharfage, brokerage commissions, bunkers, canal fees and additional war risk
premiums;

 

(ii)                                  any
liabilities or damages payable by the pool to any contractual party;

 

(iii)                               all
other expenses or amounts payable by the pool in connection with the operation
of the pool vessels and in connection with performing the business of the pool;

 

(iv)                              all
costs in connection with the administration of the pool;

 

(v)                                 all
other costs relating to the pool;

 

(vi)                              claims
relating to COAs where no vessels have been nominated; and

 

 

(vii)                           any
claims or deductions (or any parts thereof) which cannot be deducted from a
participant’s entitlement to hire.

 

How an individual Vessel Share is calculated

 

The time charter equivalent revenue allocated to each pool vessel is
calculated as follows:

 

(A x B) / C

 

Where:

 

A = Pool Earnings for a particular month

 

B = Key Entitlement for the pool Vessel

 

C = the sum of Key Entitlements for all pool
Vessels.

 

The “Key Entitlement” is the figure obtained by taking the pool
points applicable to the pool Vessel in the month and multiplying it by the net
number of days the pool Vessel was on hire to the pool in the month.Exhibit 10.6

 

GUARANTY

 

GUARANTY,
dated as of October 6, 2005 (as amended, modified or supplemented from
time to time, this “Guaranty”), made by Overseas Shipholding Group, Inc.,
a Delaware corporation (the “Guarantor”), in favor of Double Hull
Tankers, Inc. (“DHT”) and its vessel owning subsidiaries listed on Schedule I
hereto (each, an “Owner”).

 

RECITALS

 

WHEREAS, each
Owner and subsidiaries of the Guarantor listed on Schedule I hereto (the “Charterers”)
are entering into Time Charter Parties on the date hereof (as amended from time
to time, each a “Charter”) pursuant to which each of the Charterers will
agree to time charter the vessel owned by one of the Owners, as specified on Schedule I
(the “Vessels”);

 

WHEREAS, DHT,
the Charterers and OSG International, Inc. (“OIN”) are entering
into that certain Charter Framework Agreement (the “CFA”) dated the date
hereof;

 

WHEREAS, the
Charterers and OIN are wholly owned subsidiaries of Guarantor; and

 

WHEREAS, in
order to induce each Owner to enter into its Charter with the applicable
Charterer and to induce DHT to enter into the Charter Framework Agreement,
Guarantor desires to execute this Agreement to guarantee the Charterers’
payment obligations under the Charters and OIN’s payment obligations under the
CFA.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

 

Section 1.  Guaranty.  The Guarantor, as primary obligor and not
merely as surety, hereby irrevocably, unconditionally and absolutely severally
guarantees to each Owner the due and punctual payment of the charterhire
payments due to such Owner under its Charter with the applicable
Charterer.  In addition, the Guarantor,
as primary obligor and not merely as surety, hereby irrevocably,
unconditionally and absolutely severally guarantees to DHT the due and punctual
payment of the charterhire payments due to DHT under the CFA.  All such payment obligations and liabilities
referred to in the previous two sentences are herein collectively called the “Guaranteed
Obligations”.  In case of failure of
a Charterer or OIN punctually to pay any of the amounts necessary to satisfy
the Guaranteed Obligations, the Guarantor shall cause such amounts to be paid
punctually when and as the same shall become due and payable as if such payment
were made by such Charterer or OIN.  The
Guarantor also shall pay any and all expenses (including, without limitation,
reasonable attorneys’ fees and expenses) incurred by the

 

 

applicable Owner or DHT in enforcing its rights under this Guaranty
provided that such Owner or DHT is successful in enforcing its rights
hereunder.

 

Section 2.  Unconditional Obligations.  The obligation of the Guarantor to guarantee
the Guaranteed Obligations set forth in Section 1 above shall be absolute
and unconditional irrespective of (i) any lack of enforceability against
the Charterers or OIN of the Guaranteed Obligations, (ii) any change of
the time, manner or place of payment, or any other term, of the Guaranteed
Obligations, (iii) the failure, omission, delay or lack on the part of an
Owner or DHT to assert any claim or demand or to enforce any right or remedy
against the Guarantor, any Charterer or OIN, (iv) any reduction,
limitation, impairment or termination of the Guaranteed Obligations for any
reason, including any claim of waiver, release, surrender, alteration or
compromise, (v) any invalidity, illegality or unenforceability in whole or
in part of any Charter or the CFA and (vi) any law, regulation or order of
any jurisdiction affecting any term of the Guaranteed Obligations or an Owner’s
or DHT’s rights with respect thereto. 
The Guarantor hereby waives promptness, diligence, protest, demand of
payment and notices with respect to the Guaranteed Obligations and any
requirement that an Owner or DHT exhaust any right or take any action against a
Charterer or OIN.  Notwithstanding anything
in this Guaranty to the contrary, the Guarantor shall be entitled to the
benefit of any right to or claim of any defense, setoff, counterclaim,
recoupment or termination to which a Charterer or OIN is entitled other than
those referred to in clause (v) of this Section 2.

 

Section 3.  Nature of Guaranteed Obligations.  (a)  The Guarantor hereby agrees that
this Guaranty is a guaranty of payment and performance and not of collection
only.

 

(b)  Any
and all payments by the Guarantor under the Guaranteed Obligations shall be
made free and clear of, and without deduction or withholding for or on account
of, any and all taxes, monetary transfer fees or other amounts except to the
extent such deduction or withholding of any tax is required by applicable
law.  If the Guarantor shall be required
by applicable law to deduct or withhold any tax or other amount from or in
respect of any sum payable hereunder to or for the benefit of an Owner or DHT,
to the extent the amount to be received from the Guarantor after such
withholding is less than the amount that would have been received from the
applicable Owner or DHT, the Guarantor shall pay to the Charterer such
additional amount as shall be necessary to enable the Charterer to receive,
after such withholding (including any withholding with respect to such additional
amount), the amount it would have received if such withholding had not been
required.

 

Section 4.  Insolvency.  This Guaranty shall continue to be effective,
or be reinstated, as the case may be, if at any time payment, in whole or in
part of any of the Guaranteed Obligations is rescinded or must otherwise be
restored or returned by a Charterer upon the bankruptcy, insolvency,
reorganization, arrangements, adjustment, composition, dissolution,
liquidation, or the like, of any Charterer, OIN or the Guarantor, or as a
result of the appointment of a custodian, receiver, trustee, or other officer
with similar powers with respect to any Charterer, OIN or the Guarantor or any
substantial part of either person’s respective property, or otherwise, all as though
such payment had

 

2

 

not been made notwithstanding any termination of this Guaranty, the
applicable Charter or the CFA.

 

Section 5.  Representations and Warranties of the
Guarantor.  The Guarantor hereby
represents and warrants to the Owners and DHT that this Guaranty has been duly
executed and delivered by the Guarantor and constitutes a valid and binding
obligation of the Guarantor, enforceable against the Guarantor in accordance
with its terms.

 

Section 6.  Waivers and Amendments; Non-Contractual
Remedies; Preservation of Remedies. 
This Guaranty may be amended, superseded, canceled, renewed or extended,
and the terms hereof may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance.  No delay on the part of any party on
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any party of any right, power or
privilege, nor any single or partial exercise of any such right, power or
privilege, preclude any further exercise thereof or the exercise of any other
such right, power or privilege.  The
rights and remedies herein provided are cumulative and are not exclusive of any
rights or remedies that any party may otherwise have at law or in equity.

 

Section 7.  Governing Law.  This Guaranty shall be construed, performed
and enforced in accordance with the same laws and in the same manner as is set
forth in the applicable Charter or the CFA, as the case may be.

 

Section 8.  Notices.  All notices, requests, demands and other
communications under this Guaranty must be delivered in the same manner as set
forth in the applicable Charter or the CFA, as the case may be.

 

Section 9.
 Counterparts.  This Guaranty may be executed by the parties
hereto in counterparts, each of which, when so executed and delivered, shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

 

Section 10.  Assignment; Binding Effect.  This Guaranty shall be binding upon the
Guarantor and its successors, permitted assigns and legal representatives and
shall inure to the benefit of each Owner and DHT and their successors,
permitted assigns and legal representatives. 
This Guaranty and any rights of either party hereunder, may not be
assigned, directly or indirectly, without the prior written consent of the
other party (which consent may be withheld at the sole discretion of such other
party), provided that each Charterer may assign its rights hereunder as
security to its lenders.  Any assignment
in violation of this Section 10 shall be void and shall have no force and
effect, it being understood for the avoidance of doubt that in the event that a
party shall merge or consolidate with or into another entity or enter into a
business combination or other similar transaction with another entity, such
transaction shall constitute an assignment.

 

3

 

Section 11.
 No Third-Party Beneficiaries.  Nothing in this Guaranty will confer any
rights or benefits upon any person or entity other than the Owners and DHT and
a successor or permitted assignee of any Owner or DHT.

 

Section 12.  Negotiated Agreement.  This Guaranty has been negotiated by the
parties and the fact that the initial and final draft will have been prepared
by either party or an intermediary will not give rise to any presumption for or
against any party to this Guaranty or be used in any respect or forum in the
construction or interpretation of this Guaranty or any of its provisions.

 

Section 13.  Severability.  If any provision of this Guaranty is held to
be void or unenforceable, in whole or in part, (i) such holding shall not
affect the validity and enforceability of the remainder of this Guaranty,
including any other provision, paragraph or subparagraph and (ii) the
parties agree to attempt in good faith to reform such void or unenforceable
provision to the extent necessary to render such provision enforceable and to
carry out its original intent.

 

 

[remainder of
this page intentionally blank]

 

4

 

IN WITNESS
WHEREOF, the Guarantor has caused this Guaranty to be executed on its behalf by
its officer thereunto duly authorized on the date first above written.

 

 

	
   

  	
  OVERSEAS SHIPHOLDING

  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Myles R. Itkin

  	
   

  
	
   

  	
   

  	
  Name: Myles R. Itkin

  	
   

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted and
  Agreed to this

  	
   

  
	
   

  	
   

  
	
  6th day of
  October, 2005

  	
   

  
	
   

  	
   

  
	
  Double Hull Tankers, Inc.,
  on behalf of itself

  	
   

  
	
  and each of
  its subsidiaries listed on Schedule 1

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Ole
  Jacob Diesen

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Ole Jacob
  Diesen

  	
   

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  	
   

  
							

 

 

SCHEDULE I

 

	
  Owners:

  	
   

  	
   

  	
   

  	
  Charterer:

  	
   

  	
  Vessel

  
	
  1.

  	
   

  	
  Ann Tanker Corporation

  	
   

  	
  and

  	
   

  	
  DHT Ann VLCC Corp.

  	
   

  	
  Overseas Ann

  
	
  2.

  	
   

  	
  Chris Tanker Corporation

  	
   

  	
  and

  	
   

  	
  DHT Chris VLCC Corp.

  	
   

  	
  Overseas Chris

  
	
  3.

  	
   

  	
  Regal Unity Tanker Corporation

  	
   

  	
  and

  	
   

  	
  DHT Regal Unity VLCC Corp.

  	
   

  	
  Regal Unity

  
	
  4.

  	
   

  	
  Cathy Tanker Corporation

  	
   

  	
  and

  	
   

  	
  DHT Cathy Aframax Corp.

  	
   

  	
  Overseas Cathy

  
	
  5.

  	
   

  	
  Sophie Tanker Corporation

  	
   

  	
  and

  	
   

  	
  DHT Sophie Aframax Corp.

  	
   

  	
  Overseas Sophie

  
	
  6.

  	
   

  	
  Rebecca Tanker Corporation

  	
   

  	
  and

  	
   

  	
  DHT Rebecca Aframax Corp.

  	
   

  	
  Rebecca

  
	
  7.

  	
   

  	
  Ania Aframax Corporation

  	
   

  	
  and

  	
   

  	
  DHT Ania Aframax Corp.

  	
   

  	
  Ania

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]