Document:

EMPLOYMENT AND
NON-COMPETE AGREEMENT 

        This
Agreement is made as of May __, 2008, between WidePoint Corporation, a Delaware
corporation (the “Company”); and Ronald Oxley, (“Employee”). The
parties agree that the terms and provisions of this Agreement are subject to and
contingent upon (1) the approval of the Board of Directors of the Company, and (2) the
closing of a pending private equity infusion of no less than $3 Million in the Company.
Subject to the foregoing, the Company and Employee hereby agree as follows: 

        1.       Employment.
The Company agrees to employ Employee in the respective           positions set forth and
described herein and as attached as Exhibit A, and           Employee accepts such
employment by the Company upon the terms and conditions           set forth in this
Agreement, for the period beginning on the date of this           Agreement and ending
upon termination pursuant to paragraph 4 (the           “Employment Period”).  

        2.       Compensation
and Benefits. In consideration for the valuable services to           be rendered by
Employee and for Employee’s agreement not to compete against           the Company
as described in paragraph 5, the Company hereby agrees that during           the two (2)
years of the Employment Period, the Company will pay Employee a           gross Base
Salary (the “Base Salary”) as set forth and described           herein and as
attached as Exhibit B. The Base Salary of Employee after the two           (2) years of
this Agreement shall be determined by the Compensation Committee           and the Board
of Directors of the Company. Employee also shall be entitled to           (1)
reimbursement for actual business expenses which have been pre-approved in
          writing by the Company; (2) comparable combined paid vacation/sick leave and
          medical and other benefits consistent with those received by other similarly
          situated employees of the Company unless superseded in Exhibit B; and (3) bonus
          compensation in amounts as determined in the reasonable discretion of the
          Compensation Committee and the Board of Directors of the Company, unless
          superseded in Exhibit B. Employee shall also be entitled to receive the stock
          options from WidePoint as determined in the reasonable discretion of the
          Compensation Committee of the Board of Directors of WidePoint unless superseded
          in Exhibit B. Employee shall be covered by the directors and officers liability
          insurance coverage of WidePoint so long as Employee maintains a position with
          the Company as either an officer or director of the Company as further defined
          under the Company’s Director’s and Officers Insurance Plan.  

        3.       Services.
During the Employment Period, Employee agrees to devote           Employee’s best
efforts and substantially all of Employee’s business           time and attention to
the business affairs of the Company, as its Executive Vice           President Sales,
Marketing and Business Strategy as further described in Exhibit           A (except for
reasonable vacation periods subject to the reasonable approval of           the Company
or reasonable periods of illness or other incapacity). During the           Employment
Period, Employee agrees to render such services as the Company may           from time to
time direct. During the Employment Period, Employee agrees that           Employee will
not, except with the prior written consent of the Company, become           engaged in or
render services for any business other than the business of the           Company.  

        4.       Termination.
The Employment Period will continue from the date of this           Agreement unless
terminated earlier by (a) Employee’s death or permanent           disability which
renders the Employee unable to perform Employee’s duties           hereunder (as
determined by the Company in its good faith judgment), (b) by           Employee’s
resignation, commencing from and after the second anniversary           date of this
Agreement, upon prior written notice to the Company of ninety (90)           days before
the annual anniversary date of this Agreement, or (c) the Company           for Cause.
For purpose of this paragraph 4, “Cause” shall mean (i) the           repeated
failure or refusal of Employee to follow the lawful directives of the           Company,
or its designee (except due to sickness, injury or disabilities), after           prior
notice to Employee and a reasonable opportunity to cure by Employee of up           to
thirty (30) days, (ii) gross inattention to duty or any other willful,           reckless
or grossly negligent act (or omission to act) by Employee, which, in           the good
faith judgment of the Company, materially injures the Company,           including the
repeated failure to follow the policies and procedures of the           Company, after
prior notice to Employee and a reasonable opportunity to cure by           Employee of up
to thirty (30) days, (iii) a material breach of this Agreement by           Employee,
after prior notice to Employee and a reasonable opportunity to cure by           Employee
of up to thirty (30) days, (iv) the commission by Employee of a felony           or other
crime involving moral turpitude or the commission by Employee of an act           of
financial dishonesty against the Company or, (v) a proper business purpose of
          the Company, which shall be limited to a decrease in the staffing of the
          Corporate HQ staff, at which the Employee is working, or the elimination of the
          position filled by Employee as a result of a material decrease in revenues
          and/or profits of the Company, but with other cost cutting measures and the
          termination of other employees being first considered and instituted as
          determined in the sole judgment of the Company prior to the termination of
          Employee; provided, however, that in the event the Company terminates Employee
          under this subparagraph (v), then (I) the scope of the non-compete under
          Paragraph 5 shall be limited to the products and services offered by the
Company           as of the termination of Employee under subparagraph (v) and (II) the
Company           shall pay to Employee the lesser of (A) Employee’s salary and
benefits each           month for the six (6) month period immediately following such
termination under           subparagraph (v) or (B) in the event less than six (6) months
remains in the           then current term of Employee’s employment with the
Company, then Employee           shall receive Employee’s salary and benefits each
month for such lesser           remaining period of time.  

        5.       Non-Compete.  

            (a)                 In
the event the Employment Period is terminated under paragraphs 4(b) or 4(c)
          above, then the non-compete provisions of this paragraph 5 will apply to
          Employee. In the event the Employment Period is otherwise terminated, such as
          without Cause, then no part of this paragraph 5 will apply to Employee.  

            (b)                 Employee
recognizes and acknowledges that by virtue of accepting employment           hereunder,
Employee will acquire valuable training and knowledge, enhance           Employee’s
professional skills and experience, and learn proprietary trade           secrets and
Confidential Information of the Company. In consideration of the           foregoing and
this employment contract, Employee agrees that during the           Employment Period and
for one (1) year thereafter (the “Non-Compete           Period”), Employee will
not directly or indirectly (whether as employee,           director, owner, stockholder,
consultant, partner (limited or general) or           otherwise) own, manage, control,
participate in, consult with, advertise on           behalf of, render services for or in
any manner engage in any competitive           business of soliciting or providing any
computer, technology, IT, consulting or           any other services and/or products of
any type whatsoever to any federal, state           and/or local governments and/or to
any existing or targeted customers or clients           of the Company, with the term
“targeted” meaning customers or clients           that the Company has
contacted within the last 12 months or included in a sales           or strategic plan of
the Company prior to the date of termination of the           Employment Period; nor
shall Employee solicit any other Person to engage in any           of the foregoing
activities or knowingly request, induce or attempt to influence           any then
existing or targeted customers, clients or suppliers of the Company to           curtail
any business they are currently, or in the last 24 months have been,
          transacting with the Company (the “Non-Compete). Nothing herein will
          prevent Employee from being a passive owner of not more than 1% of the
          outstanding stock of any class of a corporation which is engaged in a
          competitive business of the Company and which is publicly traded, so long as
          Employee has no participation in the business of such corporation. Furthermore,
          during the Non-Compete Period, Employee shall not, without the Company’s
          prior written consent, directly or indirectly, knowingly solicit or encourage
or           attempt to influence any existing employee or recruit to leave or discourage
          their employment with the Company. Employee agrees that the restraint imposed
          under this paragraph 5 is reasonable and not unduly harsh or oppressive.  

            (c)                 If,
at the time of enforcement of any provision of paragraph 5(b) above, a court           or
arbitrator holds that the restrictions stated therein are unreasonable or
          unenforceable under circumstances then existing, the Company and Employee agree
          that the maximum period, scope, or geographical area reasonable or permissible
          under such circumstances will be substituted for the stated period, scope or
          area.  

            (d)                 Since
a material purpose of this Agreement is to protect the Company’s
          investment in the Employee and to secure the benefits of Employee’s
          background and general experience in the industry, the parties hereto agree and
          acknowledge that money damages may not be an adequate remedy for any breach of
          the provisions of this paragraph 5. Therefore, in the event of a breach by
          Employee of any of the provisions of this paragraph 5, the Company, or its
          successors or assigns may, in addition to other rights and remedies existing in
          its favor, apply to any court of law or equity of competent jurisdiction for
          specific performance and/or injunctive or other relief in order to enforce or
          prevent any violations of the provisions of this Agreement.  

        6.       Confidential
Information. Employee acknowledges that the information,           data and trade
secrets (collectively, “Confidential Information”)           obtained by
Employee during the course of Employee’s performance under this           Agreement,
and previously if Employee has already been an employee of the           Company,
concerning the business or affairs of the Company are the property of           the
Company. For purposes of this Agreement, “trade secret” means any
          method, program or compilation of information which is used in the
          Company’s business, including but not limited to: (a) techniques, plans
and           materials used by the Company, (b) marketing methods and strategies
employed by           the Company, and (c) all lists of past, present or targeted
customers, clients           or suppliers of the Company. Employee agrees that Employee
will not disclose to           any unauthorized Person or use for Employee’s own
account any of such           Confidential Information without the written consent of the
Company, unless and           to the extent that the aforementioned matters become
generally known to and           available for use by the public other than as a result
of Employee’s acts           or omissions to act or become known to Employee
lawfully outside the scope of           Employee’s employment under this Agreement.
Employee agrees to deliver to           the Company at the termination of Employee’s
employment, or at any other           time the Company may request, all memoranda, notes,
plans, records, reports and           other documents (and copies thereof) relating to
the business of the Company           which Employee may then possess or have under
Employee’s control.  

        7.       Notices.
Any notice provided for in this Agreement shall be in writing           and shall be
either personally delivered, sent by overnight courier           (e.g., Federal
Express) or mailed by first class certified mail, return           receipt requested, to
the recipient at the address below indicated:  

		To the Company or WidePoint:	Mr. James T. McCubbin
			c/o WidePoint Corporation
			One Lincoln Centre, Suite 1100
			Oakbrook Terrace, Illinois 60181
	
 	To Employee:	Ronald Oxley
			__________________
			__________________
			__________________

or such other address or to the
attention of such other Person as the recipient party shall have specified by prior
written notice to the sending party. Any notice under this Agreement will be deemed to
have been given when so delivered, sent or mailed. 

        8.       Miscellaneous.
Whenever possible, each provision of this Agreement will           be interpreted in such
manner as to be effective and valid under applicable law.           The parties agree
that (i) the provisions of this Agreement shall be severable           in the event that
any of the provisions hereof are for any reason whatsoever           invalid, void or
otherwise unenforceable, (ii) such invalid, void or otherwise           unenforceable
provisions shall be automatically replaced by other provisions           which are as
similar as possible in terms to such invalid, void or otherwise           unenforceable
provisions but are valid and enforceable and (iii) the remaining           provisions
shall remain enforceable to the fullest extent permitted by law. This           Agreement
embodies the complete agreement and understanding among the parties           and
supersedes and preempts any prior understandings, agreements or           representations
by or among the parties, written or oral, which may have related           to the subject
matter hereof in any way. This Agreement may be executed on           separate
counterparts, each of which is deemed to be an original and all of           which taken
together constitute one and the same agreement. This Agreement is           intended to
bind and inure to the benefit of and be enforceable by Employee and           the
Company, and their respective successors and assigns. Employee may not           assign
Employee’s rights or delegate Employee’s obligations hereunder
          without the prior written consent of the Company. The Company may assign its
          respective rights and delegate its duties hereunder without the consent of
          Employee to Permitted Transferees. All questions concerning the construction,
          validity and interpretation of the Agreement will be governed by the internal
          law, and not the law of conflicts, of the Commonwealth of Virginia. All parties
          hereby consent to subject matter jurisdiction, personal jurisdiction and venue
          in the appropriate federal court located in Fairfax, Virginia for disputes
under           this Agreement. Any provision of this Agreement may be amended or waived
only           with the prior written consent of the Company, and Employee. If either
party           breaches this Agreement, the prevailing party shall be entitled to
recover           costs, including reasonable attorney’s fees, from the
non-prevailing party.  

        9.       Definitions. “Person” shall
mean and include an           individual, a partnership, a joint venture, a corporation,
a trust, an           unincorporated organization and a governmental entity or any
department or           agency thereof. “Permitted Transferee”shall mean
a subsidiary,           affiliate or successor of WidePoint or the Company.  

        IN
WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above
written. 

	WITNESS:	EMPLOYEE:
	

_________________________	/s/ Ronald Oxley
		Ronald Oxley
	

Attest (Seal):	WIDEPOINT CORPORATION
	

/s/ James T. McCubbin	By:/s/ Steve L. Komar
	James T. McCubbin	      Steve L. Komar
	Secretary	      Chairman & Chief Executive Officerd990591_ex4-20.htm

    

     

    Exhibit
4.20

     

    Execution
Copy

     

    THE
GEMINI SUEZMAX POOL

     

    POOL
AGREEMENT

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    INDEX

    

      
        
          
            
              
                
                  
                    
                      	
                              1.

                            	
                              DEFINITIONS
      AND INTERPRETATIONS

                            	
                              4

                            
	 
      	 
      	 
      
	
                              2.

                            	
                              SCOPE
      OF ACTIVITIES AND COMMENCEMENT

                            	
                              6

                            
	 
      	 
      	 
      
	
                              3.

                            	
                              POOL
      VESSELS

                            	
                              7

                            
	 
      	 
      	 
      
	
                              4.

                            	
                              TERMS
      OF ENTRY

                            	
                              8

                            
	 
      	 
      	 
      
	
                              5.

                            	
                              OWNERS
      AND QUALIFYING CHARTERS

                            	
                              8

                            
	 
      	 
      	 
      
	
                              6.

                            	
                              FIRST
      ON HIRE AND VESSELS CHARTERED BY PARTICIPANTS

                            	
                              9

                            
	 
      	 
      	 
      
	
                              7.

                            	
                              NOTIFICATION
      OF NEW POOL VESSELS

                            	
                              9

                            
	 
      	 
      	 
      
	
                              8.

                            	
                              INSURANCE

                            	
                              10

                            
	 
      	 
      	 
      
	
                              9.

                            	
                              ADDITIONAL
      POLLUTION LIABILITY INSURANCE

                            	
                              11

                            
	 
      	 
      	 
      
	
                              10.

                            	
                              TECHNICAL
      MANAGEMENT

                            	
                              11

                            
	 
      	 
      	 
      
	
                              11.

                            	
                              AGENCY

                            	
                              11

                            
	 
      	 
      	 
      
	
                              12.

                            	
                              COMMERCIAL
      MANAGEMENT

                            	
                              11

                            
	 
      	 
      	 
      
	
                              13.

                            	
                              INDEMNITY,
      LIABILITY AND SECURITY

                            	
                              13

                            
	 
      	 
      	 
      
	
                              14.

                            	
                              CALCULATION
      OF POOL NET REVENUE, GROSS POOL REVENUE AND POOL EXPENSES

                            	
                              13

                            
	 
      	 
      	 
      
	
                              15.

                            	
                              HIRE/WORKING
      CAPITAL

                            	
                              15

                            
	 
      	 
      	 
      
	
                              16.

                            	
                              ON
      AND OFF HIRE AND VETTING

                            	
                              16

                            
	 
      	 
      	 
      
	
                              17.

                            	
                              FINANCIAL
      STATEMENTS/ACCOUNTS, AUDIT AND REIMBURSEMENT OF POOL
    EXPENSES

                            	
                              18

                            
	 
      	 
      	 
      
	
                              18.

                            	
                              CASH
      MANAGEMENT

                            	
                              18

                            
	 
      	 
      	 
      
	
                              19.

                            	
                              PARTICIPANTS'
      MEETINGS

                            	
                              19

                            
	 
      	 
      	 
      
	
                              20.

                            	
                              NEW
      PARTICIPANTS AND NEW POOL VESSELS

                            	
                              19

                            
	 
      	 
      	 
      
	
                              21.

                            	
                              WITHDRAWAL

                            	
                              20

                            
	 
      	 
      	 
      
	
                              22.

                            	
                              WINDING
      UP OF THE POOL

                            	
                              21

                            
	 
      	 
      	 
      
	
                              23.

                            	
                              DEFAULT

                            	
                              22

                            
	 
      	 
      	 
      
	
                              24.

                            	
                              RIGHTS
      ON TERMINATION AND WITHDRAWAL

                            	
                              23

                            
	 
      	 
      	 
      
	
                              25.

                            	
                              FORCE
      MAJEURE CLAUSE

                            	
                              23

                            

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

     

    

      
        	
                26.

              	
                COMPETITION

              	
                23

              
	 
      	 
      	 
      
	
                27.

              	
                CONFIDENTIALITY

              	
                23

              
	 
      	 
      	 
      
	
                28.

              	
                ASSIGNMENT

              	
                23

              
	 
      	 
      	 
      
	
                29.

              	
                NOTICE

              	
                23

              
	 
      	 
      	 
      
	
                30.

              	
                ARBITRATION

              	
                25

              
	 
      	 
      	 
      
	
                31.

              	
                NO
      PARTNERSHIP

              	
                25

              
	 
      	 
      	 
      
	
                32.

              	
                GOVERNING
      LAW

              	
                25

              
	 
      	 
      	 
      

      

       

      THE
SCHEDULES

       

      SCHEDULE
A: PARTICIPANTS AND INITIAL VESSELS

       

      SCHEDULE
B: PARTICIPATING CHARTER

       

      SCHEDULE
C: DISTRIBUTION KEY/POOL POINTS

       

      SCHEDULE
D: ACCESSION AGREEMENT

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

       

      AMENDED
& RESTATED

       

      POOL
AGREEMENT

       

      re

       

      the
Gemini Tankers Suezmax Pool

       

      

       

      This
amended and restated pool agreement (the "Pool Agreement") was
originally entered into and became effective as of the 1st day of
December 2003 between the participants named therein (the "Original Pool Agreement") and
is, on this   1st   day
of January 2009, amended and restated by and between:

       

      
        	
                1.

              	
                GEMINI TANKERS LLC, a
      limited liability company organized and existing under the laws of the
      Marshall Islands (the "Pool Manager"), which is
      a wholly owned subsidiary of Teekay
Corporation;

              

      

       

      
        	
                2.

              	
                TEEKAY CHARTERING LTD., KOENIG
      & Cie. GMBH & CO and HYUNDAI MERCHANT MARINE (EUROPE)
      LTD.;

              

      

       

      and

       

      
        	
                3.

              	
                FRONTLINE CHARTERING SERVICES,
      INC. ("FCS")

              

      

       

      (hereinafter
collectively referred to as the "Parties" and, individually, as
a "Party")

       

      WHEREAS:

       

      
        	
                (A)

              	
                The
      Pool Manager together with the other participants to the Original Pool
      Agreement established a pool of modern, double hulled tankers of the
      Suezmax type ("Suezmax
      Vessels") on the terms of the Original Pool
    Agreement.

              

      

       

      
        	
                (B)

              	
                Immediately
      prior to the entering into of this Agreement, the participants in the Pool
      (as defined below) under the Original Pool Agreement were Teekay
      Chartering Ltd., Koenig & Cie. GMBH & Co. and Hyundai Merchant
      Marine (Europe) Ltd. (hereinafter referred to as the “Original
      Participants”).

              

      

       

      
        	
                (C)

              	
                The
      Suezmax Vessels allowed to participate in the Pool (as defined below) as
      of the date hereof are those that are of more than 140,000 DWT, have
      marine diesel engines and are constructed with centerline bulkheads
      ("Qualifying
      Vessels").

              

      

       

      
        	
                (D)

              	
                The
      Pool is commercially operated by the Pool Manager which employs the
      vessels in the Pool under COAs (as defined below) and Transportation
      Contracts (as defined below).

              

      

       

      
        	
                (E)

              	
                FCS
      has decided to join the Pool with its fleet of Suezmax
      Vessels.

              

      

       

      
        	
                (F)

              	
                The
      Participants  are, as of the date hereof, owners of or have
      effective operational control of the Suezmax Vessels listed under their
      respective names in Schedule A hereto and have agreed to participate in
      the Pool  on the terms and conditions as set out herein
      below.

              

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      NOW
THEREFORE IT HAS BEEN AGREED AS FOLLOWS:

       

      
        	
                1.

              	
                DEFINITIONS
      AND INTERPRETATIONS

              
	 
      	 
      

      

      "Accession Agreement" has the
meaning ascribed to it in Clause 20.

       

      "Affiliate" means any company
or other entity directly or indirectly under the Control of or under common
Control with any Participant.

       

      "COA" means a contract with a
particular charterer or shipper for a number of voyages, with each single voyage
or contract of carriage being performed by a Pool Vessel after nomination by the
Pool Manager thereof to perform such lifting.

       

      "COFR" means a Certificate of
Financial Responsibility.

       

      "Commencement Date" means, in
relation to the Original Participants, the date each of them became a member of
the Pool and 1st January
2009 in relation to FCS.

       

      "Control" means the ability of
one entity in relation to another (by direct or indirect means) (i) to control
the casting of fifty percent (50%) or more of the votes exercisable at an annual
general meeting (or its equivalent) of the entity (or, if there are no such
rights ownership of fifty percent (50%) or more of the equity share capital of
such entity); or (ii) to determine the composition of a majority of the board of
directors (or the equivalent of such entity) or (iii) to ensure that the affairs
of that entity are conducted substantially in accordance with its wishes. The
expression "entity" includes any company, body corporate, foundation, trust,
stiftung or partnership, whether or not having legal personality.

       

      "Controlled Vessel" means a
Qualifying Vessel which is in the ownership of (and has not been time or
bareboat chartered out for a term of more than one year) or is on time or
bareboat charter to a Participant or its Affiliate.

       

      "Distribution" means the
entitlement of the Participants to share in the Pool Net Revenue.

       

      "Distribution Key" is the
method for division of the Pool Net Revenue as described in Clause 15.1 and
Schedule D and as determined from time to time under Clauses 15.2 and
15.3.

       

      "Financial Statements" means a
balance sheet, an income statement and a statement of sources and uses of funds
of the Pool, all to be provided on an accrual basis in respect of each calendar
month, each calendar quarter and each calendar year.

       

      "First On Hire" is defined in
Clause 6.1 below.

       

      "Hire" means the payments made
to a Participant in respect of a Pool Vessel.

       

      "Initial Vessel" or “Initial Vessels” has the
meaning ascribed to it in Clause 3.1.

      "New Vessel" or “New Vessels” has the meaning
ascribed to it in Clause 3.1.

       

      "Off Hire" has the meaning
ascribed to it in Clause 16.2.

       

      "On Hire" has the meaning
ascribed to it in Clause 16.1.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      

       

      "Owner / Owners" is / are the
disponent owner / owners of a Pool Vessel.

       

      "Participants" means the
Original Participants and FCS, the particulars of which are set out in Schedule
A and "Participant"
shall mean any one of them.

       

      "Participating Charter" is the
Shell-time 4 charter party terms, as amended in the form of Schedule B
attached.

       

      "Pool" is the pooling of time
charter hire, voyage receipts earned by and expenses incurred by the Pool
Vessels to be distributed to the Participants as Hire in accordance with this
Agreement.

       

      "Pool Accounts" means the
accounting records in relation to Pool Gross Revenue, Pool Expenses, Pool Net
Revenue and Financial Statements in respect of all Pool Vessels for the period
reviewed, including all payments of Hire and/or Distributions.

       

      "Pool Expenses" has the meaning
ascribed to it in Clause 14.1.2.

       

      "Pool Gross Revenue" is the
earnings of the Pool Vessels as defined in Clause 14.1.1.

       

      "Pool Manager's Account" means
any bank account opened by the Pool Manager and designated as a bank account in
the name of the Pool Manager for the receipt of Working Capital, the payment of
Pool Expenses and the receipt of Pool Gross Revenue.

       

      "Pool Net Revenue" is Pool
Gross Revenue less Pool Expenses as more particularly described in Clause
14.

       

      "Pool Vessel" is a Qualifying
Vessel having entered service under this Agreement.

       

      "Pool Year" shall be each
calendar year during the term of this Agreement.

       

      "Qualifying Charter" has the
meaning ascribed to it in Clause 5.2.

       

      "Qualifying Vessel" has the
meaning ascribed to it in paragraph C of the preamble, but shall exclude all
Suezmax size shuttle tankers owned or controlled by Teekay Corporation that are
primarily engaged in the shuttle tanker trade.

       

      "Required Vessel" means any
vessel which is required to be entered in the Pool under Clause
3.1.

       

      "Responsible Participant" means
in relation to each Pool Vessel, the Participant responsible for entering the
same in the Pool.

       

      "Subcontractor" means a
subcontractor appointed under Clause 12.3.

       

      "Substitute Vessel" is a
Qualifying Vessel provided to the Pool Manager in place of a Pool Vessel, which
shall be acceptable to the Pool Manager (such approval not to be unreasonably
withheld), and which shall then become a Pool Vessel.

       

      "Suezmax Vessels" has the
meaning ascribed to it in paragraph A of the preamble.

       

      "Transportation Contracts"
means any time or voyage charter party, single voyage or other contract or
arrangement other than a COA under which the Pool Vessels are chartered
out.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      "Working Capital" has the
meaning ascribed to it in Clause 18.1.

      

      
        	
                2.

              	
                SCOPE
      OF ACTIVITIES AND COMMENCEMENT

              
	 
      	 
      
	
                2.1.

              	
                The
      purpose of this Agreement is to establish a common marketing and
      commercial operation and employment of the Pool Vessels for the purpose
      providing better services and more flexible transportation arrangements to
      customers worldwide requiring the services of Suezmax tankers and for the
      purpose of maximizing their earnings and minimizing the related expenses
      through improved scheduling and bulk buying of goods and services related
      to voyage expenses, all for the benefit of a flexible and efficient
      operation of the Pool Vessels.

              
	 
      	 
      
	
                2.2.

              	
                The
      Participants are aware of the 25 September 2006 decision of the
      Competitiveness Council empowering the European Commission to apply EC
      Treaty competition rules to cabotage and tramp shipping by extending the
      scope of the competition implementing rules (Regulation
      1/2003).

              
	 
      	 
      
	 
      	
                The
      Participants have assessed the expected impact of this Agreement to the
      market for the employment of the Pool Vessels, and are of the opinion that
      this Agreement will not be in violation of the EC Treaty competition rules
      or other applicable competition rules, taking into consideration the
      additional flexibility and efficiencies the pool cooperation will bring,
      the number of Pool Vessels controlled by the Participants relative to the
      total number of Suezmax Vessels in the market and the ability of the
      Participants to take the Pool Vessels out of the Pool and to compete with
      the Pool.

              
	 
      	 
      
	
                2.3.

              	
                The
      Participants have reviewed the European Commission’s final guidelines (the
      “Guidelines”)
      published July 2, 2008 on the application of competition rules to maritime
      transport and do not consider that the Pool violates these. If the
      Participants otherwise become aware that this Agreement potentially
      violates the Guidelines or other applicable competition rules, the
      Participants will immediately, in good faith, meet to negotiate such
      amendments to this Agreement as are deemed necessary to bring this
      Agreement in full compliance with the applicable competition rules, or,
      alternatively, forthwith terminate this Agreement in accordance with
      Article 22.

              
	 
      	 
      
	
                2.4.

              	
                The
      Pool shall take effect on the restated and amended terms set forth herein
      as of the date all of the Participants have executed this
      Agreement.

              
	 
      	 
      
	
                3.

              	
                POOL
      VESSELS

              
	 
      	 
      
	
                3.1.

              	
                Each
      Participant shall procure that the following vessels shall be entered in
      the Pool:

              
	 
      	 
      
	 
      	
                3.1.1.

              	
                the
      Controlled Vessels listed against its name on Schedule A (the "Initial Vessels");
      and

              
	 
      	 
      	 
      
	 
      	
                3.1.2.

              	
                any
      Qualifying Vessel which, at any future time, becomes a Controlled Vessel
      (the "New
      Vessels").

              
	 
      	 
      	 
      

      

      

      

       

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

       

      
        	
                3.2.

              	
                The
      Pool Manager agrees to accept all Required Vessels into the
      Pool.

              
	 
      	 
      
	
                3.3.

              	
                The
      Pool Manager may, at any time after the Commencement Date, fix any
      Required Vessel for operation after the date the Required Vessel becomes a
      Pool Vessel.

              
	 
      	 
      
	
                3.4.

              	
                Following
      the Commencement Date, a Required Vessel shall become a Pool Vessel upon
      dropping its last outward sea pilot free of cargo and slops with
      approximately 3000 metric tons of bunkers on board, or when the Required
      Vessel is within 20 days steaming (at 15 kts) from the load port in the
      natural load port area for a new cargo or the load port in the natural
      load port area for a new cargo or the load port nominated by the Pool
      Manager for its first voyage as a Pool Vessel, whichever is the
      nearest.

              
	 
      	 
      
	 
      	
                Each
      New Vessel shall enter the Pool with a value of approx. 3000 mt of
      bunkers. Any difference from this standard and the actual value of bunkers
      on board on its delivery, to the Pool shall be added to or subtraded from
      the Working Capital, cfr. Clause 15.6, save that should the New Vessel
      have less than approx. 2,000 mts of bunkers on board, the Pool Manager has
      the right to refuse to enter the Vessel into the Pool until such time as
      bunker quantities are within the provisions of this
  clause.

              
	 
      	 
      
	
                3.5.

              	
                Each
      Participant shall, in relation to each Pool Vessel of which it is the
      Responsible Participant:

              
	 
      	 
      
	 
      	
                3.5.1.

              	
                maintain
      the Pool Vessel in a seaworthy condition and to the technical and
      operational standards set forth in the Participating Charter, the OCIMF
      and HVPQ, obtain and maintain all required ISM Certificates and keep the
      Pool Vessel classed with a classification society that is a member of
      IACS; and

              
	 
      	 
      	 
      
	 
      	
                3.5.2.

              	
                obtain
      and maintain the minimum number of vettings at the intervals stated in the
      Participating Charter throughout the period it is a Pool Vessel. The Pool
      Manager shall advise Participants which vetting approvals are necessary.
      The responsibility for obtaining and maintaining the vetting shall be that
      of the Participant.

              
	 
      	 
      	 
      
	
                4.

              	
                TERMS
      OF ENTRY

              
	 
      	 
      	 
      
	
                4.1.

              	
                Each
      Pool Vessel shall be entered in the Pool on the terms
  of:

              
	 
      	 
      	 
      
	 
      	
                4.1.1.

              	
                the
      Participating Charter, subject to such reasonable modifications in
      relation to trading range, etc as the Responsible Participant proposes and
      the Pool Manager accepts before the Vessel becomes a Pool Vessel (such
      acceptance not to be unreasonably withheld), and

              
	 
      	 
      	 
      
	 
      	
                4.1.2.

              	
                an
      OCIMF HVPQ and required vetting approvals (cfr. Clause 3.5.2) applicable
      to the Pool Vessel;

              
	 
      	 
      	 
      
	 
      	 
      	
                but
      such documents shall not constitute a charter between the Responsible
      Participant and the Pool Manager. The OCIMF HVPQ shall be initialled by
      the Responsible Participant for each Initial Vessel before the
      Commencement Date.

              
	 
      	 
      	 
      
	
                4.2.

              	
                Each
      Participant shall, in relation to all Pool Vessels for which it is the
      Responsible Participant, perform or cause to be performed, the obligations
      of the Owner under the documents referred to in Clause
  4.1.

              

      

      

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      

       

      
        	
                4.3.

              	
                If
      a Participant or an Affiliate of a Participant acquires a Suezmax Vessel
      built without a centreline bulkhead, such Participant will, upon receipt
      of the consent of the Pool Manager, contract with the Pool Manager for the
      commercial management of such Suezmax Vessel, with earnings flowing
      directly back to the Participant, but such Suezmax Vessel shall not be
      entered in the Pool.

              
	 
      	 
      
	
                5.

              	
                OWNERS
      AND QUALIFYING CHARTERS

              
	 
      	 
      
	
                5.1.

              	
                A
      Pool Vessel must at all times be owned by or bareboat- or time chartered
      to a Participant or an Affiliate of a Participant. The Participant's
      control over a Pool Vessel shall be such that the Participant is in a
      position to comply with its obligations under this Agreement and the
      Participating Charter in relation to such Controlled Vessel. For each
      Initial Vessel and New Pool Vessel (when the same is notified under Clause
      7.1), the Participant shall be required to demonstrate to the Pool Manager
      that this condition is satisfied and, in the event a Controlled Vessel is
      chartered-in, the date that the relevant charter shall
    expire.

              
	 
      	 
      
	
                5.2.

              	
                The
      terms of any charterparty to which an Initial Vessel is subject, or a
      charterparty, the entry into which would result in a vessel becoming a
      Required Vessel (a "Qualifying Charter"),
      shall be provided to the Pool Manager. A Participant needs not disclose
      any terms of a Qualifying Charter which are commercially sensitive and
      which are not inconsistent with the terms of this Agreement or the
      Participating Charter, do not materially restrict the commercial
      employment of the Required Vessel in the Pool and which are not necessary
      to be known by the Pool Manager in order to enable it to observe the terms
      of the Qualifying Charter, to the extent relevant to
it.

              
	 
      	 
      
	
                5.3.

              	
                For
      the avoidance of doubt, a charter between a Participant and its
      Affiliate(s), or between Affiliates of a Participant, shall not be a
      Qualifying Charter, but the Responsible Participant shall provide the
      terms of the same to the Pool Manager to the same extent as provided in
      Clause 5.2 and no such charter shall be inconsistent with the terms of
      this Agreement or the Participating Charter, or materially restrict the
      commercial employment of a Pool Vessel in the Pool.

              
	 
      	 
      
	
                5.4.

              	
                Each
      Participant shall ensure, in relation to each Pool Vessel of which it is
      the Responsible Participant, that any mortgage or other security
      (including in relation to a Pool Vessel's earnings or insurances. etc) (a
      "Restricted
      Mortgage") is not inconsistent with the terms of this Agreement or
      the Participating Charter and does not materially restrict the commercial
      employment of the Pool Vessel in the Pool (except to the extent usual in
      ship finance transactions) and shall provide the Pool Manager with details
      of the Restricted Mortgage sufficient to enable it to observe the terms of
      the same to the extent relevant to it.

              
	 
      	 
      	 
      
	
                6.

              	
                FIRST
      ON HIRE AND VESSELS CHARTERED BY PARTICIPANTS

              
	 
      	 
      
	
                6.1.

              	
                First
      On-Hire

              
	 
      	 
      
	 
      	
                6.1.1.

              	
                Initial
      Vessels and New Vessels shall first come On Hire from the date and time
      each becomes a Pool Vessel in accordance with Clause 3.4, provided the
      Initial Vessel or New Vessel has completed at least 1 full SIRE inspection
      during cargo operations and is acceptable to at least two major oil
      companies, without any limitations or qualifications, (cfr. clause 51 of
      the Participating Charter).

              

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

       

      
        	 
      	
                6.1.2.

              	
                The
      Pool Manager has the right to waive the above requirement at its
      discretion.

              
	 
      	 
      	 
      
	 
      	
                6.1.3.

              	
                Each
      Participant is required to provide sufficient evidence to the satisfaction
      of the Pool Manager that each Pool Vessel for which it is the Responsible
      Participant complies with the requirements of Clause
  6.1.1.

              
	 
      	 
      	 
      
	
                6.2

              	
                Vetting

              
	 
      	 
      
	 
      	
                The
      Pool Manager shall have the option to communicate directly with the
      vetting department of all major oil companies in relation to the Pool
      Vessels on any vetting or vessel acceptance issue relevant thereto, always
      keeping the Owner’s management in copy of all such communication.
      Responsible Participants and/or their managers will provide the Pool
      Manager with written authorization to communicate with all the major oil
      companies' vetting departments on any vetting or vessel acceptance issue
      for each Pool Vessel.  The Pool Manager shall not have the
      authority to incur any additional expense for the relevant Owner. All
      issues requiring corrective action shall be dealt with by such
      Owner.

              
	 
      	 
      
	 
      	
                The
      Responsible Participant will, in relation to each Pool Vessel, provide a
      complete status of major oil company acceptances for the same in a format
      provided by the Pool Manager within the first five business days of each
      month.

              
	 
      	 
      
	
                7.

              	
                NOTIFICATION
      OF NEW POOL VESSELS

              
	 
      	 
      
	
                7.1.

              	
                Specification of date
      of commencement

              
	 
      	 
      
	 
      	
                No
      later than the date when a Qualifying Vessel becomes a Required Vessel,
      the relevant Responsible Participant shall notify the Pool Manager in
      writing ("Proposal Notice") specifying the date on which the relevant
      Qualifying Vessel is expected to become a Pool Vessel under Clause
      3.4.

              
	 
      	 
      
	
                7.2.

              	
                Information concerning
      a proposed New Vessel

              
	 
      	 
      
	 
      	
                A
      proposing Participant shall provide the Pool Manager in a timely manner
      with all such information and documents as the Pool Manager shall
      reasonably require to enable it to commercially manage and market a New
      Vessel.

              
	 
      	 
      
	
                7.3.

              	
                Conditions of
      entry

              
	 
      	 
      
	 
      	
                The
      Responsible Participant shall, in respect of each New Vessel, supply the
      required vetting approvals, cfr. Clause 3.5.2 and the OCIMF HVPQ to the
      Pool Manager required by Clause 4.1.2 before it becomes a Pool
      Vessel.

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      	 
      

      

      

       

      

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

       

      
        	
                8.

              	
                INSURANCE

              
	 
      	 
      
	
                8.1.

              	
                The Participants
      insurance cover

              
	 
      	 
      
	 
      	
                Each
      Participant shall, in relation to all Pool Vessels for which it is the
      Responsible Participant, keep such Pool Vessels insured for its own
      account in accordance with standards consistent with prudent first class
      owners of Qualifying Vessels. Such insurances shall include Hull &
      Machinery, P & I, Excess Pollution Liability insurance in the maximum
      amount per incident as is then facilitated through members of the
      International Group of P & I Clubs, War Risk Insurance and, as
      applicable, extra War Risk Insurance.

              
	 
      	 
      
	 
      	
                The
      Pool Manager shall be co-insured under the Participants' insurance
      policies to the extent permitted by law and insurance company (P & I)
      rules without being jointly liable for calls or premiums. Each Participant
      shall provide the Pool Manager with confirmation of such co-insurance
      cover.

              
	 
      	 
      
	 
      	
                The
      benefit of the Participants' P&I insurance in respect of the Pool
      Vessels shall be extended to the Pool Manager and any agent or sub-agent
      of the Pool Manager (on the basis commonly referred to as "misdirected
      arrow" cover) to the extent such policies allow such extensions without
      payment of extra premium provided that such extension shall (i) be subject
      to the same limitation on recovery and (ii) shall be confined to those
      liabilities incurred by the Pool Manager and any agent or sub-agent of the
      Pool Manager for which the Participants would have been similarly held
      liable if a third party claim had been pursued against the relevant
      Participant. To the extent such extension shall be available only upon
      payment of extra premium, such premium shall be payable as a Pool
      Expense.

              
	 
      	 
      
	
                8.2.

              	
                The Pool Manager's
      insurance cover

              
	 
      	 
      
	 
      	
                The
      Pool Manager may take out any additional insurance cover in respect of the
      Pool Vessels in its own name with premiums for such additional insurance
      to be for the account of the Pool. Such additional insurance may include,
      but shall not be limited to, professional indemnity, P&L freight,
      demurrage and defense, charterers' liability, loss of bunkers, freight
      insurance, loss of hire / loss of earnings. The Pool Manager will submit a
      request for such additional insurance cover to the Participants, whose
      consent to the request shall not unduly be withheld. The Pool Manager will
      provide relevant documentation upon request from the
      Participants.

              
	 
      	 
      
	
                9

              	
                ADDITIONAL
      POLLUTION LIABILITY INSURANCE

              
	 
      	 
      
	
                9.1.

              	
                Each
      Participant shall provide a COFR at its own expense for calls into the
      United States.

              
	 
      	 
      
	
                9.2.

              	
                Any
      additional insurance premium or insurance cost in respect of pollution
      liability, which are charged on a per call basis and are not covered by
      Worldscale, shall be rebilled directly to the charterer of a Pool Vessel
      which incurs the same, always in accordance with Clause 59 of the
      Participating Charter.

              

      

      

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      

       

      
        	
                10.

              	
                TECHNICAL
      MANAGEMENT

              
	 
      	 
      
	 
      	
                Each
      Participant shall be fully responsible for the technical management of its
      Pool Vessel(s). Technical management shall include (but not be limited to)
      all matters relating to seaworthiness, master, officers and crew, crew
      administration, victualling, maintenance, drydockings and repairs of the
      Pool Vessels for which the Participant is the Responsible Owner, provision
      of lube oils, stores and spare parts required for operation of the Pool
      Vessel, compliance with class requirements and compliance with
      requirements from other relevant authorities.

              
	 
      	 
      
	
                11.

              	
                AGENCY

              
	 
      	 
      
	
                11.1.

              	
                The
      Pool Manager shall have sole authority to fix employment of the Pool
      Vessels from the Commencement Date and the Participants shall not, in any
      manner, withdraw or derogate from such authority. If a Pool Vessel is Off
      Hire for vetting or any other reason, the Pool Manager shall still have
      authority to fix the same.

              
	 
      	 
      
	
                11.2.

              	
                Subject
      to the terms of this Agreement, the Pool Manager shall have authority to
      commit each Pool Vessel to any Transportation Contract or COA (not
      exceeding 12 months in duration) which is consistent with the terms of the
      documents referred to in Clause 4.1 applying to that Pool
      Vessel.

              
	 
      	 
      
	
                11.3.

              	
                The
      Pool Manager shall enter into each Transportation Contract as agent only.
      The principal who shall be disclosed shall be the Responsible Participant
      for the Pool Vessel(s) which are the subject of such Transportation
      Contract.

              
	 
      	 
      
	
                11.4.

              	
                The
      Pool Manager shall enter into COAs as principal.

              
	 
      	 
      
	
                12.

              	
                COMMERCIAL
      MANAGEMENT

              
	 
      	 
      
	
                12.1.

              	
                The Pool Manager's
      position

              
	 
      	 
      
	 
      	
                The
      Pool Manager shall manage the Pool.

              
	 
      	 
      
	
                12.2.

              	
                The Pool Manager's
      services

              
	 
      	 
      	 
      
	 
      	
                The
      services to be provided by the Pool Manager include, but are not limited
      to the following:

              
	 
      	 
      	 
      
	 
      	
                12.2.1.

              	
                marketing
      of the services of the Pool Vessels including market research, trade
      forecasting and market planning;

              
	 
      	 
      	 
      
	 
      	
                12.2.2.

              	
                drawing
      up and handling the performance of Transportation Contracts and COAs (not
      exceeding 12 months in duration), issuing instructions to masters,
      scheduling the Pool Vessels, allocation of cargo space, arrangement of
      agencies, tugs, lighterage, bunkers, cargo and freight insurance (if and
      when required) and all other matters relating to the commercial operation
      of the Pool Vessels.;

              
	 
      	 
      	 
      
	 
      	
                12.2.3.

              	
                the
      payment and collection of the expenses and revenues relating to the
      commercial operation of the Pool
Vessels;

              

      

      

       

      

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      

       

      
        	 
      	 
      
	 
      	
                12.2.4.

              	
                the
      budgeting, accounting and reporting relating to the commercial operation
      of the Pool Vessels; and

              
	 
      	 
      	 
      
	 
      	
                12.2.5.

              	
                the
      coordination of the handling of any post fixture
claims.

              
	 
      	 
      	 
      
	
                12.3.

              	
                Subcontractors

              
	 
      	 
      
	 
      	
                The
      Pool Manager may appoint a subcontractor or subcontractors (each a "Subcontractor") for the
      purpose of performing parts of its obligations hereunder. Such
      Subcontractor will, thereafter, perform certain day to day operations,
      bookkeeping and/or other matters for and on behalf of the Pool Manager.
      The Pool Manager will advise the Participants of such appointment and will
      provide for time to receive Participants' remarks. When a Subcontractor is
      a subsidiary of the Pool Manager, such notice shall not be
      required.

              
	 
      	 
      
	
                12.4.

              	
                Ancillary
      Contracts

              
	 
      	 
      
	 
      	
                The
      Pool Manager may, for its own risk and account, enter into any contracts
      required for the operation, promotion and marketing of the
      Pool.

              
	 
      	 
      
	
                12.5.

              	
                Management Fee and
      Commission

              
	 
      	 
      
	 
      	
                The
      Pool Manager shall be entitled to a management fee of USD 275 per day per
      Pool Vessel, including any Off Hire periods and a commission of 1.25% on
      all gross freights paid in respect of the Pool Vessels as consideration
      for its services as manager of the Pool. The management fee shall be
      charged to the Pool by the Pool Manager monthly in advance. The commission
      will be deducted by the Pool Manager when gross freights are
      collected.

              
	 
      	 
      
	
                12.6.

              	
                Claims and
      Deductions

              
	 
      	 
      
	 
      	
                12.6.1.

              	
                Claims
      under any Transportation Contract for which a Pool Vessel has been
      nominated shall be handled by the Responsible Participant in conjunction
      with the Pool Manager.

              
	 
      	 
      	 
      
	 
      	
                12.6.2.

              	
                In
      the event that a charterer makes a deduction (a "Deduction") from freight
      (or any other sum due in respect of a Transportation Contract or COA),
      then the Pool Manager may request from the Responsible Participant for the
      relevant Pool Vessel all details of the claim in respect of which the
      Deduction is made. If the Deduction is caused by the breach by the
      Responsible Participant for the relevant Pool Vessel of the Participating
      Charter or of this Agreement, or otherwise by its negligence ("Participants Default"),
      then the amount of the Deduction (or such lesser proportion of it as is
      attributable to the Participant's Default)

              
	 
      	 
      	 
      
	 
      	 
      	
                (i)

              	
                shall
      be deducted from the Responsible Participant's entitlement to Hire;
      and

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (ii)

              	
                shall
      be deemed to have been received for the purposes of calculating Pool Gross
      Income.

              
	 
      	 
      	 
      	 
      
	 
      	
                Any
      amount which is deducted under (i) shall be refunded to the Participant
      out of any subsequent recovery of the Deduction (and the balance of the
      recovery shall be Pool Gross
Income).

              

      

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      

       

      
        	 
      	 
      
	 
      	
                12.6.3.

              	
                For
      the avoidance of doubt, a Participant shall not be obliged to compensate
      the Pool for any sums which are unpaid by any party to a Transportation
      Contract in breach of contract.

              
	 
      	 
      	 
      
	 
      	
                12.6.4.

              	
                The
      Pool Manager, in consultation with the Responsible Participant, shall be
      entitled to sue in the name of the Responsible Participant(s) who is/are
      party to a Transportation Contract, any other party to that Transportation
      Contract to recover any Pool Gross Income unless the Responsible
      Participant pays to the Pool Manager the amount of Pool Gross Income
      claimed.

              
	 
      	 
      	 
      
	
                13.

              	
                INDEMNITY,
      LIABILITY AND SECURITY

              
	 
      	 
      	 
      
	
                13.1.

              	
                If
      a claim (a "Relevant
      Claim") is made against a Participant (the "Indemnified Party") or its
      Affiliate, or any seizure, distraint, arrest, detention, attachment or the
      like ("Arrest")
      effected in respect of property owned, controlled or possessed by the
      Indemnified Party or its Affiliate by reason of a claim against another
      Participant (the "Indemnifying Party") or
      its Affiliate, or in respect of any Property owned, controlled or
      possessed by the Indemnifying Party or its Affiliate,
  then:

              
	 
      	 
      	 
      
	 
      	
                13.1.1.

              	
                the
      Indemnifying Party shall indemnify and hold harmless the Indemnified Party
      and its Affiliate against the Relevant Claim and the Arrest, and all
      costs, losses, liabilities and expenses (including legal expenses) arising
      therefrom; and

              
	 
      	 
      	 
      
	 
      	
                13.1.2.

              	
                without
      limitation to the foregoing provide security to ensure that any Arrest is
      lifted or discharged, etc. as soon as possible.

              
	 
      	 
      	 
      
	
                13.2.

              	
                If
      a Pool Vessel is subject to an arrest, as per Clause 47 of the
      Participating Charter, the days lost to the Pool by such arrest shall be
      days Off Hire for that Pool Vessel and any revenue lost and the amount of
      all other costs, losses and expenses suffered by the Pool Manager
      (excluding any damage to reputation or loss of contracts not yet entered
      into) shall be deducted from the Hire due to the Indemnifying Party on the
      same terms (mutatis mutandis) as set out in Clause
  12.6.2.

              
	 
      	 
      
	
                13.3.

              	
                Each
      Participant shall and does hereby indemnify the Pool Manager in respect of
      any increased expense or reduced income or claim of whatsoever nature
      arising from a breach of this Agreement, the Participating Charter, or any
      other misdescription of a Controlled Vessel, its performance or position,
      or any technical breakdown or non­-performance of such Controlled
      Vessel or its crew or managers. Any such indemnity shall not be a Pool
      Expense.

              
	 
      	 
      	 
      
	
                13.4.

              	
                Each
      Participant shall be liable for its own performance under this Agreement
      and each relevant Participating Charter, but (for the avoidance of doubt)
      shall not be jointly or severally liable with any other Participant or for
      the obligations of any other Participant.

              
	 
      	 
      
	
                14.

              	
                CALCULATION
      OF POOL NET REVENUE, POOL GROSS REVENUE AND POOL
  EXPENSES

              
	 
      	 
      
	
                14.1.

              	
                Calculation of Pool
      Net Revenue

              
	 
      	 
      
	 
      	
                Pool
      Net Revenue in respect of all Pool Vessels in any one Pool Year shall
      equal Pool Gross Revenue as described in Clause 14.1.1 below less Pool
      Expenses, as described in Clause 14.1.2
below.

              

      

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      

       

      
        	 
      	
                14.1.1.

              	
                Pool
      Gross Revenue comprises:

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (i)

              	
                each
      Pool Vessel's total voyage income (including without limitation freight
      and demurrage);

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (ii)

              	
                hire
      received for Pool Vessels fixed on time charters;

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (iii)

              	
                the
      Pool Manager's share of any salvage money received in respect of Pool
      Vessels;

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (iv)

              	
                any
      income of the Pool Manager derived from currency
  exchange;

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (v)

              	
                interest
      earned by the Pool Manager;

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (vi)

              	
                insurance
      money paid out under policies taken out by the Pool Manager in its
      capacity as manager of the Pool; and

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (vii)

              	
                all
      income of any nature due to the Pool Manager arising out of the operation
      of or in any way connected to the Pool Vessels and the operations under
      this Pool Agreement.

              
	 
      	 
      	 
      	 
      
	 
      	
                Any
      expenses payable by the charterer under a Transportation Contract or COA
      shall be treated as income and deducted under Clause 14.1.2 below as Pool
      Expenses.

              
	 
      	 
      	 
      	 
      
	 
      	
                14.1.2.

              	
                Pool
      Expenses comprise:

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (i)

              	
                each
      Pool Vessel's total voyage expenses payable by Owners under the applicable
      Transportation Contract or COA including, without limitation, agent, tug
      and port expenses, loading and discharging costs, wharfage, brokerage
      commission, bunkers, canal fees, Marpol tax, OPA 90 costs (where
      recoverable under Worldscale) and additional War Risk
      premiums;

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (ii)

              	
                any
      liabilities or damages payable by the Pool Manager in respect of any Pool
      Vessel to any contractual counterparty;

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (iii)

              	
                all
      other expenses or amounts payable by the Pool Manager in connection with
      the operation of the Pool Vessels or incurred in connection with its
      performance of the business of the Pool, excluding general and
      administrative expenses related to services performed by the Pool Manager
      or its affiliates, including but not limited to AMS customs charges, Port
      Captaincy where required by the Participating Charter or the custom of the
      trade ($550 /day), stand by contractors, OPA 90 (AMPD), environmental
      waste disposal fees when Compulsory, 50% of bunker testing program (50%
      shall be for the account of the Responsible Participant) and cost for
      remarking of a Pool Vessel's deadweight or other remeasurement when
      required by the Pool Manager;

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (iv)

              	
                legal
      and any reasonable third party consulting fees incurred directly by the
      Pool Manager with respect to the business of the Pool;

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (v)

              	
                all
      other costs relating to the Pool
;

              

      

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      

       

      
        	 
      	 
      	 
      
	 
      	 
      	
                (vi)

              	
                claims
      relating to COAs where no Pool 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 under this
  Agreement.

              
	 
      	 
      	 
      	 
      
	 
      	
                14.1.3

              	
                Participant's
      costs shall include:

              
	 
      	 
      	 
      
	 
      	 
      	
                All
      other expenses relating to the Pool Vessels including but not limited to
      all husbandry expenses (launch service, stores, spares, crew changes,
      fresh water, etc.), environmental compliance, non compulsory (bilge water,
      sludge, sewage, garbage, etc.) costs, Loss of Hire insurance costs (if not
      accepted by voyage charterers), ENOA costs, COFR costs and vetting and
      customer compliance costs shall be for the Responsible Participant’s
      account.

              
	 
      	 
      	 
      
	
                14.2.

              	
                Adjustment of Pool Net
      Revenue

              
	 
      	 
      	 
      
	 
      	
                Pool
      Net Revenue shall be adjusted taking account of and providing for the
      following:

              
	 
      	 
      	 
      
	 
      	 
      	
                (i)

              	
                results
      of Pool Vessel voyages not yet completed;

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (ii)

              	
                amounts
      of freight and hire earned by Pool Vessels but not yet
      received;

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (iii)

              	
                apportionment
      of prepaid expense not included in voyage expenses referred to in 14.1.2
      (i) above and of expenses paid after the period of accounts and
      attributable in whole or on part to the year of
  accounts;

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (iv)

              	
                retentions
      to cover claims in progress; and

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (v)

              	
                adequate
      provisions for the outstanding or contingent obligations and liabilities
      of the Pool.

              
	 
      	 
      	 
      	 
      
	
                15.

              	
                HIRE/WORKING
      CAPITAL

              
	 
      	 
      
	
                15.1.

              	
                Distribution
      key

              
	 
      	 
      
	 
      	
                The
      Distribution Key for the Initial Vessels is attached as Schedule D
      hereto.

              
	 
      	 
      
	
                15.2.

              	
                Determination of
      Distribution keys

              
	 
      	 
      
	 
      	
                The
      Distribution Key for a New Vessel shall be determined by the Pool Manager,
      and such Distribution Key will be advised to the Participants, always
      consistent with principles for the allocation of the Distribution Keys in
      Schedule D.

              
	 
      	 
      
	
                15.3.

              	
                Review of the
      Distribution Key

              
	 
      	 
      
	 
      	
                In
      addition to the ongoing review conducted by the Pool Manager, the voyage
      results and performance of all Pool Vessels shall be made available for
      review to the Participants at the Participant's Meetings (Clause
      19.1).

              
	 
      	 
      	 
      	 
      

      

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      

       

      
        	
                15.4.

              	
                Calculation of
      Hire

              
	 
      	 
      
	 
      	
                15.4.1.

              	
                In
      respect of each Pool Vessel for which it is the Responsible Participant, a
      Participant shall be entitled to receive Hire calculated as
      follows:

              
	 
      	 
      	 
      
	 
      	 
      	
                XxY/Z

              
	 
      	 
      	 
      
	 
      	 
      	
                Where:

              
	 
      	 
      	 
      
	 
      	 
      	
                X
      = Pool Net Revenue

              
	 
      	 
      	 
      
	 
      	 
      	
                Y
      = Key Entitlement for the Pool Vessel

              
	 
      	 
      	 
      
	 
      	 
      	
                Z
      = the sum of Key Entitlements for all Pool Vessels.

              
	 
      	 
      	 
      
	 
      	
                The
      "Key Entitlement"
      for a Pool Vessel is the total figure obtained by taking each Distribution
      Key applicable to the Pool Vessels in the Period and multiplying it by the
      number of days on which that Distribution Key applied and on which the
      Pool Vessel was On Hire in the Period, and summing the results of such
      calculations.

              
	 
      	 
      	 
      
	 
      	
                The
      "Period" is the
      period from commencement of the Pool Year until the end of the calendar
      month in respect of which the calculation is made, or the Pool Year, as
      the case may be;

              
	 
      	 
      	 
      
	
                15.5.

              	
                Payment of
      Hire

              
	 
      	 
      	 
      
	 
      	
                15.5.1.

              	
                Hire
      shall be calculated in accordance with Clause 15.4 to the end of each
      calendar month in respect only of Pool Gross Revenue actually received in
      that month, adjusted to take account of payments of Hire made in previous
      calendar months in respect of the same Pool Year and shall be paid within
      20 days after the end of each calendar month.

              
	 
      	 
      	 
      
	 
      	
                15.5.2.

              	
                A
      final distribution of Hire (the "Final Distribution")
      shall be calculated in respect of each Pool Year on the basis of the
      audited annual accounts of the Pool Manager. The entitlement of a
      Participant to receive a Final Distribution shall be adjusted to take
      account of payments of Hire made under Clause 15.5.1 in respect of the
      same Pool Year. The balance shall be settled in cash not later than two
      months after the end of the relevant Pool Year.

              
	 
      	 
      	 
      
	 
      	
                15.5.3.

              	
                If
      any calculation under Clauses 15.5.1 and 15.5.2  shall result in
      a negative amount being due to a Participant it shall pay such amount to
      the Pool Manager within five (5) days after demand or set off such amount
      against current entitlement to the Final Distribution.

              
	 
      	 
      	 
      
	 
      	
                15.5.4.

              	
                All
      payments of Hire by the Pool Manager or demands under Clause 15.5.3 shall
      be accompanied by a detailed calculation of such payment or
      demand.

              
	 
      	 
      	 
      
	
                15.6.

              	
                Working Capital /
      Contribution to Operational Losses

              
	 
      	 
      	 
      
	 
      	
                15.6.1.

              	
                Working
      Capital shall be paid in by each Participant as
follows:

              
	 
      	 
      	 
      
	 
      	 
      	
                (i)

              	
                USD
      200,000 shall be paid to the Pool Manager in respect of each Pool Vessel
      on the date it becomes a Pool Vessel, which amount the Pool Manager may
      adjust to take into

              

      

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      

       

      
        	 
      	 
      	 
      	
                account
      the actual quantity of bunkers on board each Pool Vessel at the time it
      enters the Pool; and

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (ii)

              	
                as
      required by the Pool Manager subject to such request being provided to the
      Participants as soon as possible after the circulation of the accounts for
      a Pool Year under  Clause 17.2.2 and either increased or
      decreased accordingly. During each Pool Year the Pool Manager shall limit
      Distributions to ensure that sufficient Working Capital is
      maintained.

              
	 
      	 
      	 
      	 
      
	 
      	
                15.6.2.

              	
                If
      the aggregate Working Capital supplied by a Participant in respect of the
      Pool Vessels for which it is the Responsible Participant exceeds the
      aggregate it is required to contribute, taking into account any credit to
      which it is entitled under Clause 18.1 it shall be entitled to be repaid
      the excess.

              
	 
      	 
      	 
      
	 
      	
                15.6.3.

              	
                Working
      Capital contributions made shall be repaid without any interest in respect
      of each Pool Vessel not later than six months after the date it ceases to
      be a Pool Vessel. Bunkers on board the Pool Vessel at the time it ceases
      to be a Pool Vessel shall be credited against such repayment at the actual
      invoice price of the bunkers.

              
	 
      	 
      	 
      
	 
      	
                15.6.4.

              	
                If
      operating losses occur (i.e., Pool Expenses exceeding Pool Gross Revenue),
      the Pool Manager shall allocate such operating losses between Participants
      in accordance with their number of Pool Vessels based on the Distribution
      Key.

              
	 
      	 
      	 
      
	 
      	
                15.6.5.

              	
                Participants
      shall make contributions to any operating loss or to Working Capital
      within seven (7) days from receipt of a demand from the Pool Manager.
      Delayed payments shall be subject to interest of one month LIBOR +
      3%.

              
	 
      	 
      	 
      
	
                16.

              	
                ON
      AND OFF HIRE AND VETTING

              
	 
      	 
      
	
                16.1.

              	
                A
      Pool Vessel shall come On Hire for the first time at the time specified in
      Clause 6.1. Otherwise, it shall be On Hire at all times when not Off
      Hire.

              
	 
      	 
      
	
                16.2.

              	
                A
      Pool Vessel shall be Off Hire for the purpose of this Agreement
      if:

              
	 
      	 
      
	 
      	
                16.2.1.

              	
                it
      is off hire under the terms of the relevant Participating Charter (for the
      avoidance of doubt, the Pool Manager has the rights of a charterer
      thereunder to put the relevant Pool Vessel Off Hire);

              
	 
      	 
      	 
      
	 
      	
                16.2.2.

              	
                it
      is not in the condition required by Clause 3.5.1;

              
	 
      	 
      	 
      
	 
      	
                16.2.3.

              	
                there
      are not in force vetting approvals as required under Clause 51 of the
      Participating Charter. This shall not be the case where obtaining a
      vetting approval shall have been impossible due to the trading pattern or
      due to unavailability of inspectors or any other reason beyond the control
      of the Responsible Participant, provided such Responsible Participant has
      exercised reasonable efforts to ensure the availability of such inspection
      of the Pool Vessel; or

              
	 
      	 
      	 
      
	 
      	
                16.2.4.

              	
                it
      is in any other respect materially not in compliance with this Agreement,
      always provided that, if a Pool Vessel is Off Hire under Clause 16.2.3,
      the Pool Manager shall have the option to keep the Pool Vessel On Hire, in
      which case it shall be treated as On Hire for the purposes of this
      Agreement and its earnings shall be treated as Pool Gross Income. If the
      Pool Manager does not keep the Pool Vessel On Hire, the Pool Vessel
      shall

              

      

      

       

      

       

      

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      

       

      
        	 
      	 
      	
                be
      Off Hire for the purposes of this Agreement, and its earnings (less fee
      and commission as per Clause 12.5) shall be credited directly to the
      Responsible Participant.

              
	 
      	 
      	 
      
	
                16.3.

              	
                Whether
      or not a Pool Vessel is Off Hire shall be determined by the Pool Manager
      in its reasonable judgment.

              
	 
      	 
      
	
                17.

              	
                FINANCIAL
      STATEMENTS/ACCOUNTS, AUDIT AND REIMBURSEMENT OF POOL
    EXPENSES

              
	 
      	 
      
	
                17.1.

              	
                Financial
      Statements

              
	 
      	 
      
	 
      	
                The
      Pool Manager shall prepare and submit unaudited Financial Statements to
      the Participants.

              
	 
      	 
      
	
                17.2.

              	
                Statements of
      Account

              
	 
      	 
      
	 
      	
                17.2.1.

              	
                The
      Pool Manager shall, within 20 days of the end of each month, prepare
      monthly provisional statements of the Pool Gross Revenues, Pool Expenses
      and Pool Net Revenue for that month and accumulated from the beginning of
      the relevant Pool Year and up to the end of that month.

              
	 
      	 
      	 
      
	 
      	
                17.2.2.

              	
                After
      the end of each Pool Year, the Pool Manager shall, within 45 days, submit
      to the Participant's final accounts. At the end of any twelve month Pool
      Year, a Participant may request the Pool Manager to provide it and the
      other Participants with audited accounts duly certified by the auditors
      appointed by the Pool Manager for such Pool Year. The cost of such audit
      shall be for the Pool Manager's account.

              
	 
      	 
      	 
      
	
                17.3.

              	
                Voyage estimates and
      results

              
	 
      	 
      
	 
      	
                The
      Pool Manager shall keep a full ship management voyage estimate and results
      system and double entry bookkeeping records and accounts for all receipts
      and expenses. All accounts shall be kept in U S Dollars. The Pool Manager
      shall maintain a system of internal controls designed to provide
      reasonable assurance that transactions are properly executed and
      sufficient to meet the requirements of an independent audit performed in
      accordance with generally accepted auditing standards
    (GAAS).

              
	 
      	 
      
	
                17.4.

              	
                Access to
      Accounts

              
	 
      	 
      
	 
      	
                The
      Pool Manager will provide access to the Pool Accounts to any Participant
      upon request and any Participant, at its expense, may retain an
      independent auditor to conduct an audit of the Pool Accounts. Each
      Participant agrees to keep confidential any and all financial information
      received from the Pool Manager or by way of its own or its appointed
      independent auditor.

              
	 
      	 
      
	
                17.5.

              	
                Reimbursement

              
	 
      	 
      
	 
      	
                A
      Participant may present claims for reimbursement of Pool Expenses paid by
      it no more often than monthly, and the Pool Manager shall pay valid (and
      properly documented in accordance with this Clause) claims together with
      such Participant's next payment of Hire. The Pool Manager shall have the
      right to audit Pool expenses claimed by any Participant and to require
      original invoices and vouchers for all amounts
  claimed.

              

      

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      

       

      
        	
                18.

              	
                CASH
      MANAGEMENT

              
	 
      	 
      
	
                18.1.

              	
                "Working Capital" means
      for the purposes of this Agreement, the expenses to be advanced prior to
      the receipt of freight in respect of each Pool Vessel. The Pool Manager
      shall ensure that the Working Capital is kept to a prudent minimum. This
      shall be in the form of cash or a credit for bunkers at the actual invoice
      price of such bunkers.

              
	 
      	 
      
	
                18.2.

              	
                All
      Pool Gross Income will be received into the Pool Manager's
      Account.

              
	 
      	 
      
	 
      	
                Each
      Participant shall direct that the counterparty under Transportation
      Contracts to which it is party pays all freight and other income due to
      the Participant thereunder to the Pool Manager and shall forthwith pay to
      the Pool Manager any amount paid to the Participant in
    error.

              
	 
      	 
      
	 
      	
                Funds
      in the Pool Manager's Account may only be paid to either a Participant as
      Hire or to the Pool Manager for reimbursement of
  expenses.

              
	 
      	 
      
	
                18.3.

              	
                All
      Pool Gross Income shall be received by the Pool Manager as trustee for the
      purpose of applying the same in accordance with this
      Agreement.

              
	 
      	 
      
	
                18.4.

              	
                All
      Working Capital will be received into and expenses paid from the Pool
      Manager's Account.

              
	 
      	 
      
	
                19.

              	
                PARTICIPANTS'
      MEETINGS

              
	 
      	 
      
	
                19.1.

              	
                A
      meeting of the Participants (a "Participant Meeting")
      shall be held semi-annually at the offices of the Pool Manager. Each
      Participant shall be entitled to appoint a representative to attend
      Participant Meetings. The Pool Manager will make available for discussion
      at the Participant Meeting any commercial or technical document, contract,
      account or charter relating to the Pool's business which any Participant
      wishes to see and/or discuss. In addition, the Pool Manager shall make
      available for review the voyage results and performance of all Pool
      Vessels in accordance with Clause 15.3.

              
	 
      	 
      
	
                19.2.

              	
                The
      Pool Manager shall give the Participants 30 days notice of the date of a
      Participant Meeting. Each Participant may, no later than 15 days prior to
      that date, put forward matters of the Pool to be discussed in the
      Participant Meeting. The Pool Manager will include all such matters in the
      agenda for the Participant Meeting, and distribute the same to the
      Participants about 7 days prior to the Participant
  Meeting.

              
	 
      	 
      
	
                20.

              	
                NEW
      PARTICIPANTS AND NEW POOL VESSELS

              
	 
      	 
      
	
                20.1.

              	
                No
      person shall, after the Commencement Date, be entitled to become, or be
      regarded as, a Participant unless and until such person
    shall:

              
	 
      	 
      
	 
      	
                20.1.1.

              	
                have
      entered into an accession agreement in the form set out in Schedule E (the
      “Accession
      Agreement”), and each Participant hereby authorizes the Pool
      Manager to execute the Accession Agreement on its
  behalf;

              

      

      

       

      

       

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      

       

      
        	 
      	 
      
	 
      	
                20.1.2.

              	
                in
      relation to any Qualifying Vessel which it proposes to enter as a Pool
      Vessel, have agreed (in such manner as the Pool Manager shall reasonably
      require) to any amendments required to the Participating Charter in
      respect of such prospective Pool Vessel; and

              
	 
      	 
      	 
      
	 
      	
                20.1.3.

              	
                have
      contributed an amount of Working Capital reasonably determined by the Pool
      Manager in accordance with Clause 15.8. provided that with respect to any
      Qualifying Vessel acquired after the date hereof by such Joining
      Participant (as defined in the Accession Agreement), the consent of all
      Participants shall also be required if such Joining Participant raised
      funds for such vessel in the German equity markets.

              
	 
      	 
      	 
      
	
                21.

              	
                WITHDRAWAL

              
	 
      	 
      
	
                21.

              	
                Withdrawal of a Pool
      Vessel

              
	 
      	 
      	 
      
	 
      	
                21.1.1.

              	
                A
      Participant may only withdraw a Pool Vessel from the Pool or terminate a
      Qualifying Charter before its contractual expiry date in accordance with
      this Clause. For the purpose of this clause "terminating a Qualifying
      Charter before its contractual expiry date" shall include exercising any
      option to terminate early.

              
	 
      	 
      	 
      
	 
      	
                21.1.2.

              	
                A
      Participant shall withdraw a Pool Vessel:

              
	 
      	 
      	 
      
	 
      	 
      	
                (i)

              	
                in
      the case of a sale of the Pool Vessel or in the case of an Affiliate which
      is the owner of the Pool Vessel ceasing to be an Affiliate (other than, in
      either case, in circumstances where the Pool Vessel in question remains a
      Required Vessel); or

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (ii)

              	
                for
      service under a time or demise charter exceeding one (1) year unless all
      Participants unanimously agree to allow such vessel to remain in the Pool;
      or

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (iii)

              	
                by
      terminating the relevant Qualifying Charter before its contractual expiry
      date,

              
	 
      	 
      	 
      	 
      
	 
      	
                provided
      that, in any such case, written notice of withdrawal shall be given to the
      Pool Manager with a copy to the other Participants no less than 30 days
      prior to the expiration of the Pool Vessel's then current commitment. If
      the Pool Vessel's then current commitment exceeds one voyage, then notice
      may be given to have effect on conclusion of the voyage then being
      performed, provided that the Participant who is withdrawing a Pool Vessel
      can provide a Substitute Vessel and further provided that the charterer,
      if any, accepts such substitution.

              
	 
      	 
      
	
                21.2.

              	
                Withdrawal of a
      Participant

              
	 
      	 
      
	 
      	
                A
      Participant (a "Withdrawing
      Participant") may withdraw from the Pool upon written notice to the
      Pool Manager with a copy to the other Participants. This shall have the
      effect to withdraw all the Pool Vessels for which it is the Responsible
      Participant, the date of withdrawal (to be determined for each Pool Vessel
      individually) to be as follows:

              
	 
      	 
      
	 
      	 
      	
                (i)

              	
                30
      days after delivery of the withdrawal notice; or

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                (ii)

              	
                on
      expiry of the relevant Pool Vessels' then current
    commitments;

              

      

      

       

      

       

      

       

      

       

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      

       

      
        	 
      	
                whichever
      is the latest.

              
	 
      	 
      
	
                21.3.

              	
                Withdrawing of
      Vessels

              
	 
      	 
      
	 
      	
                If
      the Pool Manager determines that one or more Pool Vessels due to be
      withdrawn under Clauses 21.1 or 21.2 (a "Withdrawing Vessel") are
      required to enable the Pool to perform its contractual obligations under
      COAs, or, in the sole discretion of the Pool Manager, it is determined
      that the withdrawal of the Withdrawing Vessel would impose an unfair
      burden on the remaining Participants, then, and in that event only, the
      Participant must from the time of its/their withdrawal either supply one
      or more Substitute Vessels or, if it does not provide a Substitute Vessel
      or Vessels, pay compensation to enable the Pool Manager to charter
      suitable vessels, in either case for such period as may reasonably be
      required for the Pool to perform its obligations under the relevant COA(s)
      and other Transportation Contracts.

              
	 
      	 
      
	
                21.4.

              	
                Compensation

              
	 
      	 
      
	 
      	
                The
      Pool Manager shall not make any determination under Clause 21.3 until 15
      days after the notice under Clauses 21.1 or 21.2 has been delivered to it.
      In making such determination, it shall take into account all notices
      served under Clauses 21.1 or 21.2 before the time it makes its
      determination and shall, to the extent possible, act reasonably to
      allocate the burden of Clause 21.3 between Participants who have served
      notices under Clauses 21.1 or 21.2.

              
	 
      	 
      
	
                21.5.

              	
                No further
      COAS

              
	 
      	 
      
	 
      	
                Following
      service of notices under Clauses 21.1 or 21.2, no further COAs shall be
      taken on by the Pool Manager which would be reliant upon the service in
      the Pool of the Withdrawing Vessels.

              
	 
      	 
      
	
                21.6.

              	
                Constructive / Total
      loss of a Pool Vessel

              
	 
      	 
      
	 
      	
                A
      Pool Vessel which becomes an actual or constructive total loss is deemed
      to be withdrawn from the Pool with effect from the time of such loss or,
      if this unknown, at the time the Pool Vessel was last heard from. The
      Responsible Participant shall not be obligated to provide a Substitute
      Vessel or pay compensation to the Pool in such
    circumstances.

              
	 
      	 
      
	
                21.7.

              	
                Redelivery

              
	 
      	 
      
	 
      	
                The
      actual time and range of place of redelivery shall be decided and notified
      by the Pool Manager at its discretion as early as practicable within the
      last month before expiry of a notice period. Redelivery shall take place
      at the last port of discharge from dropping last outward sea
      pilot.

              
	 
      	 
      
	
                21.8.

              	
                Incremental
      withdrawal

              
	 
      	 
      
	 
      	
                A
      Participant shall cease to be a Participant when it ceases to be the
      Responsible Participant for any Pool Vessel provided it does so in
      accordance with this Agreement.

              
	 
      	 
      
	
                21.9.

              	
                Continued Financing
      obligations

              
	 
      	 
      
	 
      	
                A
      Withdrawing Participant or a Participant who withdraws a Pool Vessel under
      Clause 21.1 shall be required to leave US$200,000 of Working Capital per
      Withdrawing Vessel with the Pool Manager for six months following its
      withdrawal to cover contingencies. Not later than
  six

              

      

      

       

      

       

      

       

      

       

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

      

       

      
        	 
      	
                months
      after such withdrawal, the Pool Manager will pay the balance of such
      Working Capital to the Withdrawing Participant or the Participant, as the
      case may be.

              
	 
      	 
      
	
                22.

              	
                WINDING
      UP OF THE POOL

              
	 
      	 
      
	
                22.1.

              	
                The
      Pool shall wind itself up if the Participants unanimously agree to this
      effect or the Pool Manager, on not less than 180 days written notice to
      the Participants, elects to cease managing the Pool.

              
	 
      	 
      
	
                22.2.

              	
                If
      the Pool decides to wind its activities up:

              
	 
      	 
      
	 
      	
                22.2.1.

              	
                the
      Pool Manager shall not enter into any further Transportation Contracts or
      COAs;

              
	 
      	 
      	 
      
	 
      	
                22.2.2.

              	
                no
      further withdrawals of Pool Vessels by notice shall be permitted, but each
      Pool Vessel shall cease to be a Pool Vessel when it is no longer is
      required to perform a Transportation Contract or COA (as the Pool Manager
      shall reasonably determine);

              
	 
      	 
      	 
      
	 
      	
                22.2.3.

              	
                the
      Participants shall not be required to enter any further Qualifying Vessels
      in the Pool;

              
	 
      	 
      	 
      
	 
      	
                22.2.4.

              	
                the
      Participants shall be released from further performance of Clause 26;
      and

              
	 
      	 
      	 
      
	 
      	
                22.2.5.

              	
                when
      all Transportation Contracts and COAs have been performed, this Agreement
      shall terminate (without prejudice to any rights accrued before
      termination).

              
	 
      	 
      	 
      
	
                23.

              	
                DEFAULT

              
	 
      	 
      
	
                23.1.

              	
                If
      any Participant

              
	 
      	 
      	 
      
	 
      	
                23.1.1.

              	
                is
      adjudged bankrupt or insolvent, is ordered to be wound up, enters into
      voluntary winding up, or has a bona fide petition presented for its
      winding up which is not withdrawn within 45 days (or, in each case, the
      equivalent in any relevant jurisdiction);

              
	 
      	 
      	 
      
	 
      	
                23.1.2.

              	
                suffers
      the appointment of a receiver, manager. administrator (or, in each case,
      the equivalent in any relevant jurisdiction) over all or a substantial
      proportion of its assets.

              
	 
      	 
      	 
      
	 
      	
                23.1.3.

              	
                requests
      or enters into any composition or arrangement with its
      creditors;

              
	 
      	 
      	 
      
	 
      	
                23.1.4.

              	
                fails
      to pay within 28 days after written demand, any sum in excess of USD
      10,000 which may be due from it under this Agreement (including any
      Participating Charter);

              
	 
      	 
      	 
      
	 
      	
                23.1.5.

              	
                commits
      any material breach of its obligations under this Agreement (including any
      Participating Charter) which is not rectified within 28 days after written
      notice given by any other Participant;

              
	 
      	 
      	 
      
	 
      	
                23.1.6

              	
                acts
      in a manner which is contrary to the best interests of the Pool and its
      Participants; or

              
	 
      	 
      	 
      
	 
      	
                23.1.6.

              	
                suffers
      the loss of Control of a Pool Vessel and is unable to or fails to withdraw
      such Pool Vessel from the Pool in accordance with the terms of this
      Agreement, provided that when such Participant regains Control of such
      Pool Vessel it shall cause that the Pool Vessel to be re-entered into the
      Pool;

              

      

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

      

       

      
        	 
      	
                then,
      that Participant (the "Defaulting Participant")
      shall cease to be a Participant.

              
	 
      	 
      
	
                23.2.

              	
                A
      Defaulting Participant:

              
	 
      	 
      	 
      
	 
      	
                23.2.1.

              	
                shall
      keep the Pool Vessels for which it is the Responsible Participant entered
      in the Pool on the terms of this Agreement and the relevant Participating
      Charter, and shall continue to perform this Agreement in relation to such
      Pool Vessels for as long as the Pool Manager determines (in the case of
      each Pool Vessel) is necessary or desirable to fulfil existing
      commitments;

              
	 
      	 
      	 
      
	 
      	
                23.2.2.

              	
                shall
      be entitled to receive Hire in respect of such Pool Vessels as if it were
      a Participant; and

              
	 
      	 
      	 
      
	 
      	
                23.2.3.

              	
                shall
      otherwise have no further rights or obligations under this Agreement
      without prejudice to any liabilities accrued before it ceased to be a
      Participant.

              
	 
      	 
      	 
      
	
                24.

              	
                RIGHTS
      ON TERMINATION AND WITHDRAWAL

              
	 
      	 
      
	
                24.1.

              	
                Any
      termination of a Participants' participation in the Pool and any
      withdrawal of a Pool Vessel from the Pool, whether at the initiative of
      the Responsible Participant or the Pool Manager or the other Participants
      or on total loss of that Pool Vessel, shall be without prejudice to all
      rights and obligations of the other Parties up to the effective date of
      such termination or withdrawal or to any rights and obligations which
      survive such termination or withdrawal in accordance with this Pool
      Agreement, including payment of Hire and any post withdrawal payments due
      the Pool Manager under Clauses 21.1 and 21.2.

              
	 
      	 
      
	
                25.

              	
                FORCE
      MAJEURE CLAUSE

              
	 
      	 
      
	
                25.1.

              	
                No
      Party shall be under any liability of any kind or nature whatsoever in the
      event that it should fail to perform any services or obligations hereunder
      if any such failure is directly or indirectly caused by war, war like
      activities, government orders supervening illegality, any labour shortage,
      labor trouble, strike, lock-out, any shortage of material, act of God,
      Peril of the Sea or any other cause whatsoever beyond the control of such
      party.

              
	 
      	 
      
	
                26.

              	
                COMPETITION

              
	 
      	 
      
	 
      	
                (INTENTIONALLY
      DELETED)

              
	 
      	 
      
	
                27.

              	
                CONFIDENTIALITY

              
	 
      	 
      
	 
      	
                Each
      of the Parties agrees to keep confidential and not to disclose to any
      third party or exploit any secret or confidence or other confidential or
      financial information concerning any other Party or the business or the
      financial results or affairs of the Pool. This obligation shall continue
      during the terms of this Agreement and after its termination howsoever
      occurring, but shall cease to apply to any information which may come into
      the public domain (otherwise than through the default of any of the
      Parties hereto), or to any information which a Party becomes compelled to
      disclose.

              

      

      
        
           

        

        
          24

          
            

          

        

        
           

        

      

      

       

      
        	
                28.

              	
                ASSIGNMENT

              
	 
      	 
      
	 
      	
                A
      Party may not assign or transfer any of its rights or obligations under
      this Agreement without the prior written consent of all the other
      Parties.

              
	 
      	 
      
	
                29.

              	
                NOTICES

              
	 
      	 
      
	 
      	
                Notices
      to Parties may be given by sending them to the respective telefax numbers
      or email addresses below marked for the attention of the person
      indicated

              
	 
      	 
      
	 
      	
                Gemini Tankers LLC Attn.
      Sanjay Sukrani

                Metro
      Center, One Station Place

                Stamford,
      CT 06902

                Tel:
      +1 203-602-6700

                Fax:
      +1 203-602-6791

              
	 
      	 
      
	 
      	
                Teekay
      Chartering Ltd.

                Attn.
      Bruce Chan

                c/o
      Teekay Shipping Canada Ltd

                Suite
      2000 Bentall 5

                550
      Burrard St

                Vancouver,
      B.C.  V6C 2K2

                Canada

              
	 
      	 
      
	 
      	
                Tel:
      +1 (604) 683 3529

              
	 
      	
                Fax:+1
      (604) 609 6445

              
	 
      	
                Email:
      bruce.chan@teekay.com

              
	 
      	 
      
	 
      	
                Koenig
      & Cie. GMBH & Co.,

              
	 
      	 
      
	 
      	
                Attn.
      Tobias Koenig

              
	 
      	
                Valentinskamp
      18,

              
	 
      	
                20354
      Hamburg,

              
	 
      	
                Germany

              
	 
      	
                Tel:
      +49 40 3697570

              
	 
      	
                Fax:
      +49 40 36975720

              
	 
      	
                Email:
      tkoenig@emissionshaus.com

              
	 
      	 
      
	 
      	
                Hyundai
      Merchant Marine (EUROPE) LTD.

              
	 
      	 
      
	 
      	
                Attn:
      Mr Shin

                4th
      floor City Reach 5 Greenwich View Place Millharbour

                London.
      E14, 9NN UK

                Mr
      Shin

              
	 
      	 
      
	 
      	
                Phone:
      44 20 7477 7210

                Fax:
      44 20 7477 7240

                Email:
      s7shg@hmm21.com

              

      

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

      

       

      
        	 
      	
                Frontline
      Chartering Services Inc

              
	 
      	 
      
	 
      	
                Att:
      Mr. Jens Martin Jensen

                Par-la-Ville
      Place

                14
      Par-la-Ville Road

                P.O.Box
      HM 1593

                Hamilton
      HM08

                Bermuda

                Tel:
      +65 98 17 52 40

                E-mail:
      j.m.jensen@frontmgt.com.sg

              
	 
      	 
      
	
                30.

              	
                ARBITRATION

              
	 
      	 
      
	 
      	
                Any
      dispute relating to or arising out of this Agreement shall be decided by
      arbitration in London subject to the rules of the London Maritime
      Arbitrators Association. The arbitral tribunal shall consist of three
      arbitrators. In the event that the dispute is between two Parties only
      then each such Party shall appoint one arbitrator and the third arbitrator
      shall be appointed by the two so appointed.

              
	 
      	 
      
	 
      	
                In
      the event that there are more than two Parties involved in the
      arbitration, then all three arbitrators shall be appointed by agreement
      between the Parties so involved. In the event that such Parties cannot
      agree on the three arbitrators within 14 days of one Party giving notice
      to the other Parties to the dispute calling for arbitration, any Party to
      the dispute shall be entitled to apply to the President of the London
      Maritime Arbitrators Association who shall then appoint all three
      arbitrators.

              
	 
      	 
      
	
                31.

              	
                NO
      PARTNERSHIP

              
	 
      	 
      
	 
      	
                Nothing
      contained in this Agreement or in any other document relating to the Pool
      shall be construed as constituting a partnership between the Participants
      and the Pool Manager or any of them. The obligations of each Participant
      under this Agreement shall be owed to the Pool Manager alone and not to
      the other Participants, except in the case of the obligations under
      Clauses 13 and 27.

              
	 
      	 
      
	
                32.

              	
                GOVERNING
      LAW

              
	 
      	 
      
	 
      	
                This
      Agreement shall be governed by laws of
England.

              

      

       

      IN
WITNESS WHEREOF the Parties have signed this restated on Agreement this 1st day of
January 2009.

       

      

       

      For
and on behalf of

      GEMINI
TANKERS LLC

      By
Teekay Corporation, its sole member

       

      

       

      ________________________________

      Roy
Spires

      
        
           

        

        
          26

          
            

          

        

        
           

        

      

       

      

       

      For
and on behalf of

      TEEKAY
CHARTERING LTD.

      By
TEEKAY CORPORATION, its sole member

       

      

       

      ________________________________

      Roy
Spires

       

      

       

      

       

      For
and on behalf of

      KOENIG
& Cie. GMBH & CO

       

      

       

      ________________________________

       

      

       

      For
and on behalf of

      HYUNDAI
MERCHANT MARINE (EUROPE) LTD.

       

      

       

      ________________________________

       

      

       

      For
and on behalf of

      FRONTLINE
CHARTERING SERVICES, INC.

       

      

       

      ________________________________

      Erling
Lind

      attorney-in-fact

      
        
           

        

        
          27

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]