Common use of Withdrawal/Termination Clause in Contracts

Withdrawal/Termination. 15.1 The Vessel shall remain in the Pool for a minimum period of twelve (12) months from the date of delivery under the Time Charter Party subject only to the terms of this Clause. The Participant and the Company shall be entitled to withdraw the Vessel from the Pool and terminate this Agreement by giving ninety (90) days’ notice, plus or minus thirty (30) days in the Company’s option, in writing to the other at any time after the expiry of the initial nine (9) month period that the Vessel is in the Pool provided always that the Participant shall not be entitled to withdraw the Vessel from the Pool and terminate this Agreement until any contract entered into by the Company in respect of the Vessel (other than the Time Charter Party) has been fulfilled. In such circumstances the termination notice shall take effect as expiring upon fulfilment of such contractual obligations. 15.2 The Company may terminate this Agreement and the Vessel’s participation in the Pool with immediate effect by notice in writing to the Participant if any one of the following situations has arisen: (a) the Vessel has been off-hire for periods totalling more than thirty (30) days over the last six (6) months; (b) the Vessel’s or Participant’s performance of its tasks under the contract for which it has been used or its application or non-application of standard industry practices is, in the reasonable opinion of the Company, below the standard required (i) to maintain the reputation of the Pool/Company or (ii) to enable the Company to perform the contractual obligations towards the customers of the Pool/Company and to do so in an adequate and economic manner; (c) the Vessel is, in the reasonable opinion of the Company, commercially untradeable to a significant proportion of the oil major company customers of the Pool/Company for any reason; (d) the Participant is in breach with respect to its obligations under this Agreement (including the terms of the Time Charter Party) and the breach is of a nature which, in the reasonable opinion of the Company, warrants a cancellation of this Agreement; (e) the Participant is insolvent and/or is subject to debt negotiations, bankruptcy and/or similar proceedings and/or is unable to or admits its inability to pay its debts as they fall due; (f) except where clause 13.4 applies, the Vessel is captured, arrested, detained or confiscated and the Participant has not, within a period of fifteen (15) days in receipt of notification in writing from the Company thereof, remedied such situation; (g) if the Participant or any of its Affiliates becomes a Sanctioned Person during the course of this Agreement; and (h) if the Vessel is no longer controlled (whether by way of ownership or charter) by the Participant. 15.3 Any termination of this Agreement and withdrawal of the Vessel from the Time Charter Party shall be without prejudice to any and all rights and obligations of the parties hereto attributable to such termination or withdrawal or to any event, circumstance or period, prior 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 Agreement.

Withdrawal/Termination. 15.1 16.1 The Vessel shall remain in the Pool for a minimum period of twelve (12) months from the date of delivery under the Time Charter Party subject only to the terms of this Clause. The Participant and the Company shall be entitled to withdraw the Vessel from the Pool and terminate this Agreement by giving ninety (90) days’ notice, plus or minus thirty (30) days in the Company’s option, in writing to the other at any time after the expiry of the initial nine ten (910) month period that the Vessel is in the Pool Pool, provided always that the Participant shall not be entitled to withdraw the Vessel from the Pool and terminate this Agreement until any contract entered into by the Company in respect of the Vessel (other than the Time Charter Party) has been fulfilled. . In such circumstances the termination notice shall take effect as expiring upon fulfilment of such contractual obligations. 15.2 16.2 Notwithstanding the provisions of Clause 16.1 above, the Participant shall be entitled to withdraw the Vessel from the Pool and to terminate this Agreement during the first twelve (12) months in the following circumstances: (a) in the event that the Participant has agreed a firm sale of the Vessel to a Third Party. In such circumstances, subject to (c) below, the Participant shall be entitled to withdraw the Vessel upon giving ninety (90) days’ notice, plus or minus thirty (30) days in the Company’s option, in writing to the Company; (b) the Manager may, on behalf of the Company, and in its sole discretion, waive the requirement for a ninety (90) day notice provided for in (a) above. (c) the Participant shall not be entitled to withdraw the Vessel from the Pool and terminate this Agreement, pursuant to (a) above, until any contract entered into by the Company in respect of the Vessel (other than the Time Charter Party) has been fulfilled. 16.3 The Company may terminate this Agreement and the Vessel’s participation in the Pool with immediate effect by notice in writing to the Participant if any one of the following situations has arisen: (a) the Vessel has been off-hire for periods totalling more than thirty (30) days over the last six (6) months; (b) the Vessel’s or Participant’s performance of its tasks under the contract for which it has been used or its application or non-application of standard industry practices is, in the reasonable opinion of the Company, below the standard required (i) to maintain the reputation of the Pool/Company or (ii) to enable the Company to perform the contractual obligations towards the customers of the Pool/Company and to do so in an adequate and economic manner; (c) the Vessel is, in the reasonable opinion of the Company, commercially untradeable to a significant proportion of the oil major company customers of the Pool/Company for any reason; (d) the Participant is in breach with respect to its obligations under this Agreement (including the terms of the Time Charter Party) and the breach is of a nature which, in the reasonable opinion of the Company, warrants a cancellation of this Agreement; (e) the Participant is insolvent and/or is subject to debt negotiations, bankruptcy and/or similar proceedings and/or is unable to or admits its inability to pay its debts as they fall due; (f) except where clause 13.4 14.4 applies, the Vessel is captured, arrested, detained or confiscated and the Participant has not, within a period of fifteen (15) days in receipt of notification in writing from the Company thereof, remedied such situation; (g) if the Participant or any of its Affiliates becomes a Sanctioned Person during the course of this Agreement; and (h) if the Vessel is no longer controlled (whether by way of ownership or charter) by the Participant. 15.3 16.4 Any termination of this Agreement and withdrawal of the Vessel from the Time Charter Party shall be without prejudice to any and all rights and obligations of the parties hereto attributable to such termination or withdrawal or to any event, circumstance or period, prior 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 Agreement.