Common use of POOL POINTS Clause in Contracts

POOL POINTS. 4.1 The Pool revenues shall be shared according to a distribution key allocated to each Pool Vessel (“Pool Points”). The Pool Points allocated to the Pool Vessel shall, as fairly as possible, reflect the earning potential of the Pool Vessel. 4.2 At the time that the Pool Vessel enters into the Pool, 102.34 Pool Points shall be provisionally allocated to the Pool Vessel (“Initial Pool Points”). The basis for the calculation of Pool Points is set out in Appendix 1.1 and as it may be updated from time to time in accordance with this Agreement. It is acknowledged and agreed by the Parties that the initial Pool Points allocated at the time of delivery are to be confirmed basis the updated Pool Points evaluation process as applicable when the Pool Vessel enters the Pool. The Company shall advise the Participant accordingly. 4.3 The Pool Vessel’s performance as recorded by the Weather Routing Company shall be reviewed six months (or such other period at the reasonable discretion of the Company) after the Pool Vessel has entered the Pool (“Initial Performance Review”) as more particularly detailed in Appendix 1.2. The Initial Pool Points will be revised to take into account the result of the Initial Performance Review and the re-calculated Pool Points shall apply (i) retroactively as from the Pool Vessel’s entry into the Pool and the Pool Participant’s entitlement to distribution shall be adjusted accordingly; and (ii) for the period until the next scheduled Semi-Annual Performance Review. 4.4 Not later than 10 December and 10 June of each year, the Company shall submit to the Pool Participant a summary of the Pool Vessel’s performance as recorded by the Weather Routing Company (“Semi-Annual Performance Review”) which the Pool Participant shall accept (unless it contains manifest errors) within ten days from receipt. Upon acceptance by the Pool Participant, the Company will calculate the revised Pool Points for each Pool Vessel and the result of such recalculation shall take effect for the next six month period (i.e. as from 1 January and 1 July, as applicable) (“Semi-Annual Pool Points Calculation”). Concurrently with each Semi-Annual Performance Review, the Company shall determine Premium and Penalties due to or payable by each Pool Vessel as determined in accordance with the procedures set out in Appendix 1.2. 4.5 In addition, to ensure that the Pool Points formula set out in Appendix 1.1 always reflects the true earnings capacity of a Pool Vessel in the performance of the Pool’s trading pattern thereby ensuring that the distribution of Pool earnings is at all times fair and equitable, the Company shall have the right to make the following periodical adjustments on a quarterly basis (“Periodical Pool Points Criteria Review”): (a) amend the Standard Voyages’ (as defined in Appendix 1.1) and/or their weighting; and/or (b) revise the rates and level of expenses applicable thereto, including but not limited to freight, demurrage, port expenses, commissions; and/or (c) revise and/or amend and/or change the adjustments to the Pool Points applicable as per step 5 and step 6 of Appendix 1.1; and/or (d) implement a system of trading premium by way of allocation of Pool revenues for the Pool Vessels being employed on certain specific trades. Otherwise, material revisions of the Pool Points assessment formula shall be made in accordance with the provisions of Clause 10.2. 4.6 Upon each Semi-Annual Pool Points Calculation and Periodical Pool Points Criteria Review, the Company shall in good time inform the Pool Participants about the applicable Pool Vessel description, the changes to the Pool Points calculations, the new Pool Points applicable to the Pool fleet for the relevant period and when they will be effective. The Parties acknowledge that publication of such updates on the Pool website/portal shall be considered sufficient for the purpose of compliance with the notification requirements hereunder.