Common use of Not Exceeding the Sector’s Allocation Clause in Contracts

Not Exceeding the Sector’s Allocation. In addition to the 5% of the ACE of each stock that will be set aside in reserve, the sector will avoid exceeding their ACE for any stock by having daily electronic reporting from all vessels actively fishing to the sector manager of all catch and discards of allocated stocks (see also section 5.2). By keeping close track of the catch all participating vessels, and close accounting of the sector’s allocation of each stock, the sector manager will be able to alert all members of the situation if it is necessary for them to stop fishing. If the daily vessel reporting indicates that sector catch is approaching the reserve, then the sector manager will issue a temporary ‘stop fishing order’ to all members (to ensure the sector’s ACE is not exceeded) until the Sector Manager acquires additional ACE, or until any discrepancies (which may have clouded the calculations of actual catch) are resolved. The SHS will allow the internal transfer of shares from one member to another, which will be tracked and recorded by the sector manager. These internal share transfers will be critical to prevent each sector member from exceeding his own share. At the request of any member, at any time, and before the sector as a whole catches 80% of the ACE of any stock, the sector manager will seek additional shares to lease/trade from other sectors. NMFS will be notified of any transfers between sectors and members acknowledge that no transfer is in effect until it has been approved by NMFS and such notice received by the sector manager. If the sector exceeds it’s ACE for any allocated stock, the sector manager will immediately issue a stop fishing order to all participating vessels. If additional ACE is acquired, then the ‘stop fishing order’ may be suspended. Finally, instead of authorizing the harvest of the reserve in the final month of the fishing year, the sector may choose to carry forward up to 10% of their ACE as allowed under Amendment 16. ARTICLE V -- CATCH MONITORING, DISCARDS, VERIFICATION, OVERAGES, PORTS and CERTAIN OTHER MEMBERSHIP REQUIREMENTS

Not Exceeding the Sector’s Allocation. In addition to the 510% of the ACE of each stock that will be set aside in reserve, the sector will avoid exceeding their ACE for any stock by having daily electronic reporting from all vessels actively fishing to the sector manager of all the catch and discards of allocated stocks (see also section 5.2). By keeping close track of the catch of all participating vessels, and close accounting of the sector’s allocation of each stock, the sector manager will be able to alert all members of the situation if it is necessary for them to stop fishing. If the daily vessel reporting indicates that sector catch is approaching the reserve, then the sector manager will issue a temporary ‘stop fishing order’ to all members (to ensure the sector’s ACE is not exceeded) until the Sector Manager acquires additional ACE, or until any discrepancies (which may have clouded the calculations of actual catch) are resolved. The SHS Tri State Sector will allow the internal transfer of shares from one member to another, which will be tracked and recorded by the sector manager. These internal share transfers will be critical to prevent each sector member from exceeding his own portion of the share. At the request of any member, at any time, and before the sector as a whole catches 80% of the ACE of any stock, the sector manager will seek additional shares to lease/trade from other sectors. NMFS will be notified of any transfers between sectors and members acknowledge that no transfer is in effect until it has been approved by NMFS and such notice received by the sector manager. If the sector exceeds it’s ACE for any allocated stock, the sector manager will immediately issue a stop fishing order to all participating vessels. If additional ACE is acquired, then the ‘stop fishing order’ order may be suspended. Finally, instead of authorizing the harvest of the reserve in the final month of the fishing year, . the sector may choose to carry forward up to 10% of their ACE as allowed under Amendment 16. ARTICLE V -- - CATCH MONITORING, DISCARDS, VERIFICATION, OVERAGES, PORTS and CERTAIN OTHER MEMBERSHIP REQUIREMENTS