PRECISE. PROVEN. PERFORMANCE. Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 © 2010 Moore Stephens LLP Shipping Funds: What next? Geoff Woodhouse, Moore Stephens LLP December

Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 Introduction Geoff Woodhouse is a Partner in the International Business Group of Moore Stephens LLP, London, specialising in assurance and advisory assignments for family offices and investment funds, particularly shipping investment funds. He is a Fellow of the Institute of Chartered Accountants in England and Wales and an Associate of the American Institute of Certified Public Accountants

Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 Shipping Investment Funds Today’s programme: The state of play Key drivers Fund structures Taxation Jurisdiction The future

Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 The state of play Shipping pools have been a feature of the shipping industry for some time, but the first decade of the new millennium has been characterised by: Shipping hedge funds designed to provide investors with alternative investments in highly volatile markets An explosion of the forward freight agreement markets Private equity funds established to buy distressed tonnage at the low point in the market as an asset play

Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 The Baltic Dry Index

Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 Key drivers In good times: Investors seeking alpha Investors seeking alternative asset classes Explosion of FFA market Trading infrastructure: –Inter-dealer brokers –Clearing and in bad times: Volatile market opportunities for hedge funds Distressed asset opportunities for private equity funds Frozen credit markets Defaults and breaches of covenants

Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 Fund structures Hedge funds Primary focus on trading Chartering tonnage in and out FFA trading Corporate fund vehicle Private equity funds Primary focus on asset play Owned tonnage SPV owning vehicles Tax transparent fund vehicle

Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 Hedge fund structure 1 1 FEEDER FUND MASTER FUND CHARTERER SHIP OWNER INVESTORS CHARTER IN CHARTER OUT CHARTERING SUB - FUND FFA TRADING SUB - FUND

Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 Private equity fund structure SPV 1 1 FUND VEHICLE GENERAL PARTNER SHIP LIMITED PARTNERS

Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 Taxation Taxable entities Investor Fund manager Corporate fund vehicles Vessel owning SPVs Issues Capital gain -v- income Management and control Law 89 Investment manager exemption Freight taxes

Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 Jurisdiction – case studies Corporate fund vehicles Cayman Islands Luxembourg Corporate management Monaco Bermuda Vessel management Greece Law 89 Singapore Investment managers United Kingdom Switzerland

Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 The future The Bulls Market volatility Investors seeking alternative asset classes Partially thawed credit markets Owners seeking alternatives to bank finance The Bears Depressed freight markets Closed credit markets Failed investment rounds Lock-ups Regulation

PRECISE. PROVEN. PERFORMANCE. Colour palette for PowerPoint presentations Primary Cyan R0 G174 B239 Primary Black R35 G31 B32 Secondary Red R191 G49 B26 Secondary colour palette Primary colour palette Secondary Maroon R163 G0 B70 Secondary Purple R113 G20 B113 Secondary Deep Purple R96 G82 B112 Secondary Light Purple R147 G151 B203 Secondary Pastel Green R122 G204 B200 Secondary Bottle Green R0 G146 B143 Secondary Pastel Blue R80 G200 B232 Secondary Blue R79 G138 B190 Secondary Light Green R169 G195 B152 Secondary Bright Green R122 G193 B67 Secondary Deep Green R109 G141 B36 Secondary Olive R164 G148 B0 Secondary Bright Yellow R235 G215 B35 Secondary Deep Yellow R229 G181 B59 Secondary Ecru R200 G177 B139 Secondary Light Blue R195 G208 B228 © 2010 Moore Stephens LLP Shipping Funds: What next? Geoff Woodhouse, Moore Stephens LLP December