EXHIBIT 10.3


 


As of October 8,
2004


 


International Shipping
Enterprises, Inc.

1225 Franklin Avenue, Suite 325

Garden City,
New York 11530


 


Sunrise Securities Corp.

641 Lexington Avenue

25th Floor

New York, New York 10022


 


Re:          Initial
Public Offering


 


Gentlemen:


 


The undersigned stockholder and director of
International Shipping Enterprises, Inc. (“Company”), in consideration of
Sunrise Securities Corp. (“Sunrise”) entering into a letter of intent (“Letter
of Intent”) to underwrite an initial public offering of the securities of the
Company (“IPO”) and embarking on the IPO process, hereby agrees as follows
(certain capitalized terms used herein are defined in paragraph 11 hereof):


 


1.             If the
Company solicits approval of its stockholders of a Business Combination, the
undersigned will vote all Insider Shares owned by him in accordance with the
majority of the votes cast by the holders of the IPO Shares.  


 


2.             In the event
that the Company fails to consummate a Business Combination within 12 months
from the effective date (“Effective Date”) of the registration statement
relating to the IPO (or 18 months under the circumstances described in the
prospectus relating to the IPO), the undersigned will take all reasonable
actions within his power to cause the Company to liquidate as soon as
reasonably practicable. In such event, the undersigned hereby waives
any and all right, title, interest or claim of any kind in or to any liquidating
distributions by the Company including, without limitation, any distribution of
the Trust Fund (as defined in the Letter of Intent) as a result of such
liquidation with respect to his Insider Shares (“Claim”) and hereby waives any
Claim the undersigned may have in the future as a result of, or arising out of,
any contracts or agreements with the


 
















 


Company
and will not seek recourse against the Trust Fund for any reason whatsoever.  


 


3.             In order to
minimize potential conflicts of interest which may arise from multiple
affiliations, the undersigned agrees to present to the Company for its
consideration, prior to presentation to any other person or entity, any
suitable opportunity to acquire an operating business, until the earlier of the
consummation by the Company of a Business Combination, the liquidation of the
Company or until such time as the undersigned ceases to be a director of the
Company, subject to any pre-existing fiduciary obligations the undersigned
might have.


 


4.             The
undersigned acknowledges and agrees that the Company will not consummate any
Business Combination which involves a company which is affiliated with any of
the Insiders unless
the Company obtains an opinion from an independent investment banking firm
reasonably acceptable to Sunrise that the business combination is fair to the
Company’s stockholders from a financial perspective.


 


5.             Neither the undersigned, any
member of the family of the undersigned, nor any Affiliate of the undersigned
will be entitled to receive and will not accept any compensation for services
rendered to the Company prior to the consummation of the Business Combination;
provided that the undersigned shall be entitled to reimbursement from the
Company for his out-of-pocket expenses incurred in connection with seeking and
consummating a Business Combination.


 


6.             Neither
the undersigned, any member of the family of the undersigned, or any Affiliate
of the undersigned will be entitled to receive or accept a finder’s fee or any
other compensation in the event the undersigned, any member of the family of
the undersigned or any Affiliate of the undersigned originates a Business
Combination.  


 


7.             The
undersigned will escrow his Insider Shares for the three year period commencing
on the Effective Date subject to the terms of a Stock Escrow Agreement which
the Company will enter into with the undersigned and an escrow agent acceptable
to the Company.


 


8.             The undersigned
agrees to be a member of the Board of Directors of the Company until the
earlier of the consummation by the Company of a Business Combination or the
liquidation of the Company.  The undersigned’s
biographical information furnished to the Company and Sunrise and attached
hereto as Exhibit A is true and accurate in all respects, does not omit any
material information with respect to the undersigned’s background and contains
all of the information required to be disclosed


 


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pursuant
to Section 401 of Regulation S-K, promulgated under the Securities Act of
1933.  The undersigned’s Questionnaire
furnished to the Company and Sunrise and annexed as Exhibit B hereto is
true and accurate in all respects.  The
undersigned represents and warrants that:


 


(a)           he is not
subject to or a respondent in any legal action for, any injunction,
cease-and-desist order or order or stipulation to desist or refrain from any
act or practice relating to the offering of securities in any jurisdiction;


 


(b)           he has never
been convicted of or pleaded guilty to any crime (i) involving any fraud or
(ii) relating to any financial transaction or handling of funds of another person,
or (iii) pertaining to any dealings in any securities and he is not currently a
defendant in any such criminal proceeding; and


 


(c)           he has never
been suspended or expelled from membership in any securities or commodities
exchange or association or had a securities or commodities license or
registration denied, suspended or revoked.


 


9.             The undersigned
has full right and power, without violating any agreement by which she is
bound, to enter into this letter agreement and to serve as a member of the Board
of Directors of the Company.


 


10.           The undersigned authorizes any employer, financial
institution, or consumer credit reporting agency to release to Sunrise and its
legal representatives or agents (including any investigative search firm
retained by Sunrise) any information they may have about the undersigned’s
background and finances (“Information”). 
Neither Sunrise nor its agents shall be violating the undersigned’s
right of privacy in any manner in requesting and obtaining the Information and
the undersigned hereby releases them from liability for any damage whatsoever
in that connection.


 


11.           As used herein, (i) a “Business
Combination” shall mean an acquisition by merger, capital stock exchange, asset
or stock acquisition, reorganization or otherwise, of one or more vessels or an
operating business in the shipping industry selected by the Company; (ii)
“Insiders” shall mean all officers, directors and stockholders of the Company
immediately prior to the IPO; (iii) “Insider Shares” shall mean all of the
shares of Common Stock of the Company owned by an Insider prior to the IPO; and
(iv) “IPO Shares” shall mean the shares of Common Stock issued in the
Company’s IPO.


 


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  Spyridon Magoulas

  	
   

  
	
   

  	
  Print Name of Insider

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Spyridon Magoulas

  	
   

  
	
   

  	
  Signature

  
				



 


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Exhibit A


 


Spyridon Magoulas has been a member of our board of directors
since our inception.  Mr. Magoulas is the
co-founder and director of Doric Shipbrokers S.A., a chartering firm in the dry
cargo vessel business based in Piraeus, Greece, and has served as the managing
director of that company since its formation in 1994.  From 1982 to 1993, Mr. Magoulas was a
chartering director and shipbroker for Nicholas G. Moundreas Shipping S.A., a
company located in Piraeus, Greece, and from 1980 to 1982, Mr. Magoulas served
in the same positions at Orion and Global Chartering Inc. in New York.  Mr. Magoulas also is a member of the
Association of Ship Brokers and Agents in the United States.  Mr. Magoulas received a bachelors degree in
economics (honors) from the City University of New York, New York, a masters
degree in transportation management from the Maritime College in New York and a
masters degree in political economy the New School for Social Research in New
York, New York.