Document:

Exhibit 10.1

 

MEMBERSHIP
INTEREST PURCHASE AND SALE

AGREEMENT

 

DATED September 19,
2008

 

BY AND AMONG

 

ARCADE
ACQUISITION CORP.

(“ARCADE”)

 

PALMOSA
SHIPPING CORPORATION

(“PALMOSA”)

 

AND

 

TDB SPV LLC

(“TDB”)

 

1

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 1.

  	
  DEFINITIONS

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
  Definitions

  	
   

  	
  2

  
	
  1.2

  	
  Terms Generally; Certain Rules of Construction

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  	
  THE PURCHASE

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
  Purchase and Sale of the Interests and Vessels

  	
   

  	
  2

  
	
  2.2

  	
  Closing

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  	
  REPRESENTATIONS AND
  WARRANTIES OF PALMOSA AND TDB

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
  Organization and Qualification

  	
   

  	
  3

  
	
  3.2

  	
  Subsidiaries

  	
   

  	
  4

  
	
  3.3

  	
  Ownership of Interests

  	
   

  	
  4

  
	
  3.4

  	
  Authority; Non-Contravention; Approvals

  	
   

  	
  4

  
	
  3.5

  	
  Contracts

  	
   

  	
  5

  
	
  3.6

  	
  Litigation

  	
   

  	
  5

  
	
  3.7

  	
  Taxes

  	
   

  	
  5

  
	
  3.8

  	
  Compliance with Law; Permits

  	
   

  	
  5

  
	
  3.9

  	
  Environmental Laws and Regulations

  	
   

  	
  5

  
	
  3.10

  	
  Properties

  	
   

  	
  5

  
	
  3.11

  	
  Financial Statements

  	
   

  	
  6

  
	
  3.12

  	
  Proxy Statement

  	
   

  	
  6

  
	
  3.13

  	
  Absence of Certain Changes or Events

  	
   

  	
  6

  
	
  3.14

  	
  Dividends and Distributions

  	
   

  	
  6

  
	
  3.15

  	
  Books, Records and Accounts

  	
   

  	
  6

  
	
  3.16

  	
  Brokers and Finders

  	
   

  	
  6

  
	
  3.17

  	
  Business

  	
   

  	
  6

  
	
  3.18

  	
  No Omissions or Untrue Statements

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4.

  	
  REPRESENTATIONS AND
  WARRANTIES OF ARCADE WITH RESPECT TO BUYER

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
  Organization and Qualification

  	
   

  	
  7

  
	
  4.2

  	
  No Subsidiaries

  	
   

  	
  7

  
	
  4.3

  	
  Capitalization

  	
   

  	
  7

  
	
  4.4

  	
  Authority; Non-Contravention; Approvals

  	
   

  	
  7

  

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5.

  	
  REPRESENTATIONS AND
  WARRANTIES OF ARCADE WITH RESPECT TO ARVADE

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
  Organization and Qualification

  	
   

  	
  8

  
	
  5.2

  	
  Capitalization

  	
   

  	
  9

  
	
  5.3

  	
  Subsidiaries

  	
   

  	
  9

  
	
  5.4

  	
  Authority; Non-Contravention; Consents

  	
   

  	
  9

  
	
  5.5

  	
  Contracts Listed; No Default

  	
   

  	
  10

  
	
  5.6

  	
  Litigation

  	
   

  	
  10

  
	
  5.7

  	
  Taxes

  	
   

  	
  10

  
	
  5.8

  	
  Employee Plans

  	
   

  	
  10

  
	
  5.9

  	
  No Violation of Law

  	
   

  	
  11

  
	
  5.10

  	
  Properties

  	
   

  	
  11

  
	
  5.11

  	
  Proxy Statement

  	
   

  	
  11

  
	
  5.12

  	
  Business

  	
   

  	
  11

  
	
  5.13

  	
  Financial Statements

  	
   

  	
  11

  
	
  5.14

  	
  Arcade’s SEC Reports

  	
   

  	
  12

  
	
  5.15

  	
  Absence of Certain Changes or Events

  	
   

  	
  12

  
	
  5.16

  	
  Books, Records and Accounts

  	
   

  	
  13

  
	
  5.17

  	
  Disclosure Controls

  	
   

  	
  13

  
	
  5.18

  	
  Absence of Material Weaknesses

  	
   

  	
  13

  
	
  5.19

  	
  Brokers and Finders

  	
   

  	
  13

  
	
  5.20

  	
  No Omissions or Untrue Statements

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6.

  	
  CONDITIONS TO
  CLOSING AND CLOSING DELIVERIES

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
  Condition to the Obligations of Arcade, the Buyer and TDB

  	
   

  	
  14

  
	
  6.2

  	
  Conditions to Obligations of the Buyer

  	
   

  	
  14

  
	
  6.3

  	
  Conditions to Obligations of TDB

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7.

  	
  RESTRICTIVE
  COVENANTS

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
  Non-Compete/Non-Solicitation

  	
   

  	
  17

  
	
  7.2

  	
  Equitable Relief/Interpretation

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8.

  	
  OTHER COVENANTS AND
  AGREEMENTS

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
  Covenants To Be Observed by Palmosa and TDB

  	
   

  	
  18

  
	
  8.2

  	
  Mutual Covenants

  	
   

  	
  20

  

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  	
  GOVERNING LAW;
  DISPUTE RESOLUTION

  	
   

  	
  23

  
	
  9.1

  	
  Governing Law

  	
   

  	
  23

  
	
  9.2

  	
  Dispute Resolution

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10.

  	
  TERMINATION

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
  Termination of Agreement

  	
   

  	
  23

  
	
  10.2

  	
  Effect of Termination

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11.

  	
  MISCELLANEOUS
  PROVISIONS

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  11.1

  	
  Actions by Buyer

  	
   

  	
  24

  
	
  11.2

  	
  Waiver of Claims against Trust Account

  	
   

  	
  24

  
	
  11.3

  	
  Amendment and Modifications

  	
   

  	
  25

  
	
  11.4

  	
  Waiver of Compliance

  	
   

  	
  25

  
	
  11.5

  	
  Expenses

  	
   

  	
  25

  
	
  11.6

  	
  No Waiver of Rights

  	
   

  	
  25

  
	
  11.7

  	
  Notices

  	
   

  	
  25

  
	
  11.8

  	
  Assignment

  	
   

  	
  27

  
	
  11.9

  	
  Counterparts

  	
   

  	
  27

  
	
  11.10

  	
  Headings

  	
   

  	
  27

  
	
  11.11

  	
  Entire Agreement

  	
   

  	
  27

  
	
  11.12

  	
  Third Party Beneficiaries

  	
   

  	
  27

  
	
  11.13

  	
  Severability

  	
   

  	
  27

  

 

iii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ANNEX A

  	
   

  	
   

  	
   

  	
  A-1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  	
   

  	
   

  	
  S-1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 2.1(a)

  	
   

  	
  Buyer Nominees

  	
   

  	
   

  
	
  Schedule 3.4(b)

  	
   

  	
  Consents and Approvals of TDB

  	
   

  	
   

  
	
  Schedule 3.13

  	
   

  	
  Absence of Certain Changes

  	
   

  	
   

  
	
  Schedule 4.1

  	
   

  	
  Formation and Organization of Buyer

  	
   

  	
   

  
	
  Schedule 4.4(b)

  	
   

  	
  Consents and Approvals of Buyer

  	
   

  	
   

  
	
  Schedule 5.1

  	
   

  	
  Formation and Organization of Arcade

  	
   

  	
   

  
	
  Schedule 5.5

  	
   

  	
  Arcade Contracts

  	
   

  	
   

  
	
  Schedule 5.19

  	
   

  	
  Arcade Brokerages

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  	
  E-1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A(1)

  	
   

  	
  Form of Employment Agreement

  	
   

  	
   

  
	
  Exhibit A(2)

  	
   

  	
  Form of Consulting Agreement

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Form of Lock-Up Agreement

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  Form of Registration Rights Agreement

  	
   

  	
   

  
	
  Exhibit D

  	
   

  	
  Form of Release Agreement

  	
   

  	
   

  
	
  Exhibit E

  	
   

  	
  Supplemental Agreement

  	
   

  	
   

  
	
  Exhibit F

  	
   

  	
  General Management Agreement

  	
   

  	
   

  
	
  Exhibit G

  	
   

  	
  Merger Agreement

  	
   

  	
   

  
	
  Exhibit H

  	
   

  	
  Incentive Plan

  	
   

  	
   

  

 

iv

 

MEMBERSHIP INTEREST PURCHASE
AND SALE AGREEMENT

 

This MEMBERSHIP
INTEREST PURCHASE AND SALE AGREEMENT (including the Exhibits and
Schedules hereto, this “Agreement”) is
made and entered into as of this 19th day of September, 2008, by and among (i) Arcade
Acquisition Corp., a Delaware corporation (“Arcade”), (ii) Palmosa
Shipping Corporation, a corporation organized under the laws of the Republic of
the Marshall Islands (“Palmosa”); and
(iii) TDB SPV LLC, a Marshall Islands limited liability company and a
wholly-owned Subsidiary of Palmosa (“TDB”).

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS,
unless otherwise defined herein, the capitalized terms used herein shall have
the meanings set forth in Annex A
hereto;

 

WHEREAS,
Arcade has formed Conbulk Corporation, a Marshall Islands corporation and a
wholly-owned Subsidiary of Arcade (the “Buyer”), for
the sole purpose of effecting the Business Combination;

 

WHEREAS, Arcade
will, as part a single integrated transaction, merge with and into the Buyer
pursuant to the Merger Agreement, with Buyer being the surviving corporation
(the “Merger”), and Buyer will immediately
thereafter concurrently consummate the Interest Acquisition and, through the
applicable Shipco SPV acquired in the Interest Acquisition, consummate the Kuo
Vessel Acquisition, in each case pursuant to this Agreement, subject to Arcade
Stockholders’ Approval, it being understood that none of the Merger, Interest
Acquisition and Kuo Vessel Acquisition (collectively, the “Initial
Transaction”) will occur without the other two components of the
Initial Transaction;

 

WHEREAS,
following the Initial Transaction, the Buyer will, pursuant to the terms of the
MOAs and, as applicable, the Supplemental Agreement, consummate the acquisition
of all Vessels not acquired as part of the Initial Transaction (such acquisitions,
together with the Kuo Vessel Acquisition, the “Acquisition”,
and the Acquisition, together with the Interest Acquisition and the
Merger, the “Business Combination”);

 

WHEREAS,
for various commercial and other reasons, the Buyer desires to remain an inactive
shell prior to the Merger;

 

WHEREAS, Palmosa
has agreed, among other things, to form TDB and cause TDB to: (i) negotiate
and enter into the MOAs providing for the acquisition of the Vessels; (ii) establish
special purpose Shipco SPVs and to designate the relevant Shipco SPV as its
nominee as buyer under each relevant MOA; and (iii) transfer the Interests
in the Shipco SPVs, along with all of their right, title and interest in the
MOAs, to the Buyer at the Closing, upon the terms and subject to the conditions
of this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and the
mutual covenants and agreements hereinafter set forth, the parties hereto
hereby agree as follows:

 

 

ARTICLE 1.

 

DEFINITIONS

 

1.1          Definitions.  Certain capitalized terms used in this
Agreement and the Exhibits and Schedules delivered pursuant hereto and to the
extent incorporated in the other Transaction Documents, are defined in Annex A.

 

1.2          Terms Generally;
Certain Rules of Construction. 
Definitions in this Agreement and the other Transaction Documents shall
apply equally to both the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include,”
“includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  All references in this Agreement or any other
Transaction Document to Sections, Exhibits and Schedules shall be deemed
references to Sections of, and Exhibits and Schedules to, this Agreement or any
other Transaction Document in which used, except as otherwise provided.  Unless otherwise expressly provided herein or
unless the context shall otherwise require, any references as of any time to
the “Certificate of Incorporation,” “Bylaws” or other organizational or constituent documents of
any Person, to any Contract, instrument or document or to any Law or any
specific section or other provision thereof, shall be deemed a reference to the
foregoing as amended and supplemented through such time (and, in the case of a
Law or specific section or other provision thereof, to any successor of such
Law, section or other provision).  Any
reference in this Agreement to a “day” or number
of “days” (without the explicit qualification
of “Business”) shall be interpreted as a reference to a calendar day or number
of calendar days.  If any action or
notice is to be taken or given on or by a particular calendar day, and such
calendar day is not a Business Day, then such action or notice shall be
deferred until, or may be taken or given on, the next Business Day.  Unless otherwise expressly provided herein or
unless the context shall otherwise require, any provision using a defined term
which is based on a specified relationship between one Person and one or more
other Persons shall, as of any time, refer only to such Persons who have the
specified relationship as of that particular time.

 

ARTICLE 2.

 

THE PURCHASE

 

2.1          Purchase and Sale of
the Interests and Vessels.

 

(a)        Designation of Buyer-Nominees.  Subject to and upon the terms and conditions
of this Agreement, TDB hereby designates each Shipco SPV set forth on Schedule
2.1(a) as its buyer nominee under the MOA to take delivery of the
Vessel set forth next to the name of such Shipco SPV on Schedule 2.1(a).

 

(b)        Interest Acquisition. In exchange for
the Interest Acquisition Consideration, TDB agrees to sell, transfer, convey,
assign and deliver to the Buyer, and Arcade shall cause the Buyer to purchase,
acquire and accept, at Closing, the Interests, free and clear of any
Restrictions whatsoever, along with appropriate membership interest powers duly
executed by TDB (the “Interest Acquisition”).

 

2

 

(c)        Kuo Vessel Acquisition.  Subject to the terms and conditions of this
Agreement, Arcade shall cause the Buyer to purchase, acquire and accept, at the
Closing, through the applicable Shipco SPVs, the Closing Vessels, upon the
terms and subject to satisfaction or waiver of the conditions contained in the
MOAs, including the Supplemental Agreement (the “Kuo Vessel
Acquisition”).

 

2.2          Closing.

 

(a)        Closing Date Determination.  Upon the terms and subject to satisfaction or
waiver of the conditions contained in this Agreement, the closing of the Initial
Transaction (the “Closing”) will take place as of the earliest date (the
“Closing Date”) on which legal title to at least two (2) of the Kuo
Vessels can be concurrently delivered and transferred to the Shipco SPVs set
forth next to the names of such Kuo Vessels on Schedule 2.1(a) under
their respective MOAs (such Kuo Vessels, together with any other Vessels to be
acquired by any Shipco SPVs at Closing, the “Closing Vessels”).  TDB shall copy Arcade and the Buyer on all
written correspondence between itself and the relevant Sellers of these two
vessels in respect of the date of delivery thereof under their respective MOAs
and notify Arcade and the Buyer of such delivery date (“Closing Notification”).

 

(b)        Location. The Closing shall take place
on the Closing Date at the premises of the lender that will provide financing
for the Closing Vessels, except  that the Closing on Interest
Acquisition shall concurrently take place on the Closing Date, in coordination
with the Closing on the Vessels, at the offices of Loeb & Loeb LLP,
345 Park Avenue, New York, NY 10154.

 

ARTICLE 3.

 

REPRESENTATIONS AND WARRANTIES OF PALMOSA AND TDB

 

Palmosa and
TDB hereby represent and warrant, jointly and severally, to Arcade that:

 

3.1          Organization and
Qualification.

 

(a)        TDB has been duly organized and is validly
existing as a limited liability company in good standing under the laws of the
Republic of the Marshall Islands, with power and authority (corporate and
other) to own its properties and conduct its business as currently conducted.
TDB is not required to be duly qualified for the transaction of business in any
other jurisdiction.  All the membership
interests of TDB have been duly authorized and validly issued, are fully-paid
and non-assessable, and are owned by Palmosa free and clear of all
Restrictions.

 

(b)        Each of the Shipco SPVs has been duly organized
and is validly existing as a limited liability company  in
good standing under the laws of the Republic of the Marshall Islands, with
power and authority (corporate and other) to own its properties and conduct its
business as currently conducted. All the Interests have been duly authorized
and validly issued, are fully-paid and non-assessable, and are owned by TDB
free and clear of all Restrictions.

 

3

 

(c)        The copies of the respective certificates of
formation and limited liability company agreements of each of TDB and the
Shipco SPVs, as delivered to Arcade, are true and complete copies of these
documents as now in effect. The minute books of TDB and the Shipco SPVs are
accurate in all material respects.

 

3.2          Subsidiaries.  Other than Shipco SPVs, TDB does not hold any
equity interest in any other Person.

 

3.3          Ownership of
Interests.  As of immediately
prior to the Closing, one hundred percent (100%) of the issued and outstanding
membership interests of TDB will be owned by Palmosa and the Interests, which
will represent one hundred percent (100%) of the issued and outstanding
membership interests of the Shipco SPVs, will be owned by TDB.

 

3.4          Authority;
Non-Contravention; Approvals.

 

(a)        Each of TDB and Palmosa have full power and
authority to enter into this Agreement, the other Transaction Documents to
which it is a party and to consummate the transactions contemplated hereby and
thereby. TDB’s execution and delivery of this Agreement, the other Transaction
Documents and its consummation of the transactions contemplated hereby and
thereby, have been duly authorized by Palmosa, in its capacity as sole Managing
Member, and no other action on its part is necessary to authorize its execution
and delivery of this Agreement, the other Transaction Documents and its
consummation of the transactions contemplated hereby and thereby.  This Agreement has been duly and validly
executed and delivered by each of TDB and Palmosa, and constitutes their valid
and binding agreement, enforceable against each of them in accordance with its
terms, except that such enforcement may be subject to (i) bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting or
relating to enforcement of creditors’ rights generally and (ii) general
equitable principles ((i) and (ii) together, the “Enforceability Exception”). 
Each of the other Transaction Documents to which TDB or Palmosa is a party
will, when executed and delivered by TDB and/or Palmosa, constitute their valid
and binding agreement, enforceable against each of them in accordance with its
terms, except that such enforcement may be subject to the Enforceability
Exception.

 

(b)        Except as set forth on Schedule
3.4(b), no Consent, notice, declaration, filing or registration
with respect to any Person or Governmental Authority is required in connection
with the execution, delivery and performance by TDB and Palmosa of this
Agreement, the other Transaction Documents and the consummation of the
transactions contemplated hereby and thereby.

 

(c)        TDB and Palmosa’s execution and delivery of
this Agreement or any of the other Transaction Documents does not, and its
consummation of the transactions contemplated herein and therein will not,
violate, conflict with or result in a breach of any provision of, or constitute
any default (or an event which, with notice or lapse of time or both, would
constitute an event of default) under, or result in the termination of, or
accelerate the performance required by, or result in a right of termination or
acceleration under, or result in the creation of any Restrictions upon any of
its properties or assets under any of the terms, conditions or provisions of (i) the
certificate of formation or the limited liability agreement of TDB, Palmosa or
any of the Shipco SPVs, (ii) any Consent, Law or Order, injunction, writ,
permit or license of any Governmental

 

4

 

Authority applicable to it or any of its properties or assets, or (iii) any
note, bond, mortgage, indenture, deed of trust, license, franchise, permit,
concession, contract, lease or other instrument, obligation or agreement of any
kind to which it is now a party or by which it or any of its properties or
assets may be bound; excluding from the foregoing clauses (ii) and (iii),
such violations, conflicts, breaches, defaults, terminations, accelerations or
creations of Restrictions that do not, in the aggregate, have a Palmosa
Material Adverse Effect.

 

3.5          Contracts.  Other than the Transaction Documents to which
it is a party, neither TDB nor any Shipco SPV has entered into any Contract.

 

3.6          Litigation.  There is no (i) Claim or other Legal
Proceeding pending or, to the knowledge of TDB or Palmosa, threatened against
or directly relating to TDB or any Shipco SPV, or (ii) outstanding Order,
or application, request or motion therefor, of any Governmental Authority in a
proceeding to which TDB, any Shipco SPV, or any of their assets was or is a
party, except, in the case of clauses (i) and (ii) above, such as
would not, individually or in the aggregate, either materially impair or
preclude TDB’s ability to consummate the Business Combination or have a Palmosa
Material Adverse Effect.

 

3.7          Taxes.

 

(a)        Neither TDB nor any Shipco SPVs is subject to
any Taxes or is obligated to file any Tax Returns.

 

(b)        No stamp or other issuance or transfer taxes or
duties and no capital gains, income, withholding or other Taxes are payable in
the Marshall Islands in connection with TDB’s sale and transfer of the
Interests to the Buyer or the acquisition of the Vessels by the Shipco SPVs.

 

3.8          Compliance with Law;
Permits.  Each of TDB and the
Shipco SPVs has conducted its business in compliance with, and is in compliance
with, all applicable Laws and Orders and Permits in all jurisdictions in which
it carries on its business.  Neither TDB
nor any of the Shipco SPVs has received any written notice of any investigation
with respect to, any alleged default under, or any violation or nonconformity
with any Law or Order.  Each of TDB and
the Shipco SPVs has all Permits which are required for the ownership of its
assets or the conduct of its business as presently conducted.  Neither TDB nor any of the Shipco SPVs is in
violation of any material term or provision or requirement of any of such
Permits, and no Person has threatened in writing to revoke, amend or impose
conditions in respect of any of such Permits.

 

3.9          Environmental Laws
and Regulations.  There are no
pending, and to the knowledge of TDB or Palmosa there have been no threatened,
Environmental Claims against TDB, any Shipco SPV or any Vessel and, to the
knowledge of TDB or Palmosa, there are no circumstances with respect to any Vessel
which could reasonably be anticipated (i) to form the basis of an
Environmental Claim against any Shipco SPV or any Vessel or (ii) to cause
such Vessel to be subject to any restrictions on ownership, occupancy, use or
transferability under any applicable Environmental Law.

 

3.10        Properties.  Neither TDB nor any Shipco SPV owns any
properties (other than, in the case of TDB, the Interests, and in the case of
the Shipco SPVs, the MOAs).

 

5

 

3.11        Financial Statements.  Prior to the date of this Agreement,
Palmosa has previously furnished to Arcade a true and correct copy of the
Palmosa Financial Statements.  The
Palmosa Financial Statements present fairly, in all material respects, the
consolidated financial position and results of operations of Palmosa and its
Subsidiaries as of the dates, period and year indicated, prepared in accordance
with IFRS.  Without limiting the
generality of the foregoing, (i) as of the date of the most recent
consolidated balance sheet comprising a portion of the Palmosa Financial
Statements, there was no material debt, liability or obligation of any nature
not reflected or reserved against in the Palmosa Financial Statements or in the
notes thereto required to be so reflected or reserved in accordance with IFRS,
and (ii) there are no assets of Palmosa or any of its Subsidiaries the
value of which (in the reasonable judgment of Palmosa) is materially overstated
in the Palmosa Financial Statements. 
Except as incurred in the ordinary course of business since December 31,
2007, neither Palmosa nor any of its Subsidiaries  has any known material contingent liabilities
(including liabilities for Taxes) other than as contemplated hereunder or in
connection herewith.  Neither Palmosa nor
any of its Subsidiaries is a party to any contract or agreement for the forward
purchase or sale of any foreign currency and has not invested in any
“derivatives.”

 

3.12        Proxy Statement.  None of the information to be supplied
by, on behalf of or with respect to Palmosa or TDB for inclusion in the Proxy
Statement, or in any amendments or supplements thereto, to be distributed to
the stockholders of Arcade in connection with the meeting of such stockholders
at the time of the mailing of the Proxy Statement and at the time of the
meeting will contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they are made,
not misleading.

 

3.13        Absence of Certain
Changes or Events.  Except as set
forth in Schedule 3.13 or in connection
with this Agreement and the transactions contemplated hereby, since the date of
formation of TDB and each Shipco SPV, there has not been (a) any Palmosa
Material Adverse Change and (b) any occurrence not included in paragraph (a) of
this Section 3.13 which has resulted, or which Palmosa or TDB has reason
to believe, could reasonably be expected to result, in a Palmosa Material
Adverse Effect.

 

3.14        Dividends and
Distributions.  No dividends and
other distributions have been or shall be declared on or paid in respect of the
Interests.

 

3.15        Books, Records and
Accounts.  The Books and Records
and accounts of TDB and Shipco SPVs fairly and accurately reflect in all
material respects transactions involving TDB and the Shipco SPVs relating to
the Vessels.

 

3.16        Brokers and Finders.  Except for Morgan Joseph, TDB has not
employed any investment banker, broker, finder or intermediary in connection
with the transactions contemplated by this Agreement which would be entitled to
any investment banking, brokerage, finder’s or similar fee or commission in
connection with this Agreement or the transactions contemplated hereby.

 

3.17        Business.  TDB and each Shipco SPV, since its respective
formation, has engaged, and pending the Closing will engage, in no business
other than as necessary or

 

6

 

appropriate to facilitate the Buyer’s acquisition, through the Shipco SPVs,
of the Vessels pursuant to the terms of the MOAs and this Agreement.  Neither TDB nor any of the Shipco SPVs have
any employees.

 

3.18        No Omissions or Untrue
Statements.  No representation or
warranty made by TDB or Palmosa to Arcade in this Agreement or in any
certificate required to be delivered to the Buyer or Arcade pursuant to the
terms of this Agreement contains or will contain any untrue statement of a
material fact, or omits or will omit to state a material fact necessary to make
the statements contained herein or therein in light of the circumstances in
which made not misleading.

 

ARTICLE 4.

 

REPRESENTATIONS AND WARRANTIES OF ARCADE WITH RESPECT TO BUYER

 

Arcade hereby
represents and warrants to TDB and Palmosa that:

 

4.1          Organization and
Qualification.

 

(a)        The Buyer is a corporation duly organized,
validly existing and in good standing under the laws of the Republic of the
Marshall Islands, with power and authority (corporate and other) to own its
properties and conduct its business as currently conducted. The Buyer has been
duly qualified as a foreign corporation for the transaction of business and is
in good standing under the laws of each jurisdiction set forth in the Schedule 4.1 and, to the Buyer’s
knowledge, such jurisdictions are the only ones in which it owns or leases
properties, or conducts any business, so as to require such qualification,
other than those jurisdictions where the failure to be so qualified or in good
standing would not have a Buyer Material Adverse Effect.

 

(b)        The copies of the Articles of Incorporation and
Bylaws  of the Buyer, as amended to date and
delivered to TDB, are true and complete copies of these documents as now in
effect. The minute books of the Buyer are accurate in all material respects.

 

4.2          No Subsidiaries.  Prior to the Closing, the Buyer does not hold
any equity interest in any Person.

 

4.3          Capitalization.  The authorized capital stock of the Buyer
consists of One Thousand (1,000) common shares, $0.0001 par value, of which, as
of immediately prior to the Closing, One Hundred (100)  common
shares will be issued and outstanding. All of the issued and outstanding shares
of capital stock of the Buyer are owned by Arcade free and clear of all
Restrictions.

 

4.4          Authority;
Non-Contravention; Approvals.

 

(a)        The Buyer has full corporate power and
authority to enter into the Transaction Documents to which it is a party and to
consummate the transactions contemplated hereby and thereby. The Buyer’s
execution and delivery of the Transaction Documents to which it is a party and
its consummation of the transactions contemplated hereby and thereby, have been
duly authorized by its board of directors, and no other corporate proceedings
on its part is

 

7

 

necessary to authorize its execution and delivery of the Transaction
Documents to which it is a party and its consummation of the transactions
contemplated hereby and thereby.  Each of
the Transaction Documents to which the Buyer is a party will, when executed and
delivered by the Buyer, constitute its valid and binding agreement, enforceable
against it in accordance with its terms, except that such enforcement may be
subject to the Enforceability Exception.

 

(b)        Except as set forth on Schedule
4.4(b), no Consent, or declaration, filing or registration by
the Buyer with any Person or Governmental Authority is required in connection
with the execution, delivery and performance by the Buyer or Arcade of this
Agreement, the other Transaction Documents and the consummation of the
transactions contemplated hereby and thereby.

 

(c)        The Buyer’s execution and delivery of the
Transaction Documents to which it is a party does not, and its consummation of
the transactions contemplated hereby and thereby and therein will not, violate,
conflict with or result in a breach of any provision of, or constitute any
default (or an event which, with notice or lapse of time or both, would
constitute an event of default) under, or result in the termination of, or
accelerate the performance required by, or result in a right of termination or
acceleration under, or result in the creation of any Restrictions upon any of
its properties or assets under any of the terms, conditions or provisions of (i) the
Certificate of Incorporation or Bylaws of the Buyer, (ii) any Consent, Law
or Order, injunction, writ, permit or license of any Governmental Authority
applicable to it or any of its properties or assets, or (iii) any note,
bond, mortgage, indenture, deed of trust, license, franchise, permit,
concession, contract, lease or other instrument, obligation or agreement of any
kind to which it is now a party or by which it or any of its properties or
assets may be bound, excluding from the foregoing clauses (ii) and (iii),
such violations, conflicts, breaches, defaults, terminations, accelerations or
creations of Restrictions that do not, in the aggregate, have a Buyer Material
Adverse Effect.

 

ARTICLE 5.

 

REPRESENTATIONS AND WARRANTIES OF ARCADE  WITH RESPECT TO ARCADE

 

Arcade hereby represents and
warrants to TDB and Palmosa as follows:

 

5.1          Organization and
Qualification.  Arcade is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Delaware. Arcade has all requisite corporate power to
carry on its business as it is now being conducted and is duly qualified to do
business as a foreign corporation and is in good standing in all jurisdictions
set forth in Schedule 5.1, and to
Arcade’s knowledge, such jurisdictions are the only ones in which the
properties owned, leased or operated by Arcade or the nature of the business
conducted by Arcade makes such qualification necessary, except where the
failure to qualify (individually or in the aggregate) will not have any Buyer
Material Adverse Effect. The copies of the Certificate of Incorporation and
Bylaws of Arcade, as amended to date and delivered to TDB, are true and
complete copies of these documents as now in effect. The minute books of Arcade
are accurate in all material respects.

 

8

 

5.2          Capitalization.  The authorized capital stock of Arcade as of
the date hereof consists of 39,000,000 shares of Common Stock, $0.0001 par
value per share, of which 10,500,000 shares are issued and outstanding and
1,000,000 shares of preferred shares, $0.0001 par value, none of which are
outstanding. All of the outstanding securities of Arcade are duly authorized,
validly issued, fully paid and non-assessable, and were not issued in violation
of the preemptive rights of any Person. All of the outstanding securities of
Arcade were issued in compliance with all applicable securities laws. No shares
of capital stock are held in the treasury of Arcade. Other than as stated in
this Section 5.2, there are no outstanding subscriptions, options,
warrants, calls or rights of any kind issued or granted by, or binding upon
Arcade, to purchase or otherwise acquire any shares of capital stock of Arcade
or other securities of Arcade. Except as stated in this Section 5.2, there
are no outstanding securities convertible or exchangeable, actually or
contingently, into shares of Common Stock or other securities of Arcade.

 

5.3          Subsidiaries.  Arcade has one Subsidiary, the Buyer. Arcade
owns all of the issued and outstanding shares of stock of the Buyer, free and
clear of any Restrictions, and does not hold any equity interest in any other
Person.

 

5.4          Authority;
Non-Contravention; Consents.

 

(a)        Arcade has full corporate power and authority
to enter into this Agreement, the other Transaction Documents and, subject to
the Arcade Stockholders’ Approval, to consummate the transactions contemplated
hereby and thereby. Arcade’s execution and delivery of this Agreement, the
other Transaction Documents and its consummation of the transactions
contemplated hereby and thereby, have been duly authorized by its board of
directors and no other corporate proceedings on its part are necessary to
authorize its execution and delivery of this Agreement and its consummation of
the transactions contemplated hereby, except for Arcade Stockholders’ Approval.
This Agreement has been duly and validly executed and delivered by Arcade, and
constitutes its valid and binding agreement, enforceable against it in
accordance with its terms, except that such enforcement may be subject to the
Enforceability Exception.  Each of the
other Transaction Documents to which Arcade is a party will, when executed and
delivered by Arcade, constitute its valid and binding agreement, enforceable
against it in accordance with its terms, except that such enforcement may be subject
to the Enforceability Exception.

 

(b)        Arcade’s execution and delivery of this
Agreement and any of the other Transaction Documents does not, and its
consummation of the transactions contemplated hereby and thereby will not,
violate, conflict with or result in a breach of any provision of, or constitute
a default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the termination of, or accelerate the
performance required by, or result in a right of termination or acceleration
under, or result in the creation of any Restrictions upon any of its properties
or assets under any of the terms, conditions or provisions of (i) its
Certificate of Incorporation or Bylaws, (ii) subject to obtaining Arcade
Stockholders’ Approval, any Law or Order, injunction, writ, permit or license
of any Governmental Authority applicable to it or any of its properties or
assets, or (iii) any note, bond, mortgage, indenture, deed of trust,
license, franchise, permit, concession, contract, lease or other instrument,
obligation or agreement of any kind to which it is now a party or by which it
or any of its properties or assets may be bound, excluding from the foregoing
clauses (ii) and (iii), such violations, conflicts, breaches, defaults, 

 

9

 

terminations, accelerations or creations of Restrictions that do not,
in the aggregate, have a Buyer Material Adverse Effect.

 

(c)        Except for the filing and clearance of the
Proxy Statement with the SEC pursuant to the Exchange Act, no declaration,
filing or registration with, or notice to, or authorization, consent or
approval of, any governmental or regulatory body or authority is necessary for
Arcade’s execution and delivery of this Agreement or its consummation of the
transactions contemplated hereby, other than such declarations, filings,
registrations, notices, authorizations, consents or approvals which, if not
made or obtained, as the case may be, would not, in the aggregate, have a Buyer
Material Adverse Effect.

 

5.5          Contracts Listed; No
Default.  All material Contracts,
easements, Permits, rights of way, commitments and understandings, written or
oral, connected with or relating in any respect to the present or future
operations of Arcade are, with the exception of this Agreement and the
transactions contemplated hereby, described in Arcade’s SEC Reports and listed
as exhibits thereto or set forth on Schedule 5.5
hereto (the “Arcade Contracts”). Arcade
Contracts are valid and binding upon Arcade, and to Arcade’s knowledge, the
other parties thereto, and are in full force and effect and enforceable in
accordance with their terms, subject to the Enforceability Exception and
neither Arcade, nor to Arcade’s knowledge, any other party to any Arcade
Contract, has materially breached any provision of, nor has any event occurred
which, with the lapse of time or action by a Third Party, could result in a
material default under, the terms thereof. To the knowledge of Arcade, no
stockholder of Arcade has received any payment in violation of law from any
contracting party in connection with or as an inducement for causing Arcade to
enter into any Arcade Contract.

 

5.6          Litigation.  There is no (i) Claim or other Legal
Proceeding pending or, to Arcade’s knowledge, threatened against or directly
relating to Arcade before any Governmental Authority, or (ii) outstanding
Order, or application, request or motion therefor, of any Governmental
Authority in a proceeding to which Arcade or any of its assets was or is a
party except, in the case of clauses (i) and (ii) above, such as
would not, individually or in the aggregate, either materially impair or
preclude Arcade’s ability to consummate the Merger or the transactions
contemplated hereby or have a Buyer Material Adverse Effect.

 

5.7          Taxes.  Arcade has duly filed with the appropriate
Governmental Authorities all Tax Returns required to be filed by it other than
Tax Returns which the failure to file would have no Buyer Material Adverse
Effect. All such Tax Returns were, when filed, and are accurate and complete in
all material respects and were prepared in conformity with applicable laws and
regulations. Arcade has paid or will pay in full or has adequately reserved
against all Taxes shown as due on such Tax Returns. Arcade is not a party to
any pending action or proceeding by any Governmental Authority for the
assessment of any Tax, and no written claim for assessment or collection of any
Tax has been asserted against Arcade that has not been paid. There are no Tax
Liens upon the assets of Arcade (other than liens for Taxes not yet due and
payable).

 

5.8          Employee Plans.  Arcade has no employee benefit plans as
defined in Section 3(3) of ERISA nor any employment agreements.

 

10

 

5.9          No Violation of Law.  Arcade is not in violation of and has not
been given notice or been charged with any violation of, any Law, or Order,
(including, without limitation, any applicable environmental law, ordinance or
regulation) of any Governmental Authority, except for violations which, in the
aggregate, do not have, and would not reasonably be expected to have, a Buyer
Material Adverse Effect. Arcade has not received any written notice that any
investigation or review with respect to it by any Governmental Authority is
pending or threatened, other than, in each case, those the outcome of which, as
far as reasonably can be foreseen, would not reasonably be expected to have a
Buyer Material Adverse Effect. Arcade has all permits, licenses, franchises,
variances, exemptions, orders and other governmental authorizations, consents
and approvals necessary to conduct its business as presently conducted, except
for those, the absence of which, alone or in the aggregate, would not have a
Buyer Material Adverse Effect (collectively, the “Arcade
Permits”). Arcade (a) has duly and timely filed all reports and
other information required to be filed with any Governmental Authority in
connection with Arcade Permits, and (b) is not in violation of the terms
of any of the Arcade Permits, except for such omissions or delays in filings,
reports or violations which, alone or in the aggregate, would not have a Buyer
Material Adverse Effect.

 

5.10        Properties.  Arcade has good and marketable title to all
of the assets and properties which it purports to own as reflected on the most
recent balance sheet comprising a portion of the Arcade Financial Statements or
thereafter acquired (except assets and properties sold or otherwise disposed of
since the date of such balance sheet in the ordinary course of business).
Arcade has a valid leasehold interest in all properties of which it is the
lessee and each such lease is valid, binding and enforceable against Arcade,
and, to the knowledge of Arcade, the other parties thereto in accordance with
its terms, subject to the Enforceability Exception. Neither Arcade nor, to
Arcade’s knowledge, the other parties thereto are in default in the performance
of any material provision thereunder. Neither the whole nor any material portion
of the assets of Arcade is subject to any governmental decree or order to be
sold or is being condemned, expropriated or otherwise taken by any public
authority with or without payment of compensation therefor, nor, to the
knowledge of Arcade, has any such condemnation, expropriation or taking been
proposed. None of the material assets of Arcade is subject to any restriction
which would have a Buyer Material Adverse Effect.

 

5.11        Proxy Statement.  None of the information to be supplied by
Arcade with respect to Arcade for inclusion in the Proxy Statement, or in any
amendments thereof or supplements thereto, at the time of the mailing of the
Proxy Statement and at the time of the Arcade Special Meeting contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they are made, not misleading.

 

5.12        Business.  Arcade, since its formation, has engaged in
no business other than to seek to serve as a vehicle for the acquisition of an
operating business, and, except for this Agreement, is not a party to any
contract or agreement for the acquisition of an operating business.

 

5.13        Financial Statements.  The Arcade Financial Statements included in
Arcade’s SEC Reports present fairly, in all material respects, the financial
position and results of operations of Arcade as of the respective dates, years
and periods indicated, prepared in 

 

11

 

accordance with GAAP, applied on a consistent basis, and to the
knowledge of Arcade, in accordance with Regulation S-X of the SEC and, in
particular, Rules 1-02 and 3-05 thereunder (subject, in the case of
unaudited interim period financial statements, to normal and recurring year-end
adjustments which, individually or collectively, are not material to Arcade).
Without limiting the generality of the foregoing, (i) there is no basis
for any assertion against Arcade as of the date of the most recent balance
sheet comprising a portion of the Arcade Financial Statements of any material
debt, liability or obligation of any nature not fully reflected or reserved
against in the Arcade Financial Statements or in the notes thereto required to
be so reflected or reserved in accordance with GAAP; and (ii) there are no
assets of Arcade, the value of which (in the reasonable judgment of Arcade) is
materially overstated in the Arcade Financial Statements. Except as disclosed
therein or as incurred in the ordinary course of business since December 31,
2007, Arcade has no known material contingent liabilities (including
liabilities for Taxes) other than as a result of the transactions contemplated
by this Agreement. Arcade is not a party to any contract or agreement for the
forward purchase or sale of any foreign currency and has not invested in any “derivatives.”

 

5.14        Arcade’s SEC Reports.  The Common Stock has been registered under Section 12
of the Exchange Act on Form 8-A. Since its inception, Arcade has filed all
reports, registration statements and other documents, together with any
amendments thereto, required to be filed under the Securities Act and the
Exchange Act, including but not limited to reports on Form 10-K and Form 10-Q,
and Arcade will file all such reports, registration statements and other
documents required to be filed by it from the date of this Agreement to the
Closing Date (all such reports, registration statements and documents filed or
to be filed with the SEC, including Arcade’s initial registration statement
relating to the securities issued in Arcade’s initial public offering, with the
exception of the Proxy Statement, are collectively referred to as “Arcade’s SEC Reports”). As of their respective dates, Arcade’s
SEC Reports complied or will comply in all material respects with all rules and
regulations promulgated by the SEC and did not or will not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading. Neither Arcade
nor any of its respective directors or officers is the subject of any
investigation, inquiry or proceeding before the SEC or any state securities
commission or administrative agency.

 

5.15        Absence of Certain
Changes or Events.  Since December 31,
2007 there has not been:

 

(a)        any Buyer Material Adverse Change;

 

(b)        any material damage, destruction or loss of any
material properties of Arcade, whether or not covered by insurance, which would
have a Buyer Material Adverse Effect;

 

(c)        any change in the manner in which the business
of Arcade has been conducted;

 

(d)        any material change in the treatment and
protection of trade secrets or other confidential information of Arcade, which
would have a Buyer Material Adverse Effect; and

 

12

 

(e)        any occurrence not included in paragraphs (a) through
(d) of this Section which has resulted, or which Arcade has reason to
believe, could reasonably be expected to result, in a Buyer Material Adverse
Effect.

 

5.16        Books, Records and
Accounts.  Arcade’s books,
records and accounts fairly and accurately reflect in all material respects
transactions and dispositions of assets by Arcade, and to the knowledge of
Arcade, the system of internal accounting controls of Arcade is sufficient to
assure that: (a) transactions are executed in accordance with management’s
authorization; (b) transactions are recorded as necessary to permit preparation
of financial statements in conformity with GAAP, and to maintain accountability
for assets; (c) access to assets is permitted only in accordance with
management’s authorization; and (d) the recorded accountability for assets
is compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any differences.

 

5.17        Disclosure Controls.  Arcade has established and maintains
disclosure controls and procedures (as such term is defined in Rule 13a-15
under the Exchange Act), which (i) are designed to ensure that material
information relating to Arcade is made known to Arcade’s principal executive
officer and its principal financial officer by others within those entities,
particularly during the preparation of the Proxy Statement; (ii) have been
evaluated for effectiveness as of the date of this Agreement; and (iii) are
effective in all material respects to perform the functions for which they were
established.

 

5.18        Absence of Material
Weaknesses.  Based on the
evaluation of its internal controls over financial reporting, Arcade is not
aware of (i) any significant deficiency or material weakness in the design
or operation of internal controls over financial reporting which are reasonably
likely to adversely affect Arcade’s ability to record, process, summarize and
report financial information; or (ii) any fraud, whether or not material,
that involves management or other employees who have a significant role in the
internal controls over financial reporting.

 

5.19        Brokers and Finders.  Except as set forth on Schedule
5.19, Arcade has not employed any investment banker, broker,
finder or intermediary in connection with the transactions contemplated by this
Agreement which would be entitled to any investment banking, brokerage, finder’s
or similar fee or commission in connection with this Agreement or the
transactions contemplated hereby.

 

5.20        No Omissions or Untrue
Statements.  No representation or
warranty made by Arcade to TDB in this Agreement, any Schedules thereto or in
any certificate of a Arcade officer required to be delivered to TDB pursuant to
the terms of this Agreement contains or will contain any untrue statement of a
material fact, or omits or will omit to state a material fact necessary to make
the statements contained herein or therein in light of the circumstances in
which made not misleading as of the date hereof and as of the Closing Date.

 

13

 

ARTICLE 6.

CONDITIONS TO CLOSING AND CLOSING DELIVERIES

 

6.1          Condition to the Obligations of Arcade and
TDB.  The obligations of Arcade, the Buyer and TDB
to consummate the Closing are subject to the satisfaction of all the following
conditions:

 

(a)        Laws; Orders. No provision of any
applicable Law or Order shall prohibit or impose any condition on the
consummation of the transactions contemplated hereby.

 

(b)        Third-Party Proceedings. There shall not
be pending or threatened any proceeding by a Third Party to enjoin or otherwise
restrict the consummation of the transactions contemplated hereby.

 

(c)        Approval of Arcade’s Stockholders.
Arcade shall have obtained the Arcade Stockholders Approval.

 

6.2          Conditions to
Obligations of Arcade.  The
obligations of Arcade to consummate the Closing shall be subject to the
following conditions, unless waived in writing by Arcade:

 

(a)        Representations and Warranties.  The representations and warranties of Palmosa
and TDB contained in this Agreement shall be true in all respects at and as of
the Closing Date with the same effect as though such representations and
warranties were made at and as of the Closing Date, except for those
representations and warranties which address matters only as of a particular
date (which shall be true and correct as of such date).

 

(b)        Compliance.  Each of Palmosa, TDB and Shipco SPVs shall
have performed and complied in all material respects with all agreements and
conditions contained in this Agreement that are required to be performed or
complied with by it prior to or at the Closing.

 

(c)        Officer’s Certificate.  The Buyer shall have received from TDB (dated
the Closing Date and in form and substance reasonably satisfactory to Arcade) a
certificate of the Secretary of TDB, certifying and setting forth (i) that
the conditions specified in subsection (a) and (b) of this Section 6.2
have been fulfilled, (ii) the names, signatures and positions of the
officers of TDB, as applicable, authorized to execute any agreements
contemplated herein to which TDB is a party, and (iii) a copy of the resolutions
of TDB adopted by Palmosa, in its capacity as sole Managing Member of TDB,
authorizing the execution, delivery and performance of this Agreement, any
agreement contemplated herein to which TDB is a party and the transactions
contemplated thereby, as applicable.

 

(d)        No Palmosa Material Adverse Change.  During the period from the date hereof
through the Closing Date, there shall have been no Palmosa Material Adverse
Change.

 

(e)        Required Consents.  All material Consents from Third Parties and
all waiting periods required under any Agreement to which any Shipco SPV is a
party or subject, as applicable in each case required to enter into, and
consummate the Business Combinations, shall 

 

14

 

have been obtained, expired or the necessity for such Consent or
waiting periods shall have been waived in writing by such Third Party.

 

(f)         Delivery of Securities.  TDB shall have tendered to the Buyer the
certificates representing the Interests duly endorsed in blank with executed
blank membership interest powers, and each Shipco SPV shall have cancelled the
Interests issued by it in the name of TDB and reissued certificate(s) representing
the Interests in the name of the Buyer.

 

(g)        Minute
Books; Books and Records.  The Buyer shall have received a copy of the
minute books of each applicable Shipco SPV, certified by its respective
Secretary as of the Closing Date, and the related Books and Records.

 

(h)        Organizational Documents.  Buyer shall
have received a copy of (i) the Certificates of Formation (or similar
organizational documents), of each Shipco SPV, certified by the appropriate
government official in the jurisdiction in which each such entity is
incorporated or organized, as of a date not earlier than five days prior to
such Closing Date accompanied, if available, by a certification by the
appropriate government official that each such entity is validly existing and
in good standing under the laws of the jurisdiction of its incorporation and
accompanied by a certificate of the Secretary of each such entity, dated as of
the Closing Date, stating that no amendments have been made to such Certificate
of Formation (or similar organizational documents) since such date, and (ii) the
limited liability company agreement of each Shipco SPV, certified by the
Secretary of each such entity.

 

(i)         Financing.  TDB shall have arranged for and on behalf of
the Buyer debt financing sufficient to enable the Buyer and the Shipco SPVs to
consummate the acquisitions of the Vessels and the transactions contemplated by
this Agreement.

 

(j)         Vessel Acquisition. The legal ownership
of the Closing Vessels shall have been delivered to the respective Shipco SPVs
under their respective MOAs.

 

(k)        Insurance. The Buyer shall have received
insurance certificates or other documentation to its satisfaction, evidencing
that the Shipco SPVs and the Buyer have insurance with respect to the ownership
and operation of the Vessels in customary amount and coverage, satisfactory to
any lenders providing debt financing in connection with the acquisition of the
Vessels.

 

(l)         Transaction Documents.  Each of the Transaction Documents shall have
been executed and delivered by Palmosa, Tsakos, Conbulk, Conbulk Manco, TDB and
their respective Affiliates.

 

(m)       Check-the-Box Election. Each of the
Shipco SPVs shall have made an election to be treated as a disregarded entity
for U.S. federal income tax purposes, which shall be filed and effective prior
to the Closing Date.

 

6.3          Conditions to
Obligations of TDB.  The obligation
of TDB to consummate the Closing with respect to Arcade shall be subject to the
following additional conditions unless waived in writing by TDB:

 

15

 

(a)        Representations and Warranties.  The representations and warranties of Arcade
contained in this Agreement shall be true in all material respects at and as of
such Closing Date with the same effect as though such representations and
warranties were made at and as of such Closing Date.

 

(b)        Compliance. Arcade shall have performed
and complied in all material respects with all agreements and conditions
contained in this Agreement that are required to be performed or complied with
by it prior to or at the Closing.

 

(c)        Officer’s Certificate.  TDB shall have received from Arcade (dated
the related Closing Date and in form and substance reasonably satisfactory to
TDB) a certificate of an officer of Arcade certifying and setting forth (i) that
the conditions specified in subsections (a) and (b) of this Section 6.3
as to Arcade have been fulfilled, (ii) the names, signatures and positions
of the Persons authorized to execute this Agreement and any other Transaction
Documents to which Arcade is a party on behalf of Arcade and the Buyer and (iii) a
copy of the Board resolutions of each of Arcade and the Buyer authorizing the
execution, delivery and performance of this Agreement.

 

(d)        No Buyer Material Adverse Change.  During the period from December 31, 2007
to the date hereof and during the period from the date hereof through the
Closing Date, there shall have been no Buyer Material Adverse Change.

 

(e)        Required Consents.  All material Consents from Third Parties and
all waiting periods required under any Agreement to which any Arcade is a party
or subject, as applicable in each case required to enter into, and consummate
the Business Combinations, shall have been obtained, expired or the necessity
for such Consent or waiting periods shall have been waived in writing by such
Third Party.

 

(f)         Merger.

 

(i)            The Buyer and Arcade shall have entered
into an agreement and plan of merger in form and substance reasonably
satisfactory to TDB;

 

(ii)           The Buyer and Arcade shall have completed
the Merger to the reasonable satisfaction of TDB;

 

(iii)          the Certificate of Incorporation and Bylaws
of Arcade, as in effect immediately prior to the Merger, shall cease and the
Articles of Incorporation and Bylaws of the Buyer shall be the Articles of
Incorporation and Bylaws of the Buyer, as the surviving corporation, which
Articles of Incorporation and Bylaws of the Buyer shall be in form and
substance reasonably satisfactory to TDB; and

 

(iv)          the board of directors of the Buyer shall
consist of those persons elected to serve as directors in accordance with Section 8.2(c).

 

(g)        Transaction Documents.  Each of the Transaction Documents shall have
been executed and delivered by the Buyer, Arcade and their respective
Affiliates.

 

16

 

(h)        Payment. 
Arcade shall have caused the Buyer to deliver the amount set forth in Section 2.1(a),
as well as the amounts due under the respective MOAs for the Closing Vessels.

 

(i)         Incentive Plan. Arcade shall have
caused the Incentive Plan to be adopted and instituted by the Buyer.

 

ARTICLE 7.

RESTRICTIVE COVENANTS

 

7.1          Non-Compete/Non-Solicitation.  TDB, on behalf of itself and its Affiliates,
agrees that, during the period ending on the date that is four (4) years
from and after the Closing Date (the “Restrictive Period”),
none of TDB or its Affiliates, without the prior written consent of Buyer,
directly or indirectly, individually or jointly with others, will: (a) in
whole or in part, own, manage, control, sponsor, organize, promote, operate, be
employed by, consult for or otherwise cooperate with any business or Person
which directly competes with or is a customer of or licensor to the Buyer or
any Affiliate of the Buyer (collectively, the “Buyer Group”) (other than
in a position unrelated to the Business and that does not affect the Business
or the Buyer Group); (b) solicit or hire any employee of the Buyer Group
or in any way interfere with the relationship between Buyer Group and any
employee thereof; or (c) induce, encourage or attempt to induce or
encourage any customer, supplier, consultant, licensee, licensor or other
business relation of Buyer Group to cease doing business with Buyer Group.  Notwithstanding anything in the foregoing to
the contrary, nothing contained in this Section 7.1 shall prohibit any of
TDB or its Affiliates from holding shares in any public company; provided TDB
or its Affiliates is merely a passive investor and has no active role in the
public company and further provided, that TDB and its Affiliates each hold no
more than one percent (1%) of the voting shares of the public company.  TDB, on behalf of itself and its Affiliates,
acknowledges and agree that the scope of the foregoing covenant is reasonable
and necessary in order to protect the legitimate interests of Buyer.

 

7.2          Equitable
Relief/Interpretation.  Each
party hereto acknowledges that a breach of the covenants contained herein,
including the covenants contained in this Article 7 may cause irreparable
damage to the business of the other parties, the amount of which will be
difficult to ascertain, and that the remedies at law for any such breach will
be inadequate.  Accordingly, each party
agrees, that, in addition to any other remedy which may be available at law or
in equity, the other parties shall be entitled to specific performance and injunctive
relief to prevent any actual, intended or likely breach.  The parties acknowledge that the time, scope
and other provisions of this Article 7 have been specifically negotiated
by sophisticated commercial parties and agree that all such provisions are
reasonable under the circumstances of the transactions contemplated by this
Agreement.  In the event that any
provision in this Article 7 or any other provision contained in this
Agreement shall be determined by any Arbitrator or any court of competent
jurisdiction to be unenforceable, such provisions shall be interpreted to
extend only over the maximum period of time for which they may be enforceable
and/or over the maximum geographical area as to which they may be enforceable
and/or to the maximum extent in all other respects as to which they may be
enforceable, all as determined by any Arbitrator or 

 

17

 

such court in such action so as to be enforceable to the extent
consistent with then applicable Law.

 

ARTICLE 8.

OTHER COVENANTS AND AGREEMENTS

 

8.1          Covenants To Be
Observed by Palmosa and TDB. 
From the date hereof until the date of Closing, Palmosa and TDB hereby
covenant and agree to the following and to cause the Shipco SPVs to comply with
the following:

 

(a)        Operation of Business in the Ordinary Course.  Each of TDB and the Shipco SPVs shall not
engage in any business other than as necessary or appropriate to facilitate the
Buyer’s acquisition, through the SPV Shipcos, of the Vessels pursuant to the
terms of, and as contemplated by, the MOAs and this Agreement.

 

(b)        Insurance; Defaults; Litigation.  Each of TDB and each of the Shipco SPVs shall
(i) obtain insurance policies appropriate to insure its assets and
business; (ii) comply in all respects with all Transaction Documents to
which they are a party and not suffer or permit to exist any condition or event
that, with notice or lapse of time or both, would constitute a default by it
under any license or governmental Consent or Permit; (iii) duly observe
and conform, in all material respects, to all applicable Laws; and (iv) notify
the Buyer of any Claim that after the date hereof is threatened or commenced
against it.

 

(c)        Access. 
TDB shall, upon reasonable notice, afford the Buyer and its accountants,
managers, members, officers, partners, employees, counsel, agents and other
representatives, reasonable access to the Vessels, in coordination with Palmosa
and Tsakos and only as permitted by the applicable MOA, and the Books and
Records of TDB, Palmosa and the Shipco SPVs (to the extent relating to the
Vessels) and TDB shall permit them to make extracts from and copies of such
Books and Records, and will from time to time furnish the Buyer with such
additional financial and operating data and other information as to the
financial condition, results of operations, businesses, properties, assets,
liabilities, or further prospects of TDB and the Shipco SPVs, as the Buyer
requests; provided,  however, that the Arcade agrees to keep, and
to cause the Buyer to keep, all information obtained as a result of such access
in strict confidence in the event the transactions contemplated by this
Agreement are terminated as described in Article 10 hereunder, and all
such information shall be returned to TDB and the Shipco SPVs within a
reasonable time.  Until the Closing Date,  TDB shall cause its independent certified public
accountants to make available to the Buyer and its independent certified public
accountants the work papers relating to any audits of any Vessels.

 

(d)        Notice of Material Adverse Changes.  TDB shall promptly notify, and shall cause
the Shipco SPVs to promptly notify, the Buyer of (i) any Palmosa Material
Adverse Change; (ii) any notice or other communication from any Person
alleging or raising the possibility that the consent of such Person is or may
be required in connection with the transactions contemplated by this Agreement
or that the transactions contemplated by this Agreement might give rise to any
claims or causes of action or other rights by or on behalf of such Person or
result in the loss of any rights or privileges of TDB or any Shipco SPV to any
such Person; (iii) any 

 

18

 

notice or other communication from any Governmental Authority in
connection with the transactions contemplated by this Agreement; and (iv) the
occurrence of any fact or circumstance which could make any representation made
hereunder by TDB or Palmosa untrue or incorrect.

 

(e)        Exclusivity.

 

(i)            In consideration of Arcade entering into
this Agreement and devoting significant time and resources towards exploring a
possible transaction, (1) Palmosa and TDB will cease, and will cause their
Affiliates and their respective employees, legal counsel, accountants,
financial advisors, accountants, consultants and other representatives to
cease, all existing discussions with any Third Party with respect to any
Acquisition Proposal and (2) prior to any termination of this Agreement as
set forth in Section 10 hereto, Palmosa and TDB will not engage in or
continue any Solicitation or take any action to authorize or permit any of the
foregoing to engage in or continue any Solicitation.  Each of the Palmosa and TDB hereby represents
that it is not now engaged in discussions or negotiations with any other party
other than Arcade with respect to any Acquisition Proposal.  The term “Acquisition Proposal”
shall mean any proposal for (A) a sale or issuance of any shares of
capital stock in Palmosa, TDB and/or the Shipco SPVs, (B) a merger,
consolidation, sale of a substantial portion of the assets or any similar
transaction or business combination involving Palmosa, TDB, the Shipco SPVs
and/or the Vessels, (C) any other transaction involving TDB or any of its
securities or assets that would have an effect similar to the transactions
described in (A) or (B), or (D) any other transaction that would
defeat the intent of this Agreement, excluding, without limitation, any
recapitalization or financing necessary in the ordinary course of its
business.  The term “Solicitation”
shall mean any action or activity pursuant to which any Person, directly or
indirectly, solicits, entertains or enters into any agreement, negotiations
with, or furnishes any information to, any Person (other than Arcade or any
agent, affiliate, representative or other designee of Arcade), with respect to
any Acquisition Proposal, other than discussions among Palmosa and Tsakos in
furtherance of the transactions contemplated by this Agreement.

 

(ii)           Before responding to any Acquisition
Proposal, Palmosa and TDB shall, and shall cause their Affiliates to, (a) immediately
notify Arcade (orally and in writing) if any offer is made, any discussions or
negotiations are sought to be initiated, any inquiry, proposal or contact is
made or any information is requested with respect to any Acquisition Proposal, (b)
promptly notify Arcade of the terms of any proposal that it may receive in
respect of any such Acquisition Proposal, including, without limitation, the
identity of the prospective purchaser or soliciting party, (c) promptly
provide Arcade with a copy of any such offer, if written, or a written summary
(in reasonable detail) of such offer, if not in writing, and (d) keep
Arcade informed of the status of such offer and the offeror’s efforts and
activities with respect thereto.

 

(f)         Debt
Financing.  TDB will, and will
cause each of the Shipco SPVs and other Affiliates to, provide (at no expense
or liability to any of them) all cooperation reasonably requested by Arcade in
connection with the debt financing for consummation of the transactions
contemplated by the Business Combination, including (A) making available
appropriate officers and employees, on reasonable advance notice, to meet with
prospective lenders and investors in meetings, presentations, and due diligence
sessions, (B) assisting with the preparation of disclosure documents in
connection therewith, (C) requesting its independent accountants to 

 

19

 

provide
reasonable assistance to Arcade at Arcade’s expense, and (D) executing and
delivering any commitment letters, pledge and security documents, other
definitive financing documents, or other requested certificates or documents;
provided, that none of the letters, agreements, documents and certificates
referenced in the immediately preceding clause (D) will be executed and
delivered except in connection with the Closings.

 

(g)        Review of Proxy Statement. TDB and
Palmosa shall review the Proxy Statement and any amendments or supplements
thereto, in each case prior to its distribution to the stockholders of Arcade
in connection with the meeting of such stockholders, and shall ensure that, to
the best of their knowledge, any and all information regarding Palmosa, TDB,
the Vessels, and the industries in which Palmosa and TDB operate contained in
the Proxy Statement or any amendments or supplements thereto shall be complete
in all respects, shall not contain any untrue statement of a material fact, and
shall not omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the
circumstances under which they are made, not misleading.

 

(h)        Financial Statements. TDB and Palmosa
shall deliver to Arcade (i) in conjunction with the preparation of the
Proxy Statement, but in any event no later than on the date the Proxy Statement
is first filed with the SEC, audited consolidated balance sheet of Palmosa and
its consolidated Subsidiaries as at December 31, 2007, and the related
audited consolidated statements of income, retained earnings and cash flows for
the fiscal year then ended, and (ii) no later than forty-five (45) days
after the date hereof, the unaudited internal consolidated balance sheet, and
the related unaudited internal consolidated statements of income for the six (6) month
period ended June 30, 2008, in each case including the related notes and
schedules thereto.

 

8.2          Mutual Covenants.  Arcade, Palmosa and TDB shall cooperate with
each other with respect to the following:

 

(a)        Best Efforts; Further Assurances.  Subject to the terms and conditions of this
Agreement, each party shall use its best efforts to take, or cause to be taken,
all actions and to do, or cause to be done, all things necessary or desirable
under applicable Laws, and in the case of TDB and each Shipco SPV as reasonably
requested by Arcade, to consummate and implement expeditiously the transactions
contemplated by this Agreement.  The
parties hereto shall execute and deliver such other documents, certificates,
agreements and other writings and take such other actions as may be necessary
or desirable in order to consummate or implement expeditiously the transactions
contemplated by this Agreement.

 

(b)        Preparation of the
Proxy Statement; Arcade Stockholders Meetings.

 

As soon as
practicable following the date of this Agreement, Arcade shall, with the
reasonable assistance of TDB and Palmosa, prepare and file with the SEC the
Proxy Statement in preliminary form, and shall use all reasonable efforts with
the reasonable assistance of TDB and Palmosa to respond as promptly as
practicable to any comments of the SEC with respect thereto and use all
reasonable efforts to cause the SEC review of the Proxy Statement to be
completed as promptly as practicable. 
TDB, its counsel and its accountants shall be given an opportunity to
review and comment on the Proxy Statement and any amendments thereto prior to
the filing thereof with the SEC. Arcade shall use all reasonable efforts to
cause the Proxy 

 

20

 

Statement to be mailed to Arcade’s stockholders as promptly as
practicable after resolving all comments of the SEC thereon.  Arcade shall notify TDB as soon as
practicable of the receipt of any comments from the SEC or its staff and of any
request by the SEC or its staff for amendments or supplements to the Proxy
Statement or for additional information.

 

If prior to
the Proxy Statement being declared effective by the SEC, any event occurs with
respect to TDB or any of its Subsidiaries, or any change occurs with respect to
other information supplied by TDB or Palmosa for inclusion in the Proxy
Statement, which is required to be described in an amendment of, or a
supplement to, the Proxy Statement, TDB shall promptly notify Arcade of such
event, and Palmosa, TDB and Arcade shall cooperate in the prompt filing with
the SEC of any necessary amendment or supplement to the Proxy Statement and, as
required by law, in disseminating the information contained in such amendment
or supplement to Arcade’s stockholders.

 

Arcade shall,
as soon as practicable following the approval of the Proxy Statement by the
SEC, duly call, give notice of, convene and hold a meeting of its stockholders
(the “Arcade Stockholders Meeting”) for the
purpose of seeking the Arcade Stockholder Approval.  Arcade shall use all reasonable efforts to
cause the Proxy Statement to be mailed to Arcade’s stockholders as promptly as
practicable after resolving all comments of the SEC thereon.  Arcade shall, through the Arcade Board,
recommend to its stockholders that they give the Arcade Stockholder Approval,
except to the extent that the Arcade Board shall have withdrawn or modified its
approval or recommendation of this Agreement or the Merger, which withdrawal or
modification shall be made only if the Arcade Board, in good faith, upon
consultation with outside counsel, determines that failure to withdraw or
modify its approval or recommendation of this Agreement and the Merger would be
inconsistent with its fiduciary duties under applicable Law.

 

(c)        Exchange Listing; Board Composition. TDB
and Palmosa agree that Buyer shall use its commercially reasonable efforts to
list Buyer’s securities on the Nasdaq Global Market concurrently with the
Closing or in any event no later than sixty (60) days following the Closing. In
connection with such efforts, TDB and Palmosa agree that Buyer, concurrently
with the Closing, will effect the changes in its board composition set forth in
the subsequent two (2) sentences and to establish the committees of the
Board for the purpose of complying with the requirements of such securities
exchange. The Buyer’s board shall consist of nine (9) individuals, the
majorities of which at all times qualify as independent persons.  Two (2) of such individuals shall be
nominees of Arcade, each of which shall at all times qualify as an independent
person, and the remaining seven (7) individuals shall be nominees of TDB,
three (3) of which shall at all times qualify as independent persons.

 

(d)        Publicity; Form 8-K.

 

Subject to Section 8.2(e),
from the date hereof through the Closing Date, no public release or
announcement concerning this Agreement, the Merger or the other transactions
contemplated hereby shall be issued by any party without the prior consent of
Arcade and TDB (which consent shall not be unreasonably withheld), except as
such release or announcement may be required by law or the rules or
regulations of any United States or foreign securities exchange, in which case
the party required to make the release or announcement shall allow the 

 

21

 

other parties
reasonable time to comment on such release or announcement in advance of such
issuance; provided, however, that TDB, and Arcade may, in consultation with
each other, make internal announcements to their respective employees that are
consistent with the parties’ prior public disclosures regarding the Business
Combination after reasonable prior notice to and consultation with the other.

 

TDB
acknowledges that Arcade will prepare and file one or more Current Reports on Form 8-K
pursuant to the Exchange Act to report the execution of this Agreement and the
other Transaction Agreements, as well as to file additional proxy solicitation
materials.  Any language included in such
Current Report that reflects TDB’s comments, as well as any text as to which
TDB has not commented after being given a reasonable opportunity to do so,
shall, notwithstanding the provisions of this Section 8.2(d), be deemed to
have been approved by TDB and may thereafter be used by Arcade in other filings
made by it with the SEC and in other documents distributed by Arcade in
connection with the Business Combinations without further review or consent of
TDB.

 

(e)        Confidentiality.  Except as otherwise required by law, no party
shall disclose to any other Person or use (whether for the account of any such
party or any other party) any confidential information or proprietary work
product of (i) Arcade, the Buyer or their advisors, without the prior
written consent of Arcade, or a person authorized thereby, or (ii) TDB or
its advisors, without the prior written consent of TDB, or a person authorized
thereby; provided, however, that any such party may disclose or
use any such information (a) as has become generally available to the
public other than through a breach of this Agreement by such party or any of
its Affiliates and representatives, (b) as becomes available to such party
on a non-confidential basis from a source other than any other party hereto or
such other party’s Affiliates or representatives, provided that such source is
not known or reasonably believed by such party to be bound by a confidentiality
agreement or other obligations of secrecy, (c) as may be required in any
report, statement or testimony required to be submitted to any Governmental
Authority having or claiming to have jurisdiction over it, or as may be
otherwise required by applicable Law, or as may be required in response to any
summons or subpoena or in connection with any litigation, (d) as may
reasonably be required to obtain any Consent from a Governmental Authority or
other Person required in order to consummate the transactions contemplated by
this Agreement, or (e) as may be necessary to establish such party’s
rights under this Agreement.  In the
event either party believes that it is required to disclose any such
confidential information pursuant to applicable Laws, such party, shall give
timely written notice to the other parties so that the other parties may have
an opportunity to obtain a protective order or other appropriate relief.  The parties hereto shall cooperate fully in
any such action.

 

(f)         Confidentiality of Transaction.  Any information (except publicly available or
freely usable material obtained from another source) respecting any party or
its Affiliates will be kept in strict confidence by all other parties to this
Agreement and their agents.  Except as
required by Law, none of Arcade, Palmosa, TDB, nor any of their respective
Affiliates, directors, officers, employees or agents will disclose the terms of
the transactions contemplated hereunder at any time, currently, or on or after
the Closing, regardless of whether the Closing takes place, except as necessary
to their attorneys, accountants and professional advisors, in which instance
such persons and any employees or agents of such party shall be advised of the
confidential nature of the terms of the transaction and shall themselves be
required by such party to keep such 

 

22

 

information confidential.  Except
as required by Law, each party shall retain all information obtained from the
other and their lawyers on a confidential basis except as necessary to their
attorneys, accountants and professional advisors, in which instance such
persons and any employees or agents of such party shall be advised of the
confidential nature of the terms of the transaction and shall themselves be
required by such party to keep such information confidential.  Except as required by law, each of Arcade,
Palmosa and TDB, on their own behalves and on behalf of their respective
Affiliates, agree that neither they nor their agents or Affiliates shall issue
any press release or make any other public disclosure concerning the
transactions contemplated hereunder without the prior approval of Arcade,
Palmosa and TDB.  Notwithstanding the
foregoing, Palmosa and TDB acknowledge that Arcade is subject to the Exchange
Act and the rules and regulations promulgated thereunder and specifically
acknowledges that presentations to investors and potential investors as well as
press releases announcing the transactions contemplated in this Agreement will
be filed with the SEC and will thus become available to the public; provided,
however, that Arcade shall consult with TDB with respect to such
presentation materials and press releases and shall not finalize any such
presentation materials or press releases without the consent of TDB (not to be
unreasonably withheld, delayed or conditioned) unless otherwise required by
law.

 

(g)        Taxes. The parties hereto agree to
cooperate with each other in connection with the preparation and filing of any
Tax Returns required to be filed by Arcade, Buyer or any of the Shipco SPVs
after the Closing Date.

 

ARTICLE 9.

GOVERNING LAW; DISPUTE RESOLUTION

 

9.1          Governing Law.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH
AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS
CONFLICTS OF LAWS PRINCIPLES.

 

9.2          Dispute Resolution.   Any dispute, controversy or Claim arising
out of or relating to this Agreement or any Transaction Document, or the breach
thereof, shall be settled by binding arbitration, before three Arbitrators (one
selected by Arcade/Buyer, one selected by Palmosa/TDB and the third selected by
the foregoing two Arbitrators); the decision of three Arbitrators or that of
any two of them shall be final, and for the purpose of enforcing any award
under this Agreement or any Transaction Document may be made a rule of the
court.  The proceedings shall be
conducted in accordance with the Maritime Arbitration Rules of the Society
of Maritime Arbitrators, Inc., New York, as amended from time to time.

 

ARTICLE 10.

TERMINATION

 

10.1        Termination of
Agreement.  Anything to the
contrary notwithstanding, this Agreement and the transactions contemplated by
this Agreement may be terminated:

 

23

 

(a)        Agreement.  By mutual consent in writing of Arcade and
TDB; and

 

(b)        Automatic.  Automatically, if the Closing shall not have
occurred by 11:59 p.m. New York time, January 30, 2009.

 

10.2        Effect of Termination.  If this Agreement
shall be terminated pursuant to Section 10.1, all further obligations of
the parties under this Agreement shall terminate without further liability of
any party to the other; provided, however, that the obligations
of the parties contained in Article 9, this Section 10.2, Article 11
and the definitions set forth in Annex A hereof shall survive any such
termination.

 

ARTICLE 11.

 

MISCELLANEOUS PROVISIONS

 

Except as
provided otherwise in this Agreement, the following provisions shall apply
hereto:

 

11.1        Actions by Buyer.  Any reference in this Agreement to an action
or determination by the Buyer following the Closing shall mean an action or
determination, as the case may be, taken or made by no less than a majority
vote of the Buyer’s Board, provided that the directors voting in the
affirmative therefor shall have included no less than a majority of the
independent directors then seated on the Buyer’s Board.

 

11.2        Waiver of Claims
against Trust Account. TDB and Palmosa, on their own behalves and on
behalf of each of their Affiliates:

 

(a)        acknowledge that they have read the Final
Prospectus of Arcade, dated May 21, 2007 (the “Prospectus”);

 

(b)        acknowledge and understand that Arcade has
established the Trust Account, initially in an amount of at least $59,150,000
for the benefit of the Public Stockholders and the Underwriters of Arcade’s
initial public offering (the “Underwriters”),
and that, except for a portion of the interest earned on the amounts held in
the Trust Account, Arcade may disburse monies from the Trust Account only: (i) to
the Public Stockholders in the event of the redemption of their shares or in the
dissolution and liquidation of Arcade, or (ii) to Arcade and the
Underwriters after it consummates a Business Combination (as such term is
specifically defined in the Prospectus);

 

(c)        agree that neither TDB, nor Palmosa, nor any of
their Affiliates have any right, title, interest or claim of any kind in or to
any monies in the Trust Account (a “Trust Claim”);

 

(d)        waive any Trust Claim any of TDB, Palmosa or
any of their Affiliates may have in the future as a result of, or arising out
of, any agreements that may be entered into with Arcade (including this
Agreement and the Transaction Documents); and

 

24

 

(e)                                  agree that neither
TDB, Palmosa, nor any of their Affiliates will seek recourse against the Trust
Account until such time as monies have been released or authorized for release
from the Trust Account to Arcade or its successor.

 

Capitalized
terms used and not otherwise defined in this Section 11.2 or elsewhere in
this Agreement shall have the meanings assigned to them in the Prospectus.

 

11.3                        Amendment
and Modifications.  Subject to
applicable law, this Agreement may be amended, modified and supplemented only
by a written agreement between the parties hereto (or their successors in
interest) which states that it is intended to be a modification of this
Agreement.

 

11.4                        Waiver
of Compliance.  Any failure of
TDB or Palmosa, on the one hand, or Arcade (prior to the Closing) or Buyer (at
or following the Closing), on the other hand, to comply with any obligation,
covenant, agreement or condition in this Agreement may be expressly waived in
writing by Arcade (prior to the Closing) or Buyer (at or following the
Closing), on the one hand, and TDB or Palmosa, on the other hand, but such
waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure by TDB, Palmosa, the Buyer or
Arcade.

 

11.5                        Expenses.
 In the event the Closing occurs,
Buyer (as successor in interest to Arcade) shall bear all reasonable costs and
expenses of TDB and Palmosa in connection with the transactions contemplated by
this Agreement, including, without limitation, Closing expenses, the
transaction fee payable to Morgan Joseph & Co. Inc. (“Morgan Joseph”) pursuant to a letter agreement, dated April 18,
2008, by and between Morgan Joseph and Palmosa, a copy of which letter
agreement has been provided to Arcade, as well as legal, financing and audit
expenses of TDB or Palmosa.  In the event
that the Closing shall not take place, then subject to all rights and remedies
that a party may have against another party for breach of this Agreement all
fees and expenses incurred by each party in connection with the transactions
contemplated by this Agreement shall be borne by the party incurring such fees
and expenses, including all fees of legal counsel, investment bankers and
accountants.

 

11.6                        No
Waiver of Rights.  No failure on
the part of any party to exercise or delay in exercising any right hereunder
shall be deemed a waiver thereof, nor shall any single or partial exercise
preclude any further or other exercise of such right or any other right.

 

11.7                        Notices.  Any notice required, permitted or desired to
be given pursuant to any of the provisions of this Agreement shall be in
writing and shall be deemed to have been sufficiently given or served for all
purposes if (i) delivered in Person, (ii) sent by registered or
certified mail, return receipt requested, postage and fees prepaid, or (iii) sent
by a national overnight delivery service, return receipt requested, fees
prepaid, to the parties as follows:

 

25

 

(a)                                  if to Arcade or the
Buyer, to:

 

Arcade Acquisition Corp.

c/o Arcade Partners, LLC

62 La Salle Road, Suite 304

West Hartford, Connecticut 06107

Attn: John Chapman

Facsimile:  (860) 236-6325

email: jchapman@arcadepartners.com

 

With copies to (which shall not constitute notice):

 

Loeb & Loeb LLP

345 Park Avenue

New York, NY 10154

Attn: Stan Johnson

Facsimile:  212-407-4990

email: sjohnson@loeb.com

 

or to such other Person or address as Arcade (prior  to Closing) or the Buyer (at or following the
Closing) shall furnish to TDB in writing.

 

(b)                                 if to TDB at the
following address:

 

Conbulk Corporation

c/o Palmosa Shipping Corporation

107 A. Papanastasiou Street

Kastella-Piraeus, Greece 18533

Attn: Dimitris Dalakouras

Facsimile:  +30 (210) 4137639

email: ddalakouras@conbulk.gr

 

with a copy to:

 

Seward & Kissel LLP

One Battery Park Plaza

New York, New York 10004

Attn: Derick Betts, Esq.

Facsimile:  212-480-8421

email: betts@sewkis.com

 

or to such other address as TDB shall furnish to Arcade (prior to the
Closing) or the Buyer (at or following the Closing) in writing.  Any notice given under this Section 11.7
shall be effective (i) if delivered personally, when delivered, (ii) if
delivered overnight by international overnight courier, the end of the next
Business Day after deposit with such courier, and (iii) if mailed, the
third Business Day after mailing.  Any of
the parties hereto may at any time and from time to time change the address to
which notice shall be sent hereunder by notice to the other party given under
this Section 11.7.  The date of the
giving of any notice sent by mail shall be the date of the posting of the mail.

 

26

 

11.8                        Assignment.  This Agreement and all of the provisions
hereof shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns, but neither this Agreement
nor any of the rights, interests or obligations hereunder shall be assigned by any
of the parties hereto without the prior written consent of the other party.

 

11.9                        Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but shall constitute
one and the same instrument.

 

11.10                 Headings.  The headings of the Sections and Articles are
inserted for convenience only and shall not constitute a part hereof or affect
in any way the meaning or interpretation of such Agreement.

 

11.11                 Entire
Agreement.  This Agreement and
the other Transaction Documents set forth the entire agreement of the parties
hereto in respect of the subject matter contained therein, and supersede all
prior agreements, whether oral or written, by any officer, employee of any
party hereto with respect to the subject matter hereof.

 

11.12                 Third Party
Beneficiaries.  Except as
specifically set forth or referred to herein, nothing herein expressed or
implied is intended or shall be construed to confer upon or give to any Person
other than the parties hereto and their successors or assigns, any rights or
remedies under or by reason of this Agreement.

 

11.13                 Severability.  If any provision of this Agreement shall
hereafter be held to be invalid or unenforceable for any reason, that provision
shall be reformed to the maximum, extent permitted to preserve the parties’
original intent; failing which, it shall be severed from this Agreement with
the balance of this Agreement continuing in full force and effect.  Such occurrence shall not have the effect of
rendering the provision in question invalid in any other jurisdiction or in any
other case or circumstances, or of rendering invalid any other provisions
contained therein to the extent that such other provisions are not themselves
actually in conflict with any applicable law.

 

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

27

 

COUNTERPART SIGNATURE PAGE – MEMBERSHIP
INTEREST PURCHASE AND

SALE AGREEMENT

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed, all as of the day and
year first above written.

 

 

	
   

  	
  ARCADE ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan Furer

  
	
   

  	
  Name:

  	
  Jonathan Furer

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PALMOSA SHIPPING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dimitris Dalakouras

  
	
   

  	
  Name:

  	
  Dimitris Dalakouras

  
	
   

  	
  Title: 

  	
  President

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ George Bamiotis

  
	
   

  	
  Name:

  	
  George Bamiotis

  
	
   

  	
  Title: 

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TDB SPV LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Dimitris Dalakouras

  
	
   

  	
  Name:

  	
  Dimitris Dalakouras

  
	
   

  	
  Title:

  	
   

  
						

 

 

Annex A

 

CERTAIN DEFINITIONS

 

“Acquisition”
has the meaning set forth in the recitals.

 

“Acquisition
Proposal” has the meaning set forth in Section 8.1(e).

 

“Affiliate”
means, as to any Person, a Person that directly, or indirectly through one or
more intermediaries, controls or is controlled by, or is under common control
with, the Person specified.  With respect
to any natural person, the term Affiliate shall also include any member of said
person’s immediate family, any family limited partnership for said person and
any trust, voting or otherwise, of which said person is a trustee or of which
said person or any of said person’s immediate family is a beneficiary.  With respect to any trust, the term Affiliate
shall also include any beneficiary or trustee of such trust.  For purposes of the foregoing, the term “control”
and variations thereof means the possession of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ownership of voting securities, by Contract or otherwise.

 

“Agreement”
has the meaning set forth in the recitals.

 

“Arbitrator”
means an arbitrator with respect to a dispute
resolution pursuant to Section 9.2.

 

“Arcade”
has the meaning set forth in the recitals.

 

“Arcade
Board” means the Board of Directors of Arcade.

 

“Arcade
Contracts” has the meaning set forth in Section 5.5.

 

“Arcade
Financial Statements” means the audited consolidated
balance sheets of Arcade and its consolidated Subsidiaries as of December 31,
2007, and related consolidated statements of operations and stockholders’
equity and cash flows for the year then ended, including footnotes thereto,
audited by Rothstein, Kass & Company, P.C., registered independent
public accountants.

 

“Arcade
Permits” has the meaning set forth in Section 5.9.

 

“Arcade’s
SEC Reports” has the meaning set forth in Section 5.14.

 

“Arcade
Stockholders’ Approval” means the approval of the
Business Combination by the holders of the Common Stock at a meeting of the
stockholders of Arcade at which a quorum is present by the holders of more than
fifty percent (50%) of the outstanding shares of Common Stock voted by the
public stockholders of Arcade; provided, however, that the
stockholders of Arcade holding thirty percent (30%) or more of the Common Stock
shall not have voted against the Business Combination and requested redemption
of their shares.

 

“Arcade
Stockholder’s Meeting” has the meaning set forth in Section 8.2(b).

 

1

 

“Books and
Records” means all books and records, ledgers, files,
correspondence, and other records of every kind (whether written, electronic,
or otherwise embodied) owned or used by any of the parties hereto.

 

“Business”
means the business of owning, chartering or operating container ships of
between 1,000 and 3,999 TEU for any lawful purpose.

 

“Business
Combination” has the meaning set forth in the
recitals.

 

“Business
Day” means any day other than a Saturday, Sunday or
legal holiday in connection with which banks in New York, New York, London,
United Kingdom or Piraeus, Greece are authorized or permitted to close.

 

“Buyer” has
the meaning set forth in the recitals.

 

“Buyer
Group” has the meaning set forth in Section 7.1.

 

“Buyer
Material Adverse Change” means a material adverse
change (i) in the properties, prospects, results of operations, or
financial condition of the Buyer or Arcade, taken individually and as a whole
or (ii) in the ability of the Buyer or Arcade to consummate the
transactions contemplated by this Agreement.

 

“Buyer
Material Adverse Effect” means a material adverse
effect on the business, assets, condition (financial or otherwise), results of
operations or prospects of any or all of the Buyer or Arcade, as the context
requires.

 

“Charter”
with respect to any Vessel, means the time charter to which such Vessel is to
be subject on delivery under the relevant MOA and which must be novated to the
relevant SPV Shipco taking delivery of the Vessel under the MOA as provided for
therein.

 

“Charterer”
means the time charterer of a Vessel pursuant to its Charter.

 

“Claims”
means any and all notices, claims, demands, Legal Proceedings, deficiencies
Orders, and Losses assessed or sustained, including, without limitation, the
defense or settlement of any such Claim and the enforcement of all rights to
indemnification under this Agreement.

 

“Closing”
has the meaning set forth in Section 2.2(a).

 

“Closing
Date” has the meaning set forth in Section 2.2(a).

 

“Closing
Notification” has the meaning set forth in Section 2.2(a).

 

“Closing
Vessels” has the meaning set forth in Section 2.2(a).

 

“Code”
means the United States Internal Revenue Code of 1986, as amended.

 

“Common
Stock” means the common stock of Arcade prior to the
Merger and of the Buyer after the Merger, $.0001 par value per share.

 

2

 

“Conbulk”
means Conbulk Shipping S.A., a Liberian corporation and the current technical
manager of the Palmosa Vessels.

 

“Conbulk
Manco” means Conbulk Management Ltd., a Marshall
Islands corporation beneficially owned and controlled by Dimitris Dalakouras,
George Bamiotis, Stefanos Kardamakis and Maria Tsakos.

 

“Conbulk
TSA” means the Technical Services Agreement to be
entered into between Conbulk Manco and Conbulk pursuant to which Conbulk Manco
subcontracts to Conbulk responsibility for the technical management of the
Palmosa Vessels.

 

“Consent”
means any consent, authorization or approval.

 

“Consulting
Agreements” means the consulting agreements between
the Buyer and each of Minuet Consultants Corp, Tivoli Consultants S.A. and Raven
International Corp., each a corporation organized under the laws of the
Republic of the Marshall Islands, and each wholly owned and controlled by
Dimitris Dalakouras, George Bamiotis and Stefanos Kardamakis, respectively,
entered into as of the Closing Date, in the form attached hereto as Exhibit A(2).

 

“Contract”
means any contract, agreement, commitment, arrangement or understanding
(whether written or oral, whether formal or informal), including with respect
to each Shipco SPV its applicable MOA.

 

“Dividend
Subordination Agreement” shall mean a Dividend
Subordination Agreement, or agreement of similar title, in a form mutually
agreed upon by the parties hereto.

 

“Employment
Agreements” means the employment agreements between
the Buyer and each of Dimitris Dalakouras, George Bamiotis and Stefanos
Kardamakis, entered into as of the Closing Date, in the form attached hereto as
Exhibit A(1).

 

“Enforceability
Exception” has the meaning set forth in Section 3.4(a).

 

“Environmental
Claims” means Claims relating in any way to any
Environmental Law or any Environmental Permit, including, without limitation, (a) any
and all Claims by Governmental Authorities for enforcement, cleanup, removal,
response, remedial or other actions or damages pursuant to any applicable
Environmental Law and (b) any and all Claims by any person seeking
damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from Hazardous Materials or arising from alleged
injury or threat of injury to health, safety or the environment.

 

“Environmental
Laws” means any federal, state, regional or foreign
law, statute, treaty, regulation, policy, guidance, order, injunction, judgment
or decision of any Governmental Authority relating to the protection of natural
resources, the environment and public and employee health and safety and shall
include, without limitation, the International Convention for the Prevention of
Pollution from Ships, and, in each case, the regulations promulgated pursuant
thereto, and any applicable analogous state statutes, and the regulations
promulgated pursuant thereto, as such laws have been amended or supplemented.

 

3

 

“Environmental
Permits” means all permits, approvals, identification
numbers, licenses and other authorizations required under any applicable
Environmental Law.

 

“Exchange
Act” means the U.S. Securities Exchange Act of 1934.

 

“GAAP”
means generally accepted accounting principles in the United States, as in
effect from time to time.

 

“General
Management Agreement” means the General Management
Agreement to be entered into at the Closing between the Buyer, for and on
behalf of itself and its Shipco SPVs, and Conbulk Manco, in which the Buyer
appoints Conbulk Manco to supervise and oversee the commercial and technical
operations of the Vessels commencing upon the Shipco SPVs taking title to the
Vessels under the MOAs, the form of which is attached hereto as Exhibit F.

 

“Governmental
Authority” means any government or agency, district,
bureau, board, commission, court, department, official, political subdivision,
tribunal, taxing authority or other instrumentality of any government, whether
federal, state or local, domestic or foreign and quasi-governmental authorities
including the International Maritime Organization.

 

“Hazardous
Materials” means any (i) toxic or hazardous
materials or substances; (ii) solid wastes, including asbestos,
polychlorinated biphenyls, mercury, buried contaminants, chemicals, flammable
or explosive materials; (iii) radioactive materials; (iv) petroleum
or petroleum-based substances or wastes and spills or releases of petroleum
products; and (v) any other chemical, pollutant, contaminant, substance or
waste that is regulated by any Governmental Authority under any Environmental
Law.

 

“IFRS” means International Financial Reporting Standards.

 

“Incentive Plan” means that certain Conbulk Corporation 2008
Incentive Plan, as amended, in substantially the form attached hereto as Exhibit H.

 

“Indebtedness” shall mean all payment obligations (including
obligations under capitalized leases) of a Person to any bank, insurance
company, finance company or other institutional lender or other Person for
money borrowed; provided, however, that Indebtedness shall
not include trade payables and accruals in accordance with GAAP or IFRS.

 

“Initial
Transaction” shall have the meaning set forth in the
Recitals.

 

“Interest
Acquisition” has the meaning set forth in Section 2.1(b).

 

“Interest Acquisition Consideration”  means
ten dollars ($10) in the aggregate ($1.00 per Shipco SPV).

 

“Interests”
means one hundred percent (100%) of the issued and outstanding membership
interests of each of the Shipco SPVs.

 

“Kuo
Vessel Acquisition” has the meaning set forth in Section 2.1(c).

 

4

 

“Kuo
Vessels” means the following Palmosa Vessels: Kuo Fu,
Kuo Tai, Kuo Hung and Kuo Lung.

 

“Law”
means any constitutional provision, statute or other law, rule, regulation, or
interpretation of any Governmental Authority and any Order.

 

“Legal
Proceedings” means any judicial, administrative or
arbitral actions, suits, proceedings (public or private) or governmental
proceedings.

 

“Letter of
Intent” means that certain letter from Arcade to
Palmosa dated June 17, 2008.

 

“Lock-Up
Agreements” means those certain Lock-Up Agreements by
and between the Buyer and each recipient of Common Stock pursuant to the
Business Combination, in the form attached hereto as Exhibit B.

 

“Losses”
means any and all losses, damages, debts, liabilities, obligations,
deficiencies, penalties, amounts paid in connection with Claims, amounts paid
in settlement, costs (including court costs) and expenses, including reasonable
attorneys’ and other professionals’ fees and disbursements and other amounts
paid or incurred in connection with the enforcement of rights (whether by law
or pursuant to this Agreement) to recover Losses but shall not include any
punitive damages.

 

“Management
Agreements” means the General Management Agreement,
the Conbulk TSA and the Tsakos TSA.

 

“Merger” has the meaning set forth in the recitals.

 

“Merger Agreement” means that certain agreement and plan of
merger by and between the Buyer and Arcade in the form attached hereto as Exhibit G.

 

“MOAs”
means the ten (10) memoranda of agreement entered into concurrent herewith
between TDB and each Seller as identified in Schedule 3 to the Supplemental
Agreement.

 

“Morgan
Joseph” means Morgan Joseph & Co. Inc.

 

“Novation
Agreements” means the Novation Agreements with respect
to the Vessels, each of which are to be entered into by and among the relevant
Seller, the relevant Shipco SPV and the relevant Charterer, the terms of which
shall be reasonably satisfactory to the respective Shipco SPVs.

 

“Order”
means any decree, injunction, judgment, order, award, ruling, assessment or
writ by a court, administrative agency, other Governmental Authority,
arbitrator or arbitration panel.

 

“Palmosa”
has the meaning set forth in the recitals.

 

5

 

“Palmosa
Financial Statements” means with respect to the
Palmosa Vessels (i) the audited consolidated balance sheet of Palmosa and
its consolidated Subsidiaries as at December 31, 2006, and the related
audited consolidated statements of income, retained earnings and cash flows for
the fiscal year then ended together with the reports therein by Palmosa’s
independent certified public accountants, and (ii) the unaudited internal
consolidated balance sheet of Palmosa and its consolidated Subsidiaries as at December 31,
2007, and the related unaudited internal consolidated statements of income,
retained earnings and cash flows for the fiscal year then ended, in each case
including the related notes and schedules thereto.

 

“Palmosa
Material Adverse Change” means a material adverse
change (i) in the properties, prospects, results of operations, or
financial condition of any or all of TDB, Palmosa, any of the Shipco SPVs and
the Vessels taken individually and as a whole or (ii) in the ability of
the TDB, Palmosa or any of the Shipco SPVs to consummate the transactions
contemplated by this Agreement and/or the applicable MOA.

 

“Palmosa
Material Adverse Effect” means a material adverse
effect on the business, assets, condition (financial or otherwise), results of
operations or prospects of any or all of TDB, Palmosa, or the Shipco SPVs, as
the context requires.

 

“Palmosa
Vessels” means the Kuo Fu, Kuo Tai, Kuo Hung, Kuo
Lung, MSC Bali and MSC Zanzibar.

 

“Permits”
means all permits, licenses, authorizations, registrations, franchises,
approvals, certificates, variances and similar rights obtained, or required to
be obtained, from Governmental Authorities.

 

“Person”
means any individual, partnership, joint venture, corporation, limited
liability company, trust, estate, unincorporated organization or Governmental
Authority.

 

“Prospectus”
has the meaning set forth in Section 11.2.

 

“Proxy
Statement” means the joint proxy statement/prospectus
relating to the Arcade Stockholder Approval.

 

“Registration
Rights Agreement” means that certain Registration
Rights Agreement by and among the Buyer and each recipient of Common Stock
pursuant to the Business Combination, in the form attached hereto as Exhibit C.

 

“Release
Agreement” means that certain Release Agreement
pursuant to which TDB releases any Claims against the Shipco SPVs, in the form
attached hereto as Exhibit D.

 

“Restrictive
Period” has the meaning set forth in Section 7.1.

 

“Restrictions”
means all liens, pledges, encumbrances, security interests, charges, Taxes,
voting trusts, options, warrants, calls and rights of first refusal.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

6

 

“Securities
Act” means the U.S. Securities Act of 1933.

 

“Seller” means
each respective seller of a Vessel under the applicable MOA as identified in
Schedule 3 of the Supplemental Agreement.

 

“Shipco
SPV” means each of the following Marshall Islands
limited liability companies:  Sea
Rhapsody LLC, Sea Symphony LLC, Sea Melody LLC, Sea Majesty LLC, Sea Glory LLC,
Sea Victory LLC, Sea Destiny LLC, Sea Beauty LLC, Sea Georgeous LLC and Sea
Harmony LLC.

 

“Solicitation” has the meaning set forth in Section 8.1(e).

 

“Subsidiary”
of a Person means each entity, at least fifty percent (50%) of the capital stock
or other equity or voting securities of which are controlled or owned, directly
or indirectly, by such Person.

 

“Supplemental
Agreement” means that certain Supplemental Agreement,
dated the date hereof, entered into by and among Arcade and TDB, providing,
among other things, for the timing of the delivery of, and payment of the
consideration for, the Vessels under the MOAs, in the form attached hereto as Exhibit E.

 

“Tax” or “Taxes” shall mean all federal, state, local and foreign
taxes, charges, fees, levies, deficiencies or other assessments of whatever
kind or nature imposed by any Governmental Authority (including all net income,
gross income, gross receipts, sales, use, ad valorem, transfer, franchise,
profits, license, withholding, payroll, employment, unemployment, excise,
estimated, severance, stamp, occupation, real property, personal property,
intangible property, occupancy, recording, minimum, environmental and windfall
profits taxes), including any liability therefore as a result of Treasury Regulation
Section 1.1502-6 or any similar provision of applicable Law, or as a
result of any Tax sharing or similar agreement, by reason of being a
successor-in-interest or transferee of another entity, together with any
interest, penalties, additions to tax, or additional amounts or imposed thereon
or with respect thereto.

 

“Tax Return” includes any return, declaration, report, Claim
for refund or credit, information return or statement, and any amendment
thereto, including any consolidated, combined, unitary or separate return or
other document (including any related or supporting information or schedule),
required to be filed with any Governmental Authority in connection with the
determination, assessment, collection or payment of Taxes or the administration
of any laws, regulations or administrative requirements relating to Taxes.

 

“Third
Party” means any Person other than the parties hereto,
the Shipco SPVs or any of their respective Affiliates.

 

“Transaction
Documents” shall mean, collectively, this Agreement,
the Merger Agreement, the Lock-Up Agreement, the Registration Rights Agreement,
Release Agreement, the Management Agreements, the Employment Agreements, the
Consulting Agreements, the MOAs, the Supplemental Agreement, the Novation
Agreements, the Dividend Subordination Agreement and the Letter of Intent.

 

7

 

“Trust
Claim” has the meaning set forth in Section 11.2.

 

“Tsakos”
means Tsakos Shipping & Trading S.A., a Panamanian corporation and the
current technical manager of the Tsakos Vessels.

 

“Tsakos
TSA” means the Technical Services Agreement to be
entered into between Conbulk Manco and Tsakos pursuant to which Conbulk Manco
subcontracts to Tsakos responsibility for the technical management of the
Tsakos Vessels.

 

“Tsakos
Vessels” means CCNI Mejillones, MSC Brasilia, MSC
London and MSC Sardinia.

 

“Underwriters”
has the meaning set forth in Section 11.2.

 

“Vessel” means each of the Tsakos Vessels and
the Palmosa Vessels.

 

8

 

SCHEDULES

 

	
  Schedule 2.1(a)

  	
  Buyer Nominees

  
	
   

  	
   

  
	
  Schedule 3.4(b)

  	
  Consents and Approvals of TDB

  
	
   

  	
   

  
	
  Schedule 3.13

  	
  Absence of Certain Changes

  
	
   

  	
   

  
	
  Schedule 4.1(a)

  	
  Formation and Organization of Buyer

  
	
   

  	
   

  
	
  Schedule 4.4(b)

  	
  Consents and Approvals of Buyer

  
	
   

  	
   

  
	
  Schedule 5.1(b)

  	
  Formation and Organization of Arcade

  
	
   

  	
   

  
	
  Schedule 5.5

  	
  Arcade Contracts

  
	
   

  	
   

  
	
  Schedule 5.19

  	
  Arcade Brokerages

  

 

1

 

EXHIBITS

 

	
  Exhibit A(1)

  	
  Form of Employment Agreement

  
	
   

  	
   

  
	
  Exhibit A(2)

  	
  Form of Consulting Agreement

  
	
   

  	
   

  
	
  Exhibit B

  	
  Form of Lock-Up Agreement

  
	
   

  	
   

  
	
  Exhibit C

  	
  Form of Registration Rights Agreement

  
	
   

  	
   

  
	
  Exhibit D

  	
  Form of Release Agreement

  
	
   

  	
   

  
	
  Exhibit E

  	
  Form of Supplemental Agreement

  
	
   

  	
   

  
	
  Exhibit F

  	
  Form of General Management Agreement

  
	
   

  	
   

  
	
  Exhibit G

  	
  Form of Merger Agreement

  
	
   

  	
   

  
	
  Exhibit H

  	
  Form of Incentive Plan

  

 

1

 

Schedule 2.1(a)

Designation of Buyer Nominees

 

	
  CCNI
  MEJILLONES

  	
  Sea Beauty Shipping LLC

  
	
   

  	
   

  
	
  KUO FU

  	
  Sea Destiny Shipping LLC

  
	
   

  	
   

  
	
  KUO HUNG

  	
  Sea Gorgeous Shipping LLC

  
	
   

  	
   

  
	
  KUO LUNG

  	
  Sea Glory Shipping LLC

  
	
   

  	
   

  
	
  KUO TAI

  	
  Sea Harmony Shipping LLC

  
	
   

  	
   

  
	
  MSC BALI

  	
  Sea Majesty Shipping LLC

  
	
   

  	
   

  
	
  MSC BRASILIA

  	
  Sea Melody Shipping LLC

  
	
   

  	
   

  
	
  MSC LONDON

  	
  Sea Rhapsody Shipping LLC

  
	
   

  	
   

  
	
  MSC SARDINIA

  	
  Sea Symphony Shipping LLC

  
	
   

  	
   

  
	
  MSC ZANZIBAR

  	
  Sea Victory Shipping LLC

  

 

1Exhibit 10.2

 

PALMOSA
SUPPLEMENTAL AGREEMENT

 

This Palmosa Supplemental Agreement is entered into
as of this 19th day of September, 2008 by and among (i) Arcade Acquisition
Corp. (“Arcade “), a Delaware corporation, (ii) TDB SPV LLC (“TDB”), a
Marshall Islands limited liability company, (ii) each of the Palmosa Sellers
(as defined in Schedule 1) and (iv) Palmosa Shipping Corporation, a
Marshall Islands corporation, the 100% percent owner of each of the Palmosa
Sellers ( “Palmosa”).

 

Capitalized terms not otherwise defined herein shall
have the meanings assigned to such terms in Schedule 1 hereto.

 

The purpose of this Palmosa Supplement Agreement is,
inter  alia, to provide for the timing of the delivery of, and
payment of the consideration for, the Palmosa Vessels as provided for under the
Palmosa MOAs which are being concurrently executed and delivered herewith.

 

In consideration of the premises, the parties hereto
agree as follows:

 

1.             Upon the failure of the Initial
Transaction to be consummated by 11:59 p.m. New York time, January 30,
2009, or upon the earlier termination of the LLC Purchase Agreement in
accordance with its terms, (i) the Palmosa MOAs and this Palmosa Supplemental
Agreement shall be deemed terminated, cancelled and of no further force and effect,
in each case without any further action required of the parties, and no party hereto
shall have any liability to any other party hereunder or thereunder, and (ii) Arcade
will, upon written instructions from TDB, and in consideration of U.S. $1.00 promptly
dissolve Conbulk or, at TDB’s option, transfer to TDB or its nominee all of its
right, title and interest in and to Conbulk Corporation (“Conbulk”), a Marshall
Islands corporation.

 

2.             Should the Business Combination be
approved by the requisite vote of the Arcade shareholders, the parties hereto shall
proceed forthwith to take all actions necessary to implement the Initial
Transaction on the Effective Date of Merger.  The parties hereto undertake to cause the
Effective Date of the Merger to occur no later than January 30, 2009.

 

3.             The initial Palmosa Vessel
deliveries shall consist of at least two Palmosa Vessels whose names as shown
in Schedule 2 hereto begin with “KUO” and these deliveries shall take place on
the Effective Date of Merger and as nearly simultaneously as possible, but in
no event later than January 30, 2009. 
The remaining Palmosa Vessel deliveries shall take place promptly after
the Effective Date of Merger at the earliest opportunity, subject to the considerations
described in the remaining part of this Clause 3, but in no event later than March 2,
2009.  The parties acknowledge and agree that
the Palmosa Vessels are operating under time charters as set out in Schedule 4
hereto, true copies of which, as warranted by Palmosa, are attached hereto as Exhibit A,
in time-sensitive trades with strict schedules, and that close coordination and
good cooperation will be required to minimize any possible inconvenience to the
Palmosa Vessels.  Accordingly, subject to
the first sentence of this Clause 3, the parties shall meet and confer as
necessary to determine the optimal schedule for deliveries  taking into consideration, among other
things, operational needs, vessel re-registration requirements, the
requirements of Conbulk’s ship mortgage lenders and underwriters, and the
requirements of the time charterers.

 

 

4.             Subject to the sale and transfer by
TDB of the Shipco SPVs to Conbulk pursuant to the LLC Purchase Agreement, Conbulk
shall arrange for the payment of that portion of the Aggregate Purchase Price
applicable to each Palmosa Vessel concurrent with the delivery thereof under
the relevant Palmosa MOA, each such purchase price for a Palmosa Vessel to consist
of two components: (1) the Stock Consideration and (2) the Cash
Consideration, as set forth in Schedule 2 hereto.  The Stock Consideration and Cash
Consideration shall be payable per instructions of the relevant Palmosa Seller.

 

5.             Concurrent with delivery, each Palmosa Seller shall
arrange for the novation of its applicable Palmosa Vessel time charter to the
relevant Shipco SPV purchaser of such Palmosa Vessel pursuant to a novation
agreement, the terms of which to be reasonably satisfactory to the relevant
Shipco SPV.

 

6.             If any Palmosa Seller or the seller of any Tsakos Vessel
is unable to deliver its Vessel pursuant to and in compliance with the terms of
its respective Palmosa MOA or Tsakos MOA, as appropriate (unless caused by an
event set out in Clause 5d) of the relevant MOA), then upon the written request
of Conbulk, Palmosa shall use its commercially reasonable best efforts to
obtain, not later than six months from the required delivery date of such
Vessel as set out in its MOA, a comparable replacement vessel having comparable
charter employment.  The replacement
vessel, the terms and conditions of its proposed acquisition, and its charter
employment shall be acceptable to Conbulk, in its sole discretion.  If any such Palmosa Seller cannot find a
suitable replacement vessel acceptable to Conbulk within such 6 month period,
Conbulk shall have the right to terminate the Palmosa MOA for such Vessel and
claim compensation for its losses arising out of the failure to deliver such
Vessel in accordance with the terms of such Palmosa MOA and expenses incurred
with interest.  Any provision hereof  to the contrary notwithstanding, the initial
two Palmosa Vessels to be delivered must be selected from among the four
Palmosa Vessels whose names as shown in Schedule 2 hereto begin with “KUO” and
no substitutions are permitted.

 

7.             Palmosa hereby guarantees the due and punctual
performance by each Palmosa Seller of its obligations under this Palmosa
Supplemental Agreement and under its relevant MOA.

 

8.             This Palmosa Supplemental Agreement shall be governed
and construed in accordance with Title 9 of the Unites States Code and the Law
of the State of New York.

 

9.             Should any dispute arise out of this Palmosa
Supplemental Agreement, the matter in dispute shall be referred to three
persons in New York, one to be appointed by each of Arcade (or, if such
appointment occurs after the Effective Date of Merger, Arcade’s successor in
interest, Conbulk) and Palmosa, and the third by the two chosen; their decision
or that of any two of them shall be final, and for purpose of enforcing any
award, this Palmosa Supplemental Agreement may be made a rule of the
Court.  The proceedings shall be
conducted in accordance with the rules of the Society of Maritime
Arbitrators, Inc. New York.

 

10.           In the event of any conflict between
the provisions of any Palmosa MOA and this Palmosa Supplemental Agreement, the
provisions of this Palmosa Supplement Agreement shall prevail.

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Supplemental Agreement to
be executed and delivered as of this date first above indicated by these duly
authorized officers or representatives.

 

 

	
   

  	
  ARCADE
  ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jonathan Furer

  
	
   

  	
   

  	
  Name:
  Jonathan Furer

  
	
   

  	
   

  	
  Title:
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TDB
  SPV LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dimitris Dalakouras

  
	
   

  	
   

  	
  Name:
  Dimitris Dalakouras

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PALMOSA
  SHIPPING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dimitris Dalakouras

  
	
   

  	
   

  	
  Name:
  Dimitris Dalakouras

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  George Bamiotis

  
	
   

  	
   

  	
  Name:
  George Bamiotis

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  SELLERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KLAUS MARITIME INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dimitris Dalakouras

  
	
   

  	
   

  	
  Name: Dimitris
  Dalakouras

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NATURE SHIPHOLDING LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dimitris Dalakouras

  
	
   

  	
   

  	
  Name: Dimitris
  Dalakouras

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  BALANCE MANAGEMENT LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dimitris Dalakouras

  
	
   

  	
   

  	
  Name: Dimitris
  Dalakouras

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EDWYN SHIPMANAGEMENT CO.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dimitris Dalakouras

  
	
   

  	
   

  	
  Name: Dimitris
  Dalakouras

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OBJECTIVE FINANCE S.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dimitris Dalakouras

  
	
   

  	
   

  	
  Name: Dimitris
  Dalakouras

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CASTELLA SHIPPING INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dimitris Dalakouras

  
	
   

  	
   

  	
  Name: Dimitris
  Dalakouras

  
	
   

  	
   

  	
  Title:

  

 

4

 

SCHEDULE 1

 

DEFINITIONS

 

As
used in the Supplemental Agreement to which this Schedule 1 is attached,
the following terms have the meanings set forth below:

 

	
  “Aggregate
  Purchase Price”

  	
   

  	
  shall
  mean $151,042,520.

  
	
   

  	
   

  	
   

  
	
  “Business
  Combination”

  	
   

  	
  shall
  have the meaning set forth in the LLC Purchase Agreement

  
	
   

  	
   

  	
   

  
	
  “Cash
  Consideration”

  	
   

  	
  shall
  mean as to each Palmosa Vessel, the amount shown in Schedule 2 in the column
  so headed.

  
	
   

  	
   

  	
   

  
	
  “Common
  Stock”

  	
   

  	
  shall
  mean the common stock, par value $0.0001 per share, of Conbulk.

  
	
   

  	
   

  	
   

  
	
  “Effective
  Date of Merger”

  	
   

  	
  shall
  mean the date on which the merger of Arcade into Conbulk becomes effective.

  
	
   

  	
   

  	
   

  
	
  “Initial
  Transaction”

  	
   

  	
  shall
  have the meaning set forth in the LLC Purchase Agreement.

  
	
   

  	
   

  	
   

  
	
  “LLC
  Purchase Agreement”

  	
   

  	
  shall
  mean that certain Membership Interest Purchase and Sale Agreement, dated as
  of September     , 2008, by and among Arcade, TDB
  and Palmosa.

  
	
   

  	
   

  	
   

  
	
  “Merger”

  	
   

  	
  shall
  have the meaning set forth in the LLC Purchase Agreement.

  
	
   

  	
   

  	
   

  
	
  “MOAs”

  	
   

  	
  shall
  mean the Palmosa MOAs and the Tsakos MOAs.

  
	
   

  	
   

  	
   

  
	
  “Palmosa
  MOAs”

  	
   

  	
  shall
  mean, collectively, the memoranda of agreement listed and described under the
  heading “Palmosa Memoranda of Agreement” in Schedule 3.

  
	
   

  	
   

  	
   

  
	
  “Palmosa
  Sellers”

  	
   

  	
  shall
  mean, collectively, those entities affiliated with the Palmosa, identified as
  sellers of the Palmosa Vessels in the Palmosa MOAs listed in Schedule 3.

  
	
   

  	
   

  	
   

  
	
  “Palmosa
  Vessels”

  	
   

  	
  shall
  mean, collectively, the six vessels to be delivered under the Palmosa MOAs.

  
	
   

  	
   

  	
   

  
	
  “Shipco
  SPVs”

  	
   

  	
  shall
  mean, collectively, the six Marshall Islands limited liability companies
  formed by TDB and to be sold and transferred for $1.00 each to Conbulk
  pursuant to the terms of the LLC Purchase Agreement and which will become the
  respective registered owners of the six Palmosa Vessels upon completion of
  the transactions contemplated hereby.

  
	
   

  	
   

  	
   

  
	
  “Stock
  Consideration”

  	
   

  	
  shall
  mean, as to each Palmosa Vessel, the amount shown in Schedule 2 in the column
  so headed.

  

 

 

	
  “Tsakos
  MOAs”

  	
   

  	
  shall
  mean, collectively, the memoranda of agreement listed and described under the
  heading “Tsakos Memoranda of Agreement” in Schedule 3.

  
	
   

  	
   

  	
   

  
	
  “Tsakos
  Vessels”

  	
   

  	
  shall
  mean, collectively, the four Vessels to be delivered under the Tsakos MOAs.

  
	
   

  	
   

  	
   

  
	
  “Vessels”

  	
   

  	
  shall
  mean, collectively, the six Palmosa Vessels and the four Tsakos Vessels.

  

 

 

SCHEDULE 2

 

AGGREGATE PURCHASE PRICE ALLOCATION

 

	
  Vessel Name

  	
   

  	
  Flag

  	
   

  	
  Aggregate

  Price Allocation

  	
   

  	
  Cash

  Consideration(1)

  	
   

  	
  Stock

  Consideration(1)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KUO FU

  	
   

  	
  Panama

  	
   

  	
  $

  	
  29,510,630

  	
   

  	
  $

  	
  18,001,500

  	
   

  	
  $

  	
  11,509,000

  	
   

  
	
  KUO HUNG

  	
   

  	
  Panama

  	
   

  	
  31,510,630

  	
   

  	
  20,551,800

  	
   

  	
  10,959,000

  	
   

  
	
  KUO LUNG

  	
   

  	
  Panama

  	
   

  	
  32,510,630

  	
   

  	
  20,190,500

  	
   

  	
  12,320,000

  	
   

  
	
  KUO TAI

  	
   

  	
  Panama

  	
   

  	
  29,510,630

  	
   

  	
  18,062,700

  	
   

  	
  11,448,000

  	
   

  
	
  MSC BALI

  	
   

  	
  Marshall Islands

  	
   

  	
  13,500,000

  	
   

  	
  6,400,000

  	
   

  	
  7,100,000

  	
   

  
	
  MSC ZANZIBAR

  	
   

  	
  Panama

  	
   

  	
  14,500,000

  	
   

  	
  7,702,500

  	
   

  	
  6,798,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total: $151,042,520

  	
   

  	
  Total:
  $90,909,000

  	
   

  	
  Total:
  $60,134,000

  	
   

  
													

 

(1) Estimated
amounts, based upon scheduled debt amortization through December 31,
2008.  It is the intent of all parties
that the cash consideration for each Palmosa Vessel will equal the actual
amount of outstanding third-party debt on such vessel at closing and that the
difference between the aggregate price allocation and the cash consideration
for each such vessel will constitute the stock consideration.  Accordingly, the cash consideration and the
stock consideration for each such vessel will be adjusted to reflect the true
amount of outstanding third-party debt at the time of closing.  The actual number of shares that are issued
for any vessel will equal the corresponding stock consideration divided by $7.88.

 

 

SCHEDULE 3

 

PALMOSA MEMORANDA OF AGREEMENT

 

Memorandum
of Agreement relating to the KUO FU dated September   , 2008 between TDB SPV LLC or its nominee as
designated in the LLC Purchase Agreement, as buyer, and Klaus Maritime Inc., as
seller.

 

Memorandum
of Agreement relating to the KUO TAI dated September   , 2008 between TDB SPV LLC or its nominee as
designated in the LLC Purchase Agreement, as buyer, and Nature Shipholding Ltd.,
as seller.

 

Memorandum
of Agreement relating to the KUO HUNG dated September   , 2008 between TDB SPV LLC or its nominee as
designated in the LLC Purchase Agreement, as buyer, and Balance Management Ltd.,
as seller.

 

Memorandum
of Agreement relating to the KUO LUNG dated September   , 2008 between TDB SPV LLC or its nominee as
designated in the LLC Purchase Agreement, as buyer, and Edwyn Shipmanagement
Co., as seller.

 

Memorandum
of Agreement relating to the MSC BALI dated September   , 2008 between TDB SPV LLC or its nominee as
designated in the LLC Purchase Agreement, as buyer, and Objective Finance S.A.,
as seller.

 

Memorandum
of Agreement relating to the MSC ZANZIBAR dated September   , 2008 between TDB SPV LLC or its nominee as
designated in the LLC Purchase Agreement, as buyer, and Castella Shipping Inc.,
as seller.

 

TSAKOS MEMORANDA
OF AGREEMENT

 

Memorandum
of Agreement relating to the  CCNI
MEJILLONES dated September   , 2008
between TDB SPV LLC or its nominee as designated in the LLC Purchase Agreement,
as buyer, and Tango Shipping S.A., as seller.

 

Memorandum
of Agreement relating to the MSC SARDINIA dated September   , 2008 between TDB SPV LLC or its nominee as
designated in the LLC Purchase Agreement, as buyer, and Maribel Shipping Corp.,
as seller.

 

Memorandum
of Agreement relating to MSC LONDON dated September   , 2008 between TDB SPV LLC or its nominee as
designated in the LLC Purchase Agreement, as buyer, and Korinia Shipping Company
Limited., as seller.

 

Memorandum
of Agreement relating to MSC BRASILIA dated September   , 2008 between TDB SPV LLC or its nominee as
designated in the LLC Purchase Agreement, as buyer, and Hedgestone Shipping Company
Ltd., as seller.

 

 

SCHEDULE 4

 

	
  Vessel

  	
   

  	
  Charter

  
	
   

  	
   

  	
   

  
	
  KUO FU

  	
   

  	
  Cheng
  Lie Navigation Co. (S) Pte. Ltd. NYPE (81) 14-Feb 2008

  
	
   

  	
   

  	
   

  
	
  KUO HUNG

  	
   

  	
  Kuo
  Hsin Maritime, S.A. NYPE (81) 14-Feb 2008

  
	
   

  	
   

  	
   

  
	
  KUO LUNG

  	
   

  	
  Ching
  and Son Maritime S.A. NYPE (81) 14-Feb 2008

  
	
   

  	
   

  	
   

  
	
  KUO TAI

  	
   

  	
  CnC
  Line Limited NYPE (81) 14-Feb 2008

  
	
   

  	
   

  	
   

  
	
  MSC BALI

  	
   

  	
  Mediterranean
  Shipping Company S.A. NYPE (46) 08-May-2007

  
	
   

  	
   

  	
   

  
	
  MSC ZANZIBAR

  	
   

  	
  Mediterranean
  Shipping Company S.A. NYPE (46) 22-Mar-2007

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]