Document:

Exhibit 10.3

                              CARNIVAL CRUISE LINES
                            MANAGEMENT INCENTIVE PLAN

OBJECTIVE

The Management Incentive Plan (the "Plan") is designed to focus the attention of
Carnival Cruise Lines ("CCL") management on achieving outstanding performance
results as reflected in profitability and other key measures. The Plan provides
a framework within which the participants share in the incremental earnings of
CCL achieved from applicable business operations on a fiscal year-to-year basis.

PLAN ADMINISTRATION

The administrator of the Plan is the Compensation Committee of the Board of
Directors of Carnival Corporation (the "Committee"). The Committee shall have
sole discretion in resolving any questions regarding the administration or terms
of the Plan not addressed in this document as well as in resolving any
ambiguities that may exist in this document. At its discretion, the Committee
may delegate its administrative responsibilities for this Plan.

PLAN YEAR

The "Plan Year" shall be the 12-month period ending November 30 of each year.

PARTICIPATION

Participation in the Plan shall be determined on an annual basis by the
Committee, based on recommendations from the President of CCL, the CEO of
Carnival Corporation and/or the COO of Carnival Corporation. The President of
CCL, Senior Vice Presidents and Vice Presidents of CCL shall be eligible to
participate in the Plan. No employee will have the automatic right to be
selected as a participant for any year nor will being selected as a participant
for one year mean that participation is automatically extended to following
years.

Only persons who are employed by CCL or one of its divisions on the first day of
the Plan Year are eligible to participate in the Plan except that persons who
commence employment or are promoted following the beginning of the Plan Year
may, with the approval of the Committee, be allowed to participate in the Plan.
Such potential late-entry participants will be awarded Points (as defined below)
pro-rated to the time of their entry into the Plan, subject to the approval of
the Committee.

In order to actually receive an Incentive Award (as defined below) under the
Plan, a participant must be employed by CCL or one of its divisions on the last
day of the Plan Year; provided, however, that if a participant is on a leave of
absence that does not meet the requirements of The Family and Medical Leave Act
of 1993 on the last day of the Plan Year, such Incentive Award shall not be
payable until the participant returns to active duty. The only exceptions to
this requirement are for participants whose employment is terminated prior to
the last day of the Plan Year as the result of death, disability or Retirement
("Early Termination Employees") or for other circumstances approved by the
Committee on a case-by-cases basis. If employment is terminated by reason of
death, disability or Retirement, a participant or his/her estate will receive a
pro-rata incentive award based on the portion of the Plan

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Year the participant was employed. For purposes of this section, "Retirement"
means a termination of employment by a participant on or after the earlier of
(i) age 65 with at least five years of employment (either shipboard or
shoreside) with Carnival Corporation, Carnival plc or any successor thereto
and/or their affiliates or (ii) age 55 with at least 15 years of employment
(either shipboard or shoreside) with Carnival Corporation, Carnival plc or any
successor thereto and/or their affiliates.

BONUS POOL

The total amount payable under the Plan for each Plan Year (the "Bonus Pool")
shall be calculated as follows: (Earnings minus the Capital Charge) multiplied
by the Bonus Funding Percentage.

"Earnings" shall mean net income excluding net interest expense and any accrued
expense related to the Plan generated within each Plan Year by CCL and its
divisions calculated in accordance with U.S. generally accepted accounting
principles consistently applied.

"Capital Charge" shall mean 10 percent (10%) of CCL's Average Invested Capital.
"Invested Capital" shall mean shareholder equity plus external and intercompany
debt after subtracting goodwill and construction in progress. "Average Invested
Capital" shall be calculated as follows: the sum of the Invested Capital balance
as of November 30th of the immediately preceding Plan Year and the Invested
Capital balance as of the end of each calendar month during the Plan Year,
divided by 13.

"Bonus Funding Percentage" shall mean 1.75 percent (1.75%).

At the Committee's sole discretion, the potential Bonus Pool funding for a Plan
Year may be increased by up to 20 percent based on performance in other areas as
determined by the Committee (the "Funding Modifiers").

Any changes to the Bonus Funding Percentage and Capital Charge for a Plan Year
as well as any Funding Modifier will be determined by the Committee within 90
days of the commencement of each such Plan Year.

METHOD OF CALCULATING INCENTIVE AWARDS

The Committee shall, in its discretion and after consideration of the
recommendations of the President of CCL and the CEO and COO of Carnival
Corporation, assign a specific number of points (the "Points") to each
participant. The Points awarded to each participant will be communicated to the
participant within ninety (90) days of the employee being initially selected to
become a participant in the Plan and if and when there is a change in the number
of Points assigned to the participant. Such decisions may be revised during a
Plan Year by the Committee due to major changes in position responsibilities
occurring during the Plan Year.

The Committee, in its sole discretion and after consideration of the
recommendations of the President of CCL and the CEO and COO of Carnival
Corporation, may adjust the Points assigned to each participant by multiplying
such participant's Points by a percentage within the range set forth below
corresponding to such participant's evaluated performance for such year (the
"Weighted Points"):

      o     EXCELLENT PERFORMANCE               90 - 100%

      o     GOOD PERFORMANCE                    75 - 89%

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      o     FAIR PERFORMANCE                    60 - 74%

      o     LESS THAN FAIR PERFORMANCE           0 - 59%

In addition, the Committee may adjust the Weighted Points assigned to a
participant for any leaves of absence (other than a leave of absence meeting the
requirements of The Family and Medical Leave Act of 1993 for which no adjustment
will be made). Each participant shall receive an Incentive Award equal to the
product of his or her Weighted Points multiplied by the "Point Value." The Point
Value shall be equal to (i) the amount of the Bonus Pool, divided by (ii) the
aggregate Points (before adjustments) awarded to participants for each Plan
Year.

Any amounts remaining in the Bonus Pool following the calculation of the
Incentive Awards pursuant to the preceding paragraph shall be available for
discretionary distribution by the Committee to participants or may be retained
by CCL.

PAYMENT OF INCENTIVE AWARDS

Except as otherwise provided in the section entitled "Participation," Incentive
Awards shall be paid on a date determined by the Committee which is on or prior
to December 31st following each Plan Year. At the discretion of the Committee,
advance partial payment of Incentive Awards may be made based on anticipated
performance results. At the discretion of the Committee, special arrangements
may be made for earlier payment to Early Termination Employees. All Incentive
Awards payable to "officers" of Carnival Corporation as defined by Rule 16a-1 of
the Securities Exchange Act must be reviewed and approved by the Committee prior
to payment.

At the discretion of the Committee, participants may elect to defer payment of
all or a portion of their Incentive Awards in accordance with and under the
terms of the Carnival Corporation "Fun Ship" Nonqualified Savings Plan or any
successor plan pursuant to Section 409(a) of the Internal Revenue Code.

DURATION OF PLAN

The Plan will be effective until terminated by the Committee, with the Committee
reserving the right to modify how the Bonus Pool is calculated.

AMENDMENT OF PLAN

The Committee may amend the Plan from time to time in such respects as the
Committee may deem advisable.

GOVERNMENTAL AND OTHER REGULATIONS

The Plan shall be subject to all applicable federal and state laws, rules and
regulations and such approvals by any governmental or regulatory agency or
national securities exchange, as may be required.Exhibit 10.4

Pier Luigi Foschi
c/o Costa Crociere S.p.A.
Via XII Ottobre, 2
16150 Genoa
Italy

                                                               February 10, 2005

Dear Mr. Foschi,

      According  to our mutual  understanding,  we hereby  confirm the terms and
conditions of your contract related to your appointment as Chairman of the Board
(Presidente   del   Consiglio  di   Amministrazione)   and   Managing   Director
(Amministratore Delegato) of Costa Crociere S.p.A. (the "Company").

                                     *******

1.    FUNCTIONS AND POWERS

1.1   You shall act as Chairman  and  Managing  Director of the Company with the
      powers contemplated by the by-laws of the Company and granted by the Board
      of Directors of the Company from time to time,  which shall be an integral
      and substantial part of this Agreement.

1.2   In your capacity as Managing  Director,  and in accordance with the powers
      granted by the Board of Directors  of the Company,  you shall be entrusted
      with the managerial control of the Company;  you shall report to the Board
      of Directors of the Company on all major matters  and/or matters which are
      outside the scope of your powers.

2.    DUTIES

2.1   You shall undertake to accept and hold the above mentioned  offices,  with
      the connected powers granted to you, and to perform your functions, as set
      out above:

      a)    in compliance with the Company's by-laws;

      b)    for the  achievement of the business  targets which shall be set out
            by the Company's Board of Directors;

      c)    in compliance  with the Italian Laws in force and with the Company's
            Code of Conduct.

2.2   While  performing  your  functions you shall comply with the business plan
      and the business guidelines adopted by the Company's Board of Directors.

3.    COMPENSATION

3.1   The Company will pay for your services and for the obligations  undertaken
      by you  herein  a base  yearly  pre-tax  compensation  of EURO  757,000.00
      (sevenhundredfiftyseventhousand),    a   portion   of   which   represents
      compensation   of  your  office  as  Chairman   as   established   by  the
      Shareholders'   Meeting  from  time  to  time,  gross  of  the  applicable
      withholding  tax  and  social  security  contributions  to be  paid  in 12
      installments  of equal amount in arrears on the last  business day of each
      month  during the term of this  Agreement,  to the extent you are still in
      office as Chairman and Managing Director of the Company.

3.2   In  addition,  you will be  entitled  to payment of a  performance-related
      bonus  pursuant  to the  terms  and  conditions  which  are  described  in
      Enclosure 1 attached hereto.

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3.3   You will be entitled to use a company car, also for private purposes.  The
      fringe-benefit  value  of such  car  will be  calculated  pursuant  to the
      criteria set forth by the law currently in force.  All  maintenance,  fuel
      and insurance costs will be borne by the Company.

3.4   The Company will grant in your favor insurance  policies covering the risk
      of death,  illness and permanent disability in case of injuries at work as
      well as injuries in general.

3.5   The Company  will  provide you with an  accommodation  in Genoa or nearby,
      according to the terms and conditions to be agreed upon by the parties.

4.    NON-COMPETITION

4.1   During the term of this Agreement and thereafter, you hereby undertake (a)
      not to operate - either  directly or  indirectly  - as  principal,  agent,
      owner,  director,  employee,  partner or advisor in favor of  companies in
      competition  with the Company,  which carry out the ownership,  management
      and  commercial  operations  of  cruise  vessels,  and  not to  acquire  a
      shareholding in the aforesaid  companies,  except for  participations  not
      exceeding 2% in listed  companies  (b) not to endeavor to entice away from
      the  Company or any of its  subsidiaries,  any  person,  firm,  company or
      organization (i) who or which in the preceding 12 months shall have been a
      supplier of goods or services to the Company or any of its  affiliates  or
      subsidiaries,  and (ii) with whom or which you had,  during  the course of
      performance  of your  office of  director,  direct  dealings  or  personal
      contact,  so as to harm the goodwill or, or so as to the compete with, the
      Company or any of its subsidiaries;  (c) not to induce any employee of the
      Company or any of its affiliates and/or subsidiaries to resign in order to
      enter into an employment or independent contractor  relationships in favor
      of third  parties  engaged in the  ownership,  management  and  commercial
      operation of cruise vessels.

      Such  obligations  shall be  effective  for a period  of 3 years as of the
      expiration or the termination of this Agreement for whatsoever reason.

4.2   This  obligation  must be  referred  to the  territory  of Italy,  France,
      Germany and Spain and the  parties  acknowledge  that the above  mentioned
      territorial extension is based upon (i) the multinational character of the
      Company, and (ii) on the fact that the business activity of the Company is
      carried out not only in Italy but also throughout Europe.

4.3   As specific consideration for this non competition obligation, you will be
      paid during the term of this  Agreement  an annual  gross  amount equal to
      Euro 115,000  (onehundredfifteenthousand),  payable in 12  installments of
      equal amount in arrears on the last  business day of each month during the
      term of this Agreement,  to the extent you are still in office as Chairman
      and Managing Director of the Company.

4.4   In the event you do not comply with the obligation of this non competition
      clause,  you undertake to pay to the Company,  as a penalty, a sum of Euro
      230,000 (two hundred thirty thousand) plus any additional damages suffered
      by the Company.

5     CONFIDENTIALITY

5.1   You hereby  undertake,  during the term of this Agreement and  thereafter,
      not to use, disclose or disseminate, either directly or indirectly, to any
      other  person,  organization  or entity or otherwise  employ in any manner
      whatsoever  any  privileged   information  in  any  way  acquired  in  the
      performance  of your  office of  director.  In  particular,  you shall not
      disclose  any  technical  or  financial  information,   design,   process,
      procedure, formula or improvement that is valuable and not generally known
      to the Company's  competitors.  Such  information  shall include,  without
      limitation,  all information and documentation,  whether or not subject to
      copyright,  pertaining to product development,  methods of operation, cost
      and pricing structures, marketing information, corporate strategy, product
      source and customer information, and other private,  confidential business
      matters  relating  to  the  Company  or  any  of  its  affiliates   and/or
      subsidiaries

6.    TERM - RENEWAL

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6.1   Subject to paragraph  7.1 below,  this  Agreement  shall have a term of 12
      (twelve)  months  effective  from  December  1,  2004,  provided  that the
      provisions  of articles 4, 5 and 7 shall survive the  termination  of this
      Agreement to the extent provided therein.

6.2   This  Agreement  shall be  automatically  renewed for a 12 (twelve)  month
      period  at  the   expiration   of  the  term  under   paragraph  6.1  (the
      "Expiration"),  and at the expiration of any subsequent  renewal hereunder
      (the  "Renewal  Expiration"),  unless  either  party has sent to the other
      party notice in writing of its  intention  not to renew this  Agreement at
      least  60  calendar  days in  advance  of the  Expiration  or the  Renewal
      Expiration, as applicable.

6.3   At your request,  in the event of renewal of this  Agreement,  the Company
      will review your  compensation  under  Articles 3.1 and. 3.2. Any mutually
      agreed changes to your  compensation  will be reflected in an amendment to
      this Agreement.

6.4   You  acknowledge  and agree that,  following the Expiration or any Renewal
      Expiration  of this  Agreement,  you shall not be  entitled to receive any
      additional compensation or indemnity under this Agreement or otherwise.

7.    TERMINATION

7.1   The Company  shall be entitled to  terminate  this  Agreement  at any time
      without  notice,  without  prejudice  to the right to seek  damages  under
      applicable law, in case you:

      (a)   are in breach of any of the  obligations set forth in articles 1, 2,
            4 and 5;

      (b)   are revoked as  director  of the  Company for cause  pursuant to the
            Italian Civil Code.

7.2   On the date of termination of this Agreement (and without prejudice to the
      rights or  remedies  of either  party in  respect of such  termination  or
      rights  or  remedies  accrued  as at such date of  termination)  you shall
      promptly:

      (a)   resign (if you have not already done so) from  Chairman and Managing
            Director of the Company, all offices held by you in the subsidiaries
            of the Company or in companies controlling,  directly or indirectly,
            the Company without any compensation for loss of office;

      (b)   return  to  the  Company  all  lists  of   customers   or  contacts,
            correspondence, documents, credit cards and other property belonging
            to the Company, or any of its affiliates and/or subsidiaries,  which
            may be in your possession or under your control.

7.3   Should this  Agreement be terminated by the Company at any time during its
      term, or any renewal thereof, for reasons other than those indicated under
      Article  7.1 above you shall be  entitled  to receive a gross  termination
      payment  (indennita  di fine  mandato):  equal to 1 (one)  time the yearly
      compensation under Article 3.1 and 4.3, plus the amount equal to the bonus
      payable to you by the  Company  under  article 3.2 with  reference  to the
      fiscal year preceding any such termination.

7.4   Should this Agreement be terminated by you at any time during its term, or
      any renewal thereof, as a result of a direct or indirect change of control
      of the  Company,  you shall be  entitled  to  receive a gross  termination
      payment  (indennita  di fine  mandato)  equal to 1 (one)  time the  yearly
      compensation  under Article 3.1 and 4.3 plus the amount equal to the bonus
      payable to you by the  Company  under  article 3.2 with  reference  to the
      fiscal year preceding any such  termination  provided,  however,  that the
      right to such  payment  will not  arise if you enter  into an  alternative
      contractual  arrangement with the Company or the new controlling  group of
      the Company.

7.5   Should you resign with cause under Italian law from the office of Director
      provided herein prior to the expiration of the term on this Agreement,  or
      any  renewal  thereof,  for  reasons  other than  change of control of the
      Company,  you shall be entitled to receive a penalty equal to 1 (one) time
      the yearly compensation under Article 3.1 and 4.3 plus the amount equal to
      the bonus payable to you by the Company  under

<PAGE>

      article  3.2  with  reference  to  the  fiscal  year  preceding  any  such
      termination without being entitled to seek any further damages whatsoever.

8.    MODIFICATIONS - ENTIRE AGREEMENT

8.1   This  agreement  may not be modified,  altered or amended  except by a new
      written agreement between the parties.

8.2   This  Agreement  sets forth the entire  understanding  of the  parties and
      supersedes  any  prior  oral  or  written  agreement  between  you and the
      Company. In particular, the agreement between you and the Company dated 23
      May 2002 is hereby terminated.

9.    APPLICABLE LAW AND JURISDICTION

      This agreement  shall be governed by the laws of the Republic of Italy. To
      the extent  permitted under  applicable law, any possible  dispute arising
      from this agreement shall be settled by the courts of Genoa.

                                      * * *

      We kindly ask you to send us a copy of the  agreement  duly  signed by you
for acceptance.

      Sincerely yours,

                                            /s/ Howard S. Frank
                                         -----------------------
                                         Howard S. Frank - Director

For acceptance

/s/  Pier Luigi Foschi
-------------------------
    Pier Luigi Foschi

Genoa, February 10, 2005

<PAGE>

                                   ENCLOSURE 1

1.    The bonus  calculation uses your 2003-2004 bonus as the "base year" bonus,
      which is 669,000  (sixhundredsixtyninethousand) Euro. Such base bonus will
      be payable irrespective of the net income results.

2.    Your bonus calculation is based on a year-over-year percentage increase in
      consolidated net income for the Company (calculated pursuant to U.S. GAAP)
      in fiscal year 2004-2005  ("Year 1"). The Company  consolidated net income
      would be  adjusted  to  exclude  non-recurring  gains/losses,  such as the
      "Tremonti Law" tax gain, loss/gain on ship disposals,  etc. The percentage
      increase  in  earnings  year-over-year  will be  applied to your base year
      bonus;  for example,  if 2004-2005 net income is 10% higher than 2003-2004
      net income, your bonus will be 10% higher than your base year. So, 669,000
      Euro plus 66,900 Euro,  for a total of 735,900  Euro.  The bonus  increase
      will be capped at 20% of the base year.

3.    In the event of  renewal of this  Agreement,  the bonus  increase  will be
      limited to a cumulative  20% per year on a compounded  basis over the term
      of this Agreement  resulting  from the renewal.  Taking the above example,
      if, in the first year of renewal ("Year 2") the Company  consolidated  net
      income  increases  by 35% from the prior  year,  you will be entitled to a
      bonus  increase  in Year 2 which  will  bring your bonus to a 20% per year
      increase for a two-year period on a compounded basis. This would calculate
      as follows:

      Base year 669,000 (sixhundredsixtyninethousand) Euro x 20% in Year 1 x 20%
      in Year 2 =  963,360  (ninehundredsixtythreehundredsixty)  Euro in Year 2,
      plus an  additional  66,900  Euro to  "true  up" for Year 1, or a total of
      1,030,260  (onemillionthirtythousandtwohundredsixty)  Euro payable in Year
      2.

4.    Conversely, if the Company consolidated net income for 2004-2005 increased
      by 30% and for 2005-2006  increased by 15%, you would receive a bonus on a
      20% compounded  basis per year (i.e 802,800 Euro for 2004-2005 and 963,360
      Euro for 2005-2006), since the increase in earnings exceeded 20% per annum
      on a compounded  basis for the two years and the bonus increase is limited
      to a cumulative 20% per annum on a compounded basis.

5.    If  consolidated  net income of the  Company is lower than the prior year,
      the bonus would be reduced by the percentage in net decrease, but no lower
      than base bonus. Also, no retroactive adjustment will be made to the prior
      year's bonus as a result of the decrease in consolidated  net income.  For
      example,  if  consolidated  net income was increased by 15% in Year 1, but
      was down 10% in Year 2, the Year 2 bonus would be  calculated  as follows:
      669,000  (sixhundredsixtyninethousand)  Euro x 115%  in  Year 1  would  be
      769,350   (sevenhundredsixtyninethousandthreehundredfifty)  Euro;  769,350
      (sevenhundredsixtyninethousandthreehundredfifty)  Euro less 10% for Year 2
      would be 692,415  (sixhundredninetytwothousandfourhundredfifteen) Euro for
      Year 2 bonus.  Although earnings for the two year period increased only 5%
      cumulatively, no retroactive adjustment would be made to the Year 1 bonus.

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