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  EXHIBIT 10.7.4    
    

 
 

  FEDERAL HOME LOAN BANK OF BOSTON
  2010 DIRECTOR COMPENSATION POLICY    
    

        A fee of $5,575 per meeting shall be paid to all Directors that attend all or part of a meeting of the Board of Directors. A fee of
$6,300 per meeting shall be paid to the chair of all committees except for the chair of the Audit Committee which shall be $7,000 per meeting. A fee of $7,000 per meeting shall be paid to the vice
chair of the Board. A fee of $7,750 per meeting shall be paid to the chair of the Board. This fee shall also be provided to any person elected by the Board to serve as chairman pro tempore or to the
vice chair if the vice chair presides for an entire meeting of the Board. There are eight regularly scheduled meetings in 2010. 

        A
fee of $2,000 per meeting shall be paid to all committee members, including ex officio members, who attend all or any part of any meeting of a committee of the Board. 

        A
fee of $1,325 per meeting shall be paid to any Director for participation in telephonic conference calls or when participating by telephone for all or any part of a meeting in which
the Director would be entitled to receive a meeting fee for in-person attendance at such meeting. 

        Fees
shall be paid per meeting. For example, if a Board meeting and committee meeting occur on the same day, a separate fee shall be payable for attendance at each meeting. Additionally,
in the case of a multi-day meeting, a separate fee shall be payable for each day's attendance at the same meeting. 

        In
the event that inclement weather prevents the occurrence of a planned meeting of the Board or one of its committees, the Directors shall be entitled to receive the applicable meeting
fee called for in the Statement of Policy, minus any fees received if an in-person meeting is changed to a telephonic meeting. 

 Maximum Fees  

        The maximum fees for 2010 for the Chair shall be $60,000, for the Vice Chair $55,000, for the Chair of the Audit Committee $55,000, for
all other Committee Chairs $50,000, and for Directors $45,000. 

 Administrative Matters  

        The Personnel Committee shall annually review this policy and shall submit its recommendation to the Board. The Board shall consider
the recommendations of the Personnel Committee and shall approve the policy no later than required to allow for submission, review and approval of the Director of the Federal Housing Finance Agency
(FHFA), if required, to ensure that directors are paid timely for the first regularly scheduled meeting of the Board in which the policy shall apply. The Board is authorized, in its sole discretion,
to interpret the provisions of the policy and to address situations not anticipated or covered by this policy as it determines to be appropriate, consistent with the requirements set forth in the
regulations promulgated by the Federal Housing Finance Agency, if any. 

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EXHIBIT 10.7.4

FEDERAL HOME LOAN BANK OF BOSTON 2010 DIRECTOR COMPENSATION POLICYExhibit 10.1

 

 

ALMA MARITIME LIMITED

 

 

- and -

 

 

EMPIRE NAVIGATION INC.

 

 

MANAGEMENT AGREEMENT

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  I

  	
  INTERPRETATION

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II

  	
  APPOINTMENT

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III

  	
  THE
  PARENT’S GENERAL OBLIGATIONS

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV

  	
  THE
  MANAGER’S GENERAL OBLIGATIONS

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V

  	
  ADMINISTRATIVE
  SERVICES

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI

  	
  COMMERCIAL
  SERVICES

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  	
  INSURANCE

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  	
  AVAILABILITY
  OF OFFICERS

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX

  	
  MANAGEMENT
  FEES AND EXPENSES

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  X

  	
  BUDGETS,
  CORPORATE PLANNING AND EXPENSES

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XI

  	
  LIABILITY
  AND INDEMNITY

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XII

  	
  RIGHTS
  OF THE MANAGER AND RESTRICTIONS ON THE MANAGER’S AUTHORITY

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XIII

  	
  TERMINATION
  OF THIS AGREEMENT

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XIV

  	
  CHANGE
  IN CONTROL OF THE MANAGER AND RIGHT OF FIRST OFFER

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XV

  	
  NOTICES

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XVI

  	
  APPLICABLE
  LAW

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XVII

  	
  ARBITRATION

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XVIII

  	
  MISCELLANEOUS

  	
  25

  
	
   

  	
   

  	
   

  
	
  APPENDIX
  I

  	
  Form of
  Shipmanagement Agreement

  	
   

  
	
  APPENDIX
  II

  	
  Form of
  Supervision Agreement

  	
   

  

 

i

 

THIS MANAGEMENT AGREEMENT (this “Agreement”)
is made on the      day of March, 2010, BY AND BETWEEN:

 

(1)                                  ALMA MARITIME
LIMITED, a company organized and existing under the laws of the Republic of the
Marshall Islands (the “Parent”); and

 

(2)                                  EMPIRE
NAVIGATION INC., a company organized and existing under the laws of the
Republic of the Marshall Islands (the “Manager”).

 

WHEREAS:

 

(A)                              The Parent
directly or indirectly wholly owns or will wholly own (i) the corporations
identified on Schedule A hereto, as such Schedule A may be amended from time to
time (the “Shipowning Subsidiaries”), each of which owns or will own one
or more Tankers (as defined below) or Drybulk Carriers (as defined below) (together,
the “Vessels”) and (ii) the corporations identified on Schedule B
hereto, as such Schedule B may be amended from time to time (together with the
Shipowning Subsidiaries, the “Subsidiaries”).

 

(B)                                The Manager has
the benefit of expertise in the technical and commercial management of Tankers
and Drybulk Carriers and administration of shipowning companies generally.

 

(C)                                The Parent and
the Manager desire to adopt this Agreement, pursuant to which the Manager shall
represent the Group (as defined below) in its dealings with third parties and
provide either directly or through a Submanager (as defined below) technical,
commercial, administrative and certain other services to the Group as specified
herein in connection with the management and administration of the business of
the Group.

 

NOW, THEREFORE, THE PARTIES
HEREBY AGREE:

 

ARTICLE
I

 

INTERPRETATION

 

SECTION 1.1.                                               In this
Agreement, unless the context otherwise requires:

 

“Affiliates” means,
with respect to any Person as at any particular date, any other Persons that
directly or indirectly, through one or more intermediaries, are Controlled by,
Control or are under common Control with the Person in question, and “Affiliate”
means any one of them.

 

“Affirmative Response”
shall have the meaning set forth in Section 14.3(b).

 

“Agreement” shall
have the meaning set forth in the preamble.

 

“Approved Budget”
shall have the meaning set forth in Section 10.3.

 

 

“Board of Directors”
means the board of directors of the Parent as the same may be constituted from
time to time.

 

“Business Days” means
a day (excluding Saturdays and Sundays) on which banks are open for business in
Athens, Greece; and New York, New York.

 

“Change in Control of the
Manager” means (a) a sale of all or substantially all of the assets or
property of the Manager, (b) a sale of the Manager’s shares resulting in
Stamatis Molaris (together with any trusts or entities established for the
benefit of Stamatis Molaris or his family, and any other entities wholly-owned
by Stamatis Molaris and members of his family) owning less than 50.1% of the
outstanding voting securities of the Manager or (c) a merger,
consolidation, recapitalization or similar transaction, as a result of which
Stamatis Molaris (together with any trusts or entities established for the
benefit of Stamatis Molaris or his family, and any other entities wholly-owned
by Stamatis Molaris and members of his family) beneficially own less than 50.1%
of the outstanding voting securities of the resulting entity following such
transaction.

 

“Change in Control of the
Parent” means the occurrence of any of the following events: (a) if
any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Exchange Act or any successor provisions to either of the foregoing),
including any group acting for the purpose of acquiring, holding, voting or
disposing of securities within the meaning of Rule 13d-5(b)(1) under
the Exchange Act (other than one or more Pre-IPO Stockholders) (collectively,
an “Acquiring Person”), becomes the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of 50% or more of the total
voting power of the outstanding voting securities of the Parent; or (b) the
approval by the shareholders of the Parent of a proposed merger, consolidation,
recapitalization or similar transaction, as a result of which any Acquiring
Person becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of 50% or more of the total voting power
of the outstanding voting securities of the resulting entity following such
transaction; or (c) a change in directors after which a majority of the
members of the Board of Directors are not Continuing Directors. For purposes of
this definition, such person or group shall be deemed to beneficially own any
outstanding voting securities of a corporation held by any other corporation
(the “parent corporation”) so long as such person or group beneficially owns,
directly or indirectly, in the aggregate a majority of the total voting power
of the outstanding voting securities of such parent corporation.

 

“Commission Free
Newbuilds Delivery” has the meaning set forth in Section 9.1(d) of
this Agreement.

 

“Control” or “Controlled”
means, with respect to any Person, the right to elect or appoint, directly or
indirectly, a majority of the directors of such Person or a majority of the
Persons who have the right, including any contractual right, to manage and
direct the business, affairs and operations of such Person, or the possession
of the power to direct or cause the direction of the management and policies of
a Person, whether through ownership of voting securities, by contract, or
otherwise.

 

2

 

“Consent of the Parent”
means the prior written consent of a majority of the disinterested members of
the Board of Directors.

 

“Continuing Directors”
means, as of any date of determination, any member of the Board of Directors
who (i) was a member of the Board of Directors immediately after the
Effective Date, or (ii) was nominated for election or elected to the Board
of Directors with the approval of a majority of the directors then still in
office who were either directors immediately after the Effective Date or whose
nomination or election was previously so approved.

 

“Crew” shall have the
meaning set forth in clause 1 of each Shipmanagement Agreement.

 

“Draft Budget” shall
have the meaning set forth in Section 10.1.

 

“Drybulk Carrier”
means any ocean-going vessel (including any Newbuild) that is intended to be
used primarily to transport non-liquid cargoes of commodities shipped in an
unpackaged state.

 

“Drybulk Carrier Business”
means any business involved in the ownership or operation of Drybulk Carriers.

 

“Effective Date”
means the date upon which the initial public offering of the common stock of
the Parent is consummated.

 

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

 

“Executive Officers”
means the Chief Executive Officer, and the Chief Financial Officer of the
Parent, and/or such other officers of the Parent that may be agreed by the
parties hereto after the date of this Agreement from time to time.

 

“First Offer Notice”
shall have the meaning set forth in Section 14.3(a).

 

“First Offer Period”
shall have the meaning set forth in Section 14.3(b).

 

“Force Majeure” shall
have the meaning set forth in Section 11.1.

 

“Group” means, at any
time, the Parent and the Subsidiaries at such time taking into account the
Schedule A and Schedule B in effect at such time and “member of the Group”
shall be construed accordingly.

 

“Icon Vessels” shall
mean, collectively, the vessels owned by ICON Doubtless, LLC, ICON Faithful,
LLC, ICON Spotless, LLC and Isomar Marine Co. Limited that are managed as of
the date of this Agreement by the Manager, in each case, pursuant to a separate
agreement.

 

“Initial Term” shall
have the meaning set forth in Section 13.1.

 

3

 

“Lillie” shall mean
the Capesize drybulk carrier for which Lille Shipco LLC has a construction
contract as of the date of this Agreement.

 

“Management Fee”
shall have the meaning set forth in Section 9.1.

 

“Management Services”
shall have, in relation to a Vessel, the meaning set forth in clause 1 of the
Shipmanagement Agreement applicable to such Vessel.

 

“Manager” shall have
the meaning set forth in the preamble.

 

“Manager Related Parties”
shall have the meaning set forth in Section 11.2.

 

“Negative Response”
shall have the meaning set forth in Section 14.3(b).

 

“Newbuild” means a
new vessel to be or which has just been constructed, or is under construction,
which a member of the Group has agreed to acquire pursuant to a shipbuilding
contract, memorandum of agreement or otherwise.

 

“Parent” shall have
the meaning set forth in the preamble.

 

“Person” means an
individual, corporation, limited liability company, partnership, joint venture,
trust or trustee, unincorporated organization, association, governmental
authority or other entity.

 

“Pre-IPO Stockholders”
shall mean MK Maritime LLC, Maas Capital Investments B.V., Kingsway Navigation
Limited and Gallery Services Ltd. and their respective affiliates.

 

“Proposed Change in
Control of the Manager” means (a) the approval by the board of
directors of the Manager or the shareholders of the Manager of a proposed sale
of all or substantially all of the assets or property of the Manager necessary
for the performance of its services under this Agreement, (b) the approval
by the shareholders of the Manager of a proposed sale of the Manager’s shares
that would result in Stamatis Molaris (together with any trusts or entities
established for the benefit of Stamatis Molaris or his family, and any other
entities wholly-owned by Stamatis Molaris and members of his family) owning
less than 50.1% of the outstanding voting securities of the Manager or (c) the
approval by the shareholders of the Manager of a proposed merger,
consolidation, recapitalization or similar transaction, as a result of which
Stamatis Molaris (together with any trusts or entities established for the
benefit of Stamatis Molaris or his family, and any other entities wholly-owned
by Stamatis Molaris and members of his family) would beneficially own less than
50.1% of the outstanding voting securities of the resulting entity following
such transaction.

 

“Questioned Items”
shall have the meaning set forth in Section 10.2.

 

“Services” shall have
the meaning set forth in Section 2.3.

 

“Shipmanagement Agreement”
shall have the meaning set forth in Section 3.2.

 

4

 

“Shipowning Subsidiaries”
shall have the meaning set forth in the recitals.

 

“Submanager” shall
have the meaning set forth in Section 2.4.

 

“Subsequent Term”
shall have the meaning set forth in Section 13.1.

 

“Subsidiaries” shall
have the meaning set forth in the recitals.

 

“Supervision Agreement”
shall have the meaning set forth in Section 3.3.

 

“Tanker” means any
ocean-going vessel (including any Newbuild) that is intended to be used
primarily to transport crude oil or refined petroleum products.

 

“Tanker Business”
means any business involved in the ownership or operation of Tankers.

 

“Term” shall have the
meaning set forth in Section 13.1.

 

“Termination Payment”  means an amount of cash equal to
three times (a) aggregate Management Fees for the past three completed
years of the Term divided by (b) three.

 

“Vessels” shall have
the meaning set forth in the recitals.

 

SECTION 1.2.                                               The headings of
this Agreement are for ease of reference and do not limit or otherwise affect
the meaning hereof.

 

SECTION 1.3.                                               All the terms
of this Agreement, whether so expressed or not, shall be binding upon the
parties hereto and their respective successors and assigns.

 

SECTION 1.4.                                               In the event of
any conflict between this Agreement, any Shipmanagement Agreement or any
Supervision Agreement, the provisions of this Agreement shall prevail.

 

SECTION 1.5.                                               Unless
otherwise specified, all references to money refer to the legal currency of the
United States of America.

 

SECTION 1.6.                                               Unless the
context otherwise requires, words in the singular include the plural and vice
versa.

 

ARTICLE
II

 

APPOINTMENT

 

SECTION 2.1.                                               The Manager is
hereby appointed by the Parent as the administrative manager of the Group and
hereby accepts such appointment on the terms and conditions of this Agreement.

 

5

 

SECTION 2.2.                                               The Manager
shall be appointed by (a) each Shipowning Subsidiary pursuant to the
provisions of Section 3.2 hereof as the technical and commercial manager
of each such Shipowning Subsidiary’s Vessel on the terms and conditions of the
relevant Shipmanagement Agreement and this Agreement and (b) each member
of the Group acquiring a Newbuild, as the supervisor of the construction
thereof on the terms and conditions of the relevant Supervision Agreement and
this Agreement.

 

SECTION 2.3.                                               The Manager
undertakes to use its best endeavors to provide:

 

(a)                                  the services
specified in Articles V, VI, VII and VIII of this Agreement;

 

(b)                                 the services
specified in each Supervision Agreement; and

 

(c)                                  the Management
Services in respect of each Vessel specified in each Shipmanagement Agreement
(the services to be provided under Sections 2.3(a), 2.3(b) and 2.3(c) collectively
the “Services”).

 

SECTION 2.4.                                               The Manager may
with the Consent of the Parent (such consent not to be unreasonably withheld)
appoint any Person (a “Submanager”) at any time throughout the duration
of this Agreement to discharge any of the Manager’s duties under this
Agreement.  The Manager shall appoint a
Submanager either by entering into a management agreement (in a form to be
agreed between the relevant parties) directly with such Submanager or by
directing such Submanager to enter into a management agreement directly with
the relevant member of the Group (such management agreement to be on terms to
be agreed between the parties thereto).

 

SECTION 2.5.                                               The Manager’s
power to delegate performance of any provision of this Agreement hereunder is
without prejudice to the Manager’s liability to the Parent to perform this
Agreement with the intention that the Manager shall remain responsible to the
Parent for the due and timely performance of all duties and responsibilities of
the Manager hereunder PROVIDED HOWEVER that to the extent that any Submanager
has performed any such duty, the Manager shall not be under any obligation to
perform again the same duty.

 

ARTICLE
III

 

THE
PARENT’S GENERAL OBLIGATIONS

 

SECTION 3.1.                                               The Parent
shall notify the Manager as soon as possible of any purchase of any vessel
(whether the same is a second-hand vessel or a Newbuild), the delivery of any
Newbuild from the relevant builder or intermediate seller to the relevant
member of the Group to take ownership of such Newbuild, the sale of any Vessel,
the purchase or creation of any direct or indirect subsidiary of the Parent or
the sale or divestiture of any Subsidiary and shall promptly amend Schedule A
and Schedule B hereto, as applicable, to be reflective of any such development.
Such amended Schedule A or Schedule B shall be effective on any such day as
mutually agreed by the Parent and the Manager, which date shall be no later
than five Business Days after delivery of such amended Schedule A and/or
Schedule B to the Manager by the Parent.

 

6

 

SECTION 3.2.                In relation to each Vessel the
Parent shall cause the Shipowning Subsidiary that owns such Vessel to enter
into with the Manager, and the Manager shall enter into with such Shipowning
Subsidiary, a contract substantially in the form attached hereto as Appendix I
(each a “Shipmanagement Agreement” and, collectively, the “Shipmanagement
Agreements”), with such alterations and additions as are agreed by the
Manager and such Shipowning Subsidiary to be appropriate; provided that any
alterations or additions which materially vary from such form shall require the
approval of the Board of Directors.

 

SECTION 3.3.                In relation to each Newbuild the
Parent shall, or shall procure that the relevant member of the Group that owns
or has agreed to acquire such Newbuild shall, enter into with the Manager, and
the Manager shall enter into with such member of the Group, a contract
substantially in the form attached hereto as Appendix II (each a “Supervision
Agreement” and, collectively, the “Supervision Agreements”), with
such alterations and additions as are agreed by the Manager and such member of
the Group to be appropriate, having regard to the terms and conditions of the
particular shipbuilding contract, memorandum of agreement or other agreement
relating to the acquisition of the relevant Newbuild; provided that any
alterations or additions which materially vary from such form shall require the
approval of the Board of Directors.

 

SECTION 3.4.                The Parent shall pay, or shall
cause another member of the Group to pay, all sums due to the Manager
punctually in accordance with the terms of this Agreement, any Shipmanagement
Agreement and/or any Supervision Agreement.

 

SECTION 3.5.                The Parent shall procure that
each other member of the Group (a) performs its obligations under any
Shipmanagement Agreement or any Supervision Agreement to which it is a party
and (b) does not take any action or omit to take any action the effect of
which is to cause the Parent or the Manager or any Submanager to be in breach
of this Agreement, any Shipmanagement Agreement and/or any Supervision
Agreement.

 

SECTION 3.6.                The Parent agrees that it has
engaged the Manager to provide the Services on an exclusive basis and, without
receiving the prior written approval of the Manager or before it has terminated
this Agreement in accordance with its terms, it will not engage any other
entity to provide any of the Services.

 

ARTICLE
IV

 

THE
MANAGER’S GENERAL OBLIGATIONS

 

SECTION 4.1.                In the exercise of its duties
hereunder, the Manager shall act fully in accordance with the reasonable
policies, guidelines and instructions from time to time communicated to it in
writing by any member of the Group, exercising skill and diligence to carry out
its duties under this Agreement according to sound technical and commercial
shipmanagement standards.

 

SECTION 4.2.                The Manager shall act and do all
and/or any of the following acts or things described in this Agreement and the
relevant Shipmanagement Agreement or, as 

 

7

 

the case may be, Supervision Agreement applicable to each Vessel in the
name and/or on behalf of the Parent and/or, as the context may require, the
relevant Subsidiary.

 

SECTION 4.3.                The Manager acknowledges that
the services it will provide pursuant to the Shipmanagement Agreements and the
Supervision Agreements are not limited to the services described in such
agreements and include those set forth in this Agreement.

 

SECTION 4.4.                The Manager shall ensure that
all material property of any member of the Group is clearly identified as such,
held separately from the property of the Manager and, where applicable, held in
safe custody.

 

SECTION 4.5.                The Manager shall ensure that
adequate manpower is employed by it to perform its obligations under this Agreement,
PROVIDED HOWEVER, that the Manager, in the performance of its responsibilities
under this Agreement, shall be entitled to have regard to its overall
responsibilities in relation to the management of its clients and in
particular, without prejudice to the generality of the foregoing, the Manager
shall be entitled to allocate available resources and services in such manner
as in the prevailing circumstances the Manager considers to be fair and
reasonable.

 

SECTION 4.6.                Notwithstanding anything to the
contrary contained in this Agreement, any Shipmanagement Agreement or any
Supervision Agreement, the Manager agrees that any and all decisions of a
material nature relating to the Parent, any Subsidiary, or any Vessel shall be
reserved to the Parent, such decisions including, but not being limited to:

 

(a)           the purchase and/or
sale of shares in any entity or other assets of a material nature or the sale
of a Vessel or the purchase of a vessel;

 

(b)           the purchase or
formation of subsidiaries;

 

(c)           the entry into
guarantees or loans or other forms of financing and any and all financial
undertakings and commitments connected therewith;

 

(d)           the entry into
and/or termination or amendment of any contractual relationships between any
member of the Group and a third party or another member of the Group; and

 

(e)           the presentation,
negotiation, settlement, prosecution or defense of any claim, demand or
petition for an amount exceeding $100,000 or its equivalent.

 

SECTION 4.7.                During the Term, the Manager
shall promote the business of the Group in accordance with the directions of
the authorized representative of the respective member of the Group and shall
at all times use its best efforts to conform to and comply with the lawful and
reasonable directions, regulations or recommendations made by such authorized
representative, and in the absence of any specific directions or
recommendations as aforesaid and, subject to the terms and conditions of this
Agreement, shall provide general administrative and advisory services in
connection with the management of the business of the Group.

 

8

 

SECTION 4.8.                The Manager, in the performance
of its responsibilities under this Agreement, any Supervision Agreement or any
Shipmanagement Agreement, shall ensure that any purchases of products or
services from any of its Affiliates or any other related entity shall be on
terms no less favorable than the market prices for products or services that
the Manager could obtain on an arm’s-length basis from unrelated third parties.

 

SECTION 4.9.                During the term hereof, the
Manager agrees that, except in respect of the Icon Vessels and the Lillie, it will provide the services in
this Agreement to the Group on an exclusive basis and, without receiving the
Consent of the Parent, neither it nor any Affiliate of the Manager will provide
any Services or other services contemplated herein to any entity other than the
Parent and the Subsidiaries.

 

SECTION 4.10.              The Manager shall at all times
maintain and keep true and correct accounts as regards the Services and shall
make the same available for inspection and auditing by the Parent at such times
as may be mutually agreed by the Manager, on the one hand, and the Parent, on
the other hand.

 

ARTICLE
V

 

ADMINISTRATIVE
SERVICES

 

SECTION 5.1.                The Manager shall provide
certain general administrative services to the Group, including, but not
limited to, the following:

 

(a)           keeping all books
and records of things done and transactions performed on behalf of any member
of the Group as it may require from time to time, including, but not limited
to, liaising with accountants, lawyers and other professional advisors;

 

(b)           except as otherwise
contemplated herein, representing any member of the Group generally in its
dealings and relations with third parties;

 

(c)           maintaining the
general ledgers of the Group, reconciling of the Group’s bank accounts,
preparing of periodic financial statements, including, but not limited to,
those required for governmental and regulatory or self-regulatory agency
filings and reports to shareholders, arranging for the audit of any such
financial statements and the provision of related data processing services;

 

(d)           providing assistance
in the preparation and filing of periodic and other reports, proxy statements,
registration statements and other documents and reports required by applicable
law or the rules of any securities exchange or inter-dealer quotation
system on which the securities of the Parent or any member of the Group may be
listed or quoted;

 

(e)           preparing and
providing all tax returns required by any law or regulatory authority and
developing, maintaining and monitoring internal audit controls, disclosure
controls and information technology for the Group;

 

9

 

(f)            appointing lawyers,
at the Parent’s cost, for providing all legal services to ensure that each
member of the Group is in compliance with all applicable laws, including all
relevant securities laws, and owns or possesses all licenses, patents,
copyrights and trademarks which are necessary and used in the operation of its
business;

 

(g)           appointing lawyers,
at the Parent’s cost, for providing for the presentation, negotiation,
settlement, prosecution or defense of any claim, demand or petition on behalf
of any member of the Group arising in connection with the business of any
member of the Group for an amount not exceeding $100,000 or its equivalent,
including the pursuit by any member of the Group of any rights of
indemnification or reimbursement;

 

(h)           providing advice to
the Group with respect to financing, including entering into negotiations with
banks or other financial institutions for the purpose of arranging financing
for the Parent and its Subsidiaries and the monitoring and administration of
compliance with any applicable financing terms and conditions in effect with
investors, banks or other financial institutions;

 

(i)            assisting
with arranging board meetings, director accommodation and travel for board
meetings and preparing meeting materials and detailed papers and agendas for
scheduled meetings of the Board of Directors or the board of directors of any
other member of the Group (and any and all committees thereof) that, where
applicable, contain such information as is reasonably available to the Manager
to enable the Board of Directors or such other board of directors (and any such
committees) to base their opinion;

 

(j)            preparing or
causing to be prepared reports to be considered by the Board of Directors (or
any applicable committee thereof) in accordance with the Parent’s internal
policies and procedures on any acquisition, investment or sale of any part of
the business;

 

(k)           administering
payroll services, benefits and director’s or consultant’s fees, as applicable,
for any employee, officer, consultant or director of any member of the Group;

 

(l)            at the request of
the Parent, negotiating and arranging for cash management services, financing
and hedging arrangements relating to interest rates, currency exchange rates
and commodity prices;

 

(m)          handling general and
administrative expenses of the Parent, which are related to its operation as a
public company and, upon being provided by the Parent with funds in accordance
with the terms of Article X of this Agreement, arranging for the payment
of the same;

 

(n)           appointing lawyers,
at the Parent’s cost, for handling all administrative and clerical matters in
respect of (i) the calling and arrangement of all annual and/or special
meetings of shareholders of the Parent, (ii) the 

 

10

 

preparation
of all materials (including notices of meetings and information circulars) in
respect thereof and (iii) the submission of all such materials to the
Parent in sufficient time prior to the dates upon which they must be mailed,
filed or otherwise relied upon so that the Parent has full opportunity to
review, approve, execute and return them to the Manager for filing or mailing
or other disposition as the Parent may require or direct;

 

(o)           providing, at the
request and under the direction of the Parent, such communications to the
transfer agent for the Parent as may be necessary or desirable; and

 

(p)           providing any such
other administrative services as the Parent, the authorized Executive Officers
or any other representative of the Parent may request and the Manager may agree
to provide from time to time.

 

ARTICLE
VI

 

COMMERCIAL
SERVICES

 

SECTION 6.1.                In addition to the services
provided by the Manager under clause 3.3 of each Shipmanagement Agreement, the
Manager shall provide the following commercial services to the Group:

 

(a)           performing class
records review and physical inspections in connection with any vessel to be
purchased by a member of the Group;

 

(b)           at the request and
under the direction of the Parent, providing administrative services in
connection with the purchase of a second-hand vessel or the acquisition or sale
of a Newbuild, in either case by any member of the Group, including, if
specifically instructed by the Parent in writing, signing any agreed form of
memorandum of agreement, shipbuilding contract or other similar contract for
and on behalf of the relevant member of the Group; and

 

(c)           at the request of
the Parent, providing certain services in connection with a member of the Group
taking physical delivery of a Vessel or registering a vessel or deleting a
vessel from the applicable port of registry on behalf of the relevant member of
the Group.

 

ARTICLE
VII

 

INSURANCE

 

SECTION 7.1.                In addition to any duties of the
Manager to insure the Vessels as provided in clause 3.4 of each Shipmanagement
Agreement, the Manager shall:

 

(a)           arrange either
directly or, through insurance brokers appointed by the Manager, to effect
Directors & Officers Liability insurance for the Board of 

 

11

 

Directors
and officers of the Company with such insurance companies, at such rates and
otherwise on such other terms as the Parent shall have instructed;

 

(b)           on request, provide
the Parent with a copy of any insurance claims and any reports prepared by the
relevant insurers; and

 

(c)           subject to having
been provided with funds by the Parent in accordance with Article X,
ensure that all premiums on such insurance are paid in a timely fashion.

 

ARTICLE
VIII

 

AVAILABILITY
OF OFFICERS

 

SECTION 8.1.                The Manager shall provide the
Group with the services of those officers from time to time agreed with the
Parent, with the remuneration for such officers  to be from time to time agreed with the Parent and reimbursed
to the Manager.

 

SECTION 8.2.                The Executive Officers are
entitled to direct the Manager to remove and replace any individual made
available to any member of the Group by the Manager serving as an officer or
any senior manager serving as head of a business unit, in either case, of that
member of the Group other than any Executive Officer, from such position.  The Board of Directors, in its sole
discretion, shall be entitled to direct the Manager to remove any individual
made available to the Parent by the Manager serving as an officer from such
position and to appoint such other individual to serve as successor as the
Board of Directors shall approve. Furthermore, the Manager agrees that it will
not remove any individual made available to any member of the Group by the
Manager serving as an officer or senior manager of that member of the Group
from his or her position without the consent of the Executive Officers and, in
the case of any Executive Officer, the Consent of the Board of Directors. If
any officer or senior manager who is made available to the Parent by the
Manager resigns, is terminated or otherwise vacates his or her office, the
Manager shall, as soon as practicable after acceptance of any resignation or
after termination, use reasonable best efforts to identify suitable candidates
for replacement of such officer.

 

SECTION 8.3.                The Parent may employ directly,
at its sole cost, any other officers, senior managers or employees as it may
deem necessary, and such individuals will not be subject to this Agreement.

 

SECTION 8.4.                The Manager will report to the
Parent and the Board of Directors through any one or more of the Executive
Officers.

 

ARTICLE
IX

 

MANAGEMENT
FEES AND EXPENSES

 

SECTION 9.1.                In consideration of the Manager’s
providing the Services to the Group, subject to Section 9.4 hereof, the
Parent shall pay the Manager the following fees (together, the “Management
Fees” and, on a per Vessel basis, the “Management Fee”):

 

 

12

 

(a)           Subject to paragraph
(b) below, a fee of $750 per day per Vessel, payable monthly in arrears
(based on the number of days that the Parent (or any Subsidiary) owns or
charters-in each Vessel during the applicable month);

 

(b)           a fee of $350 per
day per Vessel chartered-out to a third party on a bareboat charter basis
payable monthly in arrears (based on the number of days that the Parent (or any
Subsidiary) owns each such Vessel during the applicable month);

 

(c)           a fee equal to 1.25%
calculated on the aggregate of the gross freight, demurrage, charter hire and
ballast bonus obtained for the employment of each Vessel during the Term,
payable to the Manager monthly in arrears, but only to the extent such freight,
demurrage, charter hire or ballast bonus, as the case may be, is recognized as
revenue by the Group;

 

(d)           a commission equal
to 1.0% calculated on the price set forth in the memorandum of agreement or
other sale and purchase contract or any shipbuilding contract for any newbuild
or any vessel (including the Vessels), other than for the delivery of the
Newbuilds set forth on Schedule C hereto to the relevant member of the Group
(the “Commission Free Newbuilds Delivery”), bought or sold or ordered by
the Parent or any Subsidiary, payable upon final delivery of such vessel to the
relevant member of the Group or the relevant purchaser, as applicable;

 

(e)           a fee of $7,500 per
month per Newbuild for the services rendered by the Manager under the
Supervision Agreement in respect of such Newbuild, payable in accordance with
the terms of such Supervision Agreement; and

 

(f)            a fee of $20,000
per month for the administrative services rendered by the Manager under Section 5
hereof.

 

SECTION 9.2.                The Manager shall have the right
to demand the Management Fee payable in relation to each Vessel from either the
Parent or the relevant member of the Group owning such Vessel under the terms
of the relevant Shipmanagement Agreement or Supervision Agreement, as
applicable. By written notice to the Parent, the Manager may direct the Parent
to pay any amounts owing by the Manager to any Submanager pursuant to a
subcontract of any provisions of this Agreement or any Shipmanagement Agreement
or any Supervision Agreement, directly to the relevant Submanager; provided
that any such amounts paid by the Company shall be credited against the
Management Fee payable by the Company to the Manager under this Agreement or
any Shipmanagement Agreement or any Supervision Agreement, as applicable.  Insofar as any such payment would result in
the payment of additional taxes by the Parent, such amounts shall be credited
against the Management Fee.

 

SECTION 9.3.                In the event that a
Shipmanagement Agreement is terminated, other than by reason of default by the
Manager, the Management Fee payable to the Manager under Section 9.1(a) or,
as the case may be, Section 9.1(b) for the Vessel subject to such 

 

13

 

Shipmanagement Agreement shall be payable in respect of such Vessel for
a further period of three calendar months from the termination date. In
addition:

 

(a)           the relevant member
of the Group shall continue to pay Crew Support Costs (as such term is defined
in the relevant Shipmanagement Agreement) for the relevant Vessel during the
said further period of three calendar months;

 

(b)           the relevant member
of the Group shall pay any Severance Costs (as such term is defined in the
relevant Shipmanagement Agreement) for the relevant Vessel which may
materialize; and

 

(c)           all amounts payable
to the Manager under this Section 9.3 shall be paid promptly by the Parent
to the Manager following receipt by the Parent of a final accounting of funds
due from the Parent or any other member of the Group in accordance with Section 13.6.

 

SECTION 9.4.                (a)  The Management Fee for
each Vessel will be fixed through December 31, 2011, subject, in the case
of the fees set forth in paragraphs 9.1(a), 9.1(b), 9.1(e) and 9.1(f), to
adjustment for euro/U.S. dollar exchange rate fluctuations from a euro/U.S.
dollar exchange rate of 1.00:1.45.  At
the beginning of each calendar quarter, such fees for the next three months
will be adjusted quarterly based on the euro/U.S. dollar exchange rate as
quoted by Fortis Bank (Nederland) N.V. two Business Days prior to the end of
the previous calendar quarter.

 

(b)           For each 12-month
period after December 31, 2011 during the Initial Term and during any
Subsequent Term (as defined below), the Management Fee for each Vessel will be
set at a mutually agreed-upon rate between the Parent and the Manager no later
than 30 days prior to the commencement of such 12-month period.

 

(c)           If the Parent and
the Manager are unable to agree on the Management Fee for any 12-month period
during the Initial Term or during any Subsequent Term pursuant to Section 9.4(b) hereof,
the Management Fee for such 12-month period will be determined by arbitration
pursuant to the terms of Article XVI hereof.

 

SECTION 9.5.                The Manager shall, at no
additional cost to any member of the Group, provide the Group with office staff
(including secretarial, accounting and administrative assistance), facilities
and stationery, and shall, subject to Section 9.6 and Section 10.8,
pay for all printing, postage, domestic telephone and all other usual office
expenses incurred by it as the Manager (it being understood that the services
of any officers shall be provided pursuant to Section 8.1.).

 

SECTION 9.6.                The Parent hereby acknowledges
that no capital expenditures, financial costs, operating expenses for each
Vessel or general and administrative expenses of the Group are covered by the
Management Fees and any such costs, expenditure and expenses shall be paid
fully by the Parent or, as the case may be, the applicable member of the Group,
whether 

 

14

 

directly to third parties or by payment to such third parties through
the Manager and, without prejudice to Section 10.8, to the extent incurred
by the Manager, shall be reimbursed to it by the Parent and/or any member of
the Group from which the Manager, in its discretion, seeks reimbursement. Such
capital expenditures, financial costs, operating expenses for each Vessel and
general and administrative expenses of the Group include, without limiting the
generality of the foregoing, items such as:

 

(a)           fees, interest,
principal and any other costs due to the Group’s financiers and their
respective advisors;

 

(b)           all voyage expenses
and vessel operating expenses directly relating to the operation and management
of the Vessels (including Crew costs, surveyor’s attendance fees, bunkers,
lubricant oils, spares, survey fees, classification society fees, maintenance
and repair costs, vetting expenses, etc.);

 

(c)           any commissions,
fees, remuneration or disbursements due to lawyers, brokers, agents, surveyors,
consultants, financial advisors, investment bankers, insurance advisors or any
other third parties whatsoever appointed by the Manager in accordance with the
terms of this Agreement whether in its own name or on behalf and/or in the name
of any member of the Group;

 

(d)           any commissions, fees,
remuneration or disbursements due to lawyers, brokers, agents, surveyors,
consultants, financial advisors, investment bankers, insurance advisors or any
other third parties whatsoever sub-contracted to the Manager in the normal and
reasonable course of meeting the Manager’s duties and obligations under this
Agreement or any Shipmanagement Agreement or any Supervision Agreement
including, without limiting the generality of the foregoing, the duties
provided in Articles V, VI and VII of this Agreement;

 

(e)           deductibles,
insurance premiums (including D&O insurance) and/or P&I calls;

 

(f)            any postage,
communication, traveling, lodging, victualling, overtime, out of office
compensation and other out of pocket expenses of the Manager and/or its
personnel incurred in providing the Services under any Supervision Agreement;
and

 

(g)           postage,
communication, traveling, lodging, victualling, overtime, out of office
compensation and other out of pocket expenses of the Manager and/or its
personnel, incurred in providing the Services.

 

ARTICLE
X

 

BUDGETS,
CORPORATE PLANNING AND EXPENSES

 

SECTION 10.1.              On or before October 20 of
each calendar year, the Manager shall prepare and submit to the Executive
Officers and Board of Directors a detailed draft budget for the next calendar
year in a format acceptable to the Executive Officers and Board of 

 

15

 

Directors and generally used by the Manager which shall include a
statement of estimated revenue, estimated general and administrative expenses
of the Group and a proposed budget for capital expenditures, repairs or
alterations, including proposed expenditures in respect of dry-docking,
together with an analysis as to when and why such replacements, improvements,
renovations or expenditures may be required (collectively, the “Draft Budget”).

 

SECTION 10.2.              For a period of 15 days after
receipt of the Draft Budget, the Executive Officers or Board of Directors from
time to time, may request further details and submit written comments on the
Draft Budget. If the Executive Officers or Board of Directors do not agree with
any item of the Draft Budget, they will, within the same 15-day period, give
the Manager notice of any inquiries to the Draft Budget, which notice will
include the list of items under consideration (the “Questioned Items”)
and a proposal for the resolution of each such Questioned Item. The Executive
Officers, the Board of Directors and the Manager will endeavor to resolve any
such differences between them with respect to the Questioned Items, and any
such differences that are not resolved within 15 days after notice of such
difference being given to the Manager (or such longer period as the Manager,
the Executive Officers and the Board of Directors agree is reasonably necessary),
will be settled by arbitration pursuant to the terms of Article XVII
hereof.  If the Executive Officers or
Board of Directors do not present any Questioned Items within such 15-day
period (or during any such longer period agreed by the Manager, the Executive
Officers and the Board of Directors), they will be deemed to have accepted the
Draft Budget and such Draft Budget shall be deemed to be the Approved Budget
(as defined in Section 10.3 below).

 

SECTION 10.3.              By November 20 of the
relevant calendar year (or such later date as the Manager, the Executive
Officers and the Board of Directors reasonably agree),  the Manager will prepare and deliver to the
Parent a revised budget that has been approved by the Board of Directors, in
consultation with the Executive Officers (the “Approved Budget”).
However, the Parent acknowledges that the Approved Budget is only an estimate
of the performance of the Vessels and/or the Group and the Manager makes no
assurance, representation or warranty that the actual performance of the
Vessels and/or the Group in any relevant calendar year will correspond to the
estimates contained in the Approved Budget for that calendar year.

 

SECTION 10.4.              The Manager may, from time to
time, in any calendar year propose amendments to the Approved Budget upon 15
days notice to the Parent, in which event the Executive Officers (or, in the
case of a change of 7.5% or more, the Board of Directors) will have the right
to approve the amendments in accordance with the process set out in Section 10.2
with the relevant time periods being amended accordingly and provided that any
Questioned Items are resolved within 45 days of receipt of the notice by the
Parent.

 

SECTION 10.5.              Once the Approved Budget has been
delivered, the Manager shall prepare and present to the Parent its estimate of
the working capital requirements of the Vessels and the Group and the Manager
shall each month update this estimate. Based on such estimate, the Manager
shall each month make a request to the Parent and/or, as the case may be, the
relevant members of the Group, in writing for the funds required to provide the
Services to the Group and to operate each Vessel for the ensuing month,
including the payment of any occasional or extraordinary item of expenditure,
such as emergency repair costs, additional

 

16

 

insurance premiums, bunkers or provisions. Such funds shall be received
by the Manager within ten calendar days after the receipt by the Parent or, as
the case may be, the relevant member of the Group of the Manager’s written
request and shall be held to the credit of the Parent or, in the Manager’s
discretion, the relevant member of the Group in a separate bank account. At the
end of each quarter or, if the Manager from time to time so requires, at the
end of each month, the Manager shall preliminarily reconcile the amounts
advanced to it by the Parent or, as the case may be, the relevant member of the
Group with the amounts actually expended by it for the operation of each of the
Vessels, and (a) the Manager shall remit to the Parent, or credit to the
Parent amounts to be advanced to it hereunder for future months, any unused
portion of the amounts previously advanced by the Parent or, as the case may
be, any member of the Group, or (b) the Parent shall pay to the Manager
any amounts properly expended by the Manager in excess of the amounts
previously advanced by the Parent or, as the case may be, any member of the
Group. The Parent and the Manager shall reconcile any amounts due to the Parent
by the Manager or due to the Manager by the Parent for each fiscal year of the
Parent as promptly as practicable following the close of each such fiscal year.
Without prejudice to Section 10.8, any expenses incurred by the Manager
under the terms of this Agreement on behalf of any member of the Group may be
debited against the account of the respective member of the Group, but shall in
any event remain payable by the Parent and the relevant member of the Group to
the Manager on demand.

 

SECTION 10.6.              The Manager shall produce a monthly comparison between
budgeted and actual expenditures to the Executive Officers. The Manager shall
also maintain the records of all costs and expenses incurred, including any
invoices, receipts and supplementary materials as are necessary or proper for
the settlement of accounts.

 

SECTION 10.7.              As any moneys are collected by the Manager under the
terms of this Agreement, any Shipmanagement Agreement and/or any Supervision
Agreement (other than moneys payable by a member of the Group to the Manager),
such moneys and any interest thereon shall be held to the credit of the
relevant member of the Group in a separate bank account in the name thereof,
but operated by the Manager and the Parent jointly. Interest on any such bank
account shall be for the benefit of the relevant member of the Group.

 

SECTION 10.8.              Notwithstanding anything contained herein to the
contrary, the Manager shall in no circumstances be required to use or commit
its own funds to finance the provision of the Services, other than (i) as
contemplated by Section 8.1 hereof or (ii) with respect to the
employees employed by the Manager in the ordinary course of business.

 

ARTICLE XI

 

LIABILITY AND INDEMNITY

 

SECTION 11.1.              Save for the obligation of the Parent to pay any moneys
due to the Manager hereunder, neither any member of the Group nor the Manager
shall be under any liability to the other for any failure to perform any of
their obligations hereunder by reason of Force Majeure. “Force Majeure”
shall mean any cause whatsoever of any nature or kind beyond the reasonable
control of the relevant member of the Group or the Manager, including, without
limitation, acts of God, acts of civil or military authorities, acts of war or
public enemy, acts of 

 

17

 

any court, regulatory agency or administrative body having
jurisdiction, insurrections, riots, strikes or other labor disturbances,
embargoes or other causes of a similar nature.

 

SECTION 11.2.              The Manager, including its officers, directors,
employees, shareholders, agents, sub-contractors and any Submanager (the “Manager
Related Parties”), shall be under no liability whatsoever to any member of
the Group or to any third party (including the Crew) for any loss, damage,
delay or expense of whatsoever nature, whether direct or indirect (including
but not limited to loss of profit arising out of or in connection with
detention of or delay to a Vessel), and howsoever arising in the course of the
performance of this Agreement, any Shipmanagement Agreement or any Supervision
Agreement, unless and to the extent that the same is proved to have resulted
solely from the gross negligence or willful misconduct of the Manager, its
officers, employees, agents, sub-contractors or any Submanager.

 

SECTION 11.3.              Notwithstanding anything that may appear to the
contrary in this Agreement or any Shipmanagement Agreement, the Manager shall
not be liable for any of the actions of the Crew, even if such actions are
negligent, grossly negligent or willful, except only to the extent that they
are shown to have resulted from a failure by the Manager to discharge its
obligations under clause 3.1 of each Shipmanagement Agreement, in which case
the Manager’s liability shall be limited in accordance with the terms of this Article XI.

 

SECTION 11.4.              The Parent shall indemnify and hold harmless the
Manager Related Parties against all actions, proceedings, claims, demands or
liabilities whatsoever or howsoever arising which may be brought against them
or incurred or suffered by them arising out of or in connection with the performance
of this Agreement, any Shipmanagement Agreement or any Supervision Agreement
and against and in respect of any loss, damage, delay or expense of whatsoever
nature (including legal costs and expenses on a full indemnity basis), whether
direct or indirect, incurred or suffered by any Manager Related Party arising
out of or in connection with the performance of this Agreement, any
Shipmanagement Agreement and any Supervision Agreement, unless incurred or
suffered due to the gross negligence or willful misconduct of any Manager
Related Party.

 

SECTION 11.5.              It is hereby expressly agreed that no employee or agent
of the Manager (including any sub-contractor from time to time employed by the
Manager) shall in any circumstances whatsoever be under any liability
whatsoever to any member of the Group or any third party for any loss, damage
or delay of whatsoever kind arising or resulting directly or indirectly from
any act, neglect or default on his part while acting in the course of or in
connection with his or her employment and, without prejudice to the generality
of the foregoing provisions in this Article XI, every exemption,
limitation, condition and liberty herein contained and every right, exemption
from liability, defense and immunity of whatsoever nature applicable to the
Manager or to which the Manager is entitled hereunder shall also be available
and shall extend to protect every such employee or agent of the Manager acting
as aforesaid, and for the purpose of all the foregoing provisions of this Article XI,
the Manager is or shall be deemed to be acting as agent or trustee on behalf of
and for the benefit of all Persons who are or might be their servants or agents
from time to time (including sub-contractors as aforesaid) and all such Persons
shall to this extent be or be deemed to be parties to this Agreement. Nothing
in this Section 11.5 shall be construed so as to further limit any
liability the Manager Related Parties may have to the Group under Section 11.2
hereof.

 

18

 

SECTION 11.6.              The provisions of this Article XI shall survive
any termination of this Agreement.

 

ARTICLE XII

 

RIGHTS OF THE MANAGER AND RESTRICTIONS ON THE
MANAGER’S AUTHORITY

 

SECTION 12.1.              Except as may be provided in this Agreement or in any
separate written agreement between the Parent or any other member of the Group
and the Manager, the Manager shall be an independent contractor and not the
agent of the Parent or any other member of the Group and shall have no right or
authority to incur any obligation on behalf of any member of the Group or to
bind any member of the Group in any way whatsoever. Nothing in this Agreement
shall be deemed to make the Manager or any of its subsidiaries or employees an
employee, joint venturer or partner of any member of the Group.

 

SECTION 12.2.              The Parent acknowledges that the Manager shall have no
responsibility hereunder, direct or indirect, with regard to the formulation of
the business plans, policies, management or strategies (financial, tax, legal
or otherwise) of any member of the Group, which is solely the responsibility of
each respective member of the Group. Each member of the Group shall set its
corporate policies independently through its respective board of directors and
executive officers and nothing contained herein shall be construed to relieve
such directors or officers of each respective member of the Group from the
performance of their duties or to limit the exercise of their powers.

 

SECTION 12.3.              Notwithstanding the other provisions
of this Agreement:

 

(a)           the Manager may act
with respect to a member of the Group upon any advice, resolutions, requests,
instructions, recommendations, direction or information obtained from such
member of the Group or any banker, accountant, broker, lawyer or other Person
acting as agent of or adviser to such member of the Group and the Manager shall
incur no liability to such member of the Group for anything done or omitted or
suffered in good faith in reliance upon such advice, instruction, resolution,
recommendation, direction or information made or given by such member of the
Group or its agents, in the absence of gross negligence or willful misconduct
by the Manager or its servants, and shall not be responsible for any
misconduct, mistake, oversight, error of judgment, neglect, default, omission,
forgetfulness or want of prudence on the part of any such banker, accountant,
broker, lawyer, agent or adviser or other Person as aforesaid;

 

(b)           the Manager shall
not be under any obligation to carry out any request, resolution, instruction,
direction or recommendation of any member of the Group or its agents if the
performance thereof is or would be illegal or unlawful; and

 

(c)           the Manager shall
incur no liability to any member of the Group for doing or failing to do any
act or thing which it shall be required to do or 

 

19

 

perform
or forebear from doing or performing by reason of any provision of any law or
any regulation or resolution made pursuant thereto or any decision, order or
judgment of any court or any lawful request, announcement or similar action of
any Person or body exercising or purporting to exercise the legitimate
authority of any government or of any central or local governmental institution
in each case where the above entity has jurisdiction.

 

ARTICLE XIII

 

TERMINATION OF THIS AGREEMENT

 

SECTION 13.1.              This Agreement shall be effective as of the Effective
Date and, subject to Sections 13.2, 13.3, 13.4 and 13.5, shall continue until June 30,
2017 (the “Initial Term”). Thereafter the term of this Agreement shall
be extended for additional 7.5-year
terms  up to three times (each a “Subsequent
Term”) unless the Parent or the Manager, at least six months prior to the
end of the then current term, gives written notice to the Manager or the
Parent, as applicable, that it wishes to terminate this Agreement at the end of
the then current term. In no event will the term of this Agreement (the “Term”)
extend beyond the date falling 22.5 years after June 30, 2017.

 

SECTION 13.2.              The Parent shall be entitled to terminate this
Agreement upon notice in writing to the Manager if:

 

(a)           the Manager defaults
in the performance of any material obligation under this Agreement, a
Shipmanagement Agreement or a Supervision Agreement, subject to a cure right of
20 Business Days following written notice by the Parent, provided that any
default of the Manager to perform any of its obligations under a relevant
Shipmanagement Agreement or any Supervision Agreement shall not, in itself,
entitle the Parent to terminate this Agreement pursuant to this Section 13.2(a) and
shall only allow the relevant member of the Group to terminate the relevant
Shipmanagement Agreement or Supervision Agreement; provided, further, that if a
Submanager was performing services under a Shipmanagement Agreement that was
terminated due to the default of that Submanager pursuant to this Section 13.2(a),
the Parent shall be entitled to direct the Manager to remove such Submanager
with respect to any other Shipmanagement Agreement under which such Submanager
is then performing services; or

 

(b)           any moneys due and
payable to the Parent or third parties by the Manager under this Agreement is
not paid or accounted for within 10 Business Days following written notice by
the Parent;

 

(c)           after June 30,
2017, two-thirds of the Board of Directors approves the termination of this
Agreement, which termination shall be effective six months after written notice
thereof to the Manager;

 

(d)           there is a Change of
Control of the Manager;

 

20

 

(e)           the Manager is
convicted of, enters a plea of guilty or nolo contendre with respect to, or
enters into a plea bargain or settlement admitting guilt for, a crime, which
conviction, plea bargain or settlement is demonstrably and materially injurious
to the Parent; or

 

(f)            the Manager commits
fraud or acts recklessly, or commits an act of willful misconduct that is
materially injurious to the Company.

 

SECTION 13.3.              The Manager shall be entitled to terminate this
Agreement by notice in writing to the Parent if:

 

(a)           any moneys payable
by the Parent under this Agreement is not paid when due or if due on demand
within 10 Business Days following demand by the Manager;

 

(b)           the Parent defaults
in the performance of any other material obligations under this Agreement,
subject to a cure right of 20 Business Days following written notice by the
Manager;

 

(c)           there is a Change in
Control of the Parent; or

 

(d)           the Management Fee
for any 12-month period during the Initial Term or during any Subsequent Term
is determined by arbitration pursuant to the terms of Article XVII hereof
and the arbitrators accept the Parent’s proposal, with such termination being
effective at the end of that 12-month period.

 

SECTION 13.4.              Either party shall be entitled to terminate this
Agreement immediately if:

 

(a)           the other party
ceases to conduct business, or all or substantially all of the
equity-interests, properties or assets of either such party is sold, seized or
appropriated;

 

(b)           (i) the other
party files a petition under any bankruptcy law, makes an assignment for the
benefit of its creditors, seeks relief under any law for the protection of
debtors or adopts a plan of liquidation; (ii) a petition is filed against
the other party seeking to have it declared insolvent or bankrupt and such
petition is not dismissed or stayed within 60 Business Days of its filing; (iii) the
other party shall admit in writing its insolvency or its inability to pay its
debts as they mature; (iv) an order is made for the appointment of a
liquidator, manager, receiver or trustee of the other party of all or a
substantial part of its assets; (v) or if an encumbrancer takes possession
of or a receiver or trustee is appointed over the whole or any part of the
other party’s undertaking, property or assets; or (vi) if an order is made
or a resolution is passed for the other party’s winding up;

 

(c)           a distress,
execution, sequestration or other process is levied or enforced upon or sued
out against a material amount of the other party’s property which is not
discharged within 20 Business Days;

 

21

 

(d)           the other party
ceases or threatens to cease wholly or substantially to carry on its business
otherwise than for the purpose of a reconstruction or amalgamation without
insolvency previously approved by the terminating party;

 

(e)           the other party is
prevented from performing its obligations in any material respect hereunder by
reasons of Force Majeure for a period of two or more consecutive months; or

 

(f)            all Supervision
Agreements and all Shipmanagement Agreements are terminated in accordance with
the respective terms thereof.

 

SECTION 13.5.              Upon the effective date of termination pursuant to this
Article XIII, the Manager shall promptly terminate its service hereunder,
ensuring that such termination occurs in a manner that minimizes any
interruption to the business of the members of the Group.

 

SECTION 13.6.              Upon termination, the Manager shall, as promptly as
possible, submit a final accounting of funds received and disbursed under this
Agreement, any Supervision Agreement and/or any Shipmanagement Agreement and of
any remaining Management Fees and/or any other funds due from the Parent or any
other member of the Group, calculated pro rata to the date of termination
(except for those amounts payable in respect of the three months following the
termination date under Section 9.3, which shall be payable by the Parent
in accordance with that Section), and any non-disbursed funds of any member of
the Group in the Manager’s possession or control will be paid by the Manager as
directed by such member of the Group promptly upon the Manager’s receipt of all
sums then due it under this Agreement, any Supervision Agreement and/or any
Management Agreement, if any.

 

SECTION 13.7.              If the Parent terminates this Agreement pursuant to Section 13.2(c),
the Parent shall pay to the Manager the Termination Payment in a lump sum
amount, payable within 30 days following the date this Agreement
terminates.

 

SECTION 13.8.              Upon termination of this Agreement, the Manager shall
release to the Parent the originals where possible, or otherwise certified
copies, of all accounts and all documents specifically relating to each Vessel
or the provision of the Services.

 

SECTION 13.9.              After a written notice of termination has been given
under this Article XIII or upon expiry of this Agreement, the Company may
direct the Manager to undertake any actions reasonably necessary to transfer any
aspect of the ownership or control of the assets of the Company to the Company
or to any nominee of the Company and to do all other things reasonably
necessary to bring the appointment of the Manager to an end at the appropriate
time, and the Manager will comply with all such reasonable directions.  Upon termination or expiry of this Agreement,
the Manager will deliver to any new manager or the Company, at the Company’s
direction, any books and records held by the Manager pursuant to this Agreement
and will execute and deliver such instruments and do such things as may
reasonably be required to permit such new manager to assume its
responsibilities.

 

SECTION 13.10.            The provisions of this Article XIII shall survive
any termination of this Agreement.

 

22

 

ARTICLE XIV

 

CHANGE IN CONTROL OF THE MANAGER AND RIGHT OF FIRST
OFFER

 

SECTION 14.1.              During the Term, in the event of a Proposed Change in
Control of the Manager, the Parent shall have a right of first offer to
purchase the Manager pursuant to the procedures set forth in Section 14.3.

 

SECTION 14.2.              The Parent and the Manager acknowledge that all
potential transfers pursuant to this Article XIV are subject to obtaining
any and all written consents of governmental authorities and other
non-affiliated third parties.

 

SECTION 14.3.              Set forth below are the procedures for the Parent’s
right of first offer to purchase the Manager under Section 14.1:

 

(a) Prior to engaging in any
negotiations or otherwise offering to consummate a Proposed Change in Control
of the Manager with any third party, the Manager shall provide written notice
of its intent to engage in a Proposed Change in Control of the Manager (a “First
Offer Notice”) and shall specify in such First Offer Notice the material
terms and conditions (including the consideration to be paid, which shall be in
cash) on which it would be willing to consummate a Proposed Change in Control
of the Manager with the Parent, including any liabilities to be assumed by the
Parent.

 

(b) The Parent shall notify the Manager
within 30 days after receiving a First Offer Notice (the “First Offer Period”)
that either (i) the Parent does not wish to participate in a Proposed
Change in Control of the Manager (a “Negative Response”) or (ii) the
Parent does wish to participate in a Proposed Change in Control of the Manager,
subject to the negotiation of the terms and conditions of the Proposed Change
in Control of the Manager in accordance with the provisions of this Article XIV
(an “Affirmative Response”).

 

(c)  In the event of an Affirmative
Response, the Parent and the Manager shall negotiate in good faith during the
First Offer Period the terms and conditions of an agreement for the
consummation of a Proposed Change in Control of the Manager with the Parent and
such terms and conditions are to be based on the terms and conditions set forth
in the First Offer Notice.

 

(d) In the event of a Negative Response
or in the event the Parent and the Manager are unable to agree on the terms and
conditions of an agreement for the consummation of a Proposed Change in Control
of the Manager during the First Offer Period, then the Manager may consummate a
Proposed Change in Control of the Manager within 120 days after the earlier of
the date the Manager receives a Negative Response and the end of the First
Offer Period with a third party on terms and conditions as to price that are
not more favorable, and on such other terms and conditions that are not
materially more favorable, to the proposed purchaser than the terms and
conditions specified in the First Offer Notice.

 

(e) If the Manager does not consummate a
Proposed Change in Control of the Manager to a third party within 120 days
after the earlier of the date the Manager receives a Negative Response from the
Parent and the end of the First Offer Period in accordance with 

 

23

 

Section 14.3(d) then the Manager shall not thereafter
consummate a Proposed Change in Control of the Manager without first offering
to consummate a Proposed Change in Control of the Manager with the Parent in
the manner provided above.

 

ARTICLE XV

 

NOTICES

 

SECTION 15.1.              All notices, consents and other communications
hereunder, or necessary to exercise any rights granted hereunder, shall be in
writing, sent either by prepaid registered mail or telefax, and will be validly
given if delivered on a Business Day to an individual at the following address:

 

Alma Maritime Limited

Pandoras 13 & Kyprou Street

16674 Glyfada 

Athens, Greece

Telefax:
                                  

Attention: 
Chief Executive Officer or Chief Financial Officer

 

Empire Navigation Inc.

Pandoras 13 & Kyprou Street

16674 Glyfada 

Athens, Greece

Telefax: +30 210 894-4688

Attention: 
Managing Director

 

ARTICLE XVI

 

APPLICABLE LAW

 

SECTION 16.1.              This Agreement and shall be governed by, and construed
in accordance with, the laws of England.

 

SECTION 16.2.              Except for Sections 3.5 and Article XI which can
be relied upon by a Submanager, no other term of this Agreement is enforceable
under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a
party to this Agreement.

 

ARTICLE XVII

 

ARBITRATION

 

SECTION 17.1.              Any dispute arising out of or
in connection with this Agreement and/or any non-contractual obligations
connected with it shall be referred to arbitration in London in accordance with
the Arbitration Act 1996 or any statutory modification or re-enactment thereof
save to the extent necessary to give effect to the provisions of this Article XVII.
The arbitration shall be conducted in accordance with the London Maritime
Arbitrators 

 

24

 

Association (LMAA) Terms current at the time when
the arbitration proceedings are commenced.

 

SECTION 17.2.              The reference shall be to three
arbitrators. A party wishing to refer a dispute to arbitration shall appoint
its arbitrator and send notice of such appointment in writing to the other
party requiring the other party to appoint its own arbitrator within 14
calendar days of that notice and stating that it will appoint its arbitrator as
sole arbitrator unless the other party appoints its own arbitrator and gives
notice that it has done so within the 14 days specified. If the other party
does not appoint its own arbitrator and give notice that it has done so within
the 14 days specified, the party referring a dispute to arbitration may,
without the requirement of any further prior notice to the other party, appoint
its arbitrator as sole arbitrator and shall advise the other party
accordingly.  The award of a sole
arbitrator shall be binding on both parties as if he had been appointed by
agreement. Nothing herein shall prevent the parties agreeing in writing to vary
these provisions to provide for the appointment of a sole arbitrator.

 

ARTICLE XVIII

 

MISCELLANEOUS

 

SECTION 18.1.              This Agreement (which includes the Annex) constitutes
the sole understanding and agreement of the parties hereto with respect to the
subject matter hereof and supersedes all prior agreements or understandings,
written or oral, with respect thereto. This Agreement may not be amended,
waived or discharged except by an instrument in writing executed by the party
against whom enforcement of such amendment, waiver or discharge is sought.

 

SECTION 18.2.              During the term hereof, the Manager will not provide
services hereunder through, or otherwise cause any member of the Group to have,
an office or fixed place of business in the United States.

 

SECTION 18.3.              This Agreement may be executed in one or more written counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one instrument.

 

25

 

IN
WITNESS WHEREOF the undersigned have executed this Agreement as of the date
first above written.

 

	
   

  	
  ALMA
  MARITIME LIMITED

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPIRE
  NAVIGATION INC.

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Name:
  

  
	
   

  	
   

  	
   Title:

  
					

 

 

[SIGNATURE PAGE TO MANAGEMENT AGREEMENT]

 

26

 

SCHEDULE A

SHIPOWNING SUBSIDIARIES

 

 

SCHEDULE B

NON-SHIPOWNING SUBSIDIARIES

 

 

SCHEDULE C

COMMISSION FREE NEWBUILDS DELIVERY

 

Suez Topaz

Suez Diamond

Suez Jade

Suez Pearl

 

 

APPENDIX I

FORM OF SHIPMANAGEMENT AGREEMENT

 

 

APPENDIX II

 

FORM OF SUPERVISION AGREEMENT

 

THIS
AGREEMENT is made the
           day of           , 20[ · ] BETWEEN:

 

(1)           [name of relevant member of the
Group], a company incorporated under the laws of [·], whose registered office is [ADDRESS] (the “Owner”);
and

 

(2)           EMPIRE NAVIGATION INC., a company
incorporated under the laws of the Republic of the Marshall Islands, whose
registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands MH96960 (the “Construction Supervisor”).

 

WHEREAS:

 

By
a shipbuilding contract dated          
(the “Shipbuilding Contract”) and made between [·] (the “Builder”) and the Owner, the Builder
agreed to construct, to the order of the Owner, and sell to the Owner, a [·] [crude oil tanker] [product tanker] [drybulk carrier],
known during construction as Hull No. [·] (the “Vessel”);

 

IT IS NOW AGREED as follows:

 

ARTICLE  I

 

DEFINITIONS

 

SECTION 1.1.        Except as otherwise defined herein, all
terms defined in the Shipbuilding Contract shall have the same respective
meanings when used herein.

 

SECTION 1.2.        In this Agreement, unless the context
otherwise requires, the following expressions shall have the following
meanings:

 

“Business Day” means:

 

(i)            in
relation to a payment which is to be made hereunder or under any other document,
a day, other than a Saturday or Sunday or a public holiday, on which major
retail banks in New York, and (in respect of any payments which are to be made
to the Builder) [·], are open for
non-automated customer services; and

 

(ii)           in
any other case, a day, other than a Saturday or Sunday or a public holiday, on
which major retail banks in Athens, Greece are open for non-automated customer
services.

 

“Group Management Agreement” means the
agreement dated [      ], 2010 made
between the Parent and the Construction Supervisor.

 

“Owner’s Supplies” means all of the
items to be furnished to the Vessel by the Owner in accordance with Article [·] of the Shipbuilding Contract.

 

 

“Parent” means Alma Maritime Limited
of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall
Islands MH96960 and includes its successors in title.

 

“Spares” means the items to be
designated as spares by the parties hereto at the time of the delivery of the
Vessel.

 

“Supervision Period” means the period
from the execution of this Agreement to and including the earlier of (i) the
date of delivery of the Vessel pursuant to the Shipbuilding Contract and (ii) the
date this Agreement is terminated.

 

ARTICLE  II

 

APPOINTMENT

 

SECTION 2.1.                The Owner hereby appoints the Construction
Supervisor, and the Construction Supervisor hereby agrees to act as the Owner’s
supervisor towards the Builder and as the “Owner’s Representative” under
the Shipbuilding Contract for the duration of the Supervision Period and to
perform the duties and rights which rest with the Owner regarding the
construction and delivery of the Vessel in accordance with all of the
provisions of the Shipbuilding Contract. The Owner shall be responsible for,
inter alia, determining the general policy of supervision of construction of
the Vessel and the scope of activities of the Construction Supervisor and, in
the performance of its duties under this Agreement, the Construction Supervisor
shall at all times act strictly in accordance with any instructions or directions
given to it by the Owner regarding such general policy or, in the absence of
such instructions or directions, in accordance with the standards of a prudent
supervisor providing services of the type to be provided under this Agreement,
having due regard to the Owner’s interest. Any instructions so given shall be
consistent with the nature and scope of the supervision services required to be
performed by the Construction Supervisor under this Agreement and shall not
require the Construction Supervisor to do or omit to do anything which may be
contrary to any applicable law of any jurisdiction or which is inconsistent or
contrary to any of the rights and duties of the Owner under the Shipbuilding
Contract. Upon appointment the Owner shall furnish the Construction Supervisor
with a full and complete copy of the Shipbuilding Contract (which for the
avoidance of doubt shall include the Specifications and the Plans).

 

SECTION 2.2.                Without prejudice to the
generality of the appointment made under Section 2.1, and (where
applicable) by way of addition to the rights, powers and duties so conferred,
the Construction Supervisor shall, subject to this Section 2.2 and to
Articles III and IV, have and be entrusted with the following rights, powers
and duties in relation to the Shipbuilding Contract and the Vessel:

 

(a)           to
review, comment on, agree and approve the lists of plans and the drawings
referred to; to attend the testing of the Vessel’s machinery, outfitting and
equipment and to request any tests or inspections which the Construction
Supervisor may consider appropriate or desirable and to review and comment on
the results of all tests and inspections to the extent this is possible under
the terms of the Shipbuilding Contract; to carry out such inspections and give such
advice 

 

2

 

or suggestions to the Builder as the Construction Supervisor may
consider appropriate and as the terms of the Shipbuilding Contract allow him to
do; and to give notice to the Builder in the event that the Construction
Supervisor discovers any construction, material or workmanship which the
Construction Supervisor believes does not or will not conform to the
requirements of the Shipbuilding Contract and the specifications again provided
the terms of the Shipbuilding Contract allows for such notice to be given;

 

(b)           to
appoint a representative of the Construction Supervisor for the purposes
specified in Article [·] of the
Shipbuilding Contract;

 

(c)           if
any alteration or addition to the Shipbuilding Contract becomes obligatory or
desirable, to consult with the Builder and make recommendations to the Owner as
to whether or not acceptance should be given to any proposal notified to the
Owner by the Builder;

 

(d)           to
request and agree to any minor alterations, additions or modifications to the
Vessel or the specifications and any substitute materials pursuant to Article [·] which the Construction Supervisor may consider
appropriate or desirable, provided that if the cost of such variations or
substitute materials would have the effect of altering the Contract Price (as
defined in the Shipbuilding Contract) by more than five per cent (5%) from the
Contract Price on the date hereof or the amount of any of the installments of
the Contract Price due under the Shipbuilding Contract prior to the delivery of
the Vessel, the Construction Supervisor shall notify the same to the Owner in
writing and obtain the Owner’s instructions before taking any action in
relation thereto; to receive from and transmit to the Builder information
relating to the requirements of the classification society and to give
instructions and agree with the Builder regarding alterations, additions or
changes in connection with such requirements; and to approve the substitution
of materials as requested by the Builder;

 

(e)           to
attend and witness the trials of the Vessel to the extent this is permitted
under the terms of the Shipbuilding Contract;

 

(f)            to
determine whether the Vessel has been designed, constructed, equipped and
completed in accordance with, and complies with, the Shipbuilding Contract and
the Specifications and Plans (each as defined in the Shipbuilding Contract); to
give the Builder a notice of acceptance or (as the case may be) rejection of
the Vessel, to require or request any further test and inspection of the Vessel
to the extent this is possible under the terms of the Shipbuilding Contract,
and to give and receive any further or other notice relative to such matters
and generally to advise the Owner in respect of all such matters;

 

(g)           to
sign on behalf of the Owner any protocols as to sea trials, consumable stores,
delivery and acceptance or otherwise, having first ascertained with the Owner
the appropriateness of so doing;

 

3

 

(h)           to
accept on behalf of the Owner the documents specified in Article [·], Paragraph [·] of the Shipbuilding Contract to be delivered by the Builder at
delivery of the Vessel under the Shipbuilding Contract and to confirm receipt
thereof to the Owner;

 

(i)            to
give and receive on behalf of the Owner any notice contemplated by the
Shipbuilding Contract, provided that the Construction Supervisor shall not have
authority to give on behalf of the Owner any notice which the Owner may be
entitled to give to cancel, repudiate or rescind the Shipbuilding Contract
without the prior written consent of the Owner; and

 

(j)            to
purchase, after being placed in funds by the Owner, all Owner’s Supplies as
agent of the Owner and supply and deliver the same together with all necessary
specifications, plans, drawings, instruction books, manuals, test reports and
certificates to the Builder as provided in the Shipbuilding Contract, and
provide to the Owner a list of all such Owner’s Supplies as soon as possible.

 

SECTION 2.3.                The Construction Supervisor shall discharge its
responsibilities under this Clause 2 as the Owner’s agent.

 

SECTION 2.4.                In the event that the Construction Supervisor uses
its own funds to purchase Owner’s Supplies, the cost of supplying and
delivering Owner’s Supplies pursuant to the relevant terms of the Shipbuilding
Contract shall be reimbursed by the Owner to the Construction Supervisor on the
date the Construction Supervisor submits to the Owner supporting invoices in
respect of such cost.

 

ARTICLE  III

 

CONSTRUCTION SUPERVISOR’S DUTIES REGARDING CONSTRUCTION

 

SECTION 3.1.                The Construction Supervisor undertakes with the Owner
with respect to the Shipbuilding Contract:

 

(a)           to
notify the Owner in writing promptly on becoming aware of any likely change to
any of the dates on which any installment under the Shipbuilding Contract is
expected to be due;

 

(b)           to
(i) notify the Owner in writing of the expected date on which the
launching or, as the case may be, sea trials of the Vessel is or are to take
place and (ii) promptly on the same day as the launching or, as the case
may be, sea trials of the Vessel takes or take place to confirm that the
launching or, as the case may be, sea trials of the Vessel has or have taken
place and, where relevant, that the amount specified in such confirmation is
due and payable;

 

(c)           to
(i) advise the Owner in writing, four (4) Business Days prior to the
date on which the delivery installment under the Shipbuilding Contract is
anticipated to become due, of the times and amounts of payments to be made to
the Builder under the Shipbuilding Contract and any amount due to the 

 

4

 

Construction Supervisor for Owner’s Supplies not already settled and (ii) promptly
confirm the same on the day on which such installment becomes due under the
terms of the Shipbuilding Contract;

 

(d)           not
to accept the Vessel or delivery of the Vessel on the Owner’s behalf without
the Owner’s prior written approval and unless the Construction Supervisor shall
have previously certified to the Owner in writing, in the form of the certificate
set out in Schedule 1 to this Agreement, that:

 

(i)            the
Vessel has been duly completed and is ready for delivery to and acceptance by
the Owner in or substantially in accordance with the Shipbuilding Contract and
the Specifications and Plans;

 

(ii)           there
is, to the best of the Construction Supervisor’s knowledge and belief having
made due enquiry with the Builder, no lien or encumbrance on the Vessel other
than the lien in favor of the Builder in respect of the delivery installment of
the Contract Price due in accordance with the relevant terms of the
Shipbuilding Contract;

 

(iii)          the
Vessel is recommended for classification by the relevant classification society
referred to in the Shipbuilding Contract (and the Construction Supervisor shall
attach to its certificate the provisional certificate of such classification
society recommending such classification of the Vessel or a duplicate or
photocopy of such provisional certificate or otherwise provide evidence of such
classification to the Owner);

 

(e)           on
receipt thereof from the Builder promptly to deliver the documents specified in
Article [·], Paragraph [·] of the Shipbuilding Contract to the Owner or as
the Owner may direct; and

 

(f)            solely
with the prior written approval of the Owner, to request from or agree with the
Builder any material alterations, additions or modifications to the Vessel.

 

ARTICLE  IV

 

CONSTRUCTION SUPERVISOR’S GENERAL OBLIGATIONS

 

SECTION 4.1.                The Construction Supervisor
undertakes to the Owner, with respect to the exercise and performance of its
rights, powers and duties as the Owner’s representative under this Agreement,
as follows:

 

(a)           it will ensure the
due and punctual observance and performance of all conditions, duties and
obligations imposed on the Owner by the Shipbuilding Contract (other than to
pay the Contract Price) and will not without the prior written consent of the
Owner:

 

5

 

(i) exercise
any rights of the Owner to cancel, repudiate or rescind the Shipbuilding Contract;

 

(ii) waive,
modify or suspend any provision of the Shipbuilding Contract if as a result of
such waiver, modification or suspension the Owner will or may suffer any
adverse consequences; and

 

(b)           it will, at its own
expense, keep all necessary and proper books, accounts, records and
correspondence files relating to its duties and activities under this Agreement
and shall send quarterly reports to the Owner concerning the progress of the
design and construction of the Vessel and keep the Owner promptly informed of
any deviations from the building program.

 

ARTICLE  V

 

LIABILITY AND INDEMNITY

 

SECTION 5.1.                Save for the obligation of the Owner to pay any
moneys due to the Construction Supervisor hereunder, neither the Owner nor the
Construction Supervisor shall be under any liability to the other for any
failure to perform any of their obligations hereunder by reason of Force
Majeure. “Force Majeure” shall mean any cause whatsoever of any nature
or kind beyond the reasonable control of the Owner or the Construction
Supervisor, including, without limitation, acts of God, acts of civil or
military authorities, acts of war or public enemy, acts of any court,
regulatory agency or administrative body having jurisdiction, insurrections,
riots, strikes or other labor disturbances, embargoes or other causes of a
similar nature.

 

SECTION 5.2.                The Construction Supervisor, including its officers,
directors, employees, shareholders, agents, and any sub-contractors (the “Construction
Supervisor Related Parties”), shall be under no liability whatsoever to the
Owner or to any third party (including the Builder) for any loss, damage, delay
or expense of whatsoever nature, whether direct or indirect (including but not
limited to loss of profit arising out of or in connection with the delayed or
non-conforming delivery of the Vessel), and howsoever arising in the course of
the performance of this Agreement, unless and to the extent that the same is
proved to have resulted solely from the gross negligence or willful misconduct
of the Construction Supervisor, its officers, employees, agents or any of its
sub-contractors.

 

SECTION 5.3.                The Owner shall indemnify and hold harmless the
Construction Supervisor Related Parties against all actions, proceedings,
claims, demands or liabilities whatsoever or howsoever arising which may be
brought against them or incurred or suffered by them arising out of or in
connection with the performance of this Agreement and against and in respect of
any loss, damage, delay or expense of whatsoever nature (including legal costs
and expenses on a full indemnity basis), whether direct or indirect, incurred
or suffered by any Construction Supervisor Related Party in the performance of
this Agreement, unless incurred or suffered due to the gross negligence or
willful misconduct of any Construction Supervisor Related Party.

 

6

 

SECTION 5.4.                It is hereby expressly agreed
that no employee or agent of the Construction Supervisor (including any
sub-contractor from time to time employed by the Construction Supervisor) shall
in any circumstances
whatsoever be under any liability whatsoever to the Owner or any third party
for any loss, damage or delay of whatsoever kind arising or resulting directly
or indirectly from any act, neglect or default on his part while acting in the
course of or in connection with his employment and, without prejudice to the
generality of the foregoing provisions in this Article V, every exemption,
limitation, condition and liberty herein contained and every right, exemption
from liability, defense and immunity of whatsoever nature applicable to the
Construction Supervisor or to which the Construction Supervisor is entitled
hereunder shall also be available and shall extend to protect every such
employee or agent of the Construction Supervisor acting as aforesaid, and for
the purpose of all the foregoing provisions of this Article V, the
Construction Supervisor is or shall be deemed to be acting as agent or trustee
on behalf of and for the benefit of all persons who are or might be their
servants or agents from time to time (including sub-contractors as aforesaid)
and all such persons shall to this extent be or be deemed to be parties to this
Agreement.

 

SECTION 5.5.                The provisions of this Article V
shall survive any termination of this Agreement.

 

ARTICLE 
VI

FEES

 

SECTION 6.1.                In consideration of the
performance of the duties assigned to the Construction Supervisor in this
Agreement, the Owner shall pay to the Construction Supervisor US$7,500 per
month for each month during this Agreement for its total supervision costs in
connection with the supervision of the construction of the Vessel, plus any
expenses incurred under the Shipbuilding Contract against presentation of
supporting invoices from the Construction Supervisor which the Construction
Supervisor shall supply to the Owner at the same time as payment is requested.
The fee payable hereunder to the Construction Supervisor shall include all
costs which are incurred by the Construction Supervisor in connection with the
ordinary exercise and performance by the Construction Supervisor of the rights,
powers and duties entrusted to it pursuant to this Agreement. The supervision
fee will be paid monthly in advance.

 

For
the avoidance of doubt, the Construction Supervisor can demand payment of the
fee and other amounts payable hereunder from the Parent pursuant to the
relevant provisions of the Group Management Agreement.

 

ARTICLE 
VII

COMMENCEMENT - TERMINATION

 

SECTION 7.1.                This Agreement shall come into
effect on the date hereof and shall continue until the delivery of the Vessel
in accordance with the Shipbuilding Contract unless terminated earlier pursuant
to the terms of Section 7.2, Section 7.3, Section 7.4 or Section 7.5
hereof.

 

7

 

SECTION 7.2.                The Owner shall be entitled to
terminate this Agreement by notice in writing to the Construction Supervisor if
the Construction Supervisor defaults in the performance of any material
obligation under this Agreement, subject to a cure right of 20 Business Days
following written notice by the Owner.

 

SECTION 7.3.                This Agreement shall terminate
automatically if:

 

(a)           the Shipbuilding Contract is cancelled, rescinded or
terminated; or

 

(b)           the Group Management Agreement is terminated.

 

SECTION 7.4.                The Construction Supervisor
shall be entitled to terminate this Agreement by notice in writing to the Owner
if:

 

(a)           any moneys payable by the Owner under this Agreement is
not paid when due or if due on demand within 10 Business Days following demand
by the Construction Supervisor; or

 

(b)           the Owner defaults in the performance of any other
material obligations under this Agreement, subject to a cure right of 20
Business Days following written notice by the Construction Supervisor; or

 

SECTION 7.5.                Either party shall be entitled
to terminate this Agreement immediately if:

 

(a)           the other party ceases to conduct business, or all or
substantially all of the equity-interests, properties or assets of either such
party is sold, seized or appropriated; or

 

(b)           (i) the other party files a petition under any
bankruptcy law, makes an assignment for the benefit of its creditors, seeks
relief under any law for the protection of debtors or adopts a plan of
liquidation; (ii) a petition is filed against the other party seeking to
have it declared insolvent or bankrupt and such petition is not dismissed or
stayed within 40 Business Days of its filing; (iii) the other party shall
admit in writing its insolvency or its inability to pay its debts as they
mature; (iv) an order is made for the appointment of a liquidator,
manager, receiver or trustee of the other party of all or a substantial part of
its assets; (v) or if an encumbrancer takes possession of or a receiver or
trustee is appointed over the whole or any part of the other party’s
undertaking, property or assets; or (vi) if an order is made or a
resolution is passed for the other party’s winding up; or

 

(c)           a distress, execution, sequestration or other process is
levied or enforced upon or sued out against the other party’s property which is
not discharged within 20 Business Days; or

 

(d)           the other party ceases or threatens to cease wholly or
substantially to carry on its business otherwise than for the purpose of a
reconstruction or amalgamation without insolvency previously approved by the
terminating party; or

 

8

 

(e)           the other party is prevented from performing its
obligations hereunder by reasons of Force Majeure for a period of two or more
consecutive months.

 

SECTION 7.6.                In the event of termination due
to the Construction Supervisor’s default, then it shall not be entitled to
receive any payment in respect of the fees and other amounts described in Article VI
becoming due and payable after the date of such termination.

 

ARTICLE 
VIII

EMPLOYEES

 

SECTION 8.1.                None of the employees and/or
sub-contractors of the Construction Supervisor shall constitute, for the
purposes of this Agreement, sub-agents of the Owner. The Construction
Supervisor, in its capacity as employer and contractor (and not in its capacity
as agent for the Owner), shall (a) be responsible for the salaries,
expenses and costs in respect of each of its employees and sub-contractors (not
in its capacity as agent for the Owner) and (b) save for the provisions of
Article V hereof, indemnify its employees and sub-contractors for any liabilities
and losses incurred by such employees and sub-contractors.

 

ARTICLE 
IX

GOVERNING LAW - ARBITRATION

 

SECTION 9.1.                This agreement shall be governed
by and be construed in accordance with the laws of England.

 

SECTION 9.2.                Any
dispute arising out of or in connection with this Agreement shall be referred
to arbitration in London in accordance with the Arbitration Act 1996 or any
statutory modification or re-enactment thereof save to the extent necessary to
give effect to the provisions of this Article IX. The arbitration shall be
conducted in accordance with the London Maritime Arbitrators Association (LMAA)
Terms current at the time when the arbitration proceedings are commenced.

 

SECTION 9.3.                The
reference shall be to three arbitrators. A party wishing to refer a dispute to
arbitration shall appoint its arbitrator and send notice of such appointment in
writing to the other party requiring the other party to appoint its own
arbitrator within 14 calendar days of that notice and stating that it will appoint
its arbitrator as sole arbitrator unless the other party appoints its own
arbitrator and gives notice that it has done so within the 14 days specified.
If the other party does not appoint its own arbitrator and give notice that it
has done so within the 14 days specified, the party referring a dispute to
arbitration may, without the requirement of any further prior notice to the
other party, appoint its arbitrator as sole arbitrator and shall advise the
other party accordingly. The award of a sole arbitrator shall be binding on
both parties as if he had been appointed by agreement. Nothing herein shall
prevent the parties agreeing in writing to vary these provisions to provide for
the appointment of a sole arbitrator.

 

9

 

ARTICLE 
X

COUNTERPARTS

 

SECTION 10.1.              This Agreement may be executed in
any number of counterparts, all of which taken together shall constitute one
and the same instrument.

 

ARTICLE 
XI

NOTICES

 

SECTION 11.1.              Every notice or other communication
under this Agreement shall:

 

(a)           be in writing delivered personally or by first-class
prepaid letter (airmail if available) or facsimile transmission or other means
of telecommunication (other than telex) in permanent written form;

 

(b)           be deemed to have been received, in the case of a letter,
when delivered personally or three (3) days after it has been put into the post
and, in the case of a facsimile transmission or other means of
telecommunication (other than telex) in permanent written form, at the time of
dispatch (provided that if the date of dispatch is a Saturday or Sunday or a
public holiday in the country of the addressee or if the time of dispatch is
after the close of business in the country of the addressee it shall be deemed
to have been received at the opening of business on the next day which is not a
Saturday or Sunday or public holiday); and

 

(c)           be sent:

 

(i)  to the
Construction Supervisor at:

 

Empire Navigation Inc.

Pandoras 13 &
Kyprou Street

16674 Glyfada

Athens, Greece

Facsimile No.: 30 210
894-4688

Attention: Managing Director

 

(ii)  the
Owner at:

 

c/o Alma Maritime Limited

Pandoras 13 &
Kyprou Street

16674 Glyfada

Athens, Greece

Facsimile No.:

Attention: Chief Executive
Officer or Chief Financial Officer

 

or
to such other address and/or numbers for a party as is notified by such party
to the other party under this Agreement.

 

10

 

SECTION 11.2.              Each communication and document
made or delivered by one party to another pursuant to this Agreement shall be
in the English language.

 

SECTION 11.3.              This Agreement shall not create
benefits on behalf of any other person not a party to this Agreement, and this
Agreement shall be effective only as between the parties hereto, their
successors and permitted assigns.

 

IN WITNESS WHEREOF the undersigned have executed
this Agreement as of the date first above written.

 

	
   

  	
  For the Owner

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  For the Construction Supervisor

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

11

 

SCHEDULE 1

 

FORM OF CONSTRUCTION CERTIFICATE

 

[On the letterhead of the Construction Supervisor]

 

[Vessel Owner] (the “Owner”)

[Address]

Facsimile: [          ]

Attention: [          ]

 

Date:
                              

 

Dear Sirs,

 

[Name
of Builder] (the “Builder”), [Name of Vessel] (the “Vessel”)

 

We
refer to the construction supervision agreement dated
[                    ]
between the Owner and us (the “Supervision Agreement”).

 

Words
and expressions defined in the Supervision Agreement (whether expressly or by
incorporation by reference to another document) shall have the same meaning
where used in this certificate.

 

We
hereby certify, pursuant to Section 3.1(d) of the Supervision
Agreement, as follows:

 

(i)                                     the Vessel has
been duly completed and is ready for delivery to and acceptance by the Owner in
or substantially in accordance with the Shipbuilding Contract and the
Specifications and Plans; and

 

(ii)                                  the Vessel is
recommended for classification by [Name of the classification society] (the “Classification
Society”).

 

With
respect to paragraph (ii) above, please find attached to this certificate
the provisional certificate of the Classification Society recommending such
classification of the Vessel / a duplicate or photocopy of the provisional
certificate of the Classification Society recommending such classification of
the Vessel / the following evidence of the Classification Society’s
recommendation of such classification of the Vessel  [  ].

 

	
   

  	
  Yours faithfully,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  for and on behalf of

  
	
   

  	
  EMPIRE NAVIGATION INC.

  

 

S-1

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