Document:

d1187083_ex4-9.htm

 

EXHIBIT 4.9

 

 

SHARE PURCHASE AGREEMENT

This Share Purchase Agreement ("Agreement"), dated as of 1st of April 2011, is made by and between OCEANFREIGHT INC., a corporation organized under the laws of the Republic of the Marshall Islands ("Buyer"), and HAYWOOD FINANCE LIMITED, a corporation organized under the laws of the Republic of the Marshall Islands (the "Seller").

RECITALS

WHEREAS, the Seller directly owns shares, constituting all of the issued and outstanding capital stock of PASIFAI SHAREHOLDERS LIMITED, a corporation organized under the laws of the Republic of the Marshall Islands ("Pasifai Shareholders"), which in turn is the direct owner of all of the issued and outstanding capital stock of PASIFAI OWNING COMPANY LIMITED, a corporation organized under the laws of the Republic of the Marshall Islands (the "Owner");

WHEREAS, the Owner has purchased a 206,000 dwt Very Large Ore Carrier (VLOC) identified as Hull 1240 (the "Vessel"), currently under construction at Shanghai Jiangnan-Changxing Shipbuilding Company Limited (the "Yard"), pursuant to a Shipbuilding Contract dated 17th May 2010, as amended, made by and among the Yard and China Shipbuilding Trading Company Limited as seller (the "Builder") and the Owner as purchaser (the "Shipbuilding Contract");

WHEREAS, Seller wishes to sell and Buyer wishes to buy, all of the issued outstanding capital stock of Pasifai Shareholders (the "Shares"), on the terms and conditions contained herein;

NOW, THEREFORE, in consideration of the premises and the respective representations, warranties, covenants and agreements stated herein, the parties agree as follows:

ARTICLE X

DEFINITIONS

Capitalized terms used in this Agreement have the meanings specified in (a) the preamble, (b) the recitals, (c) this Article I or (d) elsewhere in this Agreement, as the case may be:

Claim means any claim, demand, assessment, judgment, order, decree, action, cause of action, litigation, suit, investigation or other Proceeding.

Companies means Pasifai Shareholders and Pasifai Owning Company Limited.

Constitutional Documents means all constituent documents of the Seller and each of the Companies, including their respective Articles of Incorporation and By-Laws.

Contract means any loan or credit agreement, note, bond, mortgage, indenture, lease, sublease, purchase order or other agreement, commitment, instrument, permit, concession, franchise or license, written or oral.

Corporate Records means (a) the Constitutional Documents of the Companies; and (b) all minutes of meetings and resolutions of stockholders and directors of the Companies.

Governmental Body means any (a) nation, state, country, city, town, village, district, or other jurisdiction of any nature, (b) federal, state, local, municipal, foreign, or other government, (c) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal), (d) multinational governmental organization or body, or (e) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature.

 

  

  

  

 

Laws means all statutes, treaties, codes, ordinances, decrees, rules, regulations, municipal bylaws, judicial or arbitral or administrative or ministerial or departmental or regulatory judgments, orders, decisions, rulings or awards, policies, certificates, codes, licenses, permits, approvals, guidelines, voluntary restraints, inspection reports, or any provisions of such laws, including general principles of common law and equity and the requirements of all Governmental Bodies, binding or affecting the Person referred to in the context in which such word is used; and "Law" means any one of them.

 

Lien means (whether the same is consensual or nonconsensual or arises by contract, operation of law, legal process or otherwise): (i) any mortgage, lien, security interest, pledge, attachment, levy or other charge or encumbrance of any kind thereupon or in respect thereof; or (ii) any other arrangement under which the same is transferred, sequestered or otherwise identified with the intention of subjecting the same to, or making the same available for, the payment or performance of any liability in priority to the payment of the ordinary, unsecured creditors, and which under applicable law has the foregoing effect, including any adverse Claim.

Orders means judgments, writs, decrees, compliance agreements, injunctions, rules, awards, settlement agreements or orders of any Governmental Body or arbitrator.

Person means any individual, firm, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization, government or agency or subdivision thereof or any other entity.

Proceeding means an action, suit, litigation, claim, investigation, legal, administrative or arbitration proceeding.

ARTICLE XI

PURCHASE OF SHARES; CLOSING

Section 11.1  Purchase of Shares. Upon the terms and subject to the conditions of this Agreement, and on the basis of the representations and warranties hereinafter set forth, the Seller agrees to sell, transfer, convey, assign and deliver to the Buyer, and the Buyer agrees to acquire and buy from the Seller, the Shares, free and clear of all Liens.

Section 11.2  Closing. To be mutually agreed between the Seller and the Buyer.

Section 11.3  Purchase Price. The purchase price for the Shares that shall be paid to the Sellers on the Closing Date shall consist of an amount 17,828,571 common shares of the Buyer.

ARTICLE XII

REPRESENTATIONS AND WARRANTIES OF SELLER

The Seller hereby represents and warrants to the Buyer on the date hereof and as of the Closing Date as follows:

Section 12.1  Organization of the Seller.  (a) The Seller is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now conducted.

Section 12.2  Organization of the Companies.  (a) Each of the Companies is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now conducted.  (b) The Seller has heretofore delivered to the Buyer complete and correct copies of the Constitutional Documents of the Companies as currently in effect and the other Corporate Records.  The Corporate Records are accurate in all material respects and all corporate proceedings and actions reflected therein have been conducted or taken in compliance with all applicable Laws and in compliance with the Constitutional Documents. None of the Companies is in default under or in violation of its Constitutional Documents.

 

  

  

  

 

Section 12.3  Authority of the Seller.  (a) The Seller has full legal capacity, right, power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (b) the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all requisite corporate action taken on the part of the Seller and no other corporate proceedings on the part of the Seller is necessary to authorize this Agreement or to consummate the transactions contemplated hereby; and (c) that this Agreement has been duly and validly executed and delivered by the Seller and constitutes a valid and binding obligation of the Seller, enforceable against it in accordance with its terms.

 

Section 12.4  Consents and Approvals; No Violation, With Respect to the Seller.  Neither the execution and delivery of this Agreement by the Seller nor the consummation of the transactions contemplated by this Agreement will (a) conflict with or result in any breach of any provision of Constitutional Documents of the Seller; (b) require any consent, approval, authorization or permit of, or filing with or notification to, any Governmental Body other than those that have been made or obtained; (c) result in a default (or give rise to any right of amendment, termination, cancellation, consent, acceleration or loss of a material benefit) under the terms, conditions or provisions of any Contract, instrument or other obligation to which the Seller or any of its assets may be bound, except in such cases where the requisite waivers or consents have been obtained; (d) result in the creation of any Lien upon any of the properties or assets of the Seller under the terms, conditions or provisions of any Contract, instrument or other obligation to which the Seller or any of its assets may be bound or affected; or (e) violate any Law or Order applicable to the Seller or its assets.

Section 12.5  Consents and Approvals; No Violation, With Respect to the Companies.  Neither the execution and delivery of this Agreement by the Seller nor the consummation of the transactions contemplated by this Agreement will (a) conflict with or result in any breach of any provision of the Constitutional Documents of the Companies; (b) require any consent, approval, authorization or permit of, or filing with or notification to, any Governmental Body other than those that have been made or obtained; (c) result in a default (or give rise to any right of amendment, termination, cancellation, consent, acceleration or loss of a material benefit) under the terms, conditions or provisions of any Contract, instrument or other obligation to which the Companies or any of their assets may be bound, except in such cases where the requisite waivers or consents have been obtained; (d) result in the creation of any Lien upon any of the properties or assets of the Companies under the terms, conditions or provisions of any Contract, instrument or other obligation to which the Companies or any of their assets may be bound or affected; or (e) violate any Law or Order applicable to the Companies or their assets.

Section 12.6  Capitalization.  (a) Schedule 3.6 sets forth the amount of authorized capital stock and the amount of the issued and outstanding shares of capital stock of the Companies.  The Shares constitute all of the issued and outstanding common shares of Pasifai Shareowners; all such common shares are duly authorized, validly issued, fully paid and non-assessable and are owned legally and beneficially by the Seller, as set forth on Schedule 3.6.  Other than this Agreement, there is no subscription, option, warrant, preemptive right, call right or other right, agreement or commitment of any nature relating to the voting, issuance, sale, delivery or transfer (including any right of conversion or exchange under any outstanding security or other instruments) by the Seller of the Shares, and there is no obligation on the part of the Seller to grant, extend or enter into any of the foregoing.

(b)  Pasifai Shareholders is the legal and beneficial owner of all of the issued and outstanding shares of the Owner; all such common shares are duly authorized, validly issued, fully paid and non-assessable.  There is no subscription, option, warrant, preemptive right, call right or other right, agreement or commitment of any nature relating to the voting, issuance, sale, delivery or transfer (including any right of conversion or exchange under any outstanding security or other instruments) by Pasifai Shareholders of the shares of the Owner and there is no obligation on the part of Pasifai Shareholders to grant, extend or enter into any of the foregoing.  Pasifai Shareholders does not, directly or indirectly, own any capital stock of or other equity interest in any Person other than as set forth on Schedule 3.6.

Section 12.7  Ownership of Purchased Shares.  The Seller owns and holds the Shares free and clear of all Liens or other limitations affecting the Seller's ability to vote such shares or to transfer such shares to the Buyer. At the Closing, the Seller will transfer, assign and transmit good and marketable title to and deliver the Shares to the Buyer, free and clear of all Liens.

Section 12.8  Ownership of the Shares of the Owner.  (a) Pasifai Shareholders owns and holds the shares of the Owner free and clear of all Liens or other limitations affecting Pasifai Shareholder's ability to vote such shares or to transfer such shares. At the Closing, the shares of the Owner will be free and clear of all Liens.

 

  

  

  

 

 

Section 12.9  Financial Statements. Set forth as Schedule 3.9 are the management financial statements of Pasifai Shareholders as of December 31, 2010.

Section 12.10  No Undisclosed Liabilities. Except as set forth on Schedule 3.10, none of the Companies will have any Liabilities at Closing.

Section 12.11  Contracts.  (a) All Contracts to which the Companies, or any of them, is a party or bound by, is set forth on Schedule 3.11 and there is not, under any Contract, any default or event which, with notice or lapse of time, or both, would constitute a material default on the part of any of the parties thereto, except such events of default and other events as to which requisite waivers or consents have been obtained, and all such Contracts are in full force and effect, constitute the legal and binding obligations of the respective parties thereto, and have not been modified or amended, except as set forth on Schedule 3.11, and true and correct copies of such Contracts are appended thereto.

(b)  All amounts due as of the date hereof under the Shipbuilding Contract and any related supervision or other ancillary agreements have been paid.

(c)  To the best knowledge of the Seller, no counterparty to any Contract to which the Companies, or any of them, is a party is in default under any such Contract.

Section 12.12  No Other Business. (a) Pasifai Shareholders has not conducted any business other than the ownership of the Owner; and (b) the Owner has not conducted any business other than the purchase of Hull 1240.

Section 12.13  Proceedings With Respect to the Seller. There is no Claim or Proceeding which is pending, or to the knowledge of the Seller, there is no Claim or Proceeding threatened in writing, against or relating to the Seller, before any Governmental Body nor is the Seller subject to or bound by any outstanding Order.

Section 12.14  Proceedings With Respect to the Companies.  There is no Claim or Proceeding which is pending, or to the knowledge of the Sellers, there is no Claim or Proceeding threatened in writing, against or relating to the Companies, or any of them, before any Governmental Body and none of the Companies is subject to or bound by any outstanding Order.

Section 12.15  No Unlawful Payments. None of the Companies, nor any director, shareholder, officer, agent, employee or other person associated with or acting on behalf of the Companies, has: (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; or (iii) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any supplier, customer, licensor, contractor, politician, government employee or other Person.

Section 12.16  Bank Accounts. Schedule 3.16 sets forth a complete and accurate list of all bank accounts, savings deposits, money-market accounts, certificates of deposit, safety deposit boxes, and similar investment accounts with banks or other financial institutions maintained by or on behalf of the Companies showing the depository bank or institution address, appropriate bank contact personnel, account number and names of signatories.

Section 12.17  Full Disclosure. No representation or warranty by the Seller in this Agreement and no statement contained in any document or other writing furnished or to be furnished to the Buyer pursuant to the provisions hereof, when considered with all other such documents or writings, contain or will contain any untrue statement of material fact or omits or will omit to state any material fact necessary in order to make the statements made herein or therein not misleading.

Section 12.18  Accredited Investor. The Seller and any nominee thereof is an "Accredited Investor" within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the "Securities Act").

Section 12.19  Acquiring Shares for Own Account. The Seller and any nominee thereof is acquiring the Shares from the Company for its own account solely for the purpose of investment and without a view to any resale or other distribution thereof in violation of the Securities Act of 1933, as amended.

 

  

  

  

 

 

Section 12.20  Knowledge in Business. The Seller and any nominee thereof has sufficient knowledge and experience in business, financial and investment matters so as to be able to evaluate the risks and merits of its investment in the Buyer and it is able financially to bear the risks thereof.

Section 12.21  No General Solicitation. Neither the Seller nor any nominee thereof has been offered any Shares by any means of general solicitation or advertising, including any of the following:

(a)  any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over television or radio, or

(b)  any seminar or meeting whose attendees have been invited by general solicitation or advertising.

Section 12.22  Access to Information. The Seller and any nominee thereof had access to such information regarding the Buyer and its affairs as is necessary to enable it to evaluate the merits and risks of an investment in the Shares.

Section 12.23  Purchaser Acknowledgement. The Seller and any nominee thereof acknowledges that (i) the Shares are "restricted securities," as defined in Rule 144 under the Securities Act, (ii) a stop transfer order will be in effect and (iii) the Shares cannot not be sold, transferred, pledged or hypothecated in the absence of an effective registration statement for such securities under the Securities Act or an opinion of counsel satisfactory to the Buyer that registration is not required under the Securities Act.

Section 12.24  Holding Period. Seller, or its nominee, as the case may be, will hold the Shares subject to all of the applicable provisions of the Securities Act and the rules and regulations promulgated thereunder and will not at any time make any sale, transfer or other exchange thereof in contravention of the Securities Act or such rules and regulations, or any applicable state securities or "blue sky" laws.

Section 12.25  Restrictive Legend. Buyer has made the Seller aware that a legend will be placed on the share certificates stating that the Shares have not been registered under the Securities Act and referring to the restrictions on transferability and sale of the Shares.

Section 12.26  Each certificate for the Shares shall have conspicuously written, printed, typed or stamped upon the face thereof, or upon the reverse thereof with a conspicuous reference on the face thereof, the following legend:

Section 12.27  "THE SHARES OF COMMON STOCK REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES OR BLUE SKY LAWS, AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND COMPLIANCE WITH SUCH STATE LAWS OR (II) AN APPLICABLE EXEMPTION THEREFROM AND AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED."

 

ARTICLE XIII

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer represents and warrants to the Sellers as of the date hereof and as of the Closing Date as follows:

Section 13.1  Organization.  Buyer is a corporation duly organized, validly existing and in good standing under the laws of the Republic the Marshall Islands and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now conducted.

Section 13.2  Authority.  (a) Buyer has the full legal capacity, right, power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (b) the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all requisite corporate action taken on the part of the Buyer and no other corporate proceedings on the part of the Buyer is necessary to authorize this Agreement or to consummate the transactions contemplated hereby; and (c) this Agreement has been duly and validly executed and delivered by the Buyer and constitutes a valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms.

 

  

  

  

Section 13.3  Consents and Approvals; No Violation.  Neither the execution and delivery of this Agreement by Buyer, nor the consummation of the transactions contemplated by this Agreement, nor the performance by Buyer of its obligations under this Agreement will (a) conflict with or result in any breach of any provision of the corporate organizational documents of the Buyer; (b) require any consent, approval, authorization or permit of, or filing with or notification to, any Governmental Body other than those which have been made or obtained; or (c) result in a default (or give rise to any right of termination, cancellation, consent or acceleration) under any of the terms, conditions or provisions of any Contract to which Buyer is a party or by which its assets may be bound, except for such defaults (or rights of termination, cancellation or acceleration) as to which requisite waivers or consents have been obtained; or (d) violate any Order or Law applicable to Buyer or any of its assets.

Section 13.4  Validity.  There is no investigation, claim, proceeding or litigation of any type pending or, threatened to which Buyer is a party that (i) relates, or may relate, to the validity or enforceability of any of the Buyer's obligations under this Agreement or (ii) seeks (or reasonably might be expected to seek) (A) to prevent or delay the consummation by the Buyer of the transactions contemplated by this Agreement or (B) damages in connection with any such consummation.

Section 13.5  OceanFreight Shares.  At the Closing, the Buyer shall deliver 17,828,571 common shares of the Buyer and which such shares of Buyer common stock shall be issued free and clear of all Liens.

ARTICLE XIV

COVENANTS

Section 14.1  Conduct of Business Pending Closing.  Buyer and Seller agree that between the date of the execution of this Agreement and the Closing Date, (i) the Seller shall conduct the business and maintain and preserve the assets of the Seller in the ordinary course of business; (ii) the Buyer and the Seller shall use their reasonable efforts to cause all of the representations and warranties in Article III hereof to continue to be true and correct; and (iii) none of the Companies shall incur any debt without the Buyer's prior written approval.

Section 14.2  Further Assurances.  The Seller shall execute, acknowledge and deliver or cause to be executed, acknowledged and delivered to the Buyer such assignments or other instruments of transfer, assignment and conveyance, in form and substance reasonably satisfactory to Buyer, as shall be necessary to vest in Buyer all of the right, title and interest in and to the Shares undertaken to be sold to Buyer by the Seller pursuant to this Agreement, free and clear of all Liens, debts, dues and duties of whatsoever nature, and any other document reasonably requested by the Buyer in connection with this Agreement.

Section 14.3  Governmental Filings.  As promptly as practicable after the execution of this Agreement, each party shall, in cooperation with the other, file any reports or notifications that may be required to be filed by it under applicable law, if any.

Section 14.4  Further Consents.  After the Closing Date, the Seller shall obtain any consents or approvals or assist in any filings reasonably required in connection with the transactions contemplated hereby that are requested by Buyer and that have not been previously obtained or made.

Section 14.5  Public Announcements.  Neither party shall, without the prior approval of the other party, issue, or permit any of its partners, stockholders, directors, officers, employees, members, managers, agents to issue, any press release or other public announcement with respect to this Agreement or the transactions contemplated hereby, except as may be required by Law or any Governmental Body to which the relevant party is accountable.

 

  

  

  

 

ARTICLE XV

INDEMNIFICATION

Section 15.1  Seller's Indemnity Obligations.  The Seller agrees to indemnify the Buyer against, and hold the Buyer harmless from and against, any amounts that arise from, are based on or relate or otherwise are attributable to (a) any error, inaccuracy, breach or misrepresentation in any of the representations and warranties made by or on behalf of the Seller in this Agreement, (b) any violation or breach by the Seller of or default by the Seller under the terms of this Agreement.  Buyer shall be entitled to recover its reasonable and necessary attorneys' fees and litigation expenses incurred in connection with successful enforcement of its rights under this Section 6.1.

Section 15.2  Buyer's Indemnity Obligations.  Buyer shall indemnify the Seller against, and hold the Seller harmless from and against, any and all amounts that arise from, are based on or relate or otherwise are attributable to (a) any error, inaccuracy, breach or misrepresentation in any of the representations and warranties made by or on behalf of the Buyer in this Agreement, (b) any violation or breach by the Buyer of or default by Buyer under the terms of this Agreement. The Seller shall be entitled to recover its reasonable and necessary attorneys' fees and litigation expenses incurred in connection with successful enforcement of its rights under this Section 6.2.

Section 15.3  Survival of Indemnity Obligation.  The rights and duties contained in this Article VI shall survive the Closing.

ARTICLE XVI

CONDITIONS TO CLOSING

Section 16.1  Conditions to Obligations of Buyer.  The obligations of the Buyer to consummate the transactions contemplated herein are subject, at the option of the Buyer, to satisfaction of the following conditions:

(a)  Compliance.  The Seller shall have complied with its covenants and agreements contained herein, and the representations and warranties contained in Article III hereof shall be true and correct in all material respects (except those representations and warranties qualified by materiality shall be true and correct in all respects) on the date hereof and as of the Closing Date.

(b)  Orders, Etc.  No action, suit or proceeding shall have been commenced or shall be pending or threatened, and no statute, rule, regulation or order shall have been enacted, promulgated, issued or deemed applicable to the transactions contemplated by this Agreement, by any Governmental Body or court that reasonably may be expected to prohibit consummation of the transactions contemplated by this Agreement.

(c)  Consents.  All consents and approvals required in connection with the execution, delivery and performance of this Agreement shall have been obtained.

Section 16.2  Conditions to Obligations of the Seller.  The obligations of the Seller to consummate the transactions contemplated herein are subject, at the option of the Seller, to satisfaction of the following conditions:

(a)  Compliance.  Buyer shall have complied with its covenants and agreements contained herein, and the representations and warranties contained in Article IV hereof shall be true and correct in all material respects (except those representations and warranties qualified by materiality shall be true and correct in all respects) on the date hereof and as of the Closing Date.

(b)  Orders, Etc.  No action, suit or proceeding shall have been commenced or shall be pending or threatened, and no statute, rule, regulation or order shall have been enacted, promulgated, issued or deemed applicable to the transactions contemplated by this Agreement, by any Governmental Body or court that reasonably may be expected to prohibit consummation of the transactions contemplated by this Agreement.

(c)  Consents.  All consents and approvals required in connection with the execution, delivery and performance of this Agreement shall have been obtained.

(d)  Counter Guarantee. On the Closing Date the Buyer shall deliver to Cardiff Marine Inc. a counter guarantee substantially in the form attached as Appendix A hereto in relation to the Payment Guarantee issued by Cardiff Marine Inc. to the Builder and dated 12th June 2010 guaranteeing the performance of the Owner under the Shipbuilding Contract.

 

  

  

  

 

 

ARTICLE XVII

TERMINATION

Section 17.1  Grounds for Termination.   This Agreement may be terminated at any time prior to the Closing Date:

(a)  By the mutual written agreement of the Buyer and the Seller;

(b)  By Buyer if any of the conditions set forth in Section 7.1 hereof shall have become incapable of fulfillment and shall not have been waived by Buyer;

(c)  By the Seller if any of the conditions set forth in Section 7.2 hereof shall have become incapable of fulfillment and shall not have been waived by the Seller;

(d)  By either party by written notice thereof to the other, if the Closing contemplated hereby shall not have been consummated on or before December 31, 2011 or such other date, if any, as the Buyer and the Seller shall agree upon in writing; or

(e)  By the Buyer or the Seller if the consummation of the transactions contemplated hereby would violate any nonappealable final order, decree or judgment of any court or Governmental Body having competent jurisdiction enjoining, restraining or otherwise preventing, or awarding substantial damages in connection with, or imposing a material adverse condition upon, the consummation of this Agreement or the transactions contemplated hereby; provided, however, that a party shall not be allowed to exercise any right of termination pursuant to this Section 8.1 if the event giving rise to such termination right shall be due to the negligent or willful failure of the party seeking to terminate this Agreement to perform or observe in any material respect any of the covenants or agreements set forth herein to be performed or observed by such party.

ARTICLE XVIII

GENERAL PROVISIONS

Section 18.1  Entire Agreement.  This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof.  This Agreement may not be modified, amended or terminated except by a written instrument specifically referring to this Agreement signed by all the parties hereto.

Section 18.2  Waivers and Consents.  All waivers and consents given hereunder shall be in writing.  No waiver by any party hereto of any breach or anticipated breach of any provision hereof by any other party shall be deemed a waiver of any other contemporaneous, preceding or succeeding breach or anticipated breach, whether or not similar.  Except as provided in this Agreement, no action taken pursuant to this Agreement, including any investigation by or on behalf of any party, shall be deemed to constitute a waiver by the party taking such action of compliance with any representations, warranties, covenants or agreements contained in this Agreement.

Section 18.3  Notices.   All notices and other communications hereunder shall be in writing and shall be deemed to have been received only if and when (a) personally delivered, (b) on the fifth day after mailing, by mail, first class, postage prepaid or by certified mail return receipt requested, addressed in each case as follows (or to such other address as may be specified by like notice), (c) at the time receipt is acknowledged when delivered by private mail or courier service or (d) received by facsimile at the phone number listed below:

(a)  If to Buyer to:

	
  

	
c/o Poles Tublin Stratakis & Gonzalez

	
  

	
46 Trinity Place

	
  

	
New York, NY 10006

	
  

	
Tel: +1 212 943 0110

	
  

	
Fax: +1 212 269 9875

(b)  If to Seller to:

	
  

	
c/o Cefai & Associates

	
  

	
5/2 Merchant Street, Valletta

	
  

	
Malta VLT 10

 

  

  

  

 

Section 18.4  Assignments, Successors and No Third-Party Rights.   No party may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of the other party; provided that the Buyer may assign its rights hereunder to any wholly-owned subsidiary. Subject to the preceding sentence, this Agreement will apply to, be binding in all respects upon, and inure to the benefit of the successors and permitted assigns of the parties.

 

Section 18.5  Choice of Law; Resolution of Disputes.   This Agreement shall be governed by and construed under the laws of the State of New York without regard to choice of law principles.  All disputes, differences, controversies or claims arising out of or in connection with this Agreement shall be arbitrated in New York in the following manner.  One arbitrator is to be appointed by each of the parties hereto and the two appointed arbitrators shall appoint a third arbitrator.  Their decision or that of any two of them shall be final.  The arbitrators shall be commercial persons, conversant with shipping matters.  Such arbitration is to be conducted in accordance with the rules and on the terms current at the time when the arbitration proceedings are commenced and in accordance with the Society of Maritime Arbitrators, Inc.

Section 18.6  Construction; Section Headings.   The language used in this Agreement shall be deemed to be the language the parties hereto have chosen to express their mutual intent, and no rule of strict construction will be applied against any party hereto.  The section headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

Section 18.7  Severability.  Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction.  If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only as broad as is enforceable.

Section 18.8  Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.

 

  

  

  

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

For the Buyers

By:   /s/ Demetris Nenes      

Name: Demetris Nenes

Title:   Attorney-in-fact

For the Seller

By: /s/ Dr. Clarissa Cefai      

Dr. Clarisa Cefai

Director

MARE SERVICES LIMITED

5/1 MERCHANTS STREET

VALLETA VLT 1171

Title:   Sole Director

 

SK 25754 0002 1187083Exhibit 10.1

April 8,
2011                                                 

Anthony
Sanfilippo 

261 Bayberry Lane 

Westport, CT 06880 

Dear Tony: 

          We are
pleased to offer you a position as President and Head of Sales & Trading
and Research of Rodman & Renshaw, LLC and President of Rodman & Renshaw
Capital Group, Inc. (collectively, the “Company”), reporting to the
Chief Executive Officer. In connection with your employment with the Company,
you will become registered with the Financial Industry Regulatory Authority (“FINRA”)
and become a “registered representative” (as such term is defined in the rules
and regulations of FINRA) of the Company as soon as practicable, and remain in
good standing with FINRA. 

          You will
receive a salary at the annualized rate of $150,000, payable according to the
Company’s prevailing payroll schedule. You will be eligible for an annual
discretionary bonus, subject to approval of the Company’s Compensation
Committee and payable in accordance with then-prevailing policy, including, but
not limited to the Company’s Executive Bonus Plan, some portion of which may be
payable in restricted stock or restricted stock units of Rodman & Renshaw
Capital Group, Inc. Nothwithstanding the foregoing, your bonus through March
31, 2012 will be not less than $350,000, of which $300,000 shall be payable
December 31, 2011 and $50,000 shall be payable March 31, 2012. In no event,
however, will you be eligible for consideration to receive any bonus (or any
portion thereof) for any year if you are not actively employed by the Company
on, or have received or given notice of termination or resignation prior to,
the date on which bonuses for the applicable year are paid to employees
generally; provided, however, that in the event that you terminate your
employment with the Company for “Good Reason” (as defined below), or
your employment is terminated by the Company other than for “Cause” (as
defined below) prior to March 31, 2012, the Company shall pay you (or your
estate), as a lump sum with appropriate tax withholdings and other payroll
deductions, the remaining unpaid amount of the salary, your guaranteed bonus,
and a discretionary bonus for the pro rata portion of the year in which such
termination occurred, based upon actual performance for the year of
termination, as described above, through March 31, 2012. 

          In addition
to the compensation above, 30% of the warrants carried on Hudson Securities,
Inc.’s books as of April 6, 2011 shall be allocated to you as soon as
practicable. 

          You will be
eligible and entitled to participate, on the same basis and at the same level
as other employees performing similar functions for the Company, in any
pension, profit-sharing, bonus and equity plans or programs of the Company, if
any, and in any group medical, dental, life and disability insurance plans or
programs of the Company, if any, all in accordance with the terms and
conditions of the applicable plan documents. You will also be entitled to such
other fringe benefits and conditions of employment, including without
limitation, customary holidays and vacation, as 

Rodman & Renshaw, LLC o 1251 Avenue of the
Americas, 20th Floor, New York, NY 10020 

Tel: 212 356 0500 o
Fax: 212 581 5690 o
www.rodm.com o
Member: FINRA, SIPC

appropriate for an employee of
comparable rank, under Company programs and policies which may  be amended from time to time. All amounts of compensation paid to you
shall be paid subject to applicable taxes, deductions and withholdings. 

          Subject to
approval of the Company’s Compensation Committee, you will be granted 482,500
Restricted Stock Units (“RSUs”) under the Company’s 2010 Stock Award and
Incentive Plan (the “Plan”) pursuant to a Restricted Stock Unit
Agreement in the form annexed hereto as Exhibit A. 

          For
purposes of this Agreement, “Cause” shall mean: (1) your continuing
willful failure to substantially perform the duties assigned to you for any
reason other than total or partial incapacity due to physical or mental
illness; (2) willful misconduct on your part in the performance of the duties
assigned to you that causes significant harm to the Company; (3) failure to
maintain any license or registration required to be maintained by the rules and
regulations of FINRA, the Securities and Exchange Commission, or any other
federal or state regulatory agency having jurisdiction over your business
conduct as an employee of the Company and/or any of its affiliates, if any; or
(4) conviction of a (i) felony or (ii) misdemeanor which misdemeanor involves
moral turpitude. For the purposes of this Agreement, “Good Reason” shall
mean if: (1) the Company breaches this Agreement in any respect that is
materially adverse to you; (2) you are assigned duties materially inconsistent
with your position with the Company and adverse to you, or a materially adverse
change occurs in your reporting responsibilities, or your title, position,
duties or responsibilities are changed in a materially adverse manner; or (3)
your primary place of employment is changed to other than the Company’s
executive offices or such executive offices are moved to a location beyond a
fifty-five (55) mile radius of 42nd Street and Park Avenue,
Manhattan, New York City; provided, however, that you provide written notice to
the Company that an event has occurred or condition arisen constituting Good
Reason within sixty (60) days after the initial occurrence of such event or
existence of such condition, and the Company has failed to fully cure the Good
Reason event or condition within thirty (30) days of receipt of such written
notice, and you provide to the Company notice of termination for Good Reason at
least thirty (30) days prior to a specified termination date (such notice may
be given together with the notice of the occurrence of a Good Reason event or
condition but the termination date may not be earlier than the end of the
permitted period in which the Company may cure such event or condition). 

          Notwithstanding
anything to the contrary contained herein, in the event that you resign from
the Company other than for Good Reason, or your employment is terminated by the
Company for Cause, you (1) will be entitled to receive only the amount
of your salary (with appropriate tax withholdings and other payroll deductions)
through the last day that you actually work at the Company, (2) you shall not
be entitled to receive any additional salary whatsoever, and (3) you shall not
be entitled to receive any bonus whatsoever. 

          Your
employment and all of the above compensation and benefits are and shall remain
expressly conditioned upon your attaining and maintaining all appropriate
licenses necessary for you to conduct the functions of your job at the Company,
satisfactory completion of employment and education checks, a criminal
background check, verification of your identity and authorization to legally
work in the United States, and your continuing compliance with the securities
compliance rules of the Company, the Constitution, bylaws, rules and
regulations of FINRA, and the rules and regulations of the Securities and
Exchange Commission, national and regional exchanges, clearing corporations,
and all other federal and state authorities or regulatory agencies having
jurisdiction over your business conduct, as may be in force from time to time. 

Page 2 of 5

          Both during
and after your employment with the Company, you shall keep secret and maintain
in strictest confidence, and shall not use for the benefit of yourself or
others except in connection with the business of the Company, all information
or materials relating to the actual or prospective business of the Company or
its affiliates (and all information or material received from others in the
course of the Company’s actual or prospective business) which is obtained by
you in the course of your employment with the Company and is not otherwise
publicly available (provided that you were not responsible, directly or
indirectly, for such information entering the public domain without the
Company’s consent). Promptly upon your resignation or termination, you shall
surrender to the Company all documents, work papers, lists, memoranda, records
and other data (including all copies) constituting or pertaining in any way to
any of the foregoing information. If you resign or are terminated for any
reason, then for one year following the date of your resignation or termination
you agree not to solicit, attempt to solicit, or encourage any employee to
leave the employment of the Company or its affiliates, and not to interfere
with or disrupt any other then existing contractual relationship (so long as it
continues to exist during the one year period set forth above) between the
Company or its affiliates and any other person or entity. In addition, if you
resign other than for Good Reason or are terminated by the Company for Cause,
then (i) for six months following the date of your resignation or termination
you agree not to solicit or participate in the solicitation of any part of the
business of the Company or its affiliates from any person or entity which was a
client of the Company or its affiliates at the time of your resignation or
termination, and (ii) for three months following the date of your resignation
or termination you agree not to solicit or participate in the solicitation of
any part of the business of the Company or its affiliates from any person or
entity which is a prospective client of the Company or its affiliates. 

          You
understand and agree that you are performing work for hire for the Company and
that any Inventions developed or conceived by you during your employment with
the Company are the sole property of the Company. “Inventions” shall include
any inventions, improvements, developments, discoveries, programs, designs,
machinery, products, processes, information systems and software, as well as
any other concepts, works and ideas, relating to any present or prospective
activities or business of the Company. You agree to make the Company aware of
all such Inventions made by you during your employment. To the maximum extent
permitted by applicable law, you further agree to assign and do hereby assign
to the Company all rights, title and interest in and to all such Inventions
hereafter made by you. You will, with reasonable reimbursement for expenses but
at no other expense to the Company, at any time during or after your employment
with the Company, sign and deliver all lawful papers and cooperate in such
other lawful acts reasonably necessary to allow the Company to secure, perfect
and enforce such rights and title in the Inventions. This Section does not
apply to any Invention for which you affirmatively prove that (a) no equipment,
supplies, facility, or confidential or trade secret information of the Company
was used; (b) which was developed entirely on your own time, and (c) did not
result, either directly or indirectly, from any work performed by you for the
Company. 

           In accepting this offer, you represent and
warrant to the Company that you are not subject to any agreement or
understanding with any current or prior employer or business (or any other
entity or person) which would in any manner preclude you from fulfilling any of
the duties or obligations you would have with the Company or which would result
in any additional payment from the Company. You further recognize and agree
that, to the extent you possess any confidential, proprietary or trade secret
information of a third party, you may not and shall not use or disclose such
information in performing your duties for the Company. 

Page 3 of 5

          The Company
agrees to use reasonable efforts to maintain one or more directors and officers
liability insurance policies (collectively, the “Policy”) in a reasonable and
adequate amount determined by the Board of Directors of the Company that
provides coverage of at least $10 million, with you included as a named insured
or as member of a group or class within the definition of a named insured in
the Policy.  

          The
following provisions are intended to cause compensation payable hereunder to be
excluded from being deferrals of compensation under Section 409A of the
Internal Revenue Code or, if not excluded, to comply with applicable
requirements of Section 409A so that no tax penalties become payable by you: 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 The compensation items payable to you under this Agreement, including
 salary, annual bonus, and the signing advance, and other items of
 compensation payable to you under any prior agreement, plan, program or
 policy (including each installment, where installments are or were payable),
 each shall be deemed a separate payment for purposes of and to the maximum
 extent permitted under Section 409A. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 If any payment hereunder is deemed to be in substitution for a prior
 right to payment, and such prior right to payment constituted a deferral of
 compensation for purposes of Section 409A, the corresponding payment
 hereunder shall be payable only at the times the prior payment was payable
 (subject to (iii) below) so as to comply with requirements under Section
 409A, except to the extent an alternative payout date would be permissible
 under Section 409A. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 Any bonus or other payment hereunder that does not constitute a
 deferral of compensation under Section 409A shall be payable to you during
 the applicable short-term deferral period. Any payment hereunder (including a
 corresponding payment) which constitutes a deferral of compensation, if
 payable to you upon your termination of employment, shall be payable no later
 than the first payroll date coinciding with or following your separation from
 service (as defined in Treasury Regulation § 1.409A-1(h)), except (i) if a
 specific payment time is otherwise specified hereunder and that payment time
 is compliant with Section 409A, the payment shall be made at that time, and
 (ii) if you are a Specified Employee as defined under Section 409A and the
 payment otherwise would be at a date tied to separation from service and
 within six months after your separation from service, the payment shall be
 delayed until the date six months and one day after your separation from
 service. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 If a payment could be validly made in a period that includes portions
 of two tax years, you will have no right to control or influence the
 Company’s decision as to which tax year in which it will make such payment.
 If you are required to execute any document as a condition to receipt of a
 payment, the Company will supply the document by the date of your termination
 and you must sign and return it (and not revoke it) within any applicable
 period required by law and in no event more than 52 days after receipt of the
 document. Any amount that may be retained by the Company and applied to repay
 an obligation you may have to the Company may only be so applied at the time
 the amount otherwise would have been payable to you, and cannot operate to
 relieve you of any obligation to 

 	
  

 

Page 4 of 5

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 repay at any time prior to the time such amount becomes payable. No
 right to any payment or benefit under this Agreement that constitutes a
 deferral of compensation shall be subject to anticipation, alienation, sale,
 transfer (except under laws of descent and distribution), assignment, pledge,
 encumbrance, attachment, or garnishment by your creditors or the creditors of
 any of your beneficiaries.

 	
  

 

          THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE FULLY PERFORMED THEREIN. 

          This
Agreement contains all of the terms of your employment on which we have agreed,
and cannot be changed except by in writing signed by both parties. Nothing in
this Agreement changes the fact that you are an at-will employee. This
Agreement supersedes all prior verbal and/or written communication between you
and the Company with respect to the subject matter hereof. 

          Your start
date and time will be April 8, 2011, as of the effective time of the merger of
Hudson Holding Corporation with and into HHC Acquisition, Inc. 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Sincerely,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 /s/ Edward
 Rubin

 
	
  

 	
  

 	
 Edward Rubin

 
	
  

 	
  

 	
 Chief
 Executive Officer

 
	
  

 	
  

 	
  

 
	
 Accepted as
 of the date set forth above:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
    /s/
 Anthony Sanfilippo

 	
  

 	
  

 
	 

 	
  

 	
  

 
	
 Anthony
 Sanfilippo

 	
  

 	
  

 

Page 5 of 5

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