Document:

EXHIBIT 10

EXHIBIT 10.1

CONSULTING AGREEMENT

This Consulting Agreement (the “Agreement”), effective as of December 7, 2005 is entered into by and between Unico, Incorporated, an Arizona corporation (herein referred to as the “Company”), and Michael Margolin, (herein referred to as the “Consultant”). This agreement supersedes any prior oral or written agreements between the parties hereto.

RECITALS

WHEREAS, the Company desires to engage the Consultant to perform the Consulting Services (as such term is defined below) pursuant to and in accordance with the terms of this Agreement;

WHEREAS, the Consultant wishes to provide the Consulting Services to the Company pursuant to and in accordance with the terms of this Agreement;

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

1. Term of Consultancy. The Company hereby agrees to retain the Consultant to act in a consulting capacity to the Company, and the Consultant hereby agrees to provide the Consulting Services to the Company during the period commencing on the date first above written and ending on February 11, 2008, unless this Agreement is earlier terminated by either party hereto.

2. Duties of Consultant. The Consultant agrees that it will generally provide the following specified consulting services to the Company (the “Consulting Services”): consulting services related to the construction and completion of the Company’s mill located in Piute County, Utah.  

3. Allocation of Time and Energies. The Consultant hereby promises to perform the Consulting Services and discharge faithfully the responsibilities which may be assigned to the Consultant from time to time by the officers and duly authorized representatives of the Company pursuant to this Agreement, so long as such activities are in compliance with applicable laws and regulations. Consultant and his staff if any, shall diligently and thoroughly provide the Consulting Services required hereunder. Although no specific hours-per-day requirement will be required, Consultant and the Company agree that Consultant will perform his duties hereunder in a diligent and professional manner. 

4. Remuneration. As full and complete compensation for services described in this Agreement, the Company shall compensate the Consultant as follows:

(a) For performance of the services described above, the Consultant shall be paid the sum of Sixty Four Thousand Six Hundred Four and 73/100 Dollars ($64,604.73) which shall be paid in the form of shares of the Company’s common stock, $0.001 par value per share (the “Shares”), upon the completion of Consultant’s services. The shares are to be registered on a Form S-8 registration statement.  The number of shares that Consultant shall receive shall be equal to $64,604.73 divided by the closing price of the Company’s shares of common stock on the day immediately preceding the filing of the Form S-8 registration statement. The Company understands and agrees that Consultant has foregone significant opportunities to accept this engagement, and that the Company will derive a substantial benefit from the execution of this Agreement. The Shares therefore, constitute payment in full for the Consulting Services provided to the Company pursuant to this Agreement. The Shares are not a prepayment for future services. 

(b) Upon the Company’s transfer to the Consultant of the Shares, the Company shall cause to be issued a certificate representing the Shares. The Company hereby represents and warrants to the Consulting that the Shares shall have been validly issued, fully paid and non-assessable and that the issuance and any transfer of the shares to Consultant shall have been duly authorized by the Company’s board of directors.

(c) Consultant acknowledges that the Shares will be registered under the Securities Act of 1933 on a registration statement on Form S-8 to be filed with the Securities and Exchange Commission, as the same may be amended from time to time.

(d) In connection with the acquisition of Shares hereunder, the Consultant represents and warrants to the Company, to the best of his, her or its knowledge, as follows:

(i) Consultant acknowledges that the Consultant has been afforded the opportunity to ask questions of and receive answers from duly authorized officers or other representatives of the Company concerning an investment in the Shares, and any additional information which the Consultant has requested.

(ii) Consultant’s investment in the Shares is reasonable in relation to the Consultant’s net worth, which is in excess of ten (10) times the Consultant’s cost basis in the Shares. Consultant has had experience in investments in restricted and publicly traded securities, and Consultant has had experience in investments in speculative securities and other investments which involve the risk of loss of investment. Consultant acknowledges that an investment in the Shares is speculative and involves the risk of loss. Consultant has the requisite knowledge to assess the relative merits of an investment in the Shares without the necessity of relying upon other advisors, and Consultant can afford the risk of loss of his entire investment in the Shares. Consultant is an accredited investor, as that term is defined in Regulation D promulgated under the Securities Act of 1933.

(iii) Consultant is acquiring the Shares for the Consultant’s own account for long-term investment and not with a view toward resale or distribution thereof except in accordance with applicable securities laws.

(iv) Consultant is not receiving any of the Shares in exchange for assisting the Company in any capital-raising transaction, or to directly or indirectly promote or maintain a market for the Company’s securities.

5. Non-Assignability of Services. Consultant’s services under this Agreement are offered to the Company only and may not be assigned by Company to any entity with which Company merges or which acquires the Company or substantially all of its assets. 

6. Expenses. Consultant agrees to pay for all his expenses (phone, mailing, labor, etc.), incurred in providing the Consulting Services.

7. Representations. Consultant represents that he is not required to maintain any licenses and registrations under federal or any state regulations necessary to perform the services set forth herein, except for such licenses and registrations that the Consultant already has. Consultant acknowledges that, to the best of its knowledge, the performance of the services set forth under this Agreement will not violate any rule or provision of any regulatory agency having jurisdiction over Consultant. Consultant acknowledges that, to the best of its knowledge, Consultant is not the subject of any investigation, claim, decree or judgment involving any violation of the Securities and Exchange Commission (“SEC”) or applicable securities laws. Consultant further acknowledges that he is not a securities Broker-Dealer or a registered investment advisor. Company acknowledges that, to the best of his knowledge, that he has not violated any rule or provision of any regulatory agency having jurisdiction over the Company. 

8. Termination. This Agreement may be terminated by either party hereto upon 30 days advance written notice to the other party hereto.

9. Legal Representation. The Company acknowledges that it has been represented by independent legal counsel in the preparation of this Agreement. Consultant represents that it has consulted with independent legal counsel and/or tax, financial and business advisors, to the extent the Consultant deemed necessary.

 

10. Status as Independent Contractor. Consultant’s engagement pursuant to this Agreement shall be as independent contractor, and not as an employee, officer or other agent of the Company. Neither party to this Agreement shall represent or hold itself out to be the employer or employee of the other. Consultant further acknowledges the consideration provided hereinabove is a gross amount of consideration and that the Company will not withhold from such consideration any amounts as to income taxes, social security payments or any other payroll taxes. All such income taxes and other such payment shall be made or provided for by Consultant and the Company shall have no responsibility or duties regarding such matters. Neither the Company nor the Consultant possesses the authority to bind each other in any agreements without the express written consent of the entity to be bound.

11. Attorney’s Fees. If any legal action or any arbitration or other proceeding is brought for the enforcement or interpretation of this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with or related to this Agreement, the successful or prevailing party shall be entitled to recover reasonable attorneys’ fees and other costs in connection with that action or proceeding, in addition to any other relief to which it or they may be entitled.

12. Waiver. The waiver by either party of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by such other party.

13. Choice of Law, Jurisdiction and Venue. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Utah. The parties agree that Utah will be the venue of any dispute and will have jurisdiction over all parties.

14. Arbitration. Any controversy or claim arising out of or relating to this Agreement, or the alleged breach thereof, or relating to Consultant’s activities or remuneration under this Agreement, shall be settled by binding arbitration in San Diego, California, in accordance with the applicable rules of arbitration, and judgment on the award rendered by the arbitrator(s) shall be binding on the parties and may be entered in any court having jurisdiction as provided by Paragraph 13 herein.

15. Complete Agreement. This Agreement contains the entire agreement of the parties relating to the subject matter hereof. This Agreement and its terms may not be changed orally but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought.

		
	AGREED TO: 

UNICO, INCORPORATED

	 

	 

	 

	/s/ Mark Lopez

	 

	By: Mark Lopez, CEO

	 

	 
	 

	

CONSULTANT

	 

	 

	 

	/s/ Michael Margolin

	 

	By:  Michael MargolinExhibit 10.5

 

DATED: SEPTEMBER 19, 2008

 

CONBULK CORPORATION

 

AND

 

CONBULK MANAGEMENT LTD.

 

 

MANAGEMENT AGREEMENT

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  DEFINITIONS

  	
  2

  
	
  2.

  	
  APPOINTMENT, TERM AND
  EFFECTIVENESS

  	
  5

  
	
  3.

  	
  MANAGEMENT SERVICES

  	
  5

  
	
  4.

  	
  RIGHTS AND OBLIGATIONS

  	
  9

  
	
  5.

  	
  TAX

  	
  11

  
	
  6.

  	
  REMUNERATION AND FEES

  	
  11

  
	
  7.

  	
  MANAGEMENT AND EMPLOYEE
  INCENTIVE

  	
  14

  
	
  8.

  	
  UNDERTAKINGS

  	
  15

  
	
  9.

  	
  EXCLUSION OF LIABILITY

  	
  17

  
	
  10.

  	
  TERMINATION

  	
  17

  
	
  11.

  	
  RATIFICATION

  	
  19

  
	
  12.

  	
  ASSIGNS AND SUCCESSORS

  	
  19

  
	
  13.

  	
  CONFIDENTIALITY

  	
  20

  
	
  14.

  	
  SUBSIDIARIES

  	
  20

  
	
  15.

  	
  NOTICES

  	
  20

  
	
  16.

  	
  GOVERNING LAW

  	
  21

  
	
  17.

  	
  ENTIRE AGREEMENT

  	
  21

  
	
  18.

  	
  THIRD PARTIES

  	
  21

  
	
  19.

  	
  ARBITRATION

  	
  21

  
	
  20.

  	
  NON-COMPETE

  	
  21

  

 

i

 

THIS MANAGEMENT AGREEMENT
is made as of September 19, 2008

 

BETWEEN

 

(1)           CONBULK CORPORATION (the Company) a corporation incorporated in the Marshall Islands
whose principal office is at Papanastasiou 107, Kastella, Piraeus 185 33,
Greece.

 

(2)           CONBULK MANAGEMENT LTD. (the Manager) a corporation incorporated in the Marshall Islands
whose principal office is at Papanastasiou 107, Kastella, Piraeus 185 33,
Greece.

 

WHEREAS

 

The Company wishes to appoint the Manager to manage the business of the
Company and its various ship-owning subsidiaries (the Subsidiaries)
from time to time and their respective operations and external affairs and the
Manager wishes to accept this appointment on the terms of this Agreement.

 

NOW THEREFORE IT IS AGREED as
follows:

 

1.             DEFINITIONS

 

1.1           In this agreement the following terms shall have the following
meanings:

 

2010 EBITDA means the Company’s consolidated net income
(or loss) for the 2010 Fiscal Year in accordance with GAAP consistently applied
and as set forth on the 2010 Financial Statements plus, without duplication, (i) any
provision for (or less any benefit from) income and franchise taxes included in
the determination of net income, (ii) interest expense deducted in the
determination of net income (including the interest component of leases treated
as capitalized leases), and (iii) amortization and depreciation deducted in
determining net income.  Notwithstanding
the foregoing, gains or losses from the sale of Vessels shall not be included
in the calculation of the 2010 EBITDA.

 

2010
Financial Statements means
the audited consolidated Balance Sheet, Statement of Cash Flows and Statement
of Operations of the Company and its subsidiaries prepared as of and for the
2010 Fiscal Year in accordance with GAAP.

 

2011
EBITDA means the
Company’s consolidated net income (or loss) for the 2011 Fiscal Year in accordance
with GAAP consistently applied and as set forth on the 2011 Financial
Statements plus, without duplication, (i) any provision for (or less any
benefit from) income and franchise taxes included in the determination of net
income, (ii) interest expense deducted in the determination of net income
(including the interest component of leases treated as capitalized leases), and
(iii) amortization and depreciation deducted in determining net income.  Notwithstanding the foregoing, gains or
losses from the sale of Vessels shall not be included in the calculation of the
2011 EBITDA.

 

2

 

2011 Financial Statements means the Company’audited consolidated Balance Sheet, Statement of Cash
Flows and Statement of Operations prepared as of and for the 2011 Fiscal Year
in accordance with GAAP.

 

Affiliate
means with respect to any Person, any other Person directly or indirectly
controlled by or under common control with such Person.  For the purposes
of this definition, “control” (including, with correlative meanings, the terms “controlled
by” and “under common control with”) as applied to any Person means the
possession directly or indirectly of the power to direct or cause the direction
of the management and policies of that Person whether through ownership of
voting securities or by contract or otherwise;

 

Applicable Law means all applicable laws,
regulations and rules to which the Company, any Subsidiary, the Manager or
any Ship is from time to time subject;

 

Auditors means the auditors of the Company
from time to time;

 

Banking Day means a day (excluding
Saturdays and Sundays) on which banks and foreign exchange markets are open for
business in New York and Athens;

 

Board
means the Board of Directors of the Company or of a Subsidiary (as the context
may require) and references in this Agreement to the Board or any board of
directors of the Company or any or all of the Subsidiaries shall be deemed to
include in the alternative a reference to any duly constituted committee
thereof or to any person or persons duly authorised to exercise the power in
question by either the Board or such board of directors or such a committee (as
appropriate);

 

Common
Stock shall mean
common stock, par value $0.0001 per share, of the Company.

 

Determination
Date has the meaning
set forth in Clause 7.5.

 

Dispute
Accountant has the
meaning set forth in Clause 7.4.

 

Earnout
Consideration has the
meaning set forth in Clause 7.1.

 

Earnout
Objection Notice has
the meaning set forth in Clause 7.3.

 

Earnout Objection Notice Date has the meaning set forth in Clause 7.3.

 

EBITDA
Certificate has the
meaning set forth in Clause 7.2.

 

Effective
Date means the date set out above on which this Management
Agreement has been entered into by the Company and the Manager;

 

Euro
means the single currency of participating member states of the European Union;

 

Final
Determination has the
meaning set forth in Clause 7.4.

 

Fiscal
Year means a twelve
(12) month period ended on December 31.

 

3

 

Fully
Managed Ships means ships owned and operated by the Company
or its Subsidiaries during the Term;

 

GAAP
means (i) generally accepted accounting principles consistently applied in
the United States or (ii) if the Company determines to report under IFRS,
IFRS.;

 

Incentive
has the meaning given to it in Clause 7;

 

“IFRS” means
International Financial Reporting Standards adopted by the International
Accounting Standards Board;

 

Management
Fees has the meaning given to it in Clause 6.1;

 

Management
Services has the meaning given to it in Clause 2.1;

 

Merger has
the meaning given to it in Clause 2.2;

 

MOAs shall mean, collectively, the memoranda of agreement listed and described
in Schedule 2.

 

Newbuildings
means those newbuilding ships which are under construction and owned by the
Company or its Subsidiaries but not yet delivered under the relevant
shipbuilding contract;

 

Operated
Ships means:

 

(a)           ships
chartered to, and operated by, the Company or the Subsidiaries during the Term;

 

(b)           ships
owned by the Company or the Subsidiaries and bareboat chartered out during the
Term; and

 

(c)           Newbuildings,
upon and from the date of signature of the relevant shipbuilding contract.

 

Person means (i) any individual, sole
proprietorship, corporation, partnership (general or limited), limited
liability company, business trust, bank, trust company, syndicate, foundation,
joint venture, association, joint stock company, trust, enterprise, or other
unincorporated organization, whether or not a legal entity, or (ii) any
government, intergovernmental body or agency, or any department, political
subdivision or instrumentality of any government, intergovernmental body or
agency;

 

Shareholders mean the Shareholders of the
Company from time to time;

 

Ships
mean the Fully Managed Ships and the Operated Ships;

 

Sub-Manager
means any person, being all individual or a corporate entity, to which the
Manager may sub-contract from time to time part of or the whole of the
Management 

 

4

 

Services
in accordance with the provisions of Clause 4, and Sub-Managers means all such Persons; and

 

Term
has the meaning given to it in Clause 2.2.

 

Vessels shall
mean, collectively, the vessels listed on Schedule 1 and to be delivered under
the MOAs listed on Schedule 2, as well as any vessels substituted therefor due
to failure of the owner thereof to deliver its vessel in compliance with the
terms of the relevant MOA.

 

1.2           References
to the Company are, where appropriate, deemed to include in addition any
Subsidiary that may become a party to this Agreement by accession in accordance
with the provisions of Clause 13.

 

1.3           References
to Clauses, Sub-Clauses and the Annex are references to Clauses and Sub-Clauses
of, and the Annex to, this Agreement.

 

2.             APPOINTMENT,
TERM AND EFFECTIVENESS

 

2.1           The
Company hereby appoints the Manager to perform the services set forth in Clause
3 (the Management Services) and the Manager
agrees to perform the Management Services, subject to the terms and conditions
set out in this Agreement.

 

2.2           Subject
to Clause 10, the term of this Agreement shall be for five (5) years
commencing on the date of the merger (the Merger) of
Arcade Acquisition Corp., a corporation incorporated in Delaware, with and into
the Company, which term shall be automatically renewed for sequential one (1) year
periods commencing on the expiration of three (3) years from the date of
the Merger; unless on or prior to such date or on or before the date occurring
three years prior to the end of each extended period of this Agreement, as the
case may be, the Company notifies the Manager that it elects to terminate this
Agreement at the end of the initial term or such extended term, as the case may
be, in which event this Agreement will automatically terminate at the end of
such term.

 

2.3           This
Agreement will only come into effect immediately after the consummation of the
Merger.  If the Merger shall not have
occurred prior to 11:59 p.m., New York time, on January 30, 2009,
this Agreement shall be null and void and shall have no further effect on
either party hereto.

 

3.             MANAGEMENT
SERVICES

 

3.1           In
consideration of the payment of the Management Fees, the Manager shall, on its
own or through Sub-Manager(s) (appointed pursuant to Clause 4), for and on
behalf of the Company and each Subsidiary:

 

3.1.1       provide
planning, managerial and advisory services in respect of the whole operations
of the Company and the Subsidiaries;

 

5

 

3.1.2        provide
or contract for all general administrative, office and support services
necessary for the operation of the Company and of each Subsidiary and each Ship
including the employment of technical and clerical personnel, accountants and
managerial staff, the provision of telecommunications, accounting and data
processing services (in each case consistent with best current practice from
time to time) and the provision of office space at the Manager’s offices in
Athens;

 

3.1.3        seek
newbuilding opportunities and suitable ships for purchase by the Company or its
Subsidiaries, as well as sale opportunities for any of the Ships, and negotiate
the terms of any such construction, purchase or sale and arrange and complete
the terms of the construction, acquisition, sale or other disposition of such
newbuildings, ships or Ships; provided that the Manager shall only enter into a
binding commitment on the part of the Company or the relevant Subsidiary with
any third party in respect of the construction, sale or purchase of such
newbuildings, ships or Ships after receiving express authority from the Board
of the Company and/or of the relevant Subsidiary to do so;

 

3.1.4        supervise
and perform the delivery of such newbuildings, ships or Ships to and by the
Company and the Subsidiaries;

 

3.1.5        seek
employment for the Ships and negotiate, arrange, complete and supervise the
chartering or other employment of the Ships (and keep the Company and the
relevant Subsidiary informed on a regular basis of the employment and location
of the Ships); provided that the Manager shall not enter into any binding
charterparty or other contract of employment for a Ship for a period of longer
than twelve months (or such shorter period as may be determined by the Company
and notified to the Manager) without receiving the express authority from the
Board of the Company and/or the relevant Subsidiary to do so;

 

3.1.6        provide
bunkers and lubricants necessary for the operation of the Ships;

 

3.1.7        upon
prior instructions from the Company, negotiate:

 

(a)           the
borrowing and deposit or lending arrangements of the Company and the
Subsidiaries; and

 

(b)           such
swaps or other financial instruments that may be required by the Company or any
Subsidiary to hedge interest rates and foreign exchange rates;

 

and supervise the
implementation of such arrangements and advise the Board and the relevant
Subsidiary from time to time of the arrangements for financing the acquisition
and the operation of Ships; provided that the Manager shall only enter into any
binding commitment in respect of any borrowing or financing after receiving
express authority from the Board of the Company and/or the relevant Subsidiary,
as the case may be, to do so;

 

6

 

3.1.8        open
and operate such bank accounts with such bankers and in such names as the
Company and/or the relevant Subsidiary may require and liaise with the Company
and the relevant Subsidiary and instruct such bankers and such Subsidiary in
connection with their respective obligations and duties;

 

3.1.9       provide
customary technical management services including in relation to but not
limited to voyage operation, superintendence, surveys, maintenance, drydocking,
repairs, alterations, maintenance and renewals to hull, machinery, boilers,
auxiliaries, equipment and accommodation;

 

3.1.10     provide
at cost officers and crew and perform all customary owners’ obligations in
relation to manning and crew welfare and amenities and usual services to the
Ships;

 

3.1.11     keep
separate books, records and accounts relating to all the activities of the
Company, each Subsidiary and of each Ship in accordance with good business and
shipping accounting practice and in order to comply with the requirements of
any stock exchange on which all or any part of the Common Stock may be listed
and all applicable Marshall Islands laws and regulations;

 

3.1.12     prepare
and submit annual budgets and quarterly projections for the approval of the
Board and, if requested, provide monthly statements of accounts and quarterly
statements of account and analysis of operating income and expenses as well as
such other statements, special reports, memoranda and original or copies of
documents as the Board of the Company or the relevant Subsidiary may reasonably
require, all such books, records and accounts to be available to the Board of
the Company and of the relevant Subsidiary or authorised officers of the
Company or the relevant Subsidiary for inspection at all reasonable times;

 

3.1.13     in
addition to the requirements of Clause 3.1.12, within 45 days after the end of
each quarter, provide to the Company and the relevant Subsidiary:

 

(a)           an
analysis of the previous three (3) months’ trading and results of
operations (including a comparison of actual results against budget figures
together with an explanation of material variances); and

 

(b)           the
intended budget for the operations of each Subsidiary and each Ship in the next
quarter;

 

3.1.14     prepare
and submit all documents required by loan agreements to which the Company or
the Subsidiaries are party;

 

3.1.15     ensure
that at all times:

 

(a)           the Ships
are insured for hull and machinery, war risk, loss of hire (as appropriate or
necessary) and P&I risks in accordance with reasonable commercial shipping
practices; and

 

7

 

(b)           the
Company and the Subsidiaries are insured for D&O risks in accordance with
reasonable commercial corporate practices;

 

and
handle all claims arising in connection with the insurance of the Ships and the
Company and the Subsidiaries and otherwise including:

 

(c)           the
preparation, documentation and submission of claims to insurers and/or P&I
Clubs;

 

(d)           the
making of settlements of claims against insurers and/or P&I Clubs subject
to the instructions from time to time of the Company and the relevant
Subsidiary; and

 

(e)           the
following-up of claims and settlements;

 

3.1.16     keep
the Board informed of planned drydocking and other significant off-hire
periods; and arrange for and supervise drydocking, surveys and repairs,
renewals, alterations, improvements and maintenance of the Ships;

 

3.1.17     in
the event of an emergency affecting a Ship, take any necessary steps as quickly
as possible on its own initiative (though consulting with the Board of the
Company and any relevant Subsidiary to the extent practicable) including the
engaging of salvage or towage services, the posting of security, notification
to brokers and insurers, engagement of surveyors or other experts and, without
limitation, the taking of any other steps necessary or advisable in the circumstances;

 

3.1.18     undertake
all the functions, duties and obligations of the secretary of each Subsidiary
in accordance with the laws and regulations of their respective places of
incorporation and any other laws applicable to them, including but not limited
to the keeping and updating of company records and statutory books and the
filing of all necessary documents with the relevant authorities;

 

3.1.19     subject
to the limitations provided elsewhere in this Agreement, enter into, make and
perform all contracts, agreements and other undertakings as may be, in the
opinion of the Manager, necessary or advisable or incidental to the carrying
out of the objectives of this Agreement;

 

3.1.20     ensure
that the Company has access during business hours to the records of any
Sub-Manager from time to time relating only to the business of the Company and
the Subsidiaries; and

 

3.1.21     as
and when so requested by the Board or the Auditors, supply the Board or the
Auditors with such information in connection with the Company and/or the
Subsidiaries or any investments held thereby or to be held thereby as may be in
the possession of the Manager or as may reasonably be obtained or provided by
the Manager.

 

8

 

4.             RIGHTS
AND OBLIGATIONS

 

4.1           In
relation to the Management Services pertaining or related to the commercial
operation of the Ships, responsibility therefor shall vest solely in the
Manager. In relation to the Management Services pertaining or related to the
technical operation of the Ships, the Manager shall (a) initially appoint
Tsakos Shipping and Trading S.A. or any successor Affiliate thereof as
Sub-Manager with respect to the Vessels being sold by such Tsakos Affiliated
Sellers as described in Schedule 2, (b) initially appoint Conbulk Shipping
S.A. or any successor Affiliate thereof as Sub-Manager with respect to any of
the Vessels being sold by such Palmosa Affiliated Sellers as described in
Schedule 2 and/or(c) shall appoint Conbulk Shipping S.A. (or any successor
Affiliate thereof) or such other Person as the Company may approve, such
approval not to be unreasonably withheld, as Sub-Manager to perform as agents
and/or sub-contractors such parts of the technical Management Services in
relation to such of the Ships as may seem to the Manager convenient or
appropriate.  The Manager shall exercise
its powers of delegation only on terms which include:

 

4.1.1       the
right of the Company and of any Subsidiary affected by the failure by any
Sub-Manager fully and properly to perform its duties to take direct action
against such Sub-Manager with respect to such failure and to compensation with
respect thereto; and

 

4.1.2       a
provision binding on each Sub-Manager from time to time in terms similar in all
respects to this Clause 4.1 in such form as the Company may reasonably require
unless, in a particular case, otherwise agreed by the Company.

 

4.2           The
Manager and each of the Sub-Managers shall observe and comply with:

 

4.2.1       the
constituent documents of each of the Company and the Subsidiaries, and

 

4.2.2       the
resolutions of the Boards of each of the Company and the Subsidiaries and
Applicable Law notified to them.

 

4.3           All
activities engaged in by the Manager and any Sub-Manager hereunder including
the chartering of a Ship shall at all times be subject to the control of and
review by the Board of the Company and of the relevant Subsidiary and, without
limiting the generality of the foregoing, the Board of the Company and/or of
the relevant Subsidiary may from time to time instruct the Manager as to the
exercise of the rights attached to ownership of the relevant Ship and the
Manager and the Sub-Managers shall use their best endeavours to procure that
any Person, firm or company to whom they delegate any of their functions
hereunder shall give effect to all such directions and shall use their best
endeavours (but without guarantee) to procure that any Person, firm or company
to whom any functions may be directly delegated by the Company or any of the
Subsidiaries shall give effect to all such directions.  In connection with their performance of the
Management Services, the Manager and the Sub-Managers shall not, without the
express written consent of the Board of the Company and/or the relevant Subsidiary,
commit the Company or such Subsidiary to any expenditure in respect of any one
item or in any month in respect of the 

 

9

 

Ship which exceeds
the limits (if any) from time to time prescribed by the Board of the Company
and/or of such Subsidiary; provided that such consent shall be deemed to have
been given if such expenditure was included in a budget provided pursuant to
the provisions of Clause 3.1.13 and thereafter approved by the Board of the
Company and/or of such Subsidiary.

 

4.4           Notwithstanding
the provisions of Clause 4.3, the Manager and, where so specified in the terms
of their appointment, any Sub-Manager shall have the discretion to commit the
Company or a Subsidiary to extra expenditures not included in the budget up to
a limit prescribed by the Board of the Company and/or of a Subsidiary where
they deem such expenditure to be required for the safe and sound maintenance
and operation of the Ship.

 

4.5           The
Manager covenants with the Company and the Subsidiaries to ensure that each Sub-Manager
shall at all times properly exercise and perform the powers, rights and duties
so conferred on it.  The Manager’s power
to delegate performance of any of the Management Services hereunder is without
prejudice to the Manager’s liability to the Company and/or the Subsidiaries to
perform such Management Services with the intention that the Manager shall be
liable to the Company and/or the Subsidiaries for the wilful default or
negligence on the part of any such Sub-Manager in the performance of such Management
Services.

 

4.6           If any
Sub-Manager fails to perform any of the powers, rights or duties delegated to
it by the Manager or is in breach of any contract between it and the Manager
for the performance of any of the Management Services and if, within fourteen
(14) days of their receipt of notice in writing from the Company or any of the
Subsidiaries, the Manager has failed, to the reasonable satisfaction of the
Company or any of the Subsidiaries so affected, to take action against such
Sub-Manager in respect of such failure to perform or breach then, without
prejudice to any other rights that the Company or any of the Subsidiaries may
have against the Manager pursuant to the terms of this Agreement or at law:

 

4.6.1       the
Company or any affected Subsidiary shall be entitled if it so desires to
prosecute in the name of the Manager for its own benefit any claim for
indemnity or damages or otherwise which the Manager may have against that
Sub-Manager in respect of such failure to perform or breach and shall have full
discretion in the conduct of any proceedings or in the settlement of any such
claim and the Manager agrees to give all such information and assistance as the
Company or any Subsidiary may require in this regard; or

 

4.6.2       if
the Company or Subsidiary shall reasonably determine that the remedy provided
in Clause 4.6.1 above would not adequately compensate it for such failure to
perform or breach, the Company or any Subsidiary shall be entitled to call for
the assignment of any chose in action in respect of such failure to perform or
breach which the Manager may have against that Sub-Manager and for the purposes
of such assignment the Manager hereby irrevocably appoints the Company or any
Subsidiary as its attorney for it and in its name and on its behalf and as its
act and deed to do all such acts, matters, deeds and things and to 

 

10

 

execute all such
agreements, authorities, deeds and writings as may be necessary or desirable in
order to give effect to the assignment of any such chose in action.

 

5.             TAX

 

5.1           The
Manager will at all times exercise the rights and powers and perform the duties
or any of them conferred upon it by this Agreement, any supplemental agreement,
or otherwise by the Company or any Subsidiary so as not knowingly to render the
Company or any Subsidiary liable, without obtaining the prior consent of the
Company or any Subsidiary, for any tax imposed by any jurisdiction on income
derived from the Ships in excess of the tax to which the Company or any
Subsidiary would be ordinarily subject (assuming the Company or any Subsidiary
exercises all rights to claim any applicable exemption from tax, inclusive of Section 883
of the United States Internal Revenue Code of 1986, as from time to time
amended) as a result of the trading and operation of the Ships as contemplated
under this Agreement, inclusive of the trading and operation of the Ships under
the time charters to which the Ships may from time to time be subject, without
the consent of the Board of the Company or of any Subsidiary, as the case may
be. The Manager shall indemnify and hold harmless the Company and any
Subsidiary for any taxes incurred in breach of this Clause 5.1.

 

6.             REMUNERATION
AND FEES

 

6.1           In
consideration of the services provided by the Manager under this Agreement the
relevant Subsidiary, failing which the Company, agrees to pay to the Manager
fees calculated from the Effective Date as follows (the Management
Fees):

 

6.1.1       US$20,000
per Fully Managed Ship per month calculated on a daily basis

 

(a)           from the
date:

 

(i)            of
delivery of a Ship to the relevant Subsidiary under the relevant shipbuilding
contract or sale contract; or

 

(ii)           where the
acquisition is structured as an acquisition of shares, on which the Company acquires
the shares in a company which owns a Ship;

 

(b)           to the
date upon which:

 

(i)            the
relevant Subsidiary ceases to own or operate the Ship; or

 

(ii)           the
Company ceases to own the shares in the relevant Subsidiary.

 

for
these purposes, except as hereinafter provided, the number of Ships under
management shall not affect the monthly management fee;

 

11

 

6.1.2        Should at any time the
number of Fully Managed Ships be less than 10, the Management Fee for each
Fully Managed Ship during such period will be increased by an amount to be
mutually agreed to reflect the increased costs to the Manager due to the reduced
number of Fully Managed Ships under its management hereunder;

 

6.1.3        US$10,000 per Operated
Ship per month calculated on a daily basis

 

(a)           from the date:

 

(i)            of delivery of a Ship
to the relevant Subsidiary under the relevant charter; or

 

(ii)           in the case of
Newbuildings, subject to the approval of the Board of Directors of the Company,
of signing of the relevant shipbuilding contract; or

 

(iii)          where the acquisition is
structured as an acquisition of shares, on which the Company acquires the
shares in a company which owns a Ship or has a Newbuilding under construction;
or

 

(iv)          of delivery of a Ship by
the relevant Subsidiary to a bareboat charterer where it is bareboat chartered
out by that Subsidiary;

 

(b)           to the date upon which:

 

(i)            the relevant Subsidiary
ceases to charter the Ship; or

 

(ii)           the Company ceases to
own the shares in the relevant Subsidiary;

 

(iii)          for these purposes, the
number of Ships under management or the type of charter shall not affect the
monthly management fee; and

 

6.1.4        such amounts as are
necessary, so long as they are commercially reasonable and customary, to
reimburse the Manager for all out of pocket costs and expenses, to include
traveling, auditing, legal assistance and all extraordinary expenses in
connection with technical and/or operational assistance and other unexpected
expenses, incurred in connection with the provision of the Management Services,
whether by the Sub-Managers or the Manager.

 

6.2           In addition to the
Management Fees referred to in Clause 6.1 and notwithstanding Clause 6.5,
in the case of each Newbuilding the Company shall, at the direction of the
Manager, pay on behalf of the Subsidiary concerned to any Sub-Manager appointed
by it under Clause 4 in relation to the relevant Newbuilding, an amount per
month to be mutually 

 

12

 

agreed by the
Company and the Manager, such amount to be reasonable and customary, from the
date the shipyard confirms that steel cutting has commenced to the date of
delivery of the Newbuilding in payment for the cost of construction, drawing
approval and supervision of the construction of the Newbuilding by that
Sub-Manager, together with a further amount to be mutually agreed by the
Company and the Manager, such amount also to be reasonable and customary, to
cover the expenses incurred by the Manager from the date the letter of intent
is signed by such shipyard until commencement of steel cutting in setting up an
office at the shipyard, acquiring accommodation for staff and in supervising
the construction.

 

6.3           The applicable rate of
remuneration payable to the Manager under Clauses 6.1.1, 6.1.2 and 6.1.3
shall be adjusted, at the discretion of the Manager, upwards or, at the
discretion of the Company, downwards, as the case may be, only with effect from
1 January 2010 and subsequent anniversaries of that date. The rate per
Ship per month payable to the Manager under Clauses 6.1.1, 6.1.2 and 6.1.3 immediately
before 1 January 2010 and each anniversary of that date will be increased
or decreased, as the case may be, from such date by a percentage equal to any
percentage increase or decrease in the Greek Consumer Price Index as announced
by the Greek National Statistical Service Office as at such date over such
Greek Consumer Price Index as at the date 12 months before such date (or, in
the case of the first review, such Greek Consumer Price Index as at the date of
this Agreement).

 

6.4           The applicable rate of
remuneration payable to the Manager under Clauses 6.1.1 and 6.1.2 shall
be further adjusted, at the discretion of the Manager upwards or, at the
discretion of the Company, downwards, as the case may be, with effect from 1 January 2009
and subsequent anniversaries of that date (the Revision
Date) if :

 

	
  6.4.1

  	
   

  	
  the
  Euro should have strengthened or weakened against the US$at the business day
  preceding the Revision Date by more than ten per cent (10%) from the rate
  existing on the business day following the Effective Date, in which case the
  rate of remuneration shall be adjusted upwards if it has so strengthened or
  downwards if it has so weakened for the year in question by the percentage
  amount by which the Euro has so strengthened or weakened, as the case may be,
  against the US$; or

  
	
   

  	
   

  	
   

  
	
  6.4.2

  	
   

  	
  the
  Manager should incur a material unforeseen increase or decrease in the costs
  of providing the Management Services, in which case the amount of such
  increase or decrease will be agreed between the Company and the Manager.

  

 

6.5           The Manager shall bear
and pay the remuneration, however described, of the Sub-Managers and the
Sub-Managers shall not be entitled to charge any fee, commission or turn by way
of remuneration howsoever described which would be borne by the Company or any
Subsidiary.  The Manager and the
Sub-Managers (if any) and their appointees or substitutes shall be entitled
nevertheless, in their discretion, to charge for:

 

	
  6.5.1

  	
   

  	
  sale
  and purchase brokerage commission of one per cent (1%) (except with respect
  to the initial sale and transfer of the Vessels to the Company); and

  

 

13

 

	
  6.5.2

  	
   

  	
  chartering
  commission of one and one quarter per cent (1.25%) (except with respect to
  the existing charters covering the Vessels).

  

 

7.             MANAGEMENT
AND EMPLOYEE INCENTIVE

 

7.1           If 2010 EBITDA and 2011
EBITDA equal or exceed the corresponding amounts listed below, nominees of the
Manager shall be entitled to the number of shares of Common Stock corresponding
to such 2010 EBITDA or 2011 EBITDA (“Earnout Consideration”); provided,
however, for the purpose of this Clause 7.1, to the extent 2010 EBITDA and/or
2011 EBITDA deriving from any acquisition, after taking into account all of the
associated and allocable expenses, including, but not limited to, the issuance
of additional shares of Common Stock, is not accretive to the earnings of the
Company and the Subsidiaries, such will not be included in the calculation of
2010 EBITDA and/or 22011 EBITDA, as the case may be.:

 

	
  2010

  	
   

  	
  2011

  	
   

  
	
  EBITDA

  ($ in thousands)

  	
   

  	
  Interests of Common 

  Stock Issuable(1)

  	
   

  	
  EBITDA

  ($ in thousands)

  	
   

  	
  Interests of Common 

  Stock Issuable(1)

  	
   

  
	
  58,000

  	
   

  	
  1,750,000

  	
   

  	
  78,000

  	
   

  	
  1,750,000

  	
   

  
	
  56,000

  	
   

  	
  1,575,000

  	
   

  	
  76,000

  	
   

  	
  1,575,000

  	
   

  
	
  54,000

  	
   

  	
  1,400,000

  	
   

  	
  74,000

  	
   

  	
  1,400,000

  	
   

  
	
  52,000

  	
   

  	
  1,225,000

  	
   

  	
  72,000

  	
   

  	
  1,225,000

  	
   

  
	
  50,000

  	
   

  	
  1,050,000

  	
   

  	
  70,000

  	
   

  	
  1,050,000

  	
   

  

 

The Earnout
Consideration, if any, shall be payable by the Company to the Manager within
ten (10) Business days after the applicable Determination Date.

 

7.2           Within thirty (30) days
after the delivery of the 2010 Financial Statements and the 2011 Financial Statements,
as applicable, to the Company by the Company’s auditors, the Company shall
calculate the 2010 EBITDA or 2011 EBITDA, as applicable, and deliver to the
Manager a certificate setting forth the 2010 EBITDA or the 2011 EBITDA, as
applicable, and detailing the calculation thereof (the “EBITDA Certificate”).

 

7.3           On or prior to the
thirtieth (30th) day following the Company’s delivery of the related
EBITDA Certificate, the Manager may give the Company an earnout objection
notice (an “Earnout Objection Notice”, and the date of delivery thereof, the “Earnout
Objection Notice Date”).  During such
thirty (30) day period, the Manager will provide the Company with full access
to the books and records of the Company and the Company’s personnel and
accountants during normal business hours and upon reasonable notice for the
purposes of verifying the EBITDA Certificate. 
Any Earnout Objection Notice with respect to the 2010 EBITDA and the
2011 EBITDA, as applicable, shall specify in 

 

(1) For the avoidance of doubt, the shares of Common Stock usable
pursuant to this Clause 7.1, if any, are not cumulative.  For example, if 2010 EBITDA equals US
$55,000,000, the Manager shall be entitled to 1,400,000 shares of Common Stock
in the aggregate for such period.

 

14

 

reasonable detail
the dollar amount of any objection and the basis therefor.  If the Manager does not give the Company such
an Earnout Objection Notice within such thirty (30) day period, then the
related EBITDA Certificate will be conclusive and binding upon the parties for
purposes of determining whether the applicable Earnout Consideration is to be
paid to the Manager and the amount of such 2010 EBITDA or 2011 EBITDA, as the
case may be.

 

7.4           Following the Company’s
receipt of any Earnout Objection Notice, the Company and the Manager shall
negotiate in good faith to resolve such dispute.  If the Manager and the Company are unable to
agree in good faith as to the 2010 EBITDA and the 2011 EBITDA, as applicable,
within fifteen (15) days after the related Earnout Objection Notice Date, then
the Company and the Manager shall submit any matters(s) in dispute to a
nationally recognized certified public accounting firm selected by the Company
(“Dispute Accountant”) for resolution; provided, however, that
such accounting firm shall not have been employed by or associated with any
accounting firm which has performed services for any of the parties hereto or
any of their respective Affiliates at any time since January 1, 2006. The
Dispute Accountant shall review such materials and conduct such procedures as
it shall consider reasonably necessary to make a determination of such matters
as to which disagreement remains and shall deliver a written opinion thereon to
the Company and the Manager as soon as reasonably practicable after submission
of the dispute to it, which determination, or any determination of such matters
mutually agreed to by the Company and the Manager, shall be conclusive and
binding on the parties hereto (in each case the “Final Determination”). In
connection therewith, the Manager and the Company will furnish to the Dispute
Accountant such work papers and schedules and other information relating to the
disputed matter(s) as the Dispute Accountant may reasonably request and
will be afforded an opportunity to present to the Dispute Accountant any
material relating to the disputed matter(s), and the fees and expenses of such
Dispute Accountant incurred with respect to this Clause 7.4 shall be shared
equally by the Company, on the one hand, and the Manager, on the other
hand.  Failure by the Company to issue
and deliver any shares of Common Stock constituting the Earnout Consideration
when due hereunder that are subject to a dispute shall not be deemed a breach
by the Company of this Agreement, so long as such issuances and deliveries are
made within thirty (30) days after the related Final Determination.

 

7.5           “Determination Date”
means (i) the date thirty (30) days after the delivery of the applicable
EBITDA Certificate if an Earnout Objection Notice is not delivered in
accordance with Clause 7.3, or (ii) if an Earnout Objection Notice is
delivered in accordance with Clause 7.3, (A) the date that the Company and
the Manager resolve the dispute set forth in such Earnout Objection Notice or (B) the
date of the related Final Determination.

 

8.             UNDERTAKINGS

 

8.1           The Manager undertakes
to carry out the Management Services efficiently and in the best interests of
the Company and the Subsidiaries.

 

15

 

8.2           Neither the Manager nor
any Sub-Manager shall contract on behalf of the Company or any of the
Subsidiaries or arrange any contract or transaction for or on behalf of the
Company or any of the Subsidiaries with itself or (as the case may be) with the
Manager or any other Sub-Manager or any of their respective Affiliates (all
such contracts and transactions being interested party transactions) except on
terms no less favourable than would exist if such contract or transaction were
to be entered into with unrelated third parties on an arms-length basis.  The Manager shall also not so contract if any
interested party transaction is reasonably likely to involve payments or a
value in excess of US$100,000 individually with respect to such contract or
transaction or in aggregate with any related transactions within any period of
five (5) years, without the approval of the Board of Company and of any
affected Subsidiary except:

 

	
  8.2.1

  	
   

  	
  subject
  as provided pursuant to Clause 6.5 and this Clause 8.2, any
  permitted fee, commission or turn described in Clause 6.5;

  
	
   

  	
   

  	
   

  
	
  8.2.2

  	
   

  	
  where
  the payment or payments concerned represent on-charging by or reimbursement
  to the Manager or the relevant Sub-Manager in respect of permitted
  arrangements with third parties where the Manager or that Sub-Manager has
  contracted as agent on behalf of the Company or any of the Subsidiaries;

  
	
   

  	
   

  	
   

  
	
  8.2.3

  	
   

  	
  where
  the relevant contract or transaction occurs following or connected with
  emergency situations relating to the operation of the Ships; and

  
	
   

  	
   

  	
   

  
	
  8.2.4

  	
   

  	
  where
  the Board considers that certain contracts or transactions or a class of
  contracts or transactions may occur repeatedly and have given a general
  exemption for such transactions or class of transactions.

  

 

All
interested party transactions not specifically approved in advance by the Board
of the Company and of any affected Subsidiary shall be reported to the Board of
the Company and of that Subsidiary no less frequently than three monthly in
arrears.

 

8.3           All discounts,
commissions, rebates and benefits of whatever nature received by the Manager
and any Sub-Manager in the course of their performance of the Management
Services shall be held to the account of the relevant Subsidiary or, if a
particular Subsidiary cannot be identified, the Subsidiaries equally.

 

8.4           The Manager shall when
requested by the Company give promptly to the Company:

 

	
  8.4.1

  	
   

  	
  all
  such information, explanations and reports as may reasonably be required by
  the Company in relation to the exercise and discharge of the powers and
  duties of the Manager hereunder;

  
	
   

  	
   

  	
   

  
	
  8.4.2

  	
   

  	
  access
  to all papers, records and accounts as may reasonably be required relating to
  the Company which have been prepared or used by the Manager in the discharge
  of its duties hereunder; and

  

 

16

 

	
  8.4.3

  	
   

  	
  all
  accounts and other information about itself required by the relevant
  authorities or under Applicable Law in the Marshall Islands or elsewhere.

  

 

9.             EXCLUSION
OF LIABILITY

 

9.1           Without prejudice to
Clause 9.2,
the Manager and any Sub-Manager shall be under no liability whatsoever for any
damages or loss of whatsoever nature (including loss of profit due to detention
or delay) whenever and however arising in course of performance of the
Management Services by the Manager or that Sub-Manager or any agents,
superintendents, officers, crew, management personnel or other Persons or
independent contractors employed by the Manager or that Sub-Manager in
connection with the Management Services UNLESS the same shall be proved to have
resulted from the wilful default or gross negligence of the Manager or that
Sub-Manager or any other Person to whom performance of any of the Management
Services has been delegated by the Manager in which case (save where loss,
damage, delay or expense has resulted from the Manager’s personal act or
omission committed with the intent to cause the same, or recklessly and with
knowledge that such loss, damage, delay or expense would probably result), the
Manager’s liability for each incident or series of incidents giving rise to a
claim or claims shall never exceed a total of ten times the annual Management
Fees.

 

9.2           Subject to the
obligations of the Manager to effect insurances pursuant to Clause 3.1.15,
the Manager shall not be responsible for the loss of or damage to any property
of the Company and the Subsidiaries in the possession of the Manager if such
loss, damage or failure shall be caused directly or indirectly by acts of God
or any other cause whatsoever beyond the control of the Manager or any
Sub-Manager (including, without limitation, any act including acts of war, the
act of any government, strikes of national effect, fire, flood and storms),
provided that the Manager and each Sub-Manager, as the case may be, shall use
all reasonable efforts to avoid or minimise the effects of the same.

 

9.3           Notwithstanding
anything that may appear to the contrary in this Agreement, the Manager shall
not be liable for any of the actions of the crew employed in connection with
the Ships, even if such actions are negligent or in wilful default of
obligations, except only to the extent that they are shown to have resulted
from a failure by the Manager to discharge its obligations to provide the
Management Services, in which case its liability shall be limited in accordance
with the terms of Clause 9.1.

 

10.          TERMINATION

 

10.1         This
Agreement will terminate automatically:

 

	
  10.1.1

  	
   

  	
  following
  an order made or resolution passed for the purpose of winding up of the
  Manager or if a receiver shall be appointed of the undertaking or property of
  the Manager or if the Manager shall cease to carry on its business or make
  any special arrangement or composition with its creditors; or

  
	
   

  	
   

  	
   

  
	
  10.1.2

  	
   

  	
  upon
  the completion of the winding-up of the business of the Company following
  liquidation or otherwise.

  

 

17

 

10.2         The Company
or the Manager may terminate this Agreement by giving fourteen (14) days’
notice in writing to the other in any of the following events:

 

	
  10.2.1

  	
   

  	
  at
  any time if the other shall commit any breach of its obligations under this
  Agreement by virtue of its wilful misconduct or negligence and (if such
  breach is capable of remedy) shall fail within thirty (30) days of receipt of
  notice so requiring it to make good such breach and such breach is material
  to the party giving notice; or

  
	
   

  	
   

  	
   

  
	
  10.2.2

  	
   

  	
  if
  the Manager shall be unable or otherwise fail to perform any or all of the
  Management Services to a material extent for a continuous period of two
  months in circumstances covered by Clause 9.2.

  

 

10.3         The Company
may terminate this Agreement by giving one hundred and eighty (180) days notice
in writing to the Manager if there has been a change of control in the
shareholding of the Manager (except for changes resulting from share transfers
between existing shareholders of the Manager), unless such change has
previously been agreed in writing by the Board of the Company.  For purposes of this Clause 10.3, a change of
control shall not be deemed to have occurred so long as the existing
shareholders of the Manager together shall hold at least 51% of the outstanding
shares of the Manager.

 

10.4         In the
Event the Company ceases to own or operate any Ships, this Agreement shall
terminate on the one hundred twenty (120) day anniversary of the date on which
the last Ship is disposed of (the intervening period, the “Cool-Down Period”),
provided that the Company does not acquire title to, or operate, any new Ships
during the Cool-Down Period. 
Notwithstanding the foregoing, the Company shall not be charged, and
shall not be required to pay, any Management Fees or reimburse the Manager for
any expenses that have accrued with respect to, or are payable during, the
Cool-Down Period.

 

10.5         [Intentionally
left blank]

 

10.6         The Manager
may terminate this Agreement at any time upon ten (10) Banking Days prior
written notice to the Company in the event that the Company undergoes a Change of Control. 
For the purposes of this Clause 10.6, Change of
Control shall be deemed to have occurred should, and at such time
as, the current members of the Board no longer constitute a majority of the
Board.  Any such notice must be given
within two (2) months of the Change of Control.

 

10.7         Upon the
effective date of termination pursuant to Clause 10 the Manager
shall promptly terminate its services under this Agreement, as may be required
in order to minimise any interruption to the business of the Company and the
Subsidiaries.

 

10.8         Upon
termination, the Manager shall as promptly as possible, submit a final
accounting of funds received and disbursed under this Agreement and of any
remaining Management Fees due from the Company, calculated pro rata to the date
of termination (but subject to Clause 10.9) and any disbursed funds of
the Company or the Subsidiaries in the Manager’s possession or control will be
promptly paid by the Manager as directed by the Company or may be set off
against any sums due from the Company to the Manager.

 

18

 

10.9         If this
Agreement is terminated under Clause 10.6, the Company shall pay to
the Manager a severance payment equal to the annual average of the Management
Fee earned under Clause 6 of this Agreement over the preceding five years (or,
if the preceding period of this Agreement at the time of such termination is
less than 5 years, over such lesser preceding period).

 

10.10       The
authorities contained in this Agreement are continuing ones and shall remain in
full force and effect until revoked by termination of this Agreement in
accordance with the provisions of this Clause 10.  Such revocation shall not affect any
liability in any way resulting from transactions initiated prior to such
revocation.

 

11.          RATIFICATION

 

11.1         Subject to
Clause 4,
the Company and the Subsidiaries hereby ratify and confirm and undertake at all
times to allow, ratify and confirm all and whatsoever each of the Manager
and/or Sub-Managers shall lawfully do or cause to be done in the performance of
its duties as Manager or Sub-Manager hereunder. 
Except to the extent that the Manager and any Sub-Manager would be
liable under Clause 9.1, the Company and the
Subsidiaries further undertake at all times hereafter to keep the Manager or
Sub-Manager indemnified on demand against all actions, proceedings, claims and
demands or liabilities whatsoever which may be brought commenced or prosecuted
against or incurred by the Manager or Sub-Manager and also against all costs,
damages and expenses which the Manager or Sub-Manager may in any way pay or incur
in defending or settling the same or otherwise in consequence of the Manager or
Sub-Manager acting as Manager or Sub-Manager of the affairs of the Company and
the Subsidiaries or of any Ship or in respect of any matters or things in
relation thereto.  In addition, the
Company and the Subsidiaries agree to reimburse to the Manager or any
Sub-Manager any moneys which it may properly expend on behalf of the Company or
any of the Subsidiaries in connection with its duties under this Agreement.  The obligations of the Company or any of the
Subsidiaries under this Clause shall be several (and not joint) and such
obligations shall be apportioned to the Company or any of the Subsidiaries as
appropriate but where any obligation does not clearly arise solely with respect
to the Company or any one of the Subsidiaries alone such obligation shall be
apportioned between the Company and the Subsidiaries in such manner as the
Manager may reasonably determine to be appropriate.  In particular, costs in connection with any
proposed acquisition which proves abortive shall be the joint responsibility of
the Company and the relevant Subsidiary.

 

12.          ASSIGNS
AND SUCCESSORS

 

12.1         The Manager
may with the prior consent not to be unreasonably withheld in writing of the
Company and the Subsidiaries, to be exercised in their respective discretions,
assign all its rights and obligations hereunder to any other company, Person,
firm or institution acceptable to the Company and the Subsidiaries and the
assignee shall, upon filing with the Company and the Subsidiaries an instrument
in writing whereby it shall assume the obligations of the Manager hereunder and
agree to be bound by the provisions hereof, become the successor to the Manager
hereunder and thereafter such successor may exercise all of the powers and
enjoy all of the rights and be subject to all of the duties and 

 

19

 

obligations of the
Manager hereunder as fully as though originally named as a party to this
Agreement.

 

13.          CONFIDENTIALITY

 

13.1         None of the
parties hereto shall (except under compulsion of law or in compliance with the
requirements of any regulatory authority or stock exchange on which the shares
of the Company are listed) either before or after the termination of this
Agreement disclose to any Person not authorised by the relevant party to
receive it any confidential information relating to such party or to the
affairs of such party of which the party disclosing the same shall have become
possessed during the period of this Agreement and each party shall use all
reasonable endeavours to prevent any such disclosure as aforesaid.

 

14.          SUBSIDIARIES

 

14.1         The Company
shall procure that each Subsidiary shall become a party to this Agreement on or
before the date upon which that Subsidiary enters into any contractual
agreement to acquire a Ship by the execution of an accession agreement
substantially in the form of the Annex. 
The parties to this Agreement (including any which have become so by
executing such an accession agreement) hereby authorise the Chief Executive
Officer, the Chief Operating Officer or the Chief Financial Officer of the
Company from time to time to execute each such accession agreement on their
behalf so as to bind them.  Such
accession agreement shall become effective immediately upon notification
thereof as provided in Clause 15 by delivery of a copy thereof
to each party to this Agreement (unless any such party shall previously have
waived in writing its right to receive such notification).

 

14.2         Subject to
Clause 14.1,
the Company is entering into this Agreement on behalf of each of its
Subsidiaries.

 

15.          NOTICES

 

15.1         Any notice
to be given by any party to this Agreement shall be in writing and will be
deemed duly served if delivered personally or by registered post or sent by fax
to the addressee at the address set out below:

 

	
  the
  Company:

  	
   

  	
  Palmosa
  Shipping Corporation

  
	
   

  	
   

  	
  107
  A. Papanastasiou Street

  
	
   

  	
   

  	
  Kastella-Piraeus,
  Greece 185 33

  
	
   

  	
   

  	
  Fax
  No.: 30 210 413 7639

  
	
   

  	
   

  	
   

  
	
  the
  Manager:

  	
   

  	
  Palmosa
  Shipping Corporation

  
	
   

  	
   

  	
  107
  A. Papanastasiou Street

  
	
   

  	
   

  	
  Kastella-Piraeus,
  Greece 185 33

  
	
   

  	
   

  	
  Fax
  No.: 30 210 413 7639

  

 

20

 

or at
such other address as the party to be served may have notified as its address
for service.

 

15.2         Any notice
sent by fax shall be deemed served when despatched and shall be effective when
actually received save that if sent outside normal office hours shall be deemed
to be effective at commencement of business on the succeeding business day and
any notice served by registered post shall be deemed served when received.  In proving the service of any notice it will
be sufficient to prove, in the case of a fax, that such fax was duly despatched
to a current fax number of the addressee.

 

16.          GOVERNING LAW

 

16.1         This
Agreement shall be governed in all respects by the laws of the State of New
York.

 

17.          ENTIRE
AGREEMENT

 

17.1         This
Agreement constitutes the entire agreement between the parties with respect to
the subject matter herein and supersedes all prior agreements and
understandings, written or oral, with respect thereto.

 

18.          THIRD
PARTIES

 

18.1         This
Agreement is not intended to, nor shall it create, any rights, claims or
benefits enforceable by any Person not a party to it.  A Person who is not a party to this Agreement
may not enforce, or otherwise have the benefit of, any provision of this
Agreement.

 

19.          ARBITRATION

 

19.1         Should any
dispute arise out of this Agreement, the matter in dispute shall be referred to
three persons at New York, one to be appointed by each of the parties hereto,
and the third by the two so chosen, their decision or that of any two of them
shall be final, and for purpose of enforcing an award, this Agreement may be
made a rule of the Court.  The
proceedings shall be conducted in accordance with the rules of the Society
of Maritime Arbitrators, Inc. New York.

 

20.          NON-COMPETE

 

20.1         The Manager
during the term of this Agreement and for a period of twelve (12) months
following the term of this Agreement, shall not acquire interests or assume
obligations, and shall not activate itself or participate under any legal form
and in any capacity, either directly or indirectly, for its own account or for
the account of another person or legal entity, in any business activity
relating to the feeder container vessel sector or such other sector or sectors
as the Company or it Subsidiaries may be engaged in the future, without express
specific written permission of the Company, provided, however, that nothing
contained in this Agreement shall be deemed to preclude the Manager from
engaging in other business activities that do not conflict with its duties to
the Company and/or its Subsidiaries.

 

21

 

AS WITNESS WHEREOF,
the parties hereto have caused this Management Agreement to be executed and
delivered as of this date first above indicated by their duly authorized
officers or representatives

 

 

	
   

  	
   

  	
  CONBULK CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By 

  	
  /s/ Jonathan Furer

  
	
   

  	
   

  	
  Name: Jonathan Furer

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONBULK MANAGEMENT 

  LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By 

  	
  /s/ Dimitris Dalakouras

  
	
   

  	
   

  	
  Name: Dimitris Dalakouras

  
	
   

  	
   

  	
  Title: Treasurer

  

 

22

 

ANNEX

 

ACCESSION AGREEMENT

 

THIS ACCESSION AGREEMENT
is made [  ]

 

BETWEEN

 

	
  (1)

  	
   

  	
  The parties to the Management Agreement dated September   , 2008 as amended and restated from time to
  time (the Management Agreement), (including all parties which have acceded
  thereto prior to the date hereof by a like agreement to this Agreement);

  
	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  [insert name of Subsidiary] (the Subsidiary);
  and

  

 

WHEREBY IT IS AGREED
that the Subsidiary shall become a party to the Management Agreement with
effect from the date hereof in all respects as if it had been an original party
to the Management Agreement.

 

AS WITNESS the hands
of the duly authorised representatives of the parties:

 

	
  SIGNED by

  	
  )

  
	
  for and on behalf of the parties

  	
  )

  
	
  of the first part
  pursuant to

  	
        )

  
	
   

  	
   

  
	
  Clause 14
  of the Management

  	
  )

  
	
  Agreement

  	
  )

  
	
   

  	
   

  
	
  SIGNED by

  	
  )

  
	
  for and on behalf of

  	
  )

  
	
   

  	
  )

  

 

 

SCHEDULE 1

 

LIST OF
VESSELS

 

	
  Vessel Name

  	
   

  	
  Flag

  
	
   

  	
   

  	
   

  
	
  KUO FU

  	
   

  	
  Panama

  
	
   

  	
   

  	
   

  
	
  KUO HUNG

  	
   

  	
  Panama

  
	
   

  	
   

  	
   

  
	
  KUO LUNG

  	
   

  	
  Panama

  
	
   

  	
   

  	
   

  
	
  KUO TAI

  	
   

  	
  Panama

  
	
   

  	
   

  	
   

  
	
  MSC BALI

  	
   

  	
  Marshall Islands

  
	
   

  	
   

  	
   

  
	
  MSC ZANZIBAR

  	
   

  	
  Panama

  
	
   

  	
   

  	
   

  
	
  CMA CGM LIMON

  	
   

  	
  Panama

  
	
   

  	
   

  	
   

  
	
  MSC BRASILIA

  	
   

  	
  Panama

  
	
   

  	
   

  	
   

  
	
  MSC LONDON

  	
   

  	
  Cyprus

  
	
   

  	
   

  	
   

  
	
  MSC SARDINIA

  	
   

  	
  Liberia

  

 

 

SCHEDULE 2

 

MEMORANDA OF AGREEMENT

 

Palmosa Affiliated Sellers:

 

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

 

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

 

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

 

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

 

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

 

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

 

Tsakos Affiliated Sellers:

 

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

 

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

 

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

 

 

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

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