Document:

EXHIBIT
10.1

 

 

 

 

 

 

 

 

DANAOS CORPORATION

 

 

 

 

- and -

 

 

 

 

DANAOS SHIPPING COMPANY
LIMITED

 

 

 

 

 

 

 

 

 

 

________________________________

 

AMENDED AND RESTATED MANAGEMENT
AGREEMENT

________________________________

 

 

 

 

 

 

 

INDEX

 

	
  Section

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1

  	
  INTERPRETATION

  	
  1

  
	
  2

  	
  APPOINTMENT

  	
  2

  
	
  3

  	
  THE OWNER’S GENERAL OBLIGATIONS

  	
  3

  
	
  4

  	
  THE MANAGER’S GENERAL OBLIGATIONS

  	
  3

  
	
  5

  	
  CREW SERVICES

  	
  6

  
	
  6

  	
  TECHNICAL SERVICES

  	
  7

  
	
  7

  	
  COMMERCIAL SERVICES

  	
  8

  
	
  8

  	
  CHARTERING SERVICES

  	
  9

  
	
  9

  	
  ADMINISTRATIVE SERVICES

  	
  10

  
	
  10

  	
  INSURANCE

  	
  12

  
	
  11

  	
  FEES AND EXPENSES

  	
  12

  
	
  12

  	
  BUDGETS, CORPORATE PLANNING AND EXPENSES

  	
  14

  
	
  13

  	
  LIABILITY AND INDEMNITY

  	
  15

  
	
  14

  	
  RIGHTS OF THE MANAGER, RESTRICTIONS ON THE
  MANAGER’S AUTHORITY, AND NON-COMPETE PROVISIONS

  	
  16

  
	
  15

  	
  AVAILABILITY OF OFFICERS

  	
  18

  
	
  16

  	
  TERMINATION OF THE AGREEMENT

  	
  18

  
	
  17

  	
  SALE AND RIGHT OF FIRST REFUSAL

  	
  20

  
	
  18

  	
  NOTICES

  	
  21

  
	
  19

  	
  APPLICABLE LAW AND JURISDICTION

  	
  21

  
	
  20

  	
  ARBITRATION

  	
  22

  
	
  21

  	
  MISCELLANEOUS

  	
  22

  

 

i

 

THIS AMENDED AND RESTATED MANAGEMENT AGREEMENT is made on the 18th day of September 2006,

 

BY AND
BETWEEN:

 

(1)           DANAOS
CORPORATION, a company organized and existing under the laws of the
Republic of the Marshall Islands (the “Owner”);
and

 

(2)           DANAOS
SHIPPING COMPANY LIMITED, a company organized and existing under the
laws of the Republic of Cyprus (the “Manager”).

 

WHEREAS:

 

(A)          The Owner has a number of wholly owned
subsidiaries identified on Schedule A hereto, as such Schedule A may be amended
from time to time (the “Shipowning
Subsidiaries”), each of which owns either a containership or a drybulk
carrier (the “Vessels”) and
certain other direct and indirect subsidiaries identified on Schedule B hereto,
as such Schedule B may be amended from time to time (together with the
Shipowning Subsidiaries, the “Subsidiaries”).

 

(B)           The Manager has the benefit of
expertise in the containerized cargo vessel industry and in technical and
commercial management of containerships and drybulk carriers and administration
of shipping companies generally.

 

(C)           The Owner and the Manager entered into
a Management Agreement, made December 16, 2005 and effective July 1, 2005 (the “2005 Management Agreement”), pursuant to which the Manager
has represented the Group (as defined below) in its dealings with third parties
and provided technical, commercial, administrative and certain other services
to the Group as specified therein in connection with the management and
administration of the business of the Group.

 

(D)          The Owner and the Manager desire to
amend and restate the terms and conditions of the 2005 Management Agreement and
to adopt this Agreement to supersede and replace the 2005 Management Agreement
as the agreement pursuant to which the Manager represents the Group in its
dealings with third parties and provides technical, commercial, administrative
and certain other services to the Group as specified herein in connection with
the management and administration of the business of the Group.

 

NOW, THEREFORE, THE PARTIES HEREBY AGREE:

1              INTERPRETATION

1.1           In this Agreement, unless the context
otherwise requires:

“Average Profit Margin” is
defined as the ratio of net income for the year divided by the gross revenue
(excluding extraordinary items) as derived from the applicable year end audited
financial statements.

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

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

“Containership” means any ocean-going vessel that is intended
to be used primarily to transport containers or is being used to primarily
transport containers.

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

“Executive Officers” means the Chief Executive Officer, the Chief
Operating Officer (or equivalent) and the Chief Financial Officer of the Owner.

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

“ISM Code”
means the International Management Code for the Safe Operation of Ships and for
Pollution Prevention as adopted by the International Maritime Organization
(IMO) by resolution A.741(18) or any subsequent amendment thereto.

“Newbuilding” means a new ship under construction or just
completed.

“STCW 95” means
the International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers, 1978, as amended in 1995 or any subsequent
amendment thereto.

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

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

1.4           In the event of any conflict between
this Agreement and any Shipmanagement Agreement (as defined below), the provisions
of this Agreement shall prevail.

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

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

 

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2              APPOINTMENT

2.1           The Manager is hereby appointed by
the Owner as the technical, commercial and administrative manager of the Group and
hereby accepts such appointment on the terms and conditions of this Agreement.

2.2           With effect from the date hereof and
continuing unless and until terminated as provided herein, the Owner hereby
appoints the Manager and the Manager hereby agrees to act as the Manager of
each Vessel.

2.3           The Manager undertakes to use its
best endeavors to provide its management services specified in Sections 5, 6,
7, 8, 9 and 10 of this Agreement (collectively the “Management Services”), on behalf of the Owner in accordance
with sound ship management practice.

2.4           The Manager may, with the consent of
the Owner, appoint any person or entity (a “Submanager”)
at any time throughout the duration of this Agreement to discharge any of the
Manager’s duties.

2.5           The Manager covenants with the Owner
to ensure that each Submanager 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 provision of the Agreement hereunder is without prejudice to the Manager’s
liability to the Owner to perform such Agreement with the intention that the
Manager shall remain responsible to the Owner for the due and timely
performance of all duties and responsibilities of the Manager hereunder.

3              THE OWNER’S GENERAL OBLIGATIONS

3.1           The
Owner shall notify the Manager as soon as possible of any change in the Group
as a result of the purchase of any Vessel or Newbuilding, the sale of any
Vessel, the purchase or sale of any direct or indirect subsidiary, the creation
or divestiture of any subsidiary, or any other structural change and shall promptly
amend Schedule A and Schedule B hereto, as applicable, to be reflective of any
such change.   Such amended Schedule A or
Schedule B shall be effective on any such day as mutually agreed by the Owner
and the Manager, which date shall be no later than five calendar days after
delivery of such amended Schedule A or Schedule B to the Manager by
the Owner.

4              THE MANAGER’S GENERAL OBLIGATIONS

4.1           The Manager shall, on behalf of the
Group, attend to the day-to-day management of the Vessels in accordance with
sound technical and commercial shipping industry standards.

 

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4.2           In the exercise of its duties
hereunder, the Manager shall act fully in accordance with the reasonable
policies, guidelines and instructions from time to time communicated to it by
the Group and serve the Group faithfully and diligently in the performance of
this Agreement, exercising all due care, loyalty, skill and diligence to carry
out its duties under this Agreement according to sound technical and commercial
shipping industry standards.

4.3           For each Vessel now or hereinafter
owned by any member of the Group, the Owner shall cause each Subsidiary to
enter with the Manager into a contract substantially in the form attached hereto
as Appendix I (each a “Shipmanagement
Agreement” and collectively the “Shipmanagement
Agreements”), with such alterations and additions as are appropriate
(provided, that any alterations or additions which materially vary from such
form shall require the approval of the Board of Directors of the Owner), and
the Manager shall act and do all and/or any of the following acts or things
described in this Agreement and each Shipmanagement Agreement in the name
and/or on behalf of the Owner and/or its Subsidiaries in all parts of the world
directly or through its agents.

4.4           For each Vessel sold or scrapped by
any Subsidiary, the Owner shall cause each such Subsidiary to terminate promptly
thereafter its applicable Shipmanagement Agreement with the Manager and the
Manager agrees to terminate promptly such Shipmanagement Agreement accordingly.
 Should the Owner decide not to extend the
term of this Agreement pursuant to Section 16 hereof, the Manager shall
continue to handle all outstanding matters relating to the sale or scrapping of
the Group’s Vessels for as long as the Owner requires and in such case the
management fee will be reduced by two-thirds (2/3) for the period following the
expiration of the stated term of this Agreement.

4.5           The Manager acknowledges that the
services it will provide pursuant to the Shipmanagement Agreements are not
limited to the services described in such agreements and are instead as set
forth in this Agreement.

4.6           In the performance of this Agreement,
the Manager shall protect the interests of the Group in all matters directly or
indirectly relating to the Vessels.

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

4.8           The Manager shall ensure that
adequate manpower is employed by it to perform its obligations under this Agreement.

4.9           During the term hereof (as provided
in Section 16.1 of this Agreement), the Manager shall provide the Management
Services to the Group, subject always to the objectives and policies of the
Owner and each applicable member of the Group, in each case, as established
from time to time by their authorized representative and notified to the
Manager.

 

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

(a)                                  the purchase and/or sale of shares in a company or other assets of a
material nature;

(b)                                 the purchase or formation of subsidiaries;

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

(d)                                 the entry into and/or termination or amendment of any contractual
relationships; and

(e)                                  the presentation, negotiation, settlement, prosecution or defense of any
claim, demand or petition for an amount exceeding $250,000 or its equivalent.

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

4.12         The Manager, in the performance of its
responsibilities under this Agreement, shall be entitled to have regard to its
overall responsibilities in relation to the management of its clients, which
shall be restricted to the Group, and in particular, without prejudice to the
generality of the foregoing, the Manager shall be entitled to allocate
available resources and services in such manner as in the prevailing
circumstances the Manager considers to be fair and reasonable, subject always
to the discretion of any Executive Officer or other authorized representative
of the Owner.

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

4.14         During the term hereof,
the Manager agrees that, other than as provided in this Section 4.14, it will
provide the services in this Agreement to the Group on an exclusive basis and
it will not provide any Management Services or other services contemplated
herein to any entity without receiving the prior written approval of the Owner,
other than:

(a)                                  the Owner and each Subsidiary;

 

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(b)                                 any entity or vessel directly or indirectly owned or
controlled, in whole or in part, or operated by John Coustas, Danaos Investments
Limited as the Trustee for the 883 Trust (the “Coustas Trust”), Protector Holdings Inc. or Seasonal Maritime
Corporation (collectively, the “Coustas
Entities”) (or any (i) current or future beneficiaries of the Coustas
Trust, (ii) entities beneficially owned by such beneficiaries or the Coustas
Entities or (iii) other trusts established for the benefit of such
beneficiaries or the Coustas Entities); provided, that, any such direct or
indirect interest in any (x) Drybulk Carrier or Containership of larger than
2,500 TEU or (y) entity owning a Drybulk Carrier or a Containership of larger
than 2,500 TEU, shall have been acquired in accordance with Section 3 of the
Restrictive Covenant Agreement by and between the Owner and each of the Coustas
Entities and attached hereto as Appendix III (the “Restrictive Covenant Agreement”); and

(c)                                  Palmosa Shipping Corporation and its subsidiaries.

For the
avoidance of doubt, nothing in this Section 4.14 shall be construed to restrict
the Manager from providing any Management Services or other services
contemplated herein to any entity or vessel directly or indirectly owned or
controlled, in whole or in part, or operated by any Coustas Entity (or any (i)
current or future beneficiaries of the Coustas Family Trust, (ii) entities
beneficially owned by such beneficiaries or the Coustas Entities or (iii) other
trusts established for the benefit of such beneficiaries or the Coustas
Entities), other than Containerships of larger than 2,500 TEUs or Drybulk Carriers
or any entity or business involved in shipping sectors other than Containerships
of larger than 2,500 TEUs or Drybulk Carriers (which can be provided services
in accordance with the terms of this Section 4.14).

 

4.15         The Manager shall at all times maintain and keep true and
correct accounts and shall make the same available for inspection and auditing
by the Owner or any Subsidiary at such times as may be mutually agreed.

 

4.16         The Manager agrees that the Owner shall have the right at
any time to inspect any Vessel for any reason the Owner considers necessary.

 

4.17         Where the Manager is providing technical management services
in accordance with Section 6.1, the Manager shall procure that the requirements
of the law of the flag of each Vessel are satisfied and the Manager shall in
particular be deemed to be the “Company” as defined by the ISM Code, assuming
the responsibility for the operation of the Vessel and taking over the duties
and responsibilities imposed by the ISM Code when applicable.

 

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5                                         CREW SERVICES

5.1                                 The Manager shall provide a suitably qualified crew and related services
for each of the Vessels as required by each applicable member of the Group in
accordance with the STCW 95 requirements including the following:

(a)                                  selecting and engaging the Vessel’s crew, including payroll
arrangements, pension administration, and insurances for the crew in accordance
with Section 10;

(b)                                 ensuring that the laws of the flag of each Vessel and all places where
each Vessel trades are satisfied in respect of manning levels, rank,
qualification and certification of the crew and employment regulations,
including statutory withholding tax requirements, social insurance requirements,
discipline and other requirements;

(c)                                  ensuring that all members of the crew have passed a medical examination
with a qualified doctor certifying that they are fit for the duties for which
they are engaged and are in possession of valid medical certificates issued in
accordance with appropriate flag state requirements and, in the absence of
applicable flag state requirements, the medical certificate shall be dated not
more than three months prior to the respective crew members leaving their
country of domicile and shall be maintained for the duration of their service
on board the Vessel;

(d)                                 ensuring that the crew shall have a command of the English language of a
sufficient standard to enable them to perform their duties safely;

(e)                                  arranging the transportation of the crew, including repatriation, board
and lodging as and when required at rates and types of accommodations as
customary in the industry;

(f)                                    training of the crew and supervising their efficiency;

(g)                                 keeping and maintaining full and complete records of any labor
agreements which may be entered into with the crew and reporting to the Owner
reasonably promptly after notice or knowledge thereof is received of any change
or proposed change in labor agreements or other regulations relating to the crew
and conducting union negotiations;

(h)                                 supervising discipline, discharge, and other terms of employment
including administering the Owner’s and the Manager’s drug and alcohol policy
in respect of the crew and enforcing appropriate standing orders;

(i)                                     handling all details and negotiating the settlement of any and all
claims of the crew, including those arising out of accidents, sickness or
death, loss of personal effects, disputes under articles or contracts of
enlistment, policies of insurance and fines;

 

7

(j)                                     ensuring that any concerns of any customer with respect to the master or
any of the officers or other crew are appropriately investigated in a timely
manner, communicating the results of such investigations to the Owner and if appropriate
the customer, and if such concerns are well-founded, ensuring that any
appropriate remedial actions are taken without delay;

(k)                                  keeping and maintaining all administrative and financial records
relating to the crew as required by any law and any labor or collective agreements
of the Owner, and rendering to the Owner any and all reports; and

(l)                                     performing any other function in connection with the crew as may be
requested by the Owner or necessary for the management of the business.

6                                         TECHNICAL SERVICES

6.1                                 The Manager shall provide for all technical management services
necessary for the operation of each Vessel, which include, but are not limited
to, the following functions:

(a)                                  providing competent personnel to supervise the maintenance and general
efficiency of each Vessel;

(b)                                 arranging and supervising dry-dockings, repairs, alterations and upkeep
of the Vessels to the standards required by the Group to ensure that each
Vessel will comply with all requirements and recommendations of the
classification society and with the laws and regulations of the country of
registry of each Vessel and of the places where each Vessel trades;

(c)                                  arranging and purchasing the supply of necessary provisions, stores,
spares, lubricating oil supplies and equipment for each Vessel;

(d)                                 appointing and paying surveyors and technical consultants and other
support for each Vessel as the Manager may consider from time to time to be
necessary and arranging surveys associated with the commercial operation of
each Vessel;

(e)                                  developing, implementing and maintaining a Safety Management System
(SMS) in accordance with the ISM Code and system security in accordance with
ISPS Code for both the Manager and each of the Vessels under management;

(f)                                    arranging for the payment of all ordinary charges incurred in connection
with the management of each Vessel, including, but not limited to, all canal
tolls, port charges, any amounts due to any governmental authority with respect
to the crew and all duties and taxes in respect of cargo or freight (whether
levied against the Vessel, the Owner or the Group) and arranging for, and
arranging payment for, any and all material licenses, permits, franchises,
registrations and similar 

 

8

authorizations of any governmental authority which are
necessary and used in the operation of the Vessels;

(g)                                 procuring and arranging for port entrance and clearance, pilots, Vessel
agents, consular approvals and other services necessary or desirable for the
management and safe operation of each Vessel;

(h)                                 performing all usual and customary duties concerned with the loading and
discharging of cargoes at all ports including providing technical and
shore-side support for the Vessels, handling of each Vessel while in ports or
transiting canals and arranging for the prompt dispatch of each Vessel from
loading and discharge ports in accordance with any instructions and for transit
through canals;

(i)                                     reporting to the Owner of each Vessel’s movement, position at sea,
arrival and departure dates, major casualties and damages received or caused by
each Vessel;

(j)                                     informing the Group promptly of any major release or discharge of oil or
other hazardous material not in compliance with any laws;

(k)                                  maintaining each Vessel in such condition as to be acceptable to major
charterers’ vetting standards, if required;

(l)                                     providing the Owner with a copy of any Vessel inspection reports,
valuations, surveys, and other similar reports prepared by ship brokers,
valuators, surveyors, and classification societies; and

(m)                               arranging for employment of counsel and the investigation, follow-up and
negotiating of the settlement of all claims arising in connection with the
operation of each Vessel.

7                                         COMMERCIAL SERVICES

7.1                                 The Manager shall
provide certain commercial services to the Group, which includes, but is not limited to, the following functions:

(a)                                  performing class
records review and physical inspections and, at the request of the Owner,
making recommendations to the Owner with respect to any additional vessel being
considered for purchase by the Owner;

(b)                                 at
the request and under the direction of the Owner, certain
administrative services in connection with the purchase or sale of a Vessel by
the Owner or any member of the Group;

(c)                                  at the request of
the Owner, certain services in connection with the Owner or any Subsidiary
taking physical delivery of a Vessel; and

 

9

(d)                                 at the request of
the Owner, performing any other functions necessary to assist the Owner with any
Vessel sale or purchase or Newbuilding.

8                                         CHARTERING SERVICES

8.1                                 The Manager shall provide certain chartering services to the Group, including
the following:

(a)                                  at the direction of the Owner, seeking and negotiating employment for
each Vessel under voyage or period charters or under any other form of
contract;

(b)                                 arranging of the proper payment to the Owner or its nominee of all hire
and/or freight revenues or other moneys of whatsoever nature to which the Owner
may be entitled arising out of the employment of or otherwise in connection
with the Vessel;

(c)                                  providing voyage estimates and accounts and calculating of hire,
freights, demurrage and/or dispatch moneys due from or due to the charterers of
the Vessel;

(d)                                 furnishing the crew of each Vessel with appropriate voyage instructions
and monitoring voyage performance while using best efforts to achieve the most
economical, efficient and quick dispatch of each Vessel between ports and at
ports and terminals;

(e)                                  appointing agents;

(f)                                    appointing stevedores;

(g)                                 arranging surveys associated with the commercial operation of the
Vessel;

(h)                                 using due diligence to ensure that each Vessel will be employed between
safe ports, safe anchorages and safe berths, so far as this can be established
by exercising due diligence;

(i)                                     arranging the scheduling of each Vessel according to the terms of the
Vessel’s employment;

(j)                                     carrying out all necessary communications with shippers, charterers and
others involved with the receiving and handling of each Vessel at the loading
and discharging ports, including sending any notices required under the terms
of the Vessels’ employment;

(k)                                  preparing, issuing or causing to be issued to shippers the customary
freight contracts, cargo receipts, bills of lading, shippers’ customary bills
or other documents required under the terms of the Vessels’ employment;

 

10

(l)                                     invoicing on behalf of the Owner all freights and other sums due to the
Owner and accounts receivables arising from the operation of the Vessels,
making any and all claims for moneys due to the Owner and issuing releases upon
receipt of payment or settlement of such claims; and

(m)                               preparing off-hire statements and/or hire statements including obtaining
port documents and expense supports necessary for such calculation.

9                                         ADMINISTRATIVE SERVICES

9.1                                 The Manager shall provide certain general administrative services to the
Group, including the following:

(a)                                  keeping all books and records of things done and transactions performed
on behalf of any member of the Group as it may require from time to time,
including liaising with accountants, lawyers and other professional advisors;

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

(c)                                  maintaining the general ledgers of the Group, reconciliation of the
Group’s bank accounts, preparation of periodic financial statements, including
those required for governmental and regulatory or self-regulatory agency
filings and reports to shareholders, and the provision of related data
processing services;

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

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

(f)                                    preparing reports concerning the performance of the services hereunder
and the performance of third parties with whom any member of the Group has
contractual relationships and furnishing advice and recommendations with
respect to all aspects of the business affairs of such member of the Group;

(g)                                 providing all legal services to ensure the Group is in compliance with
all laws, including all relevant securities laws, and ensuring that the Group
owns or possesses all licenses, patents, copyrights and trademarks which are
necessary and used in the operation of its business;

 

11

(h)                                 providing for the presentation, negotiation, settlement, prosecution or
defense of any claim, demand or petition on behalf of any member of the Group
arising in connection with the business of any member of the Group for an
amount not exceeding $250,000 or its equivalent, including the pursuit by any
member of the Group of any rights of indemnification or reimbursement;

(i)                                     providing assistance and advice to the Group with respect to financing,
including the monitoring and administration of the compliance with any
applicable financing terms and conditions in effect with investors, banks or
other financial institutions;

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

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

(l)                                     administering payroll services, benefits and directors fees, as
applicable, for any employee, officer or director of the Group;

(m)                               handling all administrative and clerical matters in respect of (i) the
calling and arrangement of all annual and/or special meetings of shareholders,
(ii) the preparation of all materials (including notices of meetings and
information circulars) in respect thereof and (iii) the submission of all such
materials to the Owner in sufficient time prior to the dates upon which they
must be mailed, filed or otherwise relied upon so that the Owner has full
opportunity to review, approve, execute and return them to the Manager for
filing or mailing or other disposition as the Owner may require or direct;

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

(o)                                 providing, at the
request of the Owner, all documentation and records related to the Safety
Management System (SMS) and/or the Crew, which the Owner needs in order to
demonstrate compliance with the ISM Code and STCW 95 or to defend a claim
against a third party; and

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

 

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10                                  INSURANCE

10.1                           The Manager shall
arrange such insurances as the Owner shall have instructed and agreed upon, including
the following:

(a)                                  providing and purchasing hull and machinery insurance (including crew
negligence), excess liabilities insurance, protection and indemnity insurance including
pollution risk insurance (entered for each Vessel’s full gross tonnage), crew
insurance and war insurance;

(b)                                 providing and purchasing all other insurances for each Vessel in
accordance with the best practices of prudent owners of vessels of a similar
type to each Vessel in amounts and on terms that are in accordance with
industry practice;

(c)                                  providing
the Owner with a copy of any Vessel insurance claims and any reports prepared
by insurers; and

(d)                                 ensuring
all premiums and calls on the Owner’s insurance are paid in a timely fashion.

11                                  FEES AND EXPENSES

11.1                           In consideration of the Manager providing the Management Services to the
Group, the Owner shall pay the Manager the following fees:

(a)                                  a Vessel management fee of $500 per day per Vessel other than those
described in 11.1(b) below, payable monthly in arrears (pro-rated for the
number of days that the Owner (or any Subsidiary) owns or charters-in each
Vessel during each month);

(b)                                 a Vessel management fee of $250 per day per Vessel on a bareboat charter
payable monthly in arrears (pro-rated for the number of days that the Owner (or
any Subsidiary) owns or charters-in each Vessel during each month);

(c)                                  a daily management fee of $500 for providing the commercial, chartering
and administrative services, payable monthly in arrears (the fees in clauses
(a) through (c) of this Section 11.1 being collectively referred to herein
as the “Management Fee”);

(d)                                 a commission fee equal to 0.75% calculated on the gross freight,
demurrage, charter hire and ballast bonus obtained for the employment of each
Vessel on contracts or charter parties entered into with respect to such
Vessels during the term of this Agreement, payable to the Manager monthly in
arrears, only to the extent such freight, demurrage, charter hire and ballast
bonus, as the case may be, is paid or otherwise collected;

 

13

(e)                                  a commission equal to 0.5% calculated on the price set forth in the
memorandum of agreement of any Vessel bought or sold for or on behalf of the Owner
or any Subsidiary, payable upon final delivery to the Owner or Subsidiary as
applicable; and

(f)                                    a flat fee of $400,000 for the services by the Manager set forth in the form
of Supervision Agreement attached in Appendix II hereto with respect to each
Newbuilding of the Owner or any Subsidiary payable upon final delivery of such
Newbuilding to the Owner or Subsidiary, as applicable.

11.2                           The
Management Fee will be fixed throughout the Initial Term. For each Subsequent Term
(as defined in Section 16 below), the Management Fee will be set at a mutually
agreed upon rate between the Owner and the Manager no later than 30 days prior
to the commencement of the relevant Subsequent Term.  The Owner and the Manager will attempt to set
the Management Fee for any Subsequent Term at a sufficient level so that the
Manager’s Average Profit Margin during any such Subsequent Term will be no less
than its Average Profit Margin during each of the three immediately preceding fiscal
years.

11.3                           If
the Owner and the Manager are unable to agree on the Management Fee for any
Subsequent Term (each a “Fee Disputed
Subsequent Term”), the Management Fee will be equal to the
Management Fee in place during the prior year. 
At the end of each Fee Disputed Subsequent Term, the Manager may submit
its audited financial statements prepared in accordance with GAAP for the Fee
Disputed Subsequent Term and each of the prior three fiscal years immediately
prior to the Fee Disputed Subsequent Term (the “Comparative Period”) to the Owner for reconciliation.  The audited financial statements will set
forth in comparative form the average revenues and expenses for the Fee
Disputed Subsequent Term and the Comparative Period and will be certified by
one of the Manager’s financial officers. If the Manager is able to demonstrate
to the Owner that its Average Profit Margin for the Comparative Period was
greater than its Average Profit Margin during the Fee Disputed Subsequent Term,
the Owner will pay to the Manager an amount required to rectify such shortfall.
 If the Manager is unable to demonstrate
to the Owner that its Average Profit Margin for the Comparative Period was
greater than its Average Profit Margin during the Fee Disputed Subsequent Term,
no payment to the Manager will be made.

11.4                           In
addition to providing the Management Services in exchange for the Management
Fee, the Manager shall, at no cost to any member of the Group, provide its
office accommodation, office staff (including secretarial, accounting and
administrative assistance), facilities and stationery, and shall pay for all
printing, postage, domestic telephone and all other usual office expenses
incurred by it as the Manager in or about the provision of the Management Services.

11.5                         The
Manager hereby acknowledges that it will provide the Management Services to the
Group in Sections 7, 8, 9 and 10 hereof at its own cost in exchange for the Management
Fee and other fees it receives under this Section 11, and shall pay for
all of 

 

14

 

its own expenses and costs
incurred by it as the Manager in providing such Management Services.

12           BUDGETS, CORPORATE PLANNING AND EXPENSES

12.1         On or before October 31 of each year
the Manager will prepare and submit to the Executive Officers a detailed draft
budget for the next fiscal year in a format acceptable to the Executive
Officers which will include (i) a statement of estimated revenue and expenses in
providing the Management Services to the Group and (ii) a proposed budget for
capital expenditures, repairs or alterations, including proposed expenditures
in respect of dry-docking, together with an analysis as to when and why such
replacements, improvements, renovations or expenditures may be required (collectively,
the “Draft Budget”).

12.2         For a period of thirty (30) days after receipt
of the Draft Budget, the Executive Officers, from time to time, may request
further details and submit written comments on the Draft Budget.  If the Executive Officers do not agree with
any term thereof, they will, within the same thirty (30) day period, give the
Manager notice of any inquiries to the Draft Budget, which notice will include
the list of items under consideration (the “Questioned
Items”) and a proposal for the resolution of each such Questioned
Item.  The Executive Officers and the
Manager will endeavor to resolve any such differences between them with respect
to the Questioned Items.

12.3         By December 10 of the relevant year,
the Manager will prepare and deliver to the Owner a revised budget that has
been approved by the Executive Officers (the “Approved
Budget”).  All expenses
incurred by the Manager under the terms of this Agreement on behalf of any
member of the Group under the Approved Budget may be debited against the
account of the respective member of the Group, but shall in any event remain
payable by the Owner to the Manager on demand.

12.4         Any increase or change to the Approved
Budget in excess of 7.5% shall require the written approval of two Executive
Officers.  Any expenses incurred by the
Manager in excess of the Approved Budget will not be reimbursed or payable to
the Manager.

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

12.6         In the event the Executive Officers and
the Manager dispute any specific expense or invoice within the Approved Budget and
are unable to resolve their dispute within ten (10) Business Days, then the
dispute shall be referred for resolution by a firm of independent accountants
of nationally recognized standing reasonably satisfactory to each of the
Manager and the Executive Officers (the “Accounting
Referee”) which shall determine the disputed amounts within thirty
(30) days of the referral of such dispute to such Accounting Referee.   The determination of the Accounting Referee
shall not require 

 

15

the
Owner to pay more than the amount in dispute. 
The fees and expenses of the Accounting Referee shall be borne equally
by the Owner and the Manager.

12.7         Insofar as any moneys are collected by
the Manager under the terms of this Agreement (other than moneys payable by the
Owner to the Manager), such moneys and any interest thereon shall be held to
the credit of the relevant member of the Group in a separate bank account in
the name thereof, but operated by the Manager.

12.8         On or before the first day of each
month during the term of this Agreement, the Owner shall advance to the Manager
all amounts budgeted for the operation of each of the Vessels for such month.  At the end of each calendar quarter, the Manager
shall preliminarily reconcile the amounts advanced to it by the Owner with the
amounts actually expended by it for the operation of each of the Vessels, and
the Manager shall remit to the Owner, or credit to the Owner amounts to be
advanced to it hereunder for future months, any unused portion of the amounts previously
advanced by the Owner, or the Owner shall pay to the Manager any amounts
properly expended by the Manager for the Vessels in excess of the amounts
previously advanced by the Owner.  The
Owner and Manager will reconcile any amounts due to the Owner by the Manager or
amounts due to the Manager by the Owner for each fiscal year of the Owner as
promptly as practicable following the close of each such fiscal year.

13           LIABILITY AND INDEMNITY

13.1         Subject to Section 16.2(i) neither
any member of the Group nor the Manager shall be under any liability for any
failure to perform any of their obligations hereunder by reason of Force
Majeure.  “Force Majeure” shall mean any
cause whatsoever of any nature or kind beyond the reasonable control of any
member of the Group or the Manager, including, without limitation, acts of God,
acts of civil or military authorities, acts of war or public enemy, acts of any
court, regulatory agency or administrative body having jurisdiction,
insurrections, riots, strikes or other labor disturbances, embargoes or other
causes of a similar nature.

13.2         Subject to Section 13.1, the Manager
shall be under no liability whatsoever to any member of the Group for any loss,
damage, delay or expense of whatsoever nature, whether direct or indirect, and
howsoever arising in the course of the performance of this Agreement, unless
and to the extent that the same is proved to have resulted from (i) the gross
negligence or wilful default of the Manager, its employees, agents or any
Submanager or (ii) any breach of this Agreement by the Manager or any
Submanager.

13.3         Except to the extent that the Manager
would be liable under Section 13.2, the Owner hereby undertakes to keep the
Manager and its employees, agents and the Submanager indemnified and to hold
them harmless against all actions, proceedings, claims, demands or liabilities
whatsoever and howsoever arising which may be brought against them or incurred
or suffered by them arising out of or in connection with the performance of
this Agreement, and against and in respect of all costs, losses, damages and
expenses (including legal costs and expenses on a full indemnity basis) which the

 

16

Manager,
its employees, agents or the Submanager may suffer or incur (either directly or
indirectly) in the course of the performance of this Agreement.

13.4         The Manager will indemnify and save
harmless the Owner and each other Subsidiary in the Group, and their respective
current and former directors, officers, employees, subcontractors and current
and future affiliates, from and against any and all costs, losses, damages and
expenses (including legal costs and expenses on a full indemnity basis) which the
Owner, any other company in the Group or any of their employees or agents may
suffer as a result of (i) any losses incurred or suffered related to any
liabilities or obligations that the Manager or any Submanager has agreed to pay
or for which the Manager is otherwise responsible under this Agreement, (ii) the
gross negligence or any willful default by the Manager, its employees, agents
or any Submanager or (iii) any breach of this Agreement by the Manager or any
Submanager.

13.5         It is hereby
expressly agreed that no employee or agent of the Manager (including any
sub-contractor from time to time employed by the Manager) shall in any
circumstances whatsoever be under any liability whatsoever to any member of the
Group for any loss, damage or delay whatsoever kind arising or resulting
directly or indirectly from any act, neglect or default on his part while
acting in the course of or in connection with his employment and, without
prejudice to the generality of the foregoing provisions in this Section 13,
every exemption, limitation, condition and liberty herein contained and every
right, exemption from liability, defense and immunity of whatsoever nature
applicable to the Manager or to which the Manager is entitled hereunder shall
also be available and shall extend to protect every such employee or agent of
the Manager acting as aforesaid and for the purpose of all the foregoing
provisions of this Section 13 the Manager is or shall be deemed to be acting as
agent or trustee on behalf of and for the benefit of all persons who are or
might be their servants or agents from time to time (including sub-contractors
as aforesaid) and all such persons shall to this extent be or be deemed to be
parties to this Agreement.  Nothing in
this Section 13.5 shall be construed so as to limit any liability the Manager
may have to the Group under Section 13.2 hereof.

14           RIGHTS OF THE MANAGER, RESTRICTIONS ON THE MANAGER’S
AUTHORITY, AND NON-COMPETE PROVISIONS

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

14.2         The Owner acknowledges that the Manager
shall have no responsibility hereunder, direct or indirect, with regard to the
formulation of the business plans, policies, management or strategies
(financial, tax, legal or otherwise) of any member of the Group, which is
solely the responsibility of each respective member of the Group. Each member
of the Group shall set its corporate policies independently through its

 

17

respective
board of directors and executive officers and nothing contained herein shall be
construed to relieve such directors or officers of each respective member of
the Group from the performance of their duties or to limit the exercise of
their powers.

14.3                           Notwithstanding the other provisions of this Agreement:

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

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

(c)                                  the Manager shall incur no liability to any member of the Group for
doing or failing to do any act or thing which it shall be required to do or
perform or forebear from doing or performing by reason of any provision of any
law or any regulation or resolution made pursuant thereto or any decision,
order or judgment of any court or any lawful request, announcement or similar
action of any person or body exercising or purporting to exercise the
legitimate authority of any government or of any central or local governmental
institution in each case where the above entity has jurisdiction.

14.4         During the term of this Agreement and
for a period of one year from the date of actual termination of this Agreement,
the Manager and any affiliate of the Manager (other than a Coustas Entity (or
any (i) current or future beneficiaries of the Coustas Trust, (ii) entities
beneficially owned by such beneficiaries or the Coustas Entities or (iii) other
trusts established for the benefit of such beneficiaries or the Coustas
Entities) in accordance with Section 3 of the Restrictive Covenant Agreement) shall
be prohibited from, directly or indirectly, engaging in (i) the ownership or
operation of Containerships larger than 2,500 TEUs, (ii) the ownership or
operation of any Drybulk Carriers and (iii) the acquisition of or investment in
any business involved in the ownership or operation of Containerships larger
than 2,500 TEUs or Drybulk Carriers.

 

18

15           AVAILABILITY OF OFFICERS

15.1         The Executive Officers will be directly
employed by the Owner outside of this Agreement.

15.2         The Manager shall make available to the
Owner all such other officers, managers or employees that the Owner and the
Manager agree shall be made available.

15.3         The Executive Officers are entitled to
direct the Manager to remove and replace any individual serving as an officer
or any senior manager serving as head of a business unit from such position.  Furthermore, the Manager agrees that it will
not remove any individuals serving as officers or senior managers from their
respective positions without the prior written consent of the Executive
Officers.  If any officer or senior
manager who is made available to the Owner by the Manager resigns, is
terminated or otherwise vacates his office, the Manager shall, as soon as
practicable after acceptance of any resignation or after termination, use reasonable
best efforts to identify suitable candidates for replacement of such officer.

15.4         The Owner may employ directly any other
officers, senior managers or employees as it may deem necessary that will not
be subject to this Agreement.

15.5         The Manager will report to the Owner
and the Board of Directors through the Executive Officers.

16           TERMINATION
OF THE AGREEMENT

16.1         This
Agreement shall be effective as of the date hereof and, subject to Sections 16.2,
16.3, 16.4 and 16.5, shall continue until December 31, 2008 (the “Initial Term”).  Thereafter the term of this Agreement shall
be extended on a year-to-year basis for twelve additional years (each a “Subsequent Term”) unless the Owner, at
least twelve months prior to the end of the then current term, gives written
notice to the Manager that it wishes to terminate this Agreement at the end of
the then current term.   In no event will
the term of this Agreement extend beyond December 31, 2020.

16.2         The Owner shall be entitled to
terminate this Agreement by notice in writing to the Manager if:

(a)           the Manager neglects or
fails to perform its principal duties and obligations under this Agreement in
any material respect, and such neglect or failure is not remedied within twenty
(20) Business Days after written notice of the same is given to the Manager by
the Owner; or

(b)           any money payable by the
Manager under or pursuant to this Agreement is not promptly paid or accounted
for in full within ten (10) Business Days by the Manager in accordance with the
provisions of this Agreement.

16.3         The Owner shall be entitled to
terminate this Agreement immediately if:

 

19

(a)                                  the Owner or the Manager ceases to conduct business, or all or
substantially all of the properties or assets of either such party is sold,
seized or appropriated;

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

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

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

(e)                                  either the Manager or the Owner is prevented from performing its
obligations hereunder by reasons of Force Majeure for a period of two (2)
consecutive months or more.

16.4                           In
addition to the provisions in Section 16.2 and 16.3, the Owner shall also be
entitled to terminate any applicable Shipmanagement Agreement if:

(a)                                  the Owner or any Subsidiary ceases to be the owner of a Vessel by reason
of a sale thereof or the Owner or any Subsidiary ceases to be registered as the
Owner of a Vessel;

(b)                                 a Vessel becomes an actual or constructive or compromised or arranged
total loss or an agreement has been reached with the underwriters in respect of
the Vessel’s constructive, compromised or arranged total loss or if such
agreement with the underwriters is not reached or it is adjudged by a competent
tribunal that a constructive loss of the Vessel has occurred;

(c)                                  a Vessel is requisitioned for title or any other compulsory acquisition
of a Vessel occurs, otherwise than by requisition by hire; or

(d)                                 a Vessel is captured, seized, detained or confiscated by any government
or persons acting or purporting to act on behalf of any government and is not
released from such capture, seizure, detention or confiscation within twenty
(20) Business Days.

 

20

16.5                           The
Manager shall be entitled to terminate this Agreement by notice in writing to the
Owner:

(a)                                  if any moneys payable by the Owner under this Agreement shall not have
been duly paid within sixty (60) Business Days of payment having been demanded
by the Manager in writing; or

(b)                                 if the Owner defaults in the performance of any other of its material
obligations under this Agreement and fails to remedy such default within sixty (60)
Business Days after being given notice in writing by the Manager to remedy the
same.

16.6         Upon the effective date of termination
pursuant to this Section 16, the Manager shall promptly terminate its service
hereunder as may be required in order to minimize any interruption to the
business of the members of the Group.

16.7         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 Fee due from the Owner,
calculated pro rata to the date of termination, and any undisbursed funds of
any member of the Group in the Manager’s possession or control will be paid by
the Manager as directed by such member of the Group promptly upon the Manager’s
receipt of all sums then due it under this Agreement, if any.

16.8         Upon termination of this Agreement, the
Manager shall release to the Owner the originals where possible, or otherwise
certified copies, of all such accounts and all documents specifically relating
to each Vessel or the provision of Management Services for each Vessel.

16.9         The provisions of Section 13 shall
survive any termination of this Agreement.

17           SALE AND RIGHT OF FIRST REFUSAL

17.1         Unless expressly permitted by the Board
of Directors of the Owner pursuant to Sections 17.2 and 17.3 below, during the
term of this Agreement, John Coustas and/or any trust established for the Coustas
family, under which John Coustas and/or members of his family are beneficiaries
will collectively (i) own at least 80% of the outstanding capital stock of the
Manager and (ii) hold at least 80% of the voting power of the outstanding
capital stock of the Manager, considered
for this purpose as a single class; if this provision is breached, the Owner shall
have the right to purchase the capital stock of the Manager owned by John Coustas
or any trust established for the Coustas family, under which John Coustas and/or
members of his family are beneficiaries, at its fair market value.

17.2         Throughout the duration of this
Agreement and for one (1) year period following the expiry or termination of
this Agreement, the Manager is prohibited from transferring, assigning, selling
or disposing of a significant portion or all of its assets or property that is
necessary for the performance of its services under this Agreement and under
any 

 

21

Shipmanagement
Agreement to any other party without the prior written consent of the Board of
Directors.

17.3         In the event that the Board of
Directors permits the Manager to transfer, assign, sell or dispose of any
assets or property pursuant to Section 17.2 above, the Manager hereby grants to
the Owner a right of first refusal on any such proposed transfer, assignment,
sale or disposition.  The right of first
refusal contained in this Section 17.3 is in effect during the term of this
Agreement and shall extend for a one (1) year period following the expiry or
termination of this Agreement.

17.4         The Owner and the Manager shall have a
period of 30 days to reach an agreement for the proposed sale, transfer,
assignment or disposition of all or part of the Manager’s assets pursuant to
Section 17.3 above.  If no such agreement
with respect to a sale is concluded within 30 days, then the Manager may
transfer or sell such assets to any other third party provided that the sale is
made on terms no less favorable than those last proposed by the Manager to the
Owner.

17.5         The Owner and the Manager acknowledge
that all potential transfers pursuant to this Section 17 are subject to
obtaining any and all written consents of governmental authorities and other
non-affiliated third parties.

18           NOTICES

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

Danaos Corporation

14 Akti Kondyli

185 45 Piraeus

Greece

Attention: Chief Executive Officer

 

Danaos Shipping Company Limited

14 Akti Kondyli

185 45 Piraeus

Greece

Attention: Chief Executive Officer

19           APPLICABLE LAW AND JURISDICTION

19.1         This Agreement shall be governed by,
and construed in accordance with, the laws of England. The parties hereto
submit to the exclusive jurisdiction of the courts of England in connection
with any claim arising out of or in connection with this Agreement.

 

22

20           ARBITRATION

20.1         All disputes arising out of this
Agreement shall be arbitrated in London in the following manner.  One arbitrator is to be appointed by each of
the parties hereto and a third by the two so chosen.  Their decision or that of any two of them
shall be final and, for the purpose of enforcing any award, this Agreement may
be made a rule of the court.  The
arbitrators shall be commercial persons, conversant with shipping matters.   Such arbitration is to be conducted in
accordance with the rules of the London Maritime Arbitrators Association terms
current at the time when the arbitration proceedings are commenced and in
accordance with the Arbitration Act 1996 or any statutory modification or re-enactment
thereof.

20.2         In the event that the Owner or the
Manager shall state a dispute and designate an arbitrator, in writing, the
other party shall have twenty (20) Business Days to designate its own
arbitrator.  Upon failure to do so, the
arbitrator appointed by the other party can render an award hereunder.

20.3         Until such time as the arbitrators
finally close the hearings, either party shall have the right by written notice
served on the arbitrators and on the other party to specify further disputes or
differences under this Agreement for hearing and determination.

20.4         The arbitrators may grant any relief,
and render an award, which they or a majority of them deem just and equitable
and within the scope of the Agreement of the parties, including but not limited
to the posting of security.   Awards
pursuant to this Section 20 may include costs, including a reasonable allowance
for attorneys’ fees, and judgments may be entered upon any award made herein in
any court having jurisdiction.

21           MISCELLANEOUS

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

21.2         During the term hereof, the Manager
will not provide services hereunder through, or otherwise cause any member of
the Group to have, an office or fixed place of business in the United States,
and shall take reasonable steps not to cause income of any member of the Group
to be subject to tax in any taxing jurisdiction, including the United States, the
United Kingdom and Greece.

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

 

23

 

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

 

	
  SIGNED
  by Iraklis Prokopakis

  	
  )
  /s/ Iraklis Prokopakis

  
	
  for
  and on behalf of

  	
  )

  
	
  DANAOS
  CORPORATION

  	
  )

  
	
  in
  the presence of:

  	
  )

  
	
   

  	
   

  
	
  SIGNED
  by Efstathios Sfiris

  	
  )
  /s/ Efstathios Sfiris

  
	
  for
  and on behalf of

  	
  )

  
	
  DANAOS
  SHIPPING COMPANY LIMITED

  	
  )

  
	
  in
  the presence of:

  	
  )

  

 

 

24

 

SCHEDULE
A

SHIPOWNING
SUBSIDIARIES

	
  Shipowning
  Subsidiary

  	
   

  	
  Vessel
  Name

  	
   

  	
  Jurisdiction

  
	
  Alexandra
  Navigation Inc.

  	
   

  	
  Alexandra
  I

  	
   

  	
  Liberia

  
	
  Appleton
  Navigation S.A.

  	
   

  	
  CMA CGM
  Komodo

  	
   

  	
  Liberia

  
	
  Auckland
  Marine Inc.

  	
   

  	
  ER
  Auckland

  	
   

  	
  Liberia

  
	
  Balticsea
  Marine Inc.

  	
   

  	
  HN 1673

  	
   

  	
  Liberia

  
	
  Bayview
  Shipping Inc.

  	
   

  	
  HN 1671

  	
   

  	
  Liberia

  
	
  Blacksea
  Marine Inc.

  	
   

  	
  HN 1699

  	
   

  	
  Liberia

  
	
  Boxcarrier
  (No.1) Corp.

  	
   

  	
  HN S4001

  	
   

  	
  Liberia

  
	
  Boxcarrier
  (No.2) Corp.

  	
   

  	
  HN S4002

  	
   

  	
  Liberia

  
	
  Boxcarrier
  (No.3) Corp.

  	
   

  	
  HN S4003

  	
   

  	
  Liberia

  
	
  Boxcarrier
  (No.4) Corp.

  	
   

  	
  HN S4004

  	
   

  	
  Liberia

  
	
  Boxcarrier
  (No.5) Corp.

  	
   

  	
  HN S4005

  	
   

  	
  Liberia

  
	
  Channelview
  Marine Inc.

  	
   

  	
  HN 1672

  	
   

  	
  Liberia

  
	
  Cobaltium
  Shipping (Private) Ltd.

  	
   

  	
  APL
  Scotland

  	
   

  	
  Singapore

  
	
  Commodore
  Marine Inc.

  	
   

  	
  Hyundai
  Commodore

  	
   

  	
  Liberia

  
	
  Constantia
  Maritime Inc.

  	
   

  	
  Maersk
  Constantia

  	
   

  	
  Liberia

  
	
  Continent
  Maritime Inc.

  	
   

  	
  HN 1670

  	
   

  	
  Liberia

  
	
  Deleas
  Shipping Limited

  	
   

  	
  Pacific
  Bridge

  	
   

  	
  Cyprus

  
	
  Duke
  Marine Inc.

  	
   

  	
  Hyundai
  Duke

  	
   

  	
  Liberia

  
	
  Federal
  Marine Inc.

  	
   

  	
  MOL
  Confidence

  	
   

  	
  Liberia

  
	
  Ferrous
  Shipping (Private) Ltd.

  	
   

  	
  APL
  England

  	
   

  	
  Singapore

  
	
  Geoffrey
  Shipholding Limited

  	
   

  	
  CMA CGM
  Kalamata

  	
   

  	
  Liberia

  
	
  Helderberg
  Maritime Inc.

  	
   

  	
  S.A.
  Helderberg

  	
   

  	
  Liberia

  

 

 

	
  Shipowning
  Subsidiary

  	
   

  	
  Vessel
  Name

  	
   

  	
  Jurisdiction

  
	
  Independence
  Navigation Inc.

  	
   

  	
  Independence

  	
   

  	
  Liberia

  
	
  Lacey
  Navigation Inc.

  	
   

  	
  CMA CGM
  Elbe

  	
   

  	
  Liberia

  
	
  Lato
  Shipping (Private) Ltd.

  	
   

  	
  APL
  Belgium

  	
   

  	
  Singapore

  
	
  Lissos
  Shipping (Private) Ltd.

  	
   

  	
  APL Holland

  	
   

  	
  Singapore

  
	
  Maria C
  Maritime Inc.

  	
   

  	
  Maria C

  	
   

  	
  Liberia

  
	
  Medsea
  Marine Inc.

  	
   

  	
  HN 1698

  	
   

  	
  Liberia

  
	
  Mercator
  Shipping Inc.

  	
   

  	
  MV
  Achilleas

  	
   

  	
  Liberia

  
	
  Orchid
  Navigation Corporation

  	
   

  	
  Dimitris
  C

  	
   

  	
  Liberia

  
	
  Ortelius
  Maritime Inc.

  	
   

  	
  Fivos

  	
   

  	
  Liberia

  
	
  Peninsula
  Maritime Inc.

  	
   

  	
  Eagle
  Express

  	
   

  	
  Liberia

  
	
  Roberto C
  Maritime Inc.

  	
   

  	
  Roberto C

  	
   

  	
  Liberia

  
	
  Saratoga
  Trading S.A.

  	
   

  	
  YM Milano

  	
   

  	
  Liberia

  
	
  Seacaravel
  Shipping Limited

  	
   

  	
  YM Yantian

  	
   

  	
  Cyprus

  
	
  Seacarriers
  Lines Inc.

  	
   

  	
  HN 1640

  	
   

  	
  Liberia

  
	
  Seacarriers
  Services Inc.

  	
   

  	
  HN 1639

  	
   

  	
  Liberia

  
	
  Seasenator
  Shipping Limited

  	
   

  	
  Norasia
  Hamburg

  	
   

  	
  Cyprus

  
	
  Sederberg
  Maritime Inc.

  	
   

  	
  S.A.
  Sederberg

  	
   

  	
  Liberia

  
	
  Tyron
  Enterprises S.A.

  	
   

  	
  Henry

  	
   

  	
  Liberia

  
	
  Victory
  Shipholding Inc.

  	
   

  	
  Victory I

  	
   

  	
  Liberia

  
	
  Wellington
  Marine Inc.

  	
   

  	
  ER
  Wellington

  	
   

  	
  Liberia

  
	
  Winterberg
  Maritime Inc.

  	
   

  	
  S.A.
  Winterberg

  	
   

  	
  Liberia

  
	
  Lease
  Subsidiaries

  	
   

  	
  Vessel
  Name

  	
   

  	
  Jurisdiction

  
	
  Containers
  Lines Inc.

  	
   

  	
  Maersk
  Derby

  	
   

  	
  Liberia

  
	
  Containers
  Services Inc.

  	
   

  	
  Vancouver
  Express

  	
   

  	
  Liberia

  

 

 

	
  Shipowning
  Subsidiary

  	
   

  	
  Vessel
  Name

  	
   

  	
  Jurisdiction

  
	
  Karlita
  Shipping Company Limited

  	
   

  	
  HN 1561

  	
   

  	
  Cyprus

  
	
  Oceanew
  Shipping Limited

  	
   

  	
  CSCL
  Europe

  	
   

  	
  Cyprus

  
	
  Oceanprize
  Navigation Limited

  	
   

  	
  CSCL
  America

  	
   

  	
  Cyprus

  
	
  Ramona
  Marine Company Limited

  	
   

  	
  HN 1559

  	
   

  	
  Cyprus

  

 

SCHEDULE
B

NON-SHIPOWNING
SUBSIDIARIES(1)

	
   Non-Shipowning
   Subsidiary

   	
   Shipowning Subsidiaries
   Owned 

   	
   Jurisdiction

   
	
  Baker International S.A.

  	
  Ortelius Maritime Inc.

  	
  Liberia

  
	
   

  	
  Seasenator Shipping
  Limited

  	
   

  
	
   

  	
  Seacarriers Services Inc.

  	
   

  
	
  Bayard Maritime Ltd.

  	
  Appleton Navigation S.A.

  	
  Liberia

  
	
   

  	
  Mercator Shipping Inc.

  	
   

  
	
   

  	
  Oceanprize Navigation Limited

  	
   

  
	
   

  	
  Seacaravel Shipping
  Limited

  	
   

  
	
  Bounty Investment Inc.

  	
  Saratoga Trading S.A.

  	
  Liberia

  
	
   

  	
  Victory Shipholding Inc.

  	
   

  
	
  Cobaltium Shipping Inc.

  	
  Cobaltium Shipping
  (Private) Ltd.

  	
  Liberia

  
	
  Erato Navigation Inc.

  	
  Commodore Marine Inc.

  	
  Liberia

  
	
   

  	
  Constantia Maritime Inc.

  	
   

  
	
   

  	
  Duke Marine Inc.

  	
   

  
	
   

  	
  Helderberg Maritime Inc.

  	
   

  
	
   

  	
  Oceanew Shipping Limited

  	
   

  
	
   

  	
  Peninsula Maritime Inc.

  	
   

  
	
   

  	
  Roberto C Maritime Inc.

  	
   

  
	
   

  	
  Sederberg Maritime Inc.

  	
   

  
	
   

  	
  Winterberg Maritime Inc.

  	
   

  
	
  Ferrous Shipping Inc.

  	
  Ferrous Shipping (Private)
  Ltd.

  	
  Liberia

  

(1)           To be updated by Danaos.

 

 

	
   Non-Shipowning
   Subsidiary

   	
   Shipowning Subsidiaries
   Owned 

   	
   Jurisdiction

   
	
  Lito Navigation Inc.

  	
  Alexandra Navigation Inc.

  	
  Liberia

  
	
   

  	
  Lacey Navigation Inc.

  	
   

  
	
   

  	
  Magellan Marine Inc.

  	
   

  
	
  Lydia Inc

  	
  Container Lines Inc.

  	
  Liberia

  
	
   

  	
  Wellington Marine Inc.

  	
   

  
	
   

  	
  Geoffrey Shipholding Limited

  	
   

  
	
  Sapfo Navigation Inc.

  	
  Independence Navigation
  Inc.

  	
  Liberia

  
	
   

  	
  Maria C Maritime Inc.

  	
   

  
	
   

  	
  Orchid Navigation
  Corporation

  	
   

  
	
   

  	
  Ramona Marine Company
  Limited

  	
   

  
	
  Strondium Shipping Inc.

  	
  Lissos Shipping (Private)
  Ltd.

  	
  Liberia

  
	
  Titanium Holdings Inc.

  	
  Lato Shipping (Private)
  Ltd.

  	
  Liberia

  
	
  Tully Enterprises S.A.

  	
  Deleas Shipping Limited

  	
  Liberia

  
	
   

  	
  Karlita Shipping Company
  Limited

  	
   

  
	
   

  	
  Seacaravel Shipping
  Limited

  	
   

  
	
   

  	
  Seacarriers Lines Inc.

  	
   

  
	
   

  	
  Seasenator Shipping
  Limited

  	
   

  
	
   

  	
  Tyron Enterprises S.A.

  	
   

  
	
  Westwood Marine S.A.

  	
  Containers Services Inc.

  	
  Liberia

  
	
   

  	
  Auckland Marine Inc.

  	
   

  
	
   

  	
  Deleas Shipping Limited

  	
   

  

 

APPENDIX
I

FORM OF SHIPMANAGEMENT
AGREEMENT

	
  1.
  Date of Agreement

  	
   

  	
   

  
	
  2.
  Owners (name, place of registered office and law of registry)

  

  	
   

  	
  3.
  Managers (name, place of registered office and law of registry)

  
	
  ANNEX A
  // Subsidiary

  	
   

  	
  DANAOS
  SHIPPING CO. LTD

  
	
  Name

  	
   

  	
  Name

  
	
  Liberia
  / Cyprus / Singapore

  	
   

  	
  14 AKTI
  KONDYLI, 185 45 PIRAEUS, GREECE

  
	
  Place
  of registered office

  	
   

  	
  Place
  of registered office

  
	
  Cyprus
  / Panama / Singapore / Greece / Bahamas

  	
   

  	
  Cyprus

  
	
  Law
  of registry

  	
   

  	
  Law
  of registry

  
	
  4.
  Day and year of commencement of Agreement (Section 16*)

  	
   

  	
   

  
	
  5.
  Crew Management (state “yes” or “no” as agreed) (Section 5*)

  

  YES

  	
   

  	
  6.
  Technical Management (state “yes” or “no” as agreed) (Section 6*)

  YES

  
	
  7.
  Commercial Management (state “yes” or “no” as agreed) (Section 7*)

  

  YES

  	
   

  	
  8.
  Insurance Arrangements (state “yes” or “no” as agreed) (Section 10*)

  YES

  
	
  9.
  Accounting Services (state “yes” or “no” as agreed) (Section 9*)

  

  YES

  	
   

  	
  10.
  Sale or purchase of the Vessel (state “yes” or “no” as agreed) (Section
  11.1(e)*)

  YES

  
	
  11.
  Provisions (state “yes” or “no” as agreed) (Section 6*)

  

  YES

  	
   

  	
  12.
  Bunkering (state “yes” or “no” as agreed)

  

  YES

  
	
  13.
  Chartering Services Period (only to be filled in if “yes” stated in Box 7)
  (Section 11.1(d)*)

  YES

  	
   

  	
  14.
  Owner’s Insurance (Section 10*)

  

  YES

  
	
  15.
  Management Fee (state annual amount) (Section 11*)

  

  	
   

  	
  16.
  Severance Costs (state maximum amount)

  

  N/A

  
	
  17.
  Day and year of termination of Agreement (Section 16*)

  

  	
   

  	
  18.
  Law and Arbitration (Sections 19, 20*)

  

  English Law; exclusive
  jurisdiction of the Courts of England

  
	
  19.
  Notices (state postal and cable address, telex and telefax number for serving
  notice and communication to the Owners) (Section 18*)

  

  Subsidiary. Same as box 20.

  	
   

  	
  20.
  Notices (state postal and cable address, telex and telefax number for serving
  notice and communication to the Managers) (Section 18*)

  

  DANAOS SHIPPING CO. LTD.

  14 Akti Kondyli, 185 45
  Piraeus, Greece

  Tel: 210 4196400 Fax: 210
  4220855

  Tlx: 212133 DECU GR

  E-mail: danship@danaos.gr

  

*References are to the Management Agreement, dated            , 2005, between Danaos Corporation
and Danas Shipping Company Limited, as amended from time to time.

 

It is mutually agreed between the party
stated in Box 2 and the party stated in Box 3 that this Agreement
consists of Part I (the foregoing) and Part II (the Management
Agreement, dated            , 2005, between Danaos Corporation and Danas
Shipping Company Limited, as amended from time to time) as well as Annex “A”
(Details of Vessel) and each party agrees to be bound by both Part I and
Part II hereto.

 

	
  Signature(s)
  (Owners)

  	
  Signature(s)
  (Managers)

   

  

 

 

 

ANNEX “A”
(DETAILS OF VESSEL OR VESSELS) TO

SHIP MANAGEMENT AGREEMENT

 

 

Date of Agreement:

 

Name of Vessel(s):

 

Particulars of
Vessel(s):

 

DETAILS                              Vessel

 

Owner

Type

Class

Port of
Registry

Year
Built

Builder                                  Vessel’s
details

LOA

Breadth
Moulded

GRT

NRT

M/E Maker
Type

 

 

APPENDIX
II

FORM OF
SUPERVISION AGREEMENT

 

THIS
AGREEMENT is made the _____ day of                        
20     

 

BETWEEN:

 

(1)                            DANAOS
CORPORATION (or a subsidiary company to be nominated) a company
incorporated under the laws of the Marshall Islands whose registered office is Trust
Company Complex, Ajeltake Island, Ajeltake Road, Majuro, Marshall Islands MH96960
and whose principal place of business is at 14 Akti Kondyli, 185 45 Piraeus,
Greece (the “Owner”) {if different from the
Buyer under the Shipbuilding Contract otherwise Owner to be the same with the
Buyer as herein defined}

(2)                            DANAOS
SHIPPING CO. LTD.   a company incorporated
under the laws of Cyprus whose registered office is at 21 P. Katelaris Street, 504
Libra House, Nicosia 1097 and whose principal place of business is at 14 Akti
Kondyli, 185 45 Piraeus, Greece (the “Construction
Supervisor”).

WHEREAS:

By a shipbuilding
contract dated                
and made between                
(the “Builder”) and                            
(the “Buyer”) (the “Shipbuilding Contract”) the Builder agreed
to construct, to the order of the Buyer, and sell to the Buyer, a           
TEU container vessel, known during construction as Hull No.            and
to be named                         
(the “Vessel”);

IT IS NOW AGREED as
follows:

1              DEFINITIONS

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

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

“Business Day” means:

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

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

“Building Period” means the period from the execution of this
agreement to and including the date of delivery of the Vessel pursuant to the
Shipbuilding Contract.

“Buyer’s Supplies” means all of the items to be furnished by
the Buyer in accordance with Article ..... of the Shipbuilding Contract.

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

2                                         APPOINTMENT

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

2.2                                 Specific powers
and duties of the Construction Supervisor

Without prejudice to the generality of the appointment made under
Clause 2.1, and (where applicable) by way of addition to the rights, powers and
duties so conferred, the Construction Supervisor shall, subject to this Clause
2 and to 

 

Clauses 3 and 4, have and be entrusted with the following rights,
powers and duties in relation to the Shipbuilding Contract:

(a)                                      under
Article ..., to review, comment on, agree and approve the lists of plans and the
drawings referred to; to attend the testing of the Vessel’s machinery,
outfitting and equipment and to request any tests or inspections which the
Construction Supervisor may consider appropriate or desirable and to review and
comment on the results of all tests and inspections; to carry out such
inspections and give such advice or suggestions to the Builder as the
Construction Supervisor may consider appropriate or desirable; and to give
notice to the Builder in the event that the Construction Supervisor discovers
any construction, material or workmanship which the Construction Supervisor
believes does not or will not conform to the requirements of the  Shipbuilding Contract and the specifications;

(b)                                     under
Article .... to appoint a representative of the Construction Supervisor for the
purposes specified in that Article;

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

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

(e)                                      under
Article ...., to attend and witness the trials of the Vessel;

 

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

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

(h)                                     to
accept on behalf of the Owner the documents specified in Article ...., Paragraph
... to be delivered by the Builder at Delivery and to confirm receipt thereof to
the Owner;

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

(j)                                         to
purchase all Buyer’s Supplies as agent of the Owner and supply and deliver the
same together with all necessary specifications, plans, drawings, instruction
books, manuals, test reports and certificates to the Builder under Article ....,
and provide to the Owner a list of all such Buyer’s Supplies as soon as
possible.

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

2.4                           The
costs of supplying and delivering Buyer’s Supplies pursuant to Article .... shall
be reimbursed by the Owner on Delivery against supporting invoices from the
Construction Supervisor which the Construction Supervisor shall supply to the
Owner  at the same time as the notice to
be given pursuant to Clause 3(c)(i).

3                                   CONSTRUCTION SUPERVISOR’S DUTIES REGARDING CONSTRUCTION

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

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

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

(c)                                      to (i)
advise the Owner in writing, four (4) Business Days prior to the date on which
the delivery installment
under the Shipbuilding Contract is anticipated to become due, of the times and
amounts of payments to be made to the Builder under the Shipbuilding Contract
and the amount due to the Construction Supervisor for Buyer’s Supplies and (ii)
promptly confirm the same on the day on which such installment becomes due (and
being the date the same is required to be paid to the account referred to in Article......,
Paragraph...... of the Shipbuilding Contract);

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

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

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

(iii)                  the
Vessel is safe and undamaged; and

(iv)                 the
Vessel is recommended for classification by the ............... (and the Construction
Supervisor shall attach to its certificate the provisional certificate of
.....................recommending such classification of the Vessel or a duplicate or
photocopy of such 

 

provisional certificate or otherwise provide evidence of such
classification to the Owner);

(e)                                      on
receipt thereof from the Builder promptly to deliver the documents specified in
Article ...., Paragraph ... to the Owner or as the Owner may direct; and

(f)                                        not
without the prior written approval of the Owner to request of or agree with the
Builder any material alterations, additions or modifications to the Vessel.

4                                   CONSTRUCTION SUPERVISOR’S GENERAL OBLIGATIONS

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

(a)                                      it
will well and faithfully serve the Owner as Owner’s agent and will at all times
use its best endeavors to
protect and promote all of the interests and the welfare of the Owner in
relation to the Vessel including, without limitation, its design, construction,
fitting out and purchase;

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

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

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

(c)                                      it
will use its best endeavors to
ensure the observance and performance by the Builder of all conditions, duties
and obligations imposed on the Builder by the Shipbuilding Contract;

(d)                                     it
will at its own expense keep all necessary and proper books, accounts, records
and correspondence files relating to its duties and activities under this
Agreement and shall send quarterly reports to the Owner concerning the progress
of the design and construction of the Vessel and keep the 

 

Owner promptly informed of any deviations from the building program;
and

(e)                                      it
will ensure that any employee(s) of the Construction Supervisor appointed by
the Construction Supervisor as representative(s) of the Construction Supervisor
for the purpose of Article .... shall have appropriate technical qualifications
and experience in relation to the construction of ships of the same type as the
Vessel and shall be familiar with good international shipbuilding practices.

5                                   INSURANCE

The Construction Supervisor
undertakes to keep its representatives at the Builder’s premises or on board
the Vessel fully insured against all loss, damages or injuries incurred or
suffered by any of them and agrees that the Owner shall not in any respect be
liable or responsible for any loss or damage caused by any such persons to the
Builder or the Builder’s equipment and the Construction Supervisor undertakes
to keep its representatives, the Builder and the Owner fully and effectively
indemnified against any liability, loss or claim for any such damage or
injuries even to the extent that the same are not fully recovered under the
terms of any policy or proceeds of insurance or were not caused by the gross
negligence of the Builder or its employees, agents or sub-contractors.

6                                   FEES

In consideration of the
performance of the duties assigned to the Construction Supervisor in this
Agreement the Owner shall pay to the Construction Supervisor the sum of USD$400,000
for its total supervision costs in connection with the supervision of the
construction of the Vessel, and any expenses incurred under the Shipbuilding
Contract against presentation of supporting invoices from the Construction
Supervisor which the Construction Supervisor shall supply to the Owner at the
same time as the notice to be given pursuant to Clause 3(c)(i).  The construction supervision fee shall
include all costs which are incurred by the Construction Supervisor in
connection with the ordinary exercise and performance by the Construction
Supervisor of the rights, powers and duties entrusted to it pursuant to this
Agreement.

7                                   COMMENCEMENT - TERMINATION

This Agreement shall come
into effect on...................and shall continue until delivery of the Vessel to the
Owner by the Builder.

This Agreement may, however,
be terminated with immediate effect by the Owner in the event that the
Construction Supervisor is in material default of its obligations hereunder 

and/or in the event that the
Shipbuilding Contract is cancelled or terminated.  The Construction Supervisor shall in the
event of immediate termination not be entitled to receive any payment in
respect of the fees and other amounts described in Clause 6.

8                                   LIABILITIES

Neither the Owner nor the
Construction Supervisor shall be under any liability for any failure to perform
any of their obligations hereunder by reason of any cause whatsoever beyond
their control.

Without prejudice to the
foregoing, the Construction Supervisor shall be under no liability whatsoever
for any loss, damage, delay or expense of whatever nature, whether direct or
indirect (including but not limited to loss of profit arising out of or in
connection with detention of or delay of the Vessel) and however arising in the
course of performance of its duties under this Agreement, unless the same is
proved to have resulted solely from the negligence or willful misconduct of the
Construction Supervisor.

9              EMPLOYEES

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

10                                  GOVERNING LAW - JURISDICTION

10.1         This Agreement shall be governed by and
be construed in accordance with English law.

10.2         The Construction Supervisor agrees, for
the benefit of the Owner, that any legal action or proceedings arising out of
or in connection with this Agreement shall be brought in the English courts and
hereby irrevocably and unconditionally submits to the jurisdiction of such
courts.  The submission to such
jurisdiction shall not (and shall not be construed so as to) limit the
competent jurisdiction nor shall the taking of proceedings in any one or more
jurisdictions preclude the taking of proceedings in any other jurisdiction,
whether concurrently or not.

10.3                    The
Construction Supervisor agrees that the process by which any proceedings are
begun under this Agreement may be served on it by being delivered in connection
with any proceedings in England, to .......... 
If this appointment ceases to be effective, the Construction Supervisor
shall immediately appoint a further person in England to accept service of
process on its behalf in England. 
Nothing contained herein shall affect the right to serve process in any
other manner permitted by law.

11                            COUNTERPARTS

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

12                            NOTICES

12.1                     Every
notice or other communication under this Agreement shall:

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

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

(c)                                      be
sent:

(i)                        To the Construction
Supervisor at:

Danaos Shipping Co. Ltd

14 Akti Kondyli

185 45 Piraeus

Greece

Facsimile No.: +30 210 42 20 855

Attention:  Legal
Department

 

(ii)                     To the Owner at:

Danaos Corporation

14 Akti Kondyli

 

 

185 45 Piraeus

Greece

Facsimile No.: +30
210 42 20 855

Attention:  Legal
Department

 

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

 

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

13                            CONTRACT (RIGHTS OF THIRD PARTIES) ACT 1999

A person who is not a party
to this Agreement has no right under the Contract (Rights of Third Parties) Act
1999 to enforce any term of this Agreement.

IN WITNESS of
which this Agreement has been duly executed the day and year first before
written.

For
the Owner

 

 

For
the Construction Supervisor

 

 

SCHEDULE 1

FORM OF CONSTRUCTION CERTIFICATE

 

[On the headed notepaper of the Construction
Supervisor]

 

[Vessel Owner] (the “Owner”)

[Address]

Facsimile: [                  ]

Attention: [                  ]

                                                                                                                                Date:
_________________

 

Dear Sirs,

 

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

 

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

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

We hereby certify, pursuant
to Clause 3(d) of the Supervision Agreement, as follows:

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

(ii)           there
is, to the best of our knowledge and belief having made due enquiry with the
Builder, no lien or encumbrance on the Vessel other than the lien in favor of
the Builder in respect of the deliver installment of the Contract Price due in
accordance with Article [  ];

(iii)          The
Vessel is safe and undamaged; and

(iv)          The
vessel is recommended for classification by [Name of the classification
society] (the “Classification Society”).

 

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

Yours faithfully

 

......................................

for and on behalf of

DANAOS SHIPPING COMPANY
LIMITEDExhibit 10.3

 

 

DANAOS CORPORATION,

 

DR. JOHN COUSTAS,

 

PROTECTOR HOLDINGS INC.,

 

SEASONAL MARITIME CORPORATION

 

- and -

 

 

DANAOS INVESTMENTS LIMITED AS THE

TRUSTEE FOR THE 883 TRUST

 

 

 

RESTRICTIVE COVENANT AGREEMENT

 

 

 

 

THIS RESTRICTIVE
COVENANT AGREEMENT is made on the [•] day of September 2006,

 

BY AND BETWEEN:

 

(1)                                  DANAOS
CORPORATION, a Marshall Islands corporation (“DC”);

 

(2)                                  DR.
JOHN COUSTAS, in his individual capacity (“Dr. Coustas”);

 

(3)                                  PROTECTOR
HOLDINGS INC., a Liberian corporation (“Protector Holdings”);

 

(4)                                  SEASONAL
MARITIME CORPORATION, a Liberian corporation (“Seasonal Maritime”); and

 

(5)                                  DANAOS
INVESTMENTS LIMITED AS TRUSTEE FOR THE 883 TRUST (the
“Coustas Family Trust” and, together
with Dr. John Coustas, Protector Holdings and Seasonal Maritime, the “Coustas Entities”).

 

WHEREAS:

 

(A)          Pursuant to the
Amended and Restated Management Agreement by and between DC and Danaos Shipping
Company Limited, a Cypriot corporation (the “Manager”),
made [•], 2006 (the “Management
Agreement”), the Manager has agreed to provide certain management
services to DC on an exclusive basis, restrict certain competitive activities
and grant a right of first refusal to DC to purchase its assets and properties
upon the occurrence of certain events, all as described therein.

 

(B)           Each of the Coustas
Entities directly or indirectly owns capital stock of the Manager.

 

(C)           On or about the date
hereof, Dr. Coustas will enter into an executive employment agreement with DC
(the “Employment Agreement”), pursuant to the
terms of which Dr. Coustas will agree to serve as Chief Executive Officer and
President of DC.

 

(D)          DC wishes to (i)
limit the activities of Dr. Coustas, and the other Coustas Entities, on the
terms and conditions set out in this Agreement to prohibit certain activities
that may compete with the business of DC, (ii) ensure that the Coustas Entities
collectively maintain ownership of at least 80% of the capital stock of the
Manager and (iii) ensure that the Coustas Entities will not allow the Manager
to violate certain of its obligations under the Management Agreement.

 

NOW, THEREFORE, in consideration of the terms and
conditions set forth below, and other good and valuable consideration (the
receipt and sufficiency of which is hereby acknowledged), the parties hereto
agree as follows:

 

1                                         INTERPRETATION

 

1.1           In this Agreement, unless the context otherwise requires:

 

2

 

(a)                                  “Board of Directors” means the board of
directors of DC as the same may be constituted from time to time.

 

(b)                                 “Containership” means any ocean-going vessel
that is intended to be used primarily to transport containers or is being used
to primarily transport containers.

 

(c)                                  “Danaos Group” means, at any time,
DC and its subsidiaries at such time and “member of the Group” shall be
construed accordingly.

 

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

 

(e)                                  “Independent Directors” means those members
of the Board of Directors that qualify as independent directors within the
meaning of Rule 10A-3 promulgated under the U.S. Securities Exchange Act of
1934 and the listing criteria of the New York Stock Exchange.

 

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

 

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

 

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

 

2                                         ACKNOWLEDGEMENT AND REPRESENTATION

 

2.1           Each of the
Coustas Entities acknowledges he or it has received and reviewed the Management
Agreement.

 

2.2           Each of the Coustas Entities
hereby represents and warrants that as of the date of this Agreement,
collectively the Coustas Entities (a) own at least 80% of the capital stock of
the Manager and (b) hold at least 80% of the voting power of the outstanding
capital stock of the Manager considered for this purpose as a single class.

 

3                                         NON-COMPETITION

 

3.1           During the term of the Management
Agreement and for a period of one (1) year from the date of actual termination
of the Management Agreement, the Coustas Entities shall not, subject to Section
3.2 hereof, directly or indirectly, engage in (a) the ownership or operation of
Containerships of larger than 2,500 TEUs, (b) the ownership or operation of any
Drybulk Carriers or (c) the acquisition of or investment in any business
involved in the ownership or operation of Containerships of larger than 2,500
TEUs or Drybulk Carriers.

 

3.2           Notwithstanding the
foregoing, if a majority of the Independent Directors declines to pursue any
opportunity for the benefit of DC or any of its subsidiaries (a) to acquire or
invest in any business involved in the ownership or operation of Containerships
of larger than 2,500 TEUs

 

3

 

or Drybulk Carriers or (b) to acquire a Containership
of larger than 2,500 TEUs or a Drybulk Carrier, then any Coustas Entity (or any
(i) current or future beneficiaries of the Coustas Family Trust, (ii)
entities beneficially owned by such beneficiaries or the Coustas Entities or
(iii) other trusts established for the benefit of such beneficiaries or the Coustas
Entities) shall be permitted, directly or indirectly, to acquire any such
Containership or Drybulk Carrier or acquire or invest in any such business; provided that, such acquisition or
investment is completed (x) no later than the four-month anniversary of the
date on which the Independent Directors declined to pursue such acquisition or
investment and (y) on terms no more favorable to the acquiring or investing, as
the case may be, party than those offered to DC and declined by the Independent
Directors.

 

For the
avoidance of doubt, nothing in this Agreement shall be construed to restrict
the ability of any Coustas Entity (or any (i) current
or future beneficiaries of the Coustas Family Trust, (ii) entities beneficially
owned by such beneficiaries or the Coustas Entities or (iii) other trusts
established for the benefit of such beneficiaries or the Coustas Entities) to
acquire or invest in any vessel other than Containerships of larger than 2,500
TEUs or Drybulk Carriers.

 

4                                         MANAGEMENT SERVICES

 

4.1           During the term of the Management
Agreement, Dr. Coustas shall not personally provide, or establish, advise or assist any entity
providing, commercial, crewing,
technical, chartering or administrative vessel management services
substantially similar to those the Manager provides under the Management
Agreement to any owner and operator of Containerships of larger than 2,500
TEUs or Drybulk Carriers, other than members of the Danaos
Group and Palmosa Shipping Corporation and its subsidiaries without receiving
the prior written approval of a majority of the Independent Directors.

 

4.2           During the term of the Management
Agreement, none of the Coustas
Entities shall, directly or indirectly, own any interest in
any entity which provides commercial, crewing, technical, chartering or
administrative vessel management services substantially similar to those the
Manager provides under the Management Agreement to any owner and operator of
Containerships of larger than 2,500 TEUs or Drybulk Carriers, other
than members of the Danaos Group and Palmosa Shipping Corporation and its
subsidiaries, without receiving the prior written approval of a majority of the
Independent Directors.

 

4.3           The restrictions set forth in
Sections 4.1 and 4.2 hereof shall not apply with respect to Containerships larger
than 2,500 TEUs, Drybulk Carriers or entities which any Coustas Entity (or any (i) current
or future beneficiaries of the Coustas Family Trust, (ii) entities beneficially
owned by such beneficiaries or the Coustas Entities or (iii) other trusts
established for the benefit of such beneficiaries or the Coustas Entities) acquires
or invests in pursuant to Section 3.2 hereof.

 

5                                         CONTROL OF MANAGER

 

5.1           Unless expressly
permitted by a majority of the Independent
Directors,
during the term of the Management Agreement, the Coustas Entities will at all
times, directly or indirectly, collectively (a) own at least 80% of the
outstanding capital stock of the Manager and (b) hold at least 80% of the
voting power of the outstanding capital stock of the Manager, considered for this purpose as a single
class.

 

4

 

5.2           Each of the Coustas
Entities hereby agrees to offer and, if such offer is accepted by DC, to sell
the capital stock of the Manager owned by it to DC at the then fair market
value of such capital stock if the provision set forth in Section 5.1 hereof is
breached.

 

5.3           For the avoidance of
doubt, DC acknowledges that (a) the restriction set forth in Section 5.1 hereof
shall not be construed so as to limit transfers of capital stock of the Manager
to (i) current or future beneficiaries of the Coustas Family Trust, (ii)
entities beneficially owned by such beneficiaries or the Coustas Entities or
(iii) other trusts established for the benefit of such beneficiaries or the Coustas
Entities and (b) any such
transfers shall not trigger DC’s purchase right pursuant to Section 5.2 hereof;
provided, that any such
transferee agrees to be bound by the restrictions set forth herein (including,
without limitation, in Sections 3 and 4 hereof) pursuant to an agreement
acceptable in form and substance to a majority of the Independent Directors.

 

6                                         COVENANT COMPLIANCE OF MANAGER

 

6.1           The Coustas Entities
shall not allow the Manager to
violate the covenants contained in
Section 4.14, Section 14.4 and Sections 17.1 through 17.5 of the Management
Agreement, and will cause the Manager to observe the right of first refusal
requirement set forth in Section 17.3 of the Management Agreement.

 

7                                         NOTICES

 

7.1           All notices, consents and other
communications hereunder, or necessary to exercise any rights granted
hereunder, shall be in writing, sent either by prepaid registered mail or
telefax, and will be validly given if delivered on a business day to a party at
its respective address set forth below:

 

Danaos
Corporation

14
Akti Kondyli

185
45 Piraeus

Greece

Attention:
[Chief Executive Officer]

 

Dr.
John Coustas

[c/o Danaos Corporation

14
Akti Kondyli

185
45 Piraeus

Greece

Attention:
Dr. John Coustas]

 

Protector
Holdings Inc.

[c/o
Danaos Corporation

14
Akti Kondyli

185
45 Piraeus

Greece

Attention:
Dr. John Coustas]

 

5

 

Seasonal
Maritime Corporation

[c/o
Danaos Corporation

14
Akti Kondyli

185
45 Piraeus

Greece

Attention:
Dr. John Coustas]

 

Danaos
Investments Limited as the Trustee for the 883 Trust

[c/o
Danaos Corporation

14
Akti Kondyli

185
45 Piraeus

Greece

Attention:
Dr. John Coustas]

 

8                                         APPLICABLE LAW AND JURISDICTION

 

8.1           This Agreement shall be governed
by, and construed in accordance with, the laws of England. The parties hereto
submit to the exclusive jurisdiction of the courts of England in connection
with any claim arising out of or in connection with this Agreement.

 

9                                         ARBITRATION

 

9.1           All disputes arising out of this Agreement shall be arbitrated in London
in the following manner. One arbitrator is to be appointed by DC, a second by
the Coustas Entities and a third by the two so chosen. Their decision or that
of any two of the arbitrators shall be final and, for the purpose of enforcing any award, this
Agreement may be made a rule of the court. The arbitrators shall be commercial
persons, conversant with shipping matters. Such arbitration is to be conducted
in accordance with the rules of the London Maritime Arbitrators Association
terms current at the time when the arbitration proceedings are commenced and in
accordance with the Arbitration Act 1996 or any statutory modification or
re-enactment thereof.

 

9.2           In the event that DC or the Coustas Entities shall state a dispute and
designate an arbitrator, in writing, the other party shall have twenty (20)
business days to designate its own arbitrator. Upon failure to do so, the
arbitrator appointed by the other party can conduct the arbitration and render
an award hereunder.

 

9.3           Until such time as the arbitrators finally close the hearings, either of
DC or the Coustas Entities shall have the right by written notice served on the
arbitrators and on the other party to specify further disputes or differences
under this Agreement for hearing and determination.

 

9.4           The arbitrators may grant any relief, and render an award, which they or
a majority of them deem just and equitable and within the scope of the
Agreement of the parties, including but not limited to the posting of security.
Awards pursuant to this Section 9 may include costs, including a reasonable
allowance for attorneys’ fees, and judgments may be entered upon any award made
herein in any court having jurisdiction.

 

6

 

10                                  MISCELLANEOUS

 

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

 

10.2         It is the desire and intent of
the parties hereto that the provisions of this Agreement be enforced to the
fullest extent permissible under the laws and public policies applied in each
jurisdiction in which enforcement is sought. Accordingly, if any particular
provision of this Agreement is adjudicated to be invalid or unenforceable, such
provision will be deemed amended to delete therefrom the portion thus
adjudicated as invalid or unenforceable, such deletion to apply only with
respect to the operation of such provision in the particular jurisdiction in
which such adjudications is made.

 

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

 

[Remainder
of page intentionally left blank.]

 

7

 

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

 

	
  SIGNED by Dimitri J. Andritsoyiannis

  
	
  for and on behalf of

  
	
  DANAOS CORPORATION

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  
	
   

  
	
  SIGNED by

  
	
  DR. JOHN COUSTAS

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  
	
   

  
	
  SIGNED by Efstathios Sfiris

  
	
  for and on behalf of

  
	
  PROTECTOR HOLDINGS INC.

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  
	
   

  
	
  SIGNED by Efstathios Sfiris

  
	
  for and on behalf of

  
	
  SEASONAL MARITIME CORPORATION

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  
	
   

  
	
  SIGNED by Dr. John Coustas

  
	
  for and on behalf of

  
	
  DANAOS INVESTMENTS LIMITED AS THE

  
	
  TRUSTEE FOR THE 883 TRUST

  
	
   

  
	
   

  
	
   

  	
   

  

 

 

 

[Signature page to Restrictive Covenant
Agreement]

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