Document:

EXHIBIT 10.5

 

October 8, 2004

 

International Shipping
Enterprises, Inc.

1225
Franklin Avenue, Suite 325

Garden City, New York 11530

 

Sunrise Securities Corp.

641 Lexington Avenue

25th Floor

New York, New York 10022

 

Re:          Initial
Public Offering

 

Gentlemen:

 

The undersigned stockholder and director of
International Shipping Enterprises, Inc. (“Company”), in consideration of
Sunrise Securities Corp. (“Sunrise”) entering into a letter of intent (“Letter
of Intent”) to underwrite an initial public offering of the securities of the
Company (“IPO”) and embarking on the IPO process, hereby agrees as follows
(certain capitalized terms used herein are defined in paragraph 11 hereof):

 

1.             If the
Company solicits approval of its stockholders of a Business Combination, the
undersigned will vote all Insider Shares owned by him in accordance with the
majority of the votes cast by the holders of the IPO Shares.  

 

2.             In the event
that the Company fails to consummate a Business Combination within 18 months
from the effective date (“Effective Date”) of the registration statement
relating to the IPO (or 24 months under the circumstances described in the
prospectus relating to the IPO), the undersigned will take all reasonable
actions within his power to cause the Trust Fund (as defined in the Letter of
Intent) to be liquidated and distributed to the holders of the IPO Shares.  The undersigned hereby
waives any and all right, title, interest or claim of any kind in or to any distribution of
the Trust Fund as a result of such distribution with respect to his Insider
Shares (“Claim”) and hereby waives any Claim the undersigned may have in the
future as a result of, or arising out of, any contracts or agreements with the

 

 

Company
and will not seek recourse against the Trust Fund for any reason whatsoever.  

 

3.             In order to
minimize potential conflicts of interest which may arise from multiple
affiliations, the undersigned agrees to present to the Company for its
consideration, prior to presentation to any other person or entity, any
suitable opportunity to acquire an operating business, until the earlier of the
consummation by the Company of a Business Combination, the distribution of the
Trust Fund or until such time as the undersigned ceases to be a director of the
Company, subject to any pre-existing fiduciary obligations the undersigned
might have.

 

4.             The
undersigned acknowledges and agrees that the Company will not consummate any
Business Combination which involves a company which is affiliated with any of
the Insiders unless
the Company obtains an opinion from an independent investment banking firm
reasonably acceptable to Sunrise that the business combination is fair to the
Company’s stockholders from a financial perspective.

 

5.             Neither the undersigned, any
member of the family of the undersigned, nor any Affiliate of the undersigned
will be entitled to receive and will not accept any compensation for services
rendered to the Company prior to the consummation of the Business Combination;
provided that the undersigned shall be entitled to reimbursement from the
Company for his out-of-pocket expenses incurred in connection with seeking and
consummating a Business Combination.

 

6.             Neither
the undersigned, any member of the family of the undersigned, or any Affiliate
of the undersigned will be entitled to receive or accept a finder’s fee or any
other compensation in the event the undersigned, any member of the family of
the undersigned or any Affiliate of the undersigned originates a Business
Combination.  

 

7.             The
undersigned will escrow his Insider Shares for the three year period commencing
on the Effective Date subject to the terms of a Stock Escrow Agreement which
the Company will enter into with the undersigned and an escrow agent acceptable
to the Company.

 

8.             The undersigned
agrees to be a member of the Board of Directors of the Company until the
earlier of the consummation by the Company of a Business Combination or the
distribution of the Trust Fund.  The
undersigned’s biographical information furnished to the Company and Sunrise and
attached hereto as Exhibit A is true and accurate in all respects, does not
omit any material information with respect to the undersigned’s background and
contains all of the information required to be disclosed

 

2

 

pursuant
to Section 401 of Regulation S-K, promulgated under the Securities Act of
1933.  The undersigned’s Questionnaire
furnished to the Company and Sunrise and annexed as Exhibit B hereto is
true and accurate in all respects.  The undersigned
represents and warrants that:

 

(a)           he is not
subject to or a respondent in any legal action for, any injunction,
cease-and-desist order or order or stipulation to desist or refrain from any
act or practice relating to the offering of securities in any jurisdiction;

 

(b)           he has never
been convicted of or pleaded guilty to any crime (i) involving any fraud or
(ii) relating to any financial transaction or handling of funds of another
person, or (iii) pertaining to any dealings in any securities and he is not
currently a defendant in any such criminal proceeding; and

 

(c)           he has never
been suspended or expelled from membership in any securities or commodities
exchange or association or had a securities or commodities license or
registration denied, suspended or revoked.

 

9.             The undersigned
has full right and power, without violating any agreement by which she is
bound, to enter into this letter agreement and to serve as a member of the
Board of Directors of the Company.

 

10.           The undersigned authorizes any employer, financial
institution, or consumer credit reporting agency to release to Sunrise and its
legal representatives or agents (including any investigative search firm
retained by Sunrise) any information they may have about the undersigned’s background
and finances (“Information”).  Neither
Sunrise nor its agents shall be violating the undersigned’s right of privacy in
any manner in requesting and obtaining the Information and the undersigned
hereby releases them from liability for any damage whatsoever in that
connection.

 

11.           As used herein, (i) a “Business
Combination” shall mean an acquisition by merger, capital stock exchange, asset
or stock acquisition, reorganization or otherwise, of one or more ships or vessels or
an operating business in the shipping industry selected by the Company; (ii)
“Insiders” shall mean all officers, directors and stockholders of the Company
immediately prior to the IPO; (iii) “Insider Shares” shall mean all of the
shares of Common Stock of the Company owned by an Insider prior to the IPO; and
(iv) “IPO Shares” shall mean the shares of Common Stock issued in the
Company’s IPO.

 

3

 

	
   

  	
  John Stratakis

  	
   

  
	
   

  	
  Print Name of Insider

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ John Stratakis

  	
   

  
	
   

  	
  Signature

  
				

 

4

 

Exhibit A

 

John Stratakis has been a member of our board of directors
since our inception.  Since 1994,
Mr. Stratakis has been a partner with the law firm of Poles, Tublin, Stratakis,
Gonzalez & Weichert, LLP, in New York, New York, where he specializes in
all aspects of marine finance and admiralty law, real estate, trusts and
estates and general corporate law.  From
1992 to 1993, Mr. Stratakis was an associate attorney with Wilson, Elser,
Moskowitz Edelman & Dicker, in New York, New York.  Mr. Stratakis also has been a director and
the Treasurer of the Hellenic-American Chamber of Commerce in New York since
2000.  Mr. Stratakis received a bachelor
of arts (summa cum laude) from
Trinity College and a juris doctor degree from Washington College of
Law-American University.  Mr. Stratakis
is admitted to practice law in the State of New York and in the courts of the
Southern and Eastern Districts of New York.EXHIBIT
10.6

 

	
   

  	
   

  	
  October 8,
  2004

  

 

International Shipping
Enterprises, Inc.

1225
Franklin Avenue, Suite 325

Garden
City, New York 11530

 

Sunrise Securities Corp.

641 Lexington Avenue

25th Floor

New York, New York 10022

 

Re:          Initial
Public Offering

 

Gentlemen:

 

The undersigned officer of International Shipping
Enterprises, Inc. (“Company”), in consideration of Sunrise Securities Corp.
(“Sunrise”) entering into a letter of intent (“Letter of Intent”) to underwrite
an initial public offering of the securities of the Company (“IPO”) and
embarking on the IPO process, hereby agrees as follows (certain capitalized
terms used herein are defined in paragraph 9 hereof):

 

1.             In the event that the Company
fails to consummate a Business Combination within 18 months from the effective
date (“Effective Date”) of the registration statement relating to the IPO (or
24 months under the circum-stances described in the prospectus relating to the
IPO), the undersigned will take all reasonable actions within his power to
cause the Trust Fund (as defined in the Letter of Intent) to be liquidated and
distributed to the holders of the IPO Shares. 
The
undersigned hereby waives any and all right, title, interest or claim of any
kind in or to any distribution
of the Trust Fund that the undersigned may have in the future
as a result of, or arising out of, any contracts or agreements with the Company
and will not seek recourse against the Trust Fund for any reason whatsoever.

 

2.             In order to
minimize potential conflicts of inter-est which may arise from multiple
affiliations, the undersigned agrees to present to the Company for its
consideration, prior to presentation to any other person or entity, any
suitable opportunity to acquire an operating business, until the earlier of the
consummation by the Company of

 

 

a
Business Combination, the distribution of the Trust Fund or until such time as
the undersigned ceases to be an officer of the Company, subject to any
pre-existing fiduciary obligations the undersigned might have.

 

3.             The
undersigned acknowledges and agrees that the Company will not consummate any
Business Combination which involves a company which is affiliated with any of
the officers, directors and stockholders of the Company immediately prior to
the IPO unless the
Company obtains an opinion from an independent investment banking firm
reasonably acceptable to Sunrise that the business combination is fair to the
Company’s stockholders from a financial perspective.

 

4.             Neither the undersigned, any
member of the family of the undersigned, nor any Affiliate of the undersigned
will be entitled to receive and will not accept any compensation for services
rendered to the Company prior to the consummation of the Business Combination;
provided that the undersigned shall be entitled to reimbursement from the
Company for his out-of-pocket expenses incurred in connection with seeking and
consummating a Business Combination.

 

5.             Neither
the undersigned, any member of the family of the undersigned, or any Affiliate
of the undersigned will be entitled to receive or accept a finder’s fee or any
other compensation in the event the undersigned, any member of the family of
the undersigned or any Affiliate of the undersigned originates a Business
Combination.

 

6.             The undersigned
agrees to be Vice President of the Company until the earlier of the
consummation by the Company of a Business Combination or the distribution of
the Trust Fund.  The undersigned’s
biographical information furnished to the Company and Sunrise and attached
hereto as Exhibit A is true and accurate in all respects, does not omit any
material information with respect to the undersigned’s background and contains
all of the information required to be disclosed pursuant to Section 401 of
Regulation S-K, promulgated under the Securities Act of 1933.  The undersigned’s Questionnaire furnished to
the Company and Sunrise and annexed as Exhibit B hereto is true and
accurate in all respects.  The
undersigned represents and warrants that:

 

(a)           he is not
subject to or a respondent in any legal action for, any injunction,
cease-and-desist order or order or stipulation to desist or refrain from any
act or practice relating to the offering of securities in any jurisdiction;

 

(b)           he has never
been convicted of or pleaded guilty to any crime (i) involving

 

2

 

any
fraud or (ii) relating to any financial transaction or handling of funds of
another person, or (iii) pertaining to any dealings in any securities and he is
not currently a defendant in any such criminal proceeding; and

 

(c)           he has never
been suspended or expelled from membership in any securities or commodities
exchange or association or had a securities or commodities license or
registration denied, suspended or revoked.

 

7.             The undersigned
has full right and power, without violating any agreement by which he is bound,
to enter into this letter agreement and to serve as Vice President of the
Company.

 

8.             The undersigned
authorizes any employer, financial institution, or consumer credit reporting
agency to release to Sunrise and its legal representatives or agents (including
any investigative search firm retained by Sunrise) any information they may
have about the undersigned’s background and finances (“Information”).  Neither Sunrise nor its agents shall be
violating the undersigned’s right of privacy in any manner in requesting and
obtaining the Information and the undersigned hereby releases them from
liability for any damage whatsoever in that connection.

 

9.             As
used herein, (i) a “Business Combination” shall mean an acquisition by merger,
capital stock exchange, asset or stock acquisition, reorganization or
otherwise, of one
or more ships or vessels or an operating business in the shipping industry
selected by the Company; and (ii) “IPO Shares” shall mean the shares of
Common Stock issued in the Company’s IPO.

 

	
   

  	
  Dragan Topalovich

  	
   

  
	
   

  	
  Print Name of Insider

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Dragan Topalovich

  	
   

  
	
   

  	
  Signature

  
				

 

3

 

Exhibit A

 

Dragan Topalovich has been a vice president of ours since our
inception.  Mr. Topalovich has
been the president of Franser Brokerage Ltd., a New York chartering firm, since
1990.  From 1973 to 1990, Mr. Topalovich
served as an independent chartering broker in New York City for several commodity
and ship management companies based in the United States and Western
Europe.  Mr. Topalovich is a graduate of
Belgrade’s Business Academy and University of Economics, where he majored in
foreign trade, ocean transportation and fundamentals of international law.  Mr. Topalovich also has attended a five-year
intensive training program in international forwarding, customs and port
procedures, management and contracting of ocean-going ships in worldwide trade.

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