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&lt;p style="TEXT-INDENT: 35.3pt; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;As of April&amp;#160;18, 2008, the Board of Directors and the Compensation Committee approved incentive compensation of Manager&amp;#8217;s employees with its shares from time to time, after specific for each such time, decision by the compensation committee and the Board of Directors in order to provide a means of compensation in the form of free shares to certain employees of the Manager of the Company&amp;#8217;s common stock. The plan was effective as of December&amp;#160;31, 2008. Pursuant to the terms of the plan, employees of the Manager may receive (from time to time) shares of the Company&amp;#8217;s common stock as additional compensation for their services offered during the preceding period. The stock will have no vesting period and the employee will own the stock immediately after grant. The total amount of stock to be granted to employees of the Manager will be at the Company&amp;#8217;s Board of Directors&amp;#8217; discretion only and there will be no contractual obligation for any stock to be granted as part of the employees&amp;#8217; compensation package in future periods. During the six months ended&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;June&amp;#160;30, 2013&lt;/font&gt;&lt;font style="FONT-SIZE: 10pt;" size="2"&gt;, the Company had not granted any shares under the plan and it issued 35,710 new shares of common stock, which were distributed to the employees of the Manager in full settlement of prior grants.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 35.3pt; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;The Company has also established the Directors Share Payment Plan under its 2006 equity compensation plan. The purpose of the plan is to provide a means of payment of all or a portion of compensation payable to directors of the Company in the form of Company&amp;#8217;s Common Stock. The plan was effective as of April&amp;#160;18, 2008. Each member of the Board of Directors of the Company may participate in the plan. Pursuant to the terms of the plan, directors may elect to receive in Common Stock all or a portion of their compensation. During 2012, one director elected to receive in Company shares 50% of his compensation and one director elected to receive in Company shares 100% of his compensation only for the first quarter of 2012. During the six months ended&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;June&amp;#160;30, 2013&lt;/font&gt;&lt;font style="FONT-SIZE: 10pt;" size="2"&gt;, none of the directors elected to receive their compensation in Company shares. Following December&amp;#160;31 of each year, the Company delivers to each Director the number of shares represented by the rights credited to their Share Payment Account during the preceding calendar year. During the six months ended&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;June&amp;#160;30, 2013&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;the Company issued 13,613 new shares of common stock, which were distributed to directors of the Company in full settlement of shares credited as of December&amp;#160;31, 2012.&lt;/font&gt;&lt;/p&gt;
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