Exhibit 10.1

 

AGREEMENT FOR SATISFACTION OF INDEBTEDNESS AND AMENDMENT NO. 10

TO ST. JOHN’S DREDGING AND DEEP WATER PIER CONSTRUCTION AGREEMENT

 

This Agreement for Satisfaction of Indebtedness and Amendment No. 10 (this
“Satisfaction Agreement”) to the St. John’s Dredging and Deep Water Pier
Construction Agreement, between Antigua and Barbuda, acting by and through its
government (“Antigua”) and Antigua Masonry Products, Limited, a corporation
organized and existing under the laws of Antigua and Barbuda (“Antigua Masonry
Products”), and Antigua Heavy Constructors, Limited, a Subsidiary of Antigua
Masonry Products, Limited (“Antigua Heavy Constructors” and, together with
Antigua Masonry Products, “AMP”) is entered into by the parties hereto as of
December 3, 2004.

 

Recitals

 

WHEREAS, as of November 30, 2004, Antigua owes to AMP certain sums in the
aggregate amount set forth on Exhibit “A” (the “Debt”), which amount includes
sums owed under the promissory notes attached hereto as Exhibit “B” (the
“Notes”); and

 

WHEREAS, the Debt is a valid and subsisting obligation of Antigua to AMP
resulting from, among other things, the work performed under the terms of the
following agreements by and between Antigua and AMP:

 

  • The St. John’s Dredging and Deep Water Pier Construction Agreement, dated
April 3, 1987, which was amended by the following instruments:

 

  • Amendment No. 1, dated June 15, 1988

 

  • Amendment No. 2, dated December 7, 1988

 

  • Amendment No. 3, dated January 23, 1989

 

  • Amendment No. 4, dated April 5, 1989

 

  • Amendment No. 5, dated January 29, 1991

 

  • Amendment No. 6, dated November 30, 1993

 

  • Amendment No. 7, dated November 30, 1993

 

  • Amendment No. 8, dated October 1, 1996

 

  • Amendment No. 9, dated April 28, 2000 (“Amendment No. 9”)

 

  • 1989 Paving Agreement No. 1, effective January 23, 1989

 

  • 1989 paving Agreement No. 2, effective April 5, 1989

 

  • 1993 Paving Agreement, effective November 31, 1993

 

The above agreements are hereinafter referred to as the “Construction
Agreements”; and

 

WHEREAS, pursuant to the terms of Amendment No. 9, Antigua consolidated the Debt
into the Notes, extended the repayment terms and reduced the interest rate
applicable to such Debt; and

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WHEREAS, pursuant to Amendment No. 9, Antigua also confirmed and granted to AMP
a security interest in certain sources of funds for AMP to secure payment of the
Debt; and

 

WHEREAS, the Construction Agreements provide that AMP and its subsidiaries,
Antigua Heavy Constructors, Ltd., Antigua Cement Ltd., and Antigua Development
and Construction, Ltd. (collectively referred to herein as the “AMP
Subsidiaries”) have the right to set off amounts due to Antigua against amounts
due to AMP by Antigua; and

 

WHEREAS, AMP currently owes Antigua certain outstanding income and withholding
taxes, as well as import duties, consumption taxes and customs service taxes as
of November 30, 2004, which are set forth in Exhibit “A” and which together with
any other import duties, consumption taxes and customs service taxes which AMP
or its Affiliates (as defined hereunder) may owe for all transactions until
December 31, 2004, including income tax for the fiscal year ending December 31,
2004 (the “Duties and Taxes”), Antigua and AMP desire to be offset against the
Debt in accordance with the Construction Agreements; and

 

WHEREAS, Antigua desires to make a cash payment of US $11,500,000 to AMP as well
as grant certain tax relief to AMP in satisfaction of all amounts evidenced by
the Debt, all on the terms and conditions more specifically hereinafter set
forth; and

 

WHEREAS, Antigua and AMP desire that Antigua be granted substantial debt relief
and forgiveness with respect to the Debt as set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the
parties hereby agree as follows:

 

Terms

 

1. Incorporation of Recitals. The recitals to this Satisfaction Agreement are
hereby incorporated into this Satisfaction Agreement with the same force and
effect as if set forth at length herein.

 

2. Amount of Indebtedness. The parties hereto mutually agree and acknowledge
that a detailed summary of the Debt, showing the principal balance and interest
accrued as of November 30, 2004 under the Notes as well as the amounts of
certain unapplied prepaid taxes which AMP had previously paid pursuant to the
terms of Amendment No. 9 together with a detailed summary of all offsets and
deductions is contained in Exhibit “A” to this Satisfaction Agreement.

 

3. Cash Payment, Offset, Tax Relief. In consideration of the cancellation of the
Debt by AMP and in order to induce AMP to enter into this Satisfaction
Agreement, Antigua is hereby, simultaneously with the execution and delivery of
this Satisfaction Agreement:

 

(a) making a cash payment in the amount of US$ 11,500,000 to AMP (the “Cash
Payment”);

 

(b) releasing and discharging in full all Duties and Taxes, as well as all
income and withholding taxes and duties, consumption taxes and customs services
taxes due and owing by

 

2

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AMP, the AMP Subsidiaries and Devcon International Corp., the ultimate parent to
AMP and the AMP Subsidiaries, and any and all affiliates thereof (collectively,
“Devcon”) to Antigua through December 31, 2004 which release and discharge is
evidenced by letters issued by the Financial Secretary of Antigua (the
“Financial Secretary”) to the Commissioner of Inland Revenue and the Comptroller
of Customs who have accepted their respective letters and agreed to the terms
thereof, a copy of which letters have been delivered to AMP simultaneously with
the execution and delivery of this Satisfaction Agreement; and

 

(c) issue and grant to AMP, the AMP Subsidiaries and Devcon tax credits up to a
maximum amount of US $7,500,000, as needed to offset any tax liability to which
such credits are intended to be applied, which tax credits may be used by AMP,
the AMP Subsidiaries and Devcon solely to pay and satisfy any withholding taxes
incurred by such parties on dividends, distributions and other payments made to
foreign service providers, as such taxes are incurred, during the five (5) year
period ending December 31, 2009, which credits are evidenced by a letter issued
by the Financial Secretary to the Commissioner of Inland Revenue who has
accepted such letter and agreed to the terms thereof, a copy of which has been
delivered to AMP simultaneously with the execution and delivery of this
Satisfaction Agreement.

 

4. Closing. The closing (“Closing”) of the satisfaction and cancellation of the
Debt is taking place simultaneously with the execution of this Satisfaction
Agreement at the offices of Antigua’s Ministry of Finance, at 10:00 A.M., local
time, on Friday, December 3, 2004 (the “Closing Date”).

 

(a) Antigua is delivering to AMP the following:

 

(i) The Cash Payment;

 

(ii) A copy of Cabinet Minutes authorizing this Satisfaction Agreement and the
transactions contemplated hereby;

 

(iii) A letter in substantially the form attached hereto as Exhibit “C” to the
Commissioner of Inland Revenue signed by the Financial Secretary setting forth
(A) acknowledgment of the payment and satisfaction of all income and withholding
taxes due from AMP, the AMP Subsidiaries and/or Devcon as of and through
December 31, 2004 and (B) the $7,500,000 in tax credits described hereinabove;

 

(iv) A letter in substantially the form attached hereto as Exhibit “D” to the
Comptroller of Customs and signed by the Financial Secretary acknowledging the
release, discharge, payment and satisfaction of all import duties, custom
service taxes and consumption taxes due from AMP, the AMP Subsidiaries and/or
Devcon as of and through December 31, 2004.

 

(v) Confirmation of receipt of the letters described in (iii) and (iv) above by
the Commissioner of Inland Revenue and/or the Comptroller of Customs as well as
agreement by such parties to the terms set forth therein; and

 

(vi) Any other documents and instruments reasonably required by AMP to effect
the terms and conditions of this Satisfaction Agreement.

 

3

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Notwithstanding the foregoing, if it shall be determined by a court of competent
jurisdiction, after the Closing, that any part of the transactions contemplated
hereby is not permitted under applicable Antigua law (“Determination”), Antigua
agrees to immediately take all necessary steps, at Antigua’s expense, to correct
any deficiencies regarding compliance with Antigua law so that this Satisfaction
Agreement or a subsequent agreement with the same terms and conditions can be
legally enforced. In such event Antigua agrees that AMP will retain the Cash
Payment pending the resolution of the enforcement of the Satisfaction Agreement
as set forth herein. If within two years of the Determination, Antigua fails to
correct any such deficiencies, then this Satisfaction Agreement shall be
rescinded, terminated and voided ab initio and shall be of no further force and
effect for any purpose whatsoever and the transactions, arrangements and
relationships set forth herein shall be deemed rescinded and terminated and of
no force and effect (the “Transaction Rescission”); provided, however, that AMP
may elect, in its sole discretion, to retain the Cash Payment and make a
corresponding reduction in the amount of the Debt owed to AMP by Antigua.

 

(b) In exchange for the above deliveries, AMP shall accept such deliveries in
full and complete satisfaction of the Debt and shall release to Antigua the
originally executed copies of each of the Notes (or replacements of such Notes
to the extent necessary) as well as any other documents and instruments
reasonably required by AMP to effect the terms and conditions of this
Satisfaction Agreement.

 

5. Release of Security Interests; Payment to AMP of Delinquent Base Rent. AMP
hereby releases the security interest granted to it by Antigua pursuant to the
terms of Amendment No. 9 in the following revenue sources:

 

(a) US $312,500 per quarter revenues to Antigua to be received from or otherwise
paid by the United States Department of Defense (U.S. Air Force) (the “USDOD”)
for rental of property in Antigua subsequent to the payment to AMP by Antigua of
US$ 937,500.

 

(b) US $50,000 per month received by Antigua for Antigua’s fuel tax collections
on deposit at the Antigua Barbuda Investment Bank to the extent such revenues
are earned by Antigua subsequent to November 30, 2004, except that Antigua is
required to pay AMP the said payment of US $50,000 applicable for the month of
November, 2004.

 

(c) All revenues due or paid to or received by Antigua from its interest in
NewPort (Antigua), Limited, including the proceeds from any sale by Antigua of
its ownership interest in NewPort (Antigua) Limited to the extent such revenues
are earned by Antigua subsequent to November 30, 2004.

 

(d) US $61,400 per month payable on the first day of each month.

 

Each of AMP and Antigua hereby covenants and agrees to execute and deliver such
instruments and documents reasonably requested by the other to effect the
release of such security interests. Notwithstanding the foregoing, however,
Antigua hereby represents, warrants and acknowledges that the USDOD owes amounts
representing past due rent payments to Antigua in the aggregate amount of US
$937,500, which amounts Antigua acknowledges and agrees are owed to AMP and
which amounts Antigua hereby covenants and agrees to pay to AMP immediately upon
Antigua’s receipt of such monies from USDOD. Failure of Antigua to comply with
this covenant

 

4

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shall result in the Transaction Rescission; provided, however, that AMP may
elect, in its sole discretion, to retain the Cash Payment and make a
corresponding reduction in the amount of the Debt owed to AMP by Antigua.

 

6. Representations and Warranties by Antigua. Antigua hereby represents and
warrants to AMP, and acknowledges that each such representation and warranty is
independently material and is being relied upon by AMP, that:

 

(a) Antigua has taken any and all action as may be necessary or desirable in
order to authorize the entry by Antigua into this Satisfaction Agreement,
including without limitation any required authorization or permission from the
appropriate Parliamentary and executive bodies of Antigua and any other required
governmental body, agency or other authority, and the consummation of the
transactions contemplated hereby.

 

(b) Antigua does not have knowledge of any contract or other restrictions
(including without limitation any pending or threatened action or proceeding
before any court, governmental agency or arbitrator) that might, with the giving
of notice or the passage of time or both, prevent or restrict any party hereto
from entering into this Satisfaction Agreement or performing its obligations
hereunder;

 

(c) Antigua does not have any knowledge of any claim of Antigua against AMP or
any of its Affiliates (as defined herein) arising out of any cause, matter or
thing before the date of this Satisfaction Agreement that has not been disclosed
in to AMP;

 

(d) Antigua: (A) is not a party to any litigation, proceeding or administrative
investigation concerning and Antigua has no knowledge of any that are pending or
threatened against the transactions contemplated by this Satisfaction Agreement;
(B) knows of no outstanding order, writ, injunction or decree of any court,
government, governmental authority, mediation or arbitration against or
affecting the Transactions contemplated hereby; and (C) knows of no basis for
any such litigation, proceeding or investigation which might have a material
adverse affect, financial or otherwise, on AMP’s business, property, operations
or prospects or the transactions contemplated hereby.

 

7. Indemnity. Antigua covenants and agrees that, notwithstanding the Closing,
the delivery of any instruments of conveyance and regardless of any
investigation at any time made by or on behalf of AMP, Antigua shall indemnify,
defend and hold harmless AMP from, for and against any loss, damage, liability
or deficiency (including, without limitation, attorneys’ fees and other costs
and expenses) arising out of or resulting from (a) any inaccuracy in any
representation or the breach of any warranty made by Antigua, (b) any
governmental, state, local or other tax of any nature which is contemplated to
be satisfied in full under the terms of this Satisfaction Agreement, and (c) any
failure of Antigua to duly perform or observe any term, provision, covenant,
agreement or condition hereunder on the part of Antigua to be performed or
observed. AMP covenants and agrees that, notwithstanding the Closing, the
delivery of any instruments of conveyance and regardless of any investigation at
any time made by or on behalf of Antigua, AMP shall indemnify, defend and hold
harmless Antigua from, for and against any loss, damage, liability or
deficiency(including, without limitation, attorney’s fees and other costs and
expenses) arising out of or resulting from (a) any inaccuracy in any
representation or the breach of any warranty made by AMP, and (b) any failure by
AMP to duly perform or observe any term, provision, covenant, agreement or
condition hereunder on the part of AMP to be performed or observed.

 

5

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8. Taxes; Tax Proceedings. Antigua shall be responsible for any and all taxes,
assessments, fees and other costs imposed on AMP or Devcon as a result of or
relating to this Satisfaction Agreement or to the transactions contemplated
hereby. Antigua further covenants and agrees that any pending actions or
proceedings for the assessment or collection of taxes against AMP and the AMP
Subsidiaries shall be immediately dismissed with prejudice. AMP agrees that it
shall be responsible for any and all fees, legal expense and other costs
incurred by it as a result of or relating to this Satisfaction Agreement or the
transactions contemplated hereby. AMP further covenants and agrees that any
pending actions or proceedings by AMP and/or the AMP Subsidiaries against
Antigua shall be immediately dismissed with prejudice.

 

9. Actions to Ensure Enforceability of Satisfaction Agreement. Antigua hereby
agrees to undertake any needed action and do whatever is necessary by
constitution, statute or other body of law to give full effect and force to this
Satisfaction Agreement and consummate the transactions contemplated hereby. AMP
hereby agrees and undertakes to do whatever is necessary and required by its
bylaws to give full effect and force to this Satisfaction Agreement and
consummate the transactions contemplated hereby.

 

10. Tax Consequences The parties will use their best efforts to effect all the
terms of this Satisfaction Agreement. For purposes of this Satisfaction
Agreement, any release or discharge by Antigua of any tax liability of AMP or
Devcon shall be deemed to be payment in full and satisfaction of such tax
liability by AMP or Devcon using proceeds in an amount equal to the
corresponding reduction in the Debt associated with the grant of such tax
relief.

 

11. Survival of Provisions. The representations and warranties set forth in this
Satisfaction Agreement shall survive the execution and delivery hereof and the
performance by the parties of their respective obligations hereunder, and shall
remain in full force and effect.

 

12. Further Assurances. Each party hereto shall take any and all action and
shall execute, deliver and file any and all documents, instruments and
agreements that may be requested by any other party hereto in writing, at any
time, in order to effect the transactions contemplated hereby and the purposes
hereof.

 

13. Assignment and Binding Effect. This Satisfaction Agreement and the
respective rights and obligations of Antigua and AMP hereunder may not be
assigned by either of them. Any attempted assignment shall be void and
ineffective. Notwithstanding the foregoing, this Satisfaction Agreement is
intended to and shall benefit and be enforceable by AMP as well as its
Affiliates. For purposes of this Satisfaction Agreement, the term “Affiliates”
shall mean any person or entity that controls, is controlled by, or is under
common control with the Company, and “control” as used herein shall mean the
direct or indirect possession of power to direct or cause the direction of the
management or policies of such party, whether through ownership or stock or
other securities, by contract or otherwise. Ownership of more than fifty percent
(50%) of the beneficial interest of an entity shall be conclusive evidence that
control exists. This Satisfaction Agreement shall be binding upon the successors
of the parties hereto, and shall benefit those successors.

 

6

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14. Termination, Amendments and Waivers. This Satisfaction Agreement may not be
terminated, modified, amended or waived except by and to the extent expressly
set forth in a writing signed by the party to be charged therewith, which shall
be effective in accordance with its term.

 

15. Entire Agreement. This Satisfaction Agreement and the documents and
instruments delivered simultaneously with the execution and delivery hereof
contain the entire agreement and understanding of the parties hereto regarding
the transactions contemplated hereby, supersede any prior or contemporaneous
agreement, offer or representation, oral or written, by any party hereto.

 

16. Construction. This Satisfaction Agreement shall not be more strictly
construed against any party hereto, notwithstanding any presumption or rule
requiring construction against the party causing this Satisfaction Agreement to
be drafted. Section headings in this Satisfaction Agreement have been inserted
for convenience of reference only and shall not be deemed or construed to affect
the meaning or effect of any provision hereof.

 

17. Governing Law. This Satisfaction Agreement, all documents and instruments
delivered hereunder and the transactions contemplated hereby and thereby shall
be governed by and construed in accordance with the laws of Antigua and Barbuda
as currently in effect and subject to applicable principles of international
law. In the event that any party hereto is required to enforce compliance with
the terms hereof, as a result of the failure to comply on the part of another
party, the prevailing party shall be entitled to attorney’s fees (including
those of appeal and cost in enforcing compliance hereunder), the losing party
being responsible to pay such fees and costs to the prevailing party.

 

18. Section Headings. The section headings contained in this Satisfaction
Agreement are for reference purposes only, and shall not effect in any way the
meaning or interpretation of this Satisfaction Agreement.

 

19. Counterparts. This Satisfaction Agreement may be executed by the parties in
any number of counterparts and each executed copy shall be an original for all
purposes without accounting for other copies. Any facsimile signature shall be
deemed a manually executed and delivered original.

 

20. No Admission. In entering into this Satisfaction Agreement or otherwise
acting hereunder, AMP does not acknowledge or admit anything whatsoever with
respect to any claim or assertion made by Antigua or any third party. In
entering into this Satisfaction Agreement or otherwise acting hereunder Antigua
does not acknowledge or admit anything whatsoever with respect to any claim or
assertion made by AMP or any third party.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

7

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IN WITNESS WHEREOF, the parties hereto have executed or have caused to be
executed this Satisfaction Agreement in their respective names and on their
behalf as of the date first above written.

 

Witnesses:

     

ANTIGUA AND BARBUDA, acting

through its government

/s/ David Matthias

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By:

 

/s/ Dr. L. Errol Cort

--------------------------------------------------------------------------------

       

Name:

 

Dr. L. Errol Cort

       

Title:

 

Minister of Finance and the

Economy

Witnesses:

     

ANTIGUA HEAVY CONSTRUCTORS,

LIMITED, as assignee of ANTIGUA

MASONRY PRODUCTS, LIMITED

/s/ Charlie Wetherill

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By:

 

/s/ Richard L. Hornsby

--------------------------------------------------------------------------------

       

Name:

 

Richard L. Hornsby

       

Title:

 

Director

Witnesses:

     

ANTIGUA MASONRY PRODUCTS,

LIMITED

/s/ Charlie Wetherill

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By:

 

/s/ Richard L. Hornsby

--------------------------------------------------------------------------------

       

Name:

 

Richard L. Hornsby

       

Title:

 

Director

 

8

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EXHIBITS

 

A. Summary of Antigua Debt and Offsets and Deductions

 

B. Notes

 

C. Form of Letter to Commissioner of Inland Revenue

 

D. Form of Letter to Comptroller of Customs

 

9

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EXHIBIT A

 

Summary of Antigua Debt and Offsets and Deductions

 

A - 1

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Amounts Due from Antigua Government

Debt Summary

As of November 30, 2004

 

Description:

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   Amount in US

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HARBOUR NOTE PER SCHEDULE A

   16,945,649  

CONSTRUCTION NOTE PER SCHEDULE B

   9,885,505  

ANT GOV PREPAID DUTY & CUSTOMS @ 4/28/2000

   2,500,000  

ANT GOV CREDIT MEMO TAX CREDIT 10/25/2001

   2,000,000  

LESS PAYMENTS ON NOTES BY OFFSET OF TAXES AND DUTIES AS PER SCHEDULE C

   (517,174 )

LESS PAYMENTS ON NOTES BY PENDING OFFSETS OF TAXES AND DUTIES AS PER SCHEDULE D

   (1,038,177 )     

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NET DEBT PAYABLE

   29,775,803       

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A - 2

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SCHEDULE A

 

Antigua Heavy Constructors, Ltd.

Notes Receivable Statement (Harbour Note)

Due From Government of Antigua and Barbuda

As of November 30, 2004

 

Date

--------------------------------------------------------------------------------

  

Description

--------------------------------------------------------------------------------

   # of
Days

--------------------------------------------------------------------------------

   Total
Payment

--------------------------------------------------------------------------------

   

6%

Accrued Interest
(Interest Paid)

--------------------------------------------------------------------------------

    Principal
Payments

--------------------------------------------------------------------------------

   

Principal

Balance

--------------------------------------------------------------------------------

04/28/00

   Original Note                           $ 18,589,637.00

05/05/00

   Accrued interest    7          21,687.91              

05/05/00

   Payment         (50,000.00 )   (21,687.91 )   (28,312.09 )     18,561,324.91

05/22/00

   Accrued interest    17          52,590.42              

05/22/00

   Payment         (312,500.00 )   (52,590.42 )   (259,909.58 )    
18,301,415.33

05/31/00

   Accrued interest    9          27,452.12              

05/31/00

   Payment         (50,000.00 )   (27,452.12 )   (22,547.88 )     18,278,867.45

06/30/00

   Accrued interest    30          91,394.34              

07/05/00

   Accrued interest    5          15,232.39              

07/05/00

   Payment         (50,000.00 )   (50,000.00 )   —         18,278,867.45

7/31/2000

   Accrued interest    26          79,208.43              

7/31/2000

   Payment         (50,000.00 )   (50,000.00 )   —         18,278,867.45

8/29/2000

   Accrued interest    29          88,347.86              

8/29/2000

   Payment         (312,500.00 )   (174,183.01 )   (138,316.99 )    
18,140,550.46

8/31/2000

   Accrued interest    2          6,046.85              

8/31/2000

   Payment         (50,000.00 )   (6,046.85 )   (43,953.15 )     18,096,597.31

9/29/2000

   Accrued interest    29          87,466.89              

9/29/2000

   Payment         (50,000.00 )   (50,000.00 )   —         18,096,597.31

9/30/2000

   Accrued interest    1          3,016.10              

11/6/2000

   Accrued interest    37          111,595.68              

11/6/2000

   Payment         (50,000.00 )   (50,000.00 )   —         18,096,597.31

12/31/2000

   Accrued interest    55          165,885.48              

1/5/2001

   Accrued interest    5          15,080.50              

1/5/2001

   Payment         (50,000.00 )   (50,000.00 )   —         18,096,597.31

1/10/2001

   Accrued interest    5          15,080.50              

1/10/2001

   Payment         (284,000.00 )   (248,125.14 )   (35,874.86 )    
18,060,722.45

2/6/2001

   Accrued interest    27          81,273.25              

2/6/2001

   Payment         (28,500.00 )   (28,500.00 )            

2/6/2001

   Payment         (50,000.00 )   (50,000.00 )   —         18,060,722.45

3/2/2001

   Accrued interest    24          72,242.89              

3/2/2001

   Payment         (50,000.00 )   (50,000.00 )   —         18,060,722.45

3/31/2001

   Accrued interest    29          87,293.49              

4/3/2001

   Accrued interest    3          9,030.36              

4/3/2001

   Payment         (50,000.00 )   (50,000.00 )   —         18,060,722.45

4/26/2001

   Accrued interest    23          69,232.77              

4/26/2001

   Payment         (312,500.00 )   (140,572.77 )   (171,927.24 )    
17,888,795.22

4/30/2001

   Accrued interest    4          11,925.86              

5/4/2001

   Accrued interest    4          11,925.86              

5/4/2001

   Payment         (50,000.00 )   (23,851.73 )   (26,148.27 )     17,862,646.95

6/5/2001

   Accrued interest    32          95,267.45              

6/5/2001

   Payment         (50,000.00 )   (50,000.00 )   —         17,862,646.95

 

A - 3

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SCHEDULE A

 

6/30/2001

   Accrued interest    25          74,427.70            

7/4/2001

   Accrued interest    4          11,908.43            

7/4/2001

   Payment         (50,000.00 )   (50,000.00 )   —        

7/11/2001

   Accrued interest    7          20,839.75            

7/11/2001

   Payment         (312,500.00 )   (102,443.33 )   (210,056.67 )   17,652,590.28

8/2/2001

   Accrued interest    22          64,726.16            

8/2/2001

   Payment         (50,000.00 )   (50,000.00 )   —        

8/31/2001

   Accrued interest    29          85,320.85            

9/1/2001

   Accrued interest    1          2,942.10            

9/1/2001

   Payment         (50,000.00 )   (50,000.00 )   —        

9/30/2001

   Accrued interest    29          85,320.85            

10/1/2001

   Payment         (50,000.00 )   (50,000.00 )   —        

10/31/2001

   Accrued interest    31          91,205.05            

11/5/2001

   Accrued interest    5          14,710.49            

11/5/2001

   Payment         (50,000.00 )   (50,000.00 )   —        

11/13/2001

   Accrued interest    8          23,536.79            

11/13/2001

   Payment         (312,500.00 )   (167,762.30 )   (144,737.70 )   17,507,852.57

11/30/2001

   Accrued interest    17          49,605.58            

12/5/2001

   Accrued interest    5          14,589.88            

12/5/2001

   Payment         (50,000.00 )   (50,000.00 )          

12/31/2001

   Accrued interest    26          75,867.36            

1/2/2002

   Accrued interest    2          5,835.95            

1/2/2002

   Payment         (50,000.00 )   (50,000.00 )   —       17,507,852.57

1/18/2002

   Accrued interest    16          46,687.61            

1/18/2002

   Payment         (312,500.00 )   (92,586.38 )   (219,913.62 )   17,287,938.95

1/31/2002

   Accrued interest    13          37,457.20            

1/31/2002

   Payment         (50,000.00 )   (37,457.20 )   (12,542.80 )   17,275,396.15

2/7/2002

   Accrued interest    7          20,154.63            

2/7/2002

   Payment         (20,138.00 )   (20,138.00 )   —       17,275,396.15

2/28/2002

   Accrued interest    21          60,463.89            

3/1/2002

   Accrued interest    1          2,879.23            

3/1/2002

   Payment         (50,000.00 )   (50,000.00 )   —       17,275,396.15

3/13/2002

   Accrued interest    12          34,550.79            

3/13/2002

   Payment         (20,138.00 )   (20,138.00 )   —       17,275,396.15

3/27/2002

   Accrued interest    14          40,309.26            

3/27/2002

   Payment         (20,138.00 )   (20,138.00 )   —       17,275,396.15

3/31/2002

   Accrued interest    4          11,516.93            

4/2/2002

   Accrued interest    2          5,758.47            

4/2/2002

   Payment         (50,000.00 )   (50,000.00 )   —       17,275,396.15

4/26/2002

   Accrued interest    24          69,101.58            

4/26/2002

   Payment         (20,138.00 )   (20,138.00 )   —       17,275,396.15

5/1/2002

   Accrued interest    1          2,879.23            

5/1/2002

   Payment         (50,000.00 )   (50,000.00 )   —       17,275,396.15

5/7/2002

   Accrued interest    6          17,275.40            

5/7/2002

   Payment         (312,500.00 )   (34,337.41 )   (278,162.59 )   16,997,233.56

5/31/2002

   Accrued interest    24          67,988.93            

6/3/2002

   Accrued interest    3          8,498.62            

6/3/2002

   Payment         (50,000.00 )   (50,000.00 )   —       16,997,233.56

6/30/2002

   Accrued interest    27          76,487.55            

7/1/2002

   Accrued interest    1          2,832.87            

 

A - 4

--------------------------------------------------------------------------------

SCHEDULE A

 

7/1/2002

   Payment         (50,000.00 )   (50,000.00 )   —       16,997,233.56

7/17/2002

   Accrued interest    16          45,325.96            

7/17/2002

   Payment         (20,138.00 )   (20,138.00 )          

7/17/2002

   Payment         (20,138.00 )   (20,138.00 )   —       16,997,233.56

7/31/2002

   Accrued interest    15          42,493.08            

7/31/2002

   Payment         (50,000.00 )   (50,000.00 )          

8/16/2002

   Accrued interest    16          45,325.96            

8/16/2002

   Payment         (19,958.00 )   (19,958.00 )          

8/30/2002

   Accrued interest    14          39,660.21            

8/30/2002

   Payment         (20,138.00 )   (20,138.00 )          

8/30/2002

   Payment         (312,500.00 )   (98,241.18 )   (214,258.82 )   16,782,974.74

8/31/2002

   Accrued interest    1          2,797.16            

9/3/2002

   Accrued interest    3          8,391.49            

9/3/2002

   Payment         (50,000.00 )   (11,188.65 )   (38,811.35 )   16,744,163.39

9/30/2002

   Accrued interest    27          75,348.74            

10/2/2002

   Accrued interest    2          5,581.39            

10/2/2002

   Payment         (50,000.00 )   (50,000.00 )   —       16,744,163.39

10/31/2002

   Accrued interest    29          80,930.12            

10/31/2002

   Payment         (50,000.00 )   (50,000.00 )   —        

11/29/2002

   Accrued interest    29          80,930.12            

11/29/2002

   Payment         (50,000.00 )   (50,000.00 )   —        

11/30/2002

   Accrued interest    1          2,790.69            

12/31/2002

   Accrued interest    31          86,511.51            

12/31/2002

   Payment         (50,000.00 )   (50,000.00 )   —        

1/17/2003

   Accrued interest    17          47,441.80            

1/17/2003

   Payment due 11/01/02         (312,500.00 )   (179,534.37 )   (132,965.63 )  
16,611,197.76

1/17/2003

   Payment due 2/01/03         (312,500.00 )   —       (312,500.00 )  
16,298,697.76

1/17/2003

   Payment $20,138 for 7 months: 9/02 thru 3/03         (140,966.00 )   —      
(140,966.00 )   16,157,731.76

1/31/2003

   Accrued interest    14          37,701.37            

1/31/2003

   Payment         (50,000.00 )   (37,701.37 )   (12,298.63 )   16,145,433.13

2/28/2003

   Accrued interest    28          75,345.35            

3/3/2003

   Accrued interest    3          8,072.72            

3/3/2003

   Payment         (50,000.00 )   (50,000.00 )   —        

3/31/2003

   Accrued interest    28          75,345.35            

3/31/2003

   Payment         (50,000.00 )   (50,000.00 )   —        

4/30/2003

   Accrued interest    30          80,727.17            

5/2/2003

   Accrued interest    2          5,381.81            

5/2/2003

   Payment         (50,000.00 )   (50,000.00 )   —        

5/30/2003

   Accrued interest    28          75,345.35            

5/30/2003

   Payment         (50,000.00 )   (50,000.00 )   —        

5/31/2003

   Accrued interest    1          2,690.91            

6/30/2003

   Accrued interest    30          80,727.17            

6/30/2003

   Payment         (50,000.00 )   (50,000.00 )   —        

7/31/2003

   Accrued interest    31          83,418.07            

8/1/2003

   Payment    1          2,690.91            

8/1/2003

   Payment         (50,000.00 )   (50,000.00 )   —        

 

A - 5

--------------------------------------------------------------------------------

SCHEDULE A

 

8/31/2003

   Accrued interest    30             80,727.17             

9/4/2003

   Accrued interest    4             10,763.62             

9/4/2003

   Payment          (50,000.00 )     (50,000.00 )   —         

9/30/2003

   Accrued interest    26             69,963.54             

9/30/2003

   Payment          (50,000.00 )     (50,000.00 )   —         

10/31/2003

   Accrued interest    31             83,418.07             

10/31/2003

   Payment          (50,000.00 )     (50,000.00 )   —         

11/30/2003

   Accrued interest    30             80,727.17             

12/2/2003

   Accrued interest    2             5,381.81             

12/2/2003

   Payment          (50,000.00 )     (50,000.00 )   —         

12/31/2003

   Accrued interest    29             78,036.26             

1/30/2004

   Accrued interest    30             80,727.17             

1/30/2004

   Payment          (50,000.00 )     (50,000.00 )   —         

1/31/2004

   Accrued interest    1             2,690.91             

2/29/2004

   Accrued interest    29             78,036.26             

3/1/2004

   Accrued interest    1             2,690.91             

3/1/2004

   Payment          (50,000.00 )     (50,000.00 )   —         

3/31/2004

   Accrued interest    30             80,727.17             

4/16/2004

   Accrued interest    16             43,054.49             

4/16/2004

   Payment          (50,000.00 )     (50,000.00 )   —         

4/30/2004

   Accrued interest    14             37,672.68             

4/30/2004

   Payment          (50,000.00 )     (50,000.00 )   —         

5/31/2004

   Accrued interest    31             83,418.07             

6/1/2004

   Accrued interest    1             2,690.91             

6/1/2004

   Payment          (50,000.00 )     (50,000.00 )   —         

6/30/2004

   Accrued interest    29             78,036.26             

6/30/2004

   Payment          (50,000.00 )     (50,000.00 )   —         

7/31/2004

   Accrued interest    31             83,418.07             

8/4/2004

   Accrued interest    4             10,763.62             

8/4/2004

   Payment          (50,000.00 )     (50,000.00 )   —         

8/31/2004

   Accrued interest    27             72,654.45             

9/2/2004

   Accrued interest    2             5,381.81             

9/2/2004

   Payment          (50,000.00 )     (50,000.00 )   —         

9/30/2004

   Accrued interest    28             75,345.35             

9/30/2004

   Payment          (50,000.00 )     (50,000.00 )   —         

10/29/2004

   Accrued interest    29             78,036.26             

10/29/2004

   Payment          (50,000.00 )     (50,000.00 )   —         

10/31/2004

   Accrued interest    2             5,381.81             

11/30/2004

   Accrued interest    30             80,727.17                                 
 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

11/30/2004

   Balances                $ 800,215.79          $ 16,145,433.13                
     

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

      

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

11/30/2004

   Principal & Interest                             $ 16,945,648.93          

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                        

11/30/2004

   Total Payments to Date    (6,389,390 )                                   

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                        

 

A - 6

--------------------------------------------------------------------------------

SCHEDULE B

 

Antigua Heavy Constructors, Ltd.

Notes Receivable Statement (Construction Note)

Due From Government of Antigua and Barbuda

As of November 30, 2004

 

Date

--------------------------------------------------------------------------------

  

Description

--------------------------------------------------------------------------------

   # of
Days

--------------------------------------------------------------------------------

   Total
Payment /
Offsets

--------------------------------------------------------------------------------

   

6%

Accrued Interest
(Interest Paid)

--------------------------------------------------------------------------------

    Principal
Payments

--------------------------------------------------------------------------------

   

Principal

Balance

--------------------------------------------------------------------------------

04/28/00

   Original Note                           $ 12,251,628.00

01/05/00

   Payment (a)(b)         (17,459.98 )   —       (17,459.98 )     12,234,168.02

04/28/00

   Interest credit (a)(b)         (552.90 )   —       (552.90 )    
12,233,615.12

04/28/00

   Payment (b)         (10,188.02 )   —       (10,188.02 )     12,223,427.10

05/05/00

   Accrued interest    7          14,260.66              

05/05/00

   Payment (b)         (23,933.70 )   (14,260.66 )   (9,673.04 )    
12,213,754.06

05/31/00

   Accrued interest    26          52,926.27              

05/31/00

   Payment (b)         (37,105.15 )   (37,105.15 )   —         12,213,754.06  
                  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

           

5/31/2000

   Interest balance               15,821.12              

6/5/2000

   Accrued interest    5          10,178.13              

6/5/2000

   Payment (b)         (22,840.90 )   (22,840.90 )   —         12,213,754.06  
                  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

           

6/5/2000

   Interest balance               3,158.35              

6/30/2000

   Accrued interest    25          50,890.64              

6/30/2000

   Payment (b)         (10,181.86 )   (10,181.86 )   —         12,213,754.06

7/7/2000

   Accrued interest    7          14,249.38              

7/7/2000

   Payment (b)         (26,916.48 )   (26,916.48 )   —         12,213,754.06

7/31/2000

   Accrued interest    24          48,855.02              

7/31/2000

   Payment (b)         (31,043.05 )   (31,043.05 )   —         12,213,754.06

8/2/2000

   Accrued interest    2          4,071.25              

8/2/2000

   Payment (b)         (20,150.72 )   (20,150.72 )   —         12,213,754.06

8/31/2000

   Accrued interest    29          59,033.14              

8/31/2000

   Payment (b)         (15,090.00 )   (15,090.00 )   —         12,213,754.06

9/1/2000

   Accrued interest    1          2,035.63              

9/1/2000

   Payment (b)         (23,898.88 )   (23,898.88 )   —         12,213,754.06

9/29/2000

   Accrued interest    28          56,997.52              

9/29/2000

   Payment (b)         (34,468.84 )   (34,468.84 )   —         12,213,754.06

9/30/2000

   Accrued interest    1          2,035.63              

10/2/2000

   Accrued interest    2          4,071.25              

10/2/2000

   Payment (b)         (15,850.51 )   (15,850.51 )   —         12,213,754.06

11/3/2000

   Accrued interest    32          65,140.02              

11/3/2000

   Payment (b)         (16,911.98 )   (16,911.98 )   —         12,213,754.06

11/10/2000

   Accrued interest    7          14,249.38              

11/10/2000

   Payment (c)         (61,400.00 )   (61,400.00 )   —         12,213,754.06

11/30/2000

   Accrued interest    20          40,712.51              

11/30/2000

   Payment (b)         (43,983.33 )   (43,983.33 )   —         12,213,754.06

12/13/2000

   Accrued interest    13          26,463.13              

12/13/2000

   Payment (b)         (18,748.34 )   (18,748.34 )   —         12,213,754.06

12/29/2000

   Accrued interest    16          32,570.01              

12/29/2000

   Payment (b)         (29,984.50 )   (29,984.50 )   —         12,213,754.06

12/31/2000

   Accrued interest    2          4,071.25              

 

A - 7

--------------------------------------------------------------------------------

SCHEDULE B

 

1/2/2001

   Accrued interest    2          4,071.25            

1/2/2001

   Payment (b)         (28,938.61 )   (28,938.61 )          

2/6/2001

   Accrued interest    35          71,246.90            

2/6/2001

   Payment (b)         (28,310.66 )   (28,310.66 )          

2/28/2001

   Accrued interest    22          44,783.76            

2/28/2001

   Payment (b)         (38,490.02 )   (38,490.02 )          

3/5/2001

   Accrued interest    5          10,178.13            

3/5/2001

   Payment (b)         (21,733.25 )   (21,733.25 )          

3/30/2001

   Accrued interest    25          50,890.64            

3/30/2001

   Payment (b)         (22,085.24 )   (22,085.24 )          

3/31/2001

   Accrued interest    1          2,035.63            

4/3/2001

   Accrued interest    3          6,106.88            

4/3/2001

   Payment (b)         (28,719.50 )   (28,719.50 )          

4/30/2001

   Accrued interest    27          54,961.89            

5/1/2001

   Accrued interest    1          2,035.63            

5/1/2001

   Payment (b)         (38,501.06 )   (38,501.06 )          

5/4/2001

   Accrued interest    4          8,142.50            

5/4/2001

   Payment (b)         (20,702.51 )   (20,702.51 )          

5/31/2001

   Accrued interest    27          54,961.89            

5/31/2001

   Payment (b)         (1,558.25 )   (1,558.25 )          

6/1/2001

   Accrued interest    1          2,035.63            

6/1/2001

   Payment (b)         (21,626.78 )   (21,626.78 )          

06/29/2001

   Accrued interest    28          56,997.52            

06/29/2001

   Payment (b)         (48,540.18 )   (48,540.18 )          

6/30/2001

   Accrued interest    1          2,035.63            

7/5/2001

   Accrued interest    5          10,178.13            

7/5/2001

   Payment (b)         (19,133.07 )   (19,133.07 )          

7/31/2001

   Accrued interest    26          52,926.27            

7/31/2001

   Payment (b)         (7,187.58 )   (7,187.58 )          

8/1/2001

   Accrued interest    1          2,035.63            

8/1/2001

   Payment (b)         (20,066.57 )   (20,066.57 )          

8/31/2001

   Accrued interest    30          61,068.77            

8/31/2001

   Payment (b)         (35,059.35 )   (35,059.35 )          

9/3/2001

   Accrued interest    3          6,106.88            

9/3/2001

   Payment (b)         (22,365.31 )   (22,365.31 )          

9/28/2001

   Accrued interest    25          50,890.64            

9/28/2001

   Payment (b)         (15,019.75 )   (15,019.75 )          

9/30/2001

   Accrued interest    2          4,071.25            

10/25/2001

   Credit Note 8/31/01(d)                     (2,000,000.00 )   10,213,754.06

10/25/2001

   Credit int September (d)    30    (2,000,000.00 )   (10,000.00 )          

10/1/2001

   Payment (b)         (7,704.18 )   (7,704.18 )          

10/31/2001

   Accrued interest    30          51,068.77            

10/31/2001

   Payment (b)         (20,584.11 )   (20,584.11 )          

11/2/2001

   Accrued interest    2          3,404.58            

11/2/2001

   Payment (b)         (13,376.84 )   (13,376.84 )          

11/30/2001

   Accrued interest    28          47,664.19            

11/30/2001

   Payment (b)         (6,213.71 )   (6,213.71 )          

12/4/2001

   Accrued interest    4          6,809.17            

12/4/2001

   Payment (b)         (9,357.33 )   (9,357.33 )          

12/7/2001

   Accrued interest    3          5,106.88            

 

A - 8

--------------------------------------------------------------------------------

SCHEDULE B

 

12/7/2001

   Payment (b)         (13,460.35 )   (13,460.35 )          

12/31/2001

   Accrued interest    24          40,855.02            

12/31/2001

   Payment (b)         (24,349.64 )   (24,349.64 )          

1/3/2002

   Accrued interest    3          5,106.88            

1/3/2002

   Payment (b)         (23,941.86 )   (23,941.86 )          

1/31/2002

   Accrued interest    28          47,664.19            

1/31/2002

   Payment (b)         (10,822.72 )   (10,822.72 )          

2/4/2002

   Accrued interest    4          6,809.17            

2/4/2002

   Payment (b)         (40,400.15 )   (40,400.15 )          

2/7/2002

   Accrued interest    3          5,106.88            

2/7/2002

   Payment (c)         (61,400.00 )   (61,400.00 )          

2/28/2002

   Accrued interest    21          35,748.14            

2/28/2002

   Payment (b)         (10,822.72 )   (10,822.72 )          

3/4/2002

   Accrued interest    4          6,809.17            

3/4/2002

   Payment (b)         (20,153.18 )   (20,153.18 )          

3/7/2002

   Accrued interest    3          5,106.88            

3/7/2002

   Payment (c)         (50,000.00 )   (50,000.00 )          

3/13/2002

   Accrued interest    6          10,213.75            

3/13/2002

   Payment (c)         (11,400.00 )   (11,400.00 )          

3/27/2002

   Accrued interest    14          23,832.09            

3/27/2002

   Payment (c)         (61,400.00 )   (61,400.00 )          

3/28/2002

   Accrued interest    1          1,702.29            

3/28/2002

   Payment (b)         (17,535.60 )   (17,535.60 )          

3/31/2002

   Accrued interest    3          5,106.88            

4/3/2002

   Accrued interest    3          5,106.88            

4/3/2002

   Payment (b)         (18,396.16 )   (18,396.16 )          

4/26/2002

   Accrued interest    23          39,152.72            

4/26/2002

   Payment (c)         (61,400.00 )   (61,400.00 )          

4/30/2002

   Accrued interest    4          6,809.17            

4/30/2002

   Payment (b)         (14,179.16 )   (14,179.16 )          

5/1/2002

   Accrued interest    1          1,702.29            

5/1/2002

   Payment (b)         (24,234.55 )   (24,234.55 )          

5/31/2002

   Accrued interest    30          51,068.77            

5/31/2002

   Payment (b)         (68,040.55 )   (68,040.55 )          

6/3/2002

   Accrued interest    3          5,106.88            

6/3/2002

   Payment (b)         (19,111.94 )   (19,111.94 )          

6/28/2002

   Accrued interest    25          42,557.31            

6/28/2002

   Payment (b)         (27,322.72 )   (27,322.72 )          

6/30/2002

   Accrued interest    2          3,404.58            

7/4/2002

   Accrued interest    4          6,809.17            

7/4/2002

   Payment (b)         (12,073.64 )   (12,073.64 )          

7/17/2002

   Accrued interest    13          22,129.80            

7/17/2002

   Payment (c)         (61,400.00 )   (53,980.75 )   (7,419.25 )   10,206,334.81

7/17/2002

   Payment (c)         (61,400.00 )   —       (61,400.00 )   10,144,934.81

8/1/2002

   Accrued interest    15          25,362.34            

8/1/2002

   Payment (b)         (40,788.08 )   (25,362.34 )   (15,425.74 )  
10,129,509.07

8/2/2002

   Accrued interest    1          1,688.25            

8/2/2002

   Payment (b)         (26,833.59 )   (1,688.25 )   (25,145.34 )   10,104,363.73

8/16/2002

   Accrued interest    15          25,260.91            

8/16/2002

   Payment (c)         (61,400.00 )   (25,260.91 )   (36,139.09 )  
10,068,224.64

 

A - 9

--------------------------------------------------------------------------------

SCHEDULE B

 

8/30/2002

   Accrued interest    14          23,492.52            

8/30/2002

   Payment (c)         (61,400.00 )   (23,492.52 )   (37,907.48 )  
10,030,317.17

8/31/2002

   Accrued interest    1          1,671.72            

8/31/2002

   Payment (b)         (27,440.54 )   (1,671.72 )   (25,768.82 )   10,004,548.35

9/3/2002

   Accrued interest    3          5,002.27            

9/3/2002

   Payment (b)         (11,723.25 )   (5,002.27 )   (6,720.98 )   9,997,827.37

9/30/2002

   Accrued interest    27          44,990.22            

9/30/2002

   Payment (b)         (10,014.00 )   (10,014.00 )   —       9,997,827.37

10/2/2002

   Accrued interest    2          3,332.61            

10/2/2002

   Payment (b)         (9,715.74 )   (9,715.74 )   —        

10/31/2002

   Accrued interest    29          48,322.83            

10/31/2002

   Payment (b)         (25,955.40 )   (25,955.40 )   —        

11/5/2002

   Accrued interest    5          8,331.52            

11/5/2002

   Payment (b)         (11,907.27 )   (11,907.27 )   —        

11/30/2002

   Accrued interest    25          41,657.61            

12/2/2002

   Accrued interest    2          3,332.61            

12/2/2002

   Payment (b)         (12,613.81 )   (12,613.81 )   —        

12/11/2002

   Accrued interest    9          14,996.74            

12/11/2002

   Payment (b)         (26,842.18 )   (26,842.18 )   —        

12/31/2002

   Accrued interest    20          33,326.09            

12/31/2002

   Payment (b)         (16,211.77 )   (16,211.77 )   —        

1/3/2003

   Accrued interest    3          4,998.91            

1/3/2003

   Payment (b)         (37,502.82 )   (37,502.82 )          

1/17/2003

   Accrued interest    14          23,328.26            

1/17/2003

   Payment 61,400 x 8 (c)(e)         (491,200.00 )   (75,854.43 )   (415,345.57
)   9,582,481.80

1/31/2003

   Accrued interest    14          22,359.12            

1/31/2003

   Payment (b)         (51,772.23 )   (22,359.12 )   (29,413.11 )   9,553,068.69

2/3/2003

   Accrued interest    3          4,776.53            

2/3/2003

   Payment (b)         (22,962.14 )   (4,776.53 )   (18,185.61 )   9,534,883.09

2/28/2003

   Accrued interest    25          39,728.68            

2/28/2003

   Payment (b)         (11,376.19 )   (11,376.19 )   —        

3/3/2003

   Accrued interest    3          4,767.44            

3/3/2003

   Payment (b)         (14,984.55 )   (14,984.55 )   —        

3/31/2003

   Accrued interest    28          44,496.12            

3/31/2003

   Payment (b)         (28,262.33 )   (28,262.33 )   —        

4/2/2003

   Accrued interest    2          3,178.29            

4/2/2003

   Payment (b)         (18,193.84 )   (18,193.84 )   —        

4/30/2003

   Accrued interest    28          44,496.12            

4/30/2003

   Payment (b)         (37,287.08 )   (37,287.08 )   —        

5/2/2003

   Accrued interest    2          3,178.29            

5/2/2003

   Payment (b)         (13,419.73 )   (13,419.73 )   —        

5/30/2003

   Accrued interest    28          44,496.12            

5/30/2003

   Payment (b)         (12,918.76 )   (12,918.76 )   —        

5/31/2003

   Accrued interest    1          1,589.15            

6/2/2003

   Accrued interest    2          3,178.29            

6/2/2003

   Payment (b)         (16,512.13 )   (16,512.13 )   —        

6/30/2003

   Accrued interest    28          44,496.12            

6/30/2003

   Payment (b)         (35,336.59 )   (35,336.59 )   —        

7/3/2003

   Accrued interest    3          4,767.44            

7/3/2003

   Payment (b)         (15,953.25 )   (15,953.25 )   —        

 

A - 10

--------------------------------------------------------------------------------

SCHEDULE B

 

7/31/2003

   Accrued interest    28          44,496.12            

7/31/2003

   Payment (b)         (24,387.13 )   (24,387.13 )   —        

8/1/2003

   Accrued interest    1          1,589.15            

8/1/2003

   Payment (b)         (13,175.27 )   (13,175.27 )   —        

8/29/2003

   Accrued interest    28          44,496.12            

8/29/2003

   Payment (b)         (26,326.68 )   (26,326.68 )   —        

9/1/2003

   Accrued interest    1          1,589.15            

9/1/2003

   Payment (b)         (10,278.44 )   (10,278.44 )   —        

9/30/2003

   Accrued interest    29          46,085.27            

9/30/2003

   Payment (b)         (14,945.50 )   (14,945.50 )   —        

9/30/2003

   Offset 99 ACL taxes (f)         (21,620.71 )   (21,620.71 )          

9/30/2003

   Int credit from 7/24/03    68          (245.03 )          

9/30/2003

   Int credit from 12/19/02    285          (5,506.90 )          

9/30/2003

   Offset royalties & rent (g)         (115,934.81 )   (55,897.76 )   (60,037.05
)   9,474,846.04

10/1/2003

   Accrued interest    1          1,579.14            

10/1/2003

   Payment (b)         (3,167.33 )   (1,579.14 )   (1,588.19 )   9,473,257.85

10/31/2003

   Accrued interest    30          47,366.29            

10/31/2003

   Payment (b)         (12,367.28 )   (12,367.28 )   —        

11/4/2003

   Accrued interest    4          6,315.51            

11/4/2003

   Payment (b)         (21,174.73 )   (21,174.73 )   —        

11/28/2003

   Accrued interest    24          37,893.03            

11/28/2003

   Payment (b)         (39,792.03 )   (39,792.03 )   —        

11/30/2003

   Accrued interest    2          3,157.75            

12/1/2003

   Accrued interest    1          1,578.88            

12/1/2003

   Payment (b)         (5,359.73 )   (5,359.73 )   —        

12/31/2003

   Accrued interest    30          47,366.29            

1/31/2004

   Accrued interest    31          48,945.17            

2/29/2004

   Accrued interest    29          45,787.41            

3/31/2004

   Accrued interest    31          48,945.17            

4/30/2004

   Accrued interest    30          47,366.29            

5/5/2004

   Payment (b)         (11,228.18 )   (11,228.18 )   —        

5/31/2004

   Accrued interest    31          48,945.17            

6/30/2004

   Accrued interest    30          47,366.29            

6/30/2004

   Payment (b)         (11,443.18 )   (11,443.18 )   —        

7/31/2004

   Accrued interest    31          48,945.17            

8/31/2004

   Accrued interest    31          48,945.17            

8/31/2004

   Payment (b)         (60,838.56 )   (60,838.56 )   —        

9/1/2004

   Accrued interest    1          1,578.88            

9/1/2004

   Payment (b)         (27,238.84 )   (27,238.84 )   —        

9/30/2004

   Accrued interest    29          45,787.41            

9/30/2004

   Payment (b)         (14,945.50 )   (14,945.50 )   —        

10/4/2004

   Accrued interest    4          6,315.51            

10/4/2004

   Payment (b)         (16,252.17 )   (16,252.17 )   —        

10/29/2004

   Accrued interest    25          39,471.91            

10/29/2004

   Payment (b)         (16,187.13 )   (16,187.13 )   —        

10/31/2004

   Accrued interest    2          3,157.75            

11/2/2004

   Accrued interest    2          3,157.75            

11/2/2004

   Payment (b)         (23,526.83 )   (23,526.83 )   —        

11/30/2004

   Accrued interest    28          44,208.54            

 

A - 11

--------------------------------------------------------------------------------

SCHEDULE B

 

11/30/2004

   Balances                 $412,247.15         $ 9,473,257.85                 
     

--------------------------------------------------------------------------------

       

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

11/30/2004

   Principal & Interest                           $ 9,885,505.00               

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

               

11/30/2004

   Total Payments and credits         $ (5,289,945.24 )                       
       

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                     Summary:                                   

(b) Newport Antigua, Ltd.

        $ (2,108,589.72 )                     

(c) Antigua Gov ($61,400 x 17))

          (1,043,800.00 )                     

(d) Antigua Gov tax credit

          (2,000,000.00 )                      (f) Offset ACL taxes 1999        
  (21,620.71 )                      (g) Offset royalties & rent          
(115,934.81 )                               

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                                 Total         $ (5,289,945.24 )                
              

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

               

--------------------------------------------------------------------------------

(a) This payment from Newport Antigua was posted on May 6 after the calculations
were completed on the debt restructuring. Payment is being applied against
principal on this Note. Related interest credit of $552.90 at 10% for 114 days
from 1/5/00 to 4/28/00 is also being given.

(b) Source of payment is Newport Antigua, Ltd.

(c) Source of payment is Antigua government.

(d) Credit memo against principal balance is in partial payment of tax
assessments for the assessment years 1998 - 2000.

(d) Interest credit of $10,000 on $2,000,000 @ 6% for 30 days in September 2001.

(e) Payment received from Antigua government was $491,200.00 or $61,400 per
month covering the eight months from September 2002 through April 2003.

(f) Credit memo against 1999 ACL W/H taxes offset effective 7/24/03.

(g) Credit memo against royalties & rent (16 years to 10/1/02 offset effective
12/19/2002.

 

A - 12

--------------------------------------------------------------------------------

SCHEDULE C

 

Amounts Due from Antigua Government

Payments on Notes by Offsets of Taxes

 

Description:

--------------------------------------------------------------------------------

   Amount in US

--------------------------------------------------------------------------------

 

ANT GOV CREDIT MEMO RE: AMP TAXES 1998-2000

   285,841  

LESS OFFSET OF ACL TAXES PER 11/28/00 LETTER

   (52,374 )

LESS W/H TAX ON MGMT FEES 12/31/01; RECL 9/2003

   (220,750 )

LESS W/H TAX MGMT FEES 1/1-6/30/03; OFFSET 12/03

   (109,625 )

LESS W/H TAX MGMT FEES 7/1-123103 OFFSET 5/12/04

   (71,625 )

LESS W/H TAX MGMT FEES 2002; OFFSET 6/29/04

   (219,250 )

LESS OFFSET FOR PP TAXES 2001-2004 ON 7/09/04

   (65,168 )

LESS OFFSET FOR AHC 2003 TAXES ON 5/07/04

   (64,223 )     

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

TOTAL OFFSETS

   (517,174 )

 

A - 13

--------------------------------------------------------------------------------

SCHEDULE C

 

Amounts Due from Antigua Government

Payments on Notes by Offsets of

Taxes and Duties

 

Amounts Pending:

 

Description:

--------------------------------------------------------------------------------

   Amount in US

--------------------------------------------------------------------------------

 

LESS CREDIT FOR DUTIES 2001 RECORDED IN 2001

   (327,893 )

LESS OFFSET AMP TAXES 1999-2000 RECORDED

   (7,431 )

LESS OFFSET ACL TAXES 2000 RECORDED

   (7,073 )

LESS CREDIT FOR DUTIES Q1 02 RECORDED IN 2002

   (178,782 )

LESS CREDIT FOR DUTIES Q2 02 RECORDED IN 2002

   (141,946 )

ADD DEBIT FOR DUTIES Q3 2002 RECORDED IN 2002

   21,085  

LESS CREDIT FOR DUTIES Q4 02 RECORDED IN 2002

   (109,241 )

LESS CREDIT FOR DUTIES JAN 03 RECORDED IN 2003

   (19,651 )

ADD CUSTOMS/DUTY PAID ANT GOV CK SWAP 3/2003

   175,780  

LESS CREDIT FOR DUTIES FEB-APR 03 IN QTR 2 2003

   (127,192 )

ADD CUSTOMS/DUTY PAID ANT GOV CK SWAP 6/03

   38,809  

LESS CREDIT FOR DUTIES JUNE IN QTR 3 2003

   (43,286 )

LESS CREDIT FOR DUTIES JULY-SEPT BOOKED 9/30/03

   (197,007 )

LESS CREDIT FOR AMP W/H TAXES A.Y. 2001 Q4 2003

   (39,623 )

LESS CREDIT FOR DUTIES OCTOBER BOOKED Q4 2003

   (113,298 )

LESS CREDIT FOR DUTIES NOV-DEC BOOKED Q4 2003

   (48,176 )

ADD CUSTOMS/DUTY PAID ANT GOV CK SWAP 12/2003

   289,934  

LESS CREDIT FOR DUTIES JAN-MAR BOOKED Q1 2004

   (93,389 )

LESS W/H TAX ON MGMT FEES RECORDED 3/31/04

   (42,750 )

ADD ANT GOV CHECK SWAP DUTIES PAID 3/10/04

   116,984  

LESS CREDIT FOR DUTIES APR-MAY BOOKED Q2 2004

   (76,918 )

ADD ANT GOV CHECK SWAP DUTIES PAID 4/07/04

   57,644  

LESS W/H TAX ON MGMT FEES RECORDED 6/30/04

   (42,750 )

ADD ANT GOV CHECK SWAP DUTIES PAID 7/12/04

   69,681  

ADDTL W/H TAX ON MGMT FEES Q2 2004 BOOKED 9/04

   (9,750 )

LESS CREDIT FOR DUTIES JUL-SEP BOOKED Q3 04

   (78,786 )

LESS W/H TAX ON MGMT FEES RECORDED 9/30/04

   (47,750 )

LESS OFFSET FOR ADDTL AHC 2003 TAXES

   (26,401 )

ADD ANT GOV CHECK SWAP DUTIES PAID 11/12/04

   48,428  

LESS CREDIT FOR ADDTL DUTIES JUL-SEP BOOKED Q4

   (19,420 )

LESS CREDIT FOR DUTIES OCT-NOV BOOKED QTR 4

   (58,007 )     

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

TOTAL OFFSETS PENDING

   (1,038,177 )

 

A - 14

--------------------------------------------------------------------------------

EXHIBIT B

 

Notes

 

PROMISSORY NOTE

 

(Harbour Note)

 

US$18,589,637.00

St. John’s, Antigua

 

Date: April 28, 2000

 

FOR VALUE RECEIVED, the undersigned promises to pay to the order of Antigua
Heavy Constructors, Limited, an Antiguan corporation (“Payee”), at its offices
at P. O. Box 423, St. John’s Antigua, or at such other address as may be
specified in writing from time to time by the holder hereof, the principal
amount of Eighteen Million Five Hundred Eighty-Nine Thousand Six Hundred
Thirty-Seven Dollars and No Cents (US$18,589,637) payable together with interest
thereon in like lawful money from the date hereof at a rate per annum upon the
unpaid balance from time to time until maturity, same being payable, in lawful
money of the United States of America, at the applicable rate per annum set
forth below:

 

1. Payments and Maturity Date

 

Maker shall pay the interest and principal of this Note as follows:

 

US$312,500.00 shall be due and payable each quarter commencing on May 1, 2000
and continuing each successive quarter thereafter on each August 1, November 1,
February 1, and May 1 and $50,000 shall be due and payable on the first day of
each month commencing May 1, 2000; both the quarterly and monthly payments to
continue until the principal balance is paid in full.

 

Maker shall pay all amounts owing under this Note when due in full and in
immediately available funds without setoff, counterclaim, deduction or
withholding for any reason whatsoever. If any payment falls due on a day other
than a day on which commercial banks in St. John’s, Antigua, are open for
business (a “Business Day”), then such payment shall instead be made on the next
succeeding Business Day, and interest shall accrue accordingly.

 

Maker shall utilize the sources of payment set forth in that certain Amendment
No. 9 to the St. John’s Dredging and Deep Water Pier Construction Agreement and
all exhibits thereto by and between Maker, Payee and Antigua Masonry Products,
Limited (“Amendment No. 9”) solely for the purpose of making payments under this
Note.

 

B - 1

--------------------------------------------------------------------------------

Harbour Note

Page #2

 

2. Interest Rate

 

This Note shall bear interest from the date of this Note until maturity at the
rate of 6% per annum and thereafter at the rate provided in Item 5.

 

3. Dredging and Deep Water Pier Construction Agreement

 

This Note is being issued pursuant to that certain Dredging and Deepwater Pier
Construction Agreement and all exhibits thereto between Maker and Payee dated
April 3, 1987 (the “Agreement”) and all other amendments thereto (the
“Amendments”). This Note consolidates and replaces the promissory notes listed
in Exhibit A to this Promissory Note. It is expressly understood and agreed that
the terms of this Note are subject to the terms of the Agreement and the
Amendments. Terms defined in the Agreement and the Amendments shall have the
same meaning when used herein. In the case of any conflict this Note shall
prevail.

 

4. Events of Default

 

The unpaid balance of the Note, including principal and accrued interest, shall
at the option of Payee become immediately due and payable upon the occurrence of
any one or more of the following events (“Events of Default”), regardless of the
cause thereof and whether within or beyond the control of the Maker:

 

  (a) The failure of Maker to pay any sum due under this Note within 60 days
after notice to Maker that a payment has not been made when due.

 

  (b) If it shall become unlawful for Maker to make payment(s) under this Note.

 

5. Default Rate of Interest

 

From and after the occurrence and during the continuation of any Event of
Default, regardless of whether Payee also elects to accelerate the maturity of
the Note, at Payee’s sole option the unpaid balance of the Note shall bear
interest at 10% (the “Default Rate”); provided, however, that after judgment all
such sums shall bear interest at the greater of the Default Rate or the rate
prescribed by applicable law for judgments. All interest which accrues at the
Default Rate shall be due and payable on Payee’s demand from time to time.

 

B - 2

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Harbour Note

Page #3

 

6. Rights and Remedies of Payee

 

Payee shall be entitled to pursue any and all rights and remedies provided by
applicable law and/or under the terms of this Note, all of which shall be
cumulative and may be exercised successively or concurrently. Payee’s delay in
exercising or failure to exercise any rights or remedies to which Payee may be
entitled if any Event of Default occurs shall not constitute a waiver of any of
Payee’s rights or remedies with respect to that or any subsequent Event of
Default, whether of the same or a different nature, nor shall any single or
partial exercise of any right or remedy by Payee preclude any other or further
exercise of that or any other right or remedy. No waiver of any right or remedy
by Payee shall be effective unless made in writing and signed by Payee, nor
shall any waiver on one occasion apply to any future occasion, but shall be
effective only with respect to the specific occasion addressed in that signed
writing.

 

7. Waiver and Consent

 

To the fullest extent permitted by law Maker hereby: (a) waives demand,
presentment, protest, notice of dishonor, suit against or joinder of any other
person, and all other requirements necessary to charge or hold Maker liable with
respect to the Note (except as otherwise expressly set forth herein); (b) waives
any right to interpose any set-off or counterclaim or to plead any statute of
limitations as a defense in any such action or proceeding. No provision of this
Note shall limit Payee’s right to serve legal process in any manner permitted by
law or to bring any such action or proceeding in any competent jurisdiction.
Until Payee receives all sums due under this Note in immediately available
funds, Maker shall not be released from liability with respect to the Note
unless Payee expressly releases Maker in a writing signed by Payee.

 

8. Costs, Indemnities and Expenses

 

Maker agrees to pay all filing fees and similar charges and all costs incurred
by Payee in collection or securing or attempting to collect or secure the Note,
including reasonable attorney’s fees, whether or not involving arbitration,
litigation and/or appellate or administrative proceedings. Maker agrees to pay
any documentary stamp taxes, intangible taxes, withholding tax or other taxes
which may now or hereafter apply to any payment made in respect of the Note, and
Maker agrees to indemnify and hold Payee harmless from and against any
liability, reasonable costs, reasonable attorney’s fees, penalties, interest or
expenses relating to any such taxes, as and when the same may be incurred.

 

B - 3

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Harbour Note

Page #4

 

9. Maximum Interest Rate

 

In no event shall any agreed to or actual exaction charged, reserved or taken as
an advance or forbearance by Payee as consideration for the Note exceed the
limits (if any) imposed or provided by the law applicable from time to time to
the Note for the use or detention of money or for forbearance in seeking its
collection; Payee hereby waives any right to demand such excess. In the event
that the interest provisions of this Note or any exactions provided for in this
Note shall result at any time or for any reason in an effective rate of interest
that transcends the maximum interest rate permitted by applicable law (if any),
then without further agreement or notice the obligation to be fulfilled shall be
automatically reduced to such limit and all sums received by Payee in excess of
those lawfully collectible as interest shall be applied against the principal of
the Note immediately upon Payee’s receipt thereof, with the same force and
effect as though the Maker had specifically designated such extra sums to be
applied to principal and Payee had agreed to accept such extra payment(s) as a
premium-free prepayment or prepayments. During any time that the Note bears
interest at the maximum lawful rate (whether by application of this paragraph,
the Default Rate provisions of this Note or otherwise), interest shall be
computed on the basis of the actual number of days elapsed and a year of 360
days.

 

10. Governing Law

 

The Note shall be governed by, and construed and enforced in accordance with,
the laws of Antigua and Barbuda, W.I., as currently in effect and subject to the
principles of public international law. Antigua hereby irrevocably and
unconditionally waives any and all defenses it may have based in whole or in
part upon the doctrine of sovereign immunity.

 

11. Severability

 

Any provision of this Note which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction only, be ineffective only to the
extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction.

 

12. Interpretation

 

The term “Payee” shall be deemed to include any subsequent holder(s) of this
Note. Whenever used in this Note, words in the singular include the plural,
words in the plural include the singular, and pronouns of any gender include the
other genders, all as may be appropriate. Captions and paragraph headings in
this Note are for convenience of reference only and shall not affect its
interpretation.

 

B - 4

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Harbour Note

Page #5

 

13. Miscellaneous

 

Time shall be of the essence with respect to the terms of this Note. This Note
cannot be changed or modified orally. This Note may be prepaid in whole or in
part at any time without penalty. Unless otherwise provided in the Agreement, no
prepayment need include imputed interest not accrued through the date of
prepayment, and no imputed interest shall accrue thereafter on any amount
prepaid. In furtherance of the above, except as otherwise required by law or by
the provisions of this Note or designated by Payee, payments received by Payee
hereunder shall be applied first against interest accrued on the Note, and next
in reduction of the remaining balance of the Note, except that during the
continuance of any Event of Default Payee may apply such payments in any order
to priority determined by Payee in its exclusive judgement. Except as otherwise
required by the provisions of this Note or designated by Payee, any notice
required to be given to Maker shall be deemed sufficient if made personally or
if mailed, postage prepaid, to Maker’s address as it appears on the signature
page of this Note (as the same may hereinafter be changed by written notice to
Payee from Maker).

 

 

THIS NOTE IS SIGNED, SEALED, AND DELIVERED AS OF THE DATE FIRST WRITTEN ABOVE BY
AND THROUGH ITS SIGNATORY DULY AUTHORIZED.

 

            MAKER WITNESS   ANTIGUA AND BARBUDA, ACTING THROUGH ITS GOVERNMENT

/S/ LENNOX WESTON

--------------------------------------------------------------------------------

  By:  

/S/ JOHN ST. LUCE

--------------------------------------------------------------------------------

Lennox Weston       Honorable John St. Luce Financial Secretary       Minister
of Finance

 

B - 5

--------------------------------------------------------------------------------

PROMISSORY NOTE

 

(Other Construction Note)

 

US$12,251,628.00

St. John’s, Antigua

 

Date: April 28, 2000

 

FOR VALUE RECEIVED, the undersigned promises to pay to the order of Antigua
Heavy Constructors, Limited, an Antiguan corporation (“Payee”), at its offices
at P. O. Box 423, St. John’s Antigua, or at such other address as may be
specified in writing from time to time by the holder hereof, the principal
amount of Twelve Million Two Hundred Fifty One Thousand Six Hundred Twenty Eight
Dollars and No Cents (US$12,251,628.00) payable together with interest thereon
in like lawful money from the date hereof at a rate per annum upon the unpaid
balance from time to time until maturity, same being payable, in lawful money of
the United States of America, at the applicable rate per annum set forth below:

 

1. Payments and Maturity Date

 

Maker shall pay the interest and principal of this Note each month in the amount
of US$104,400 commencing on August 1, 2000 and continuing until the principal
balance is paid in full (the US$104,400 amount consists of US$43,000 from
NewPort Antigua and US$61,400 from the government depository account).

 

Maker shall pay all amounts owing under this Note when due in full and in
immediately available funds without setoff, counterclaim, deduction or
withholding for any reason whatsoever. If any payment falls due on a day other
than a day on which commercial banks in St. John’s, Antigua, are open for
business (a “Business Day”), then such payment shall instead be made on the next
succeeding Business Day, and interest shall accrue accordingly.

 

Maker shall utilize the sources of payment set forth in that certain Amendment
No. 9 to the St. John’s Dredging and Deep Water Pier Construction Agreement and
all exhibits thereto by and between Maker, Payee and Antigua Masonry Products,
Limited (“Amendment No. 9”) solely for the purpose of making payments under this
Note.

 

B - 6

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Other Construction Note

Page #2

 

2. Interest Rate

 

This Note shall bear interest from the date of this Note until maturity at the
rate of 6% per annum and thereafter at the rate provided in Item 5.

 

3. Dredging and Deep Water Pier Construction Agreement

 

This Note is being issued pursuant to that certain Dredging and Deepwater Pier
Construction Agreement and all exhibits thereto between Maker and Payee dated
April 3, 1987 (the “Agreement”) and all other amendments thereto (the
“Amendments”). This Note consolidates and replaces the promissory notes listed
in Exhibit A to this Promissory Note. It is expressly understood and agreed that
the terms of this Note are subject to the terms of the Agreement and the
Amendments. Terms defined in the Agreement and the Amendments shall have the
same meaning when used herein. In the case of any conflict this Note shall
prevail.

 

4. Events of Default

 

The unpaid balance of the Note, including principal and accrued interest, shall
at the option of Payee become immediately due and payable upon the occurrence of
any one or more of the following events (“Events of Default”), regardless of the
cause thereof and whether within or beyond the control of the Maker:

 

  (a) The failure of Maker to pay any sum due under this Note within 60 days
after notice that a payment has not been made when due.

 

  (b) If it shall become unlawful for Maker to make payment(s) under this Note.

 

5. Default Rate of Interest

 

From and after the occurrence and during the continuation of any Event of
Default, regardless of whether Payee also elects to accelerate the maturity of
the Note, at Payee’s sole option the unpaid balance of the Note shall bear
interest at 10% (the “Default Rate”); provided, however, that after judgment all
such sums shall bear interest at the greater of the Default Rate or the rate
prescribed by applicable law for judgments. All interest which accrues at the
Default Rate shall be due and payable on Payee’s demand from time to time.

 

B - 7

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Other Construction Note

Page #3

 

6. Rights and Remedies of Payee

 

Payee shall be entitled to pursue any and all rights and remedies provided by
applicable law and/or under the terms of this Note, all of which shall be
cumulative and may be exercised successively or concurrently. Payee’s delay in
exercising or failure to exercise any rights or remedies to which Payee may be
entitled if any Event of Default occurs shall not constitute a waiver of any of
Payee’s rights or remedies with respect to that or any subsequent Event of
Default, whether of the same or a different nature, nor shall any single or
partial exercise of any right or remedy by Payee preclude any other or further
exercise of that or any other right or remedy. No waiver of any right or remedy
by Payee shall be effective unless made in writing and signed by Payee, nor
shall any waiver on one occasion apply to any future occasion, but shall be
effective only with respect to the specific occasion addressed in that signed
writing.

 

7. Waiver and Consent

 

To the fullest extent permitted by law Maker hereby: (a) waives demand,
presentment, protest, notice of dishonor, suit against or joinder of any other
person, and all other requirements necessary to charge or hold Maker liable with
respect to the Note (except as otherwise expressly set forth herein); (b) waives
any right to interpose any set-off or counterclaim or to plead any statute of
limitations as a defense in any such action or proceeding. No provision of this
Note shall limit Payee’s right to serve legal process in any manner permitted by
law or to bring any such action or proceeding in any competent jurisdiction.
Until Payee receives all sums due under this Note in immediately available
funds, Maker shall not be released from liability with respect to the Note
unless Payee expressly releases Maker in a writing signed by Payee.

 

8. Costs, Indemnities and Expenses

 

Maker agrees to pay all filing fees and similar charges and all costs incurred
by Payee in collection or securing or attempting to collect or secure the Note,
including reasonable attorney’s fees, whether or not involving arbitration,
litigation and/or appellate or administrative proceedings. Maker agrees to pay
any documentary stamp taxes, intangible taxes, withholding tax or other taxes
which may now or hereafter apply to any payment made in respect of the Note, and
Maker agrees to indemnify and hold Payee harmless from and against any
liability, reasonable costs, reasonable attorney’s fees, penalties, interest or
expenses relating to any such taxes, as and when the same may be incurred.

 

B - 8

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Other Construction Note

Page #4

 

9. Maximum Interest Rate

 

In no event shall any agreed to or actual exaction charged, reserved or taken as
an advance or forbearance by Payee as consideration for the Note exceed the
limits (if any) imposed or provided by the law applicable from time to time to
the Note for the use or detention of money or for forbearance in seeking its
collection; Payee hereby waives any right to demand such excess. In the event
that the interest provisions of this Note or any exactions provided for in this
Note shall result at any time or for any reason in an effective rate of interest
that transcends the maximum interest rate permitted by applicable law (if any),
then without further agreement or notice the obligation to be fulfilled shall be
automatically reduced to such limit and all sums received by Payee in excess of
those lawfully collectible as interest shall be applied against the principal of
the Note immediately upon Payee’s receipt thereof, with the same force and
effect as though the Maker had specifically designated such extra sums to be
applied to principal and Payee had agreed to accept such extra payment(s) as a
premium-free prepayment or prepayments. During any time that the Note bears
interest at the maximum lawful rate (whether by application of this paragraph,
the Default Rate provisions of this Note or otherwise), interest shall be
computed on the basis of the actual number of days elapsed and a year of 360
days.

 

10. Governing Law

 

The Note shall be governed by, and construed and enforced in accordance with,
the laws of Antigua and Barbuda, W.I., as currently in effect and subject to the
principles of public international law. Antigua hereby irrevocably and
unconditionally waives any and all defenses it may have based in whole or in
part upon the doctrine of sovereign immunity.

 

11. Severability

 

Any provision of this Note which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction only, be ineffective only to the
extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction.

 

12. Interpretation

 

The term “Payee” shall be deemed to include any subsequent holder(s) of this
Note. Whenever used in this Note, words in the singular include the plural,
words in the plural include the singular, and pronouns of any gender include the
other genders, all as may be appropriate. Captions and paragraph headings in
this Note are for convenience of reference only and shall not affect its
interpretation.

 

B - 9

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Other Construction Note

Page #5

 

13. Miscellaneous

 

Time shall be of the essence with respect to the terms of this Note. This Note
cannot be changed or modified orally. This Note may be prepaid in whole or in
part at any time without penalty. Unless otherwise provided in the Agreement, no
prepayment need include imputed interest not accrued through the date of
prepayment, and no imputed interest shall accrue thereafter on any amount
prepaid. In furtherance of the above, except as otherwise required by law or by
the provisions of this Note or designated by Payee, payments received by Payee
hereunder shall be applied first against interest accrued on the Note, and next
in reduction of the remaining balance of the Note, except that during the
continuance of any Event of Default Payee may apply such payments in any order
to priority determined by Payee in its exclusive judgement. Except as otherwise
required by the provisions of this Note or designated by Payee, any notice
required to be given to Maker shall be deemed sufficient if made personally or
if mailed, postage prepaid, to Maker’s address as it appears on the signature
page of this Note (as the same may hereinafter be changed by written notice to
Payee from Maker).

 

THIS NOTE IS SIGNED, SEALED, AND DELIVERED AS OF THE DATE FIRST WRITTEN ABOVE BY
AND THROUGH ITS SIGNATORY DULY AUTHORIZED.

 

            MAKER WITNESS   ANTIGUA AND BARBUDA, ACTING THROUGH ITS GOVERNMENT

/S/ LENNOX WESTON

--------------------------------------------------------------------------------

  By:  

/S/ JOHN ST. LUCE

--------------------------------------------------------------------------------

Lennox Weston       Honorable John St. Luce Financial Secretary       Minister
of Finance

 

B - 10

--------------------------------------------------------------------------------

EXHIBIT C

 

Form of Letter to Commissioner of Inland Revenue

 

Subject:

   Tax Benefits for Antigua Masonry Products, Ltd., its ultimate parent, Devcon
International Corp. and all subsidiaries thereof

 

Dear Sirs:

 

A Debt Satisfaction Agreement (the “Debt Satisfaction Agreement”) has been
entered into between Antigua Masonry Products, Ltd., certain subsidiaries and
affiliates thereof (“AMP”), and the Government of Antigua and Barbuda
(“Antigua”), pursuant to the terms of which, AMP has agreed to the satisfaction
of U.S.$29,775,803 of debt owed by Antigua to AMP. This agreement provides for a
cash payment by Antigua to AMP of U.S.$11,500,000, as well as the granting of
certain tax benefits to AMP, certain subsidiaries of AMP, including, Antigua
Heavy Constructors, Ltd., Antigua Cement, Ltd. and Antigua Development and
Construction, Ltd. (the “AMP Subsidiaries”) and Devcon International Corp.
(“Devcon”), the ultimate parent company of AMP.

 

In consideration of the mutual covenants contained, and in satisfaction of the
conditions to close set forth in the Debt Satisfaction Agreement, this letter is
being issued to you setting forth the tax benefits described below to be granted
to AMP, the AMP Subsidiaries and Devcon:

 

1) All income and withholding taxes due from AMP, the AMP Subsidiaries and/or
Devcon as of and through December 31, 2004 are released, discharged, paid and
satisfied in full and appropriate documentation of such release, discharge,
payment and satisfaction which is satisfactory to AMP in its sole discretion, is
to be immediately furnished to AMP.

 

2) All withholding taxes on dividend distributions and other payments to foreign
service providers incurred by AMP, the AMP Subsidiaries, and/or Devcon during
the five year period ending December 31, 2009, up to a maximum of U.S.$7,500,000
are to be immediately released, discharged, paid and satisfied in full, as such
taxes are incurred, and appropriate documentation of such release, discharge,
payment and satisfaction which is satisfactory to AMP, in its sole discretion,
shall be immediately furnished to AMP after such satisfaction is effected.

 

You are therefore hereby advised and authorized to execute this letter and make
whatever other notation is necessary to give full force and effect to this
letter. Your signature on a copy of this letter shall signify your compliance
with these instructions.

 

You will note that AMP and the AMP Subsidiaries will be required to pay income
taxes beginning with the 2005 tax year, commencing January 1, 2005.

 

   

/s/ Whitfield Harris, Jr.

--------------------------------------------------------------------------------

   

Whitfield Harris, Jr.

    Financial Secretary

Agreed:

   

 

 

--------------------------------------------------------------------------------

   

William Schouten

   

Commissioner of Inland Revenue

   

 

C - 1

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EXHIBIT D

 

Form of Letter to Comptroller of Customs

 

Subject:

   Tax Benefits for Antigua Masonry Products, Ltd., its ultimate parent, Devcon
International Corp. and all subsidiaries thereof

 

Dear Sirs:

 

A Debt Satisfaction Agreement (the “Debt Satisfaction Agreement”) has been
entered into between Antigua Masonry Products, Ltd., certain subsidiaries and
affiliates thereof (“AMP”), and the Government of Antigua and Barbuda
(“Antigua”), pursuant to the terms of which, AMP has agreed to the satisfaction
of U.S.$29,775,803 of debt owed by Antigua to AMP. This agreement provides for a
cash payment by Antigua to AMP of U.S.$11,500,000, as well as the granting of
certain tax benefits to AMP, certain subsidiaries of AMP, including, Antigua
Heavy Constructors, Ltd., Antigua Cement, Ltd. and Antigua Development and
Construction, Ltd. (the “AMP Subsidiaries”) and Devcon International Corp.
(“Devcon”), the ultimate parent company of AMP.

 

In consideration of the mutual covenants contained, and in satisfaction of the
conditions to close set forth in the Debt Satisfaction Agreement, this letter is
being issued to you setting forth the tax benefits described below to be granted
to AMP, the AMP Subsidiaries and Devcon:

 

All import duties, custom service taxes and consumption taxes due from AMP, the
AMP Subsidiaries and/or Devcon as of and through December 31, 2004 are released,
discharged, paid and satisfied in full and appropriate documentation of such
release, discharge, payment and satisfaction which is satisfactory to AMP in its
sole discretion, is to be immediately furnished to AMP.

 

You are therefore hereby advised and authorized to execute this letter and make
whatever other notation is necessary to give full force and effect to this
letter. Your signature on a copy of this letter shall signify your compliance
with these instructions.

 

You will note that AMP and the AMP Subsidiaries will be required to pay income
taxes beginning with the 2005 tax year, commencing January 1, 2005.

 

   

/s/ Whitfield Harris, Jr.

--------------------------------------------------------------------------------

    Whitfield Harris, Jr.     Financial Secretary

Agreed:

   

 

--------------------------------------------------------------------------------

   

Raphael Brown

   

Comptroller of Customs

   

 

D - 1