Document:

Unassociated Document

    Engineering
Boat Purchase and Sale Contract

     

    (Unofficial
Translation)

     

    
      
        
          	
                  Party
      A:

                	
                  Yiyang
      Zhonghai Boats and Ships Limited Liability Company

                
	
                  Address:

                	
                  128
      Zhixi Road, Yiyang City, Hunan Province

                
	
                  Legal
      Representative:

                	
                  HE
      Junqiang

                
	 
      	 
      
	
                  Party
      B:

                	
                  Fujian
      Xing Gang Shipping Service Co., Ltd.

                
	
                  Address:

                	
                  Zhongshan
      Plaza, Building A, 17th
      Fl.

                
	 
      	
                  154
      Hudong Road, Fuzhou

                
	
                  Legal
      Representative:

                	
                  LIN
      Qing

                

        

      

    

    

    In the
spirit of equality and mutual benefits, Party A and Party B have, after friendly
consultation, reached consensus on the matter regarding the purchase and the
sale of an engineering boat.  Party A agrees to sell one suction
dredging boat with capacity of 3800m3/hour to
Party B within 3 years and the two parties have reached the agreement as
follows.

     

    I.
Specifications of the Boat, Quantity and Reference

    1.           Specification
of the boat: suction
dredging boat with capacity of 3800m3/hour

    

    2.           Quantity:       One

     

    3.           Party
A warrants that the boat is to be one newly built by using the most advance
equipment in the market, technology and labor in the completion of the building
of the boat.

     

    4.           Party
B bears the obligation of confidentiality regarding the technology-related
information revealed by Party A.

     

    II.
Contract Price and Payment Method

    1.           Contract
price

    1.1           The
contract price for the boat is calculated, settled and paid in
Renminbi.

    1.2           The
contract price for the boat is RMB
¥200,000,000.00.

    1.3           The
aforesaid contract price includes fees and expenses for design and construction,
boat inspection review chart, boat acceptance fee, technology assessment fee and
all other fees associated with the application for various certificates, boat
inspection and boat classification.

    1.4           The
above price is the unconditional and final closed price.

    

    2.           Payment
Method

    2.1           Within
2 months after the execution of this contract, Party B shall make a prepayment
to Party A in the amount of ¥15,000,000.00.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2.2          Within
3 months after the delivery of the boat to Party B, Party B shall make a payment
to Party A in the amount equal to 30% of the final closed price after deducting
the prepayment of ¥15,000,000.00.

    2.3          Within
6 months after the delivery of the boat to Party B, Party B shall make a payment
to Party A in the amount equal to 25% of the final closed price after deducting
the prepayment of ¥15,000,000.00.

    2.4          Within
9 months after the delivery of the boat to Party B, Party B shall make a payment
to Party A in the amount equal to 25% of the final closed price after deducting
the prepayment of ¥15,000,000.00.

    2.5          Within
12 months after the delivery of the boat to Party B, Party B shall make a
payment to Party A in the amount equal to 20% of the final closed price after
deducting the prepayment of ¥15,000,000.00.

    

    3.           Past
Due Penalty

    If Party B fails to make payments
according to the schedule as stipulated herein, Party B must pay the penalty
interest for the period from the date when payment is due to the date when
payment is actually made in addition to payment for the past-due
amount.  The penalty interest is assessed on the outstanding amount or
past-due amount at the rate of liquid capital loan rate of the People’s Bank of
China for the same period.

    Party A must not change the boat
delivery date because of this.

     

    III.
Boat Delivery

    1.           Date
and Place of Boat Delivery

    1.1          The
date of the boat delivery shall be no later than May 31, 2012.

    1.2          Place:
To be specified by Party B.

    

    2.           Boat
Acceptance

    2.1          Party
A must notify Party B in writing the actual date of boat delivery 15 days in
advance and confirm with Party B 5 days in advance.

    2.2          At
the time of delivery, Party A promises that:

    A). All the defects of the boat found
during the test sail and test operation (actual engineering operation) have been
eliminated, items of winding up the project have been completed and all
equipment can be operated normally;

    B). All spare items, spare parts, tools
and required certificates, diagrams, technical documents have been assembled and
put in place.  See Attachment 1 of this
contract,  “3800m3/hour
Capacity Suction Dredging Boat Body Type and Major Technical Specifications” for
all spare items, spare parts and tools and technical features;

    2.3          After
the boat has passed the quality inspection by a boat inspector and after Party B
receives notice from Party A about the delivery of the boat, Party B must accept
the delivery on time.  At the acceptance of the delivery, the
representatives authorized by Party A and Party B will sign “Boat Delivery and
Acceptance Letter”.  The date of signing the letter is the official
date of the delivery of the boat.

    2.4          Party
A must ensure that the fuel stored on the boat at the time of delivery is above
80% of its maximum storage capacity.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    3.           Ownership
and Transfer of Risk

    Before the delivery of the boat, Party
A has its ownership and is responsible for the associated risk and
interests.  After Party A and Party B sign “Boat Delivery and
Acceptance Letter”, the ownership is transferred to Party B along with all the
associated risk and interests.

    

    4.           Removing
the Boat

    Party B must remove the boat from the
port of delivery within 15 days after the signing of “Boat Delivery and
Acceptance Letter”; otherwise, Party B must pay to Party A the port fee for the
boat.

    

    5.           Party
B can dispatch its authorized representative(s) to be on board the boat one
month prior to the boat delivery until the date of the boat delivery so that the
representative(s) can examine and become familiar with the equipment on the
boat.  Party B shall be responsible for the expenses of the
accompanying boat and its crew.

    

    .6           If
Party A is unable to delivery the boat within the time period stipulated herein,
Party A shall pay to Party B a default penalty based on the amount of payments
already made by Party B at the daily rate of 0.05% and compensate Party B for
all the resulting loss.

     

    IV.
Force Majeure

    1.           If,
during the fulfillment period (i.e., boat delivery period) stipulated herein,
the process of building the boat is delayed by irresistible, objective events
such as earthquake, tsunami, typhoon, hurricane, severe storm, flood and plaque
or by the suppliers of material and equipment similarly impacted by such events,
such delay must be considered to be allowed postponement.

    

    2.           Party
A must notify Party B in writing within 15 days of the occurrence of such Force
Majeure events and provide valid documents of evidence issued by the competent
local government agencies.  After the events of Force Majeure are
cleared, Party A must notify Party B immediately.

     

    V.
Quality Guarantee

    1.           Responsibility
for Defects and Its Scope

    The 12-month period starting from the
date of the signing of “Boat Delivery and Acceptance Letter” is the warranty
period for the boat; during this warranty period, Party A is responsible to
provide free repairs and replacements for the defects, break-downs and damages
resulting from the boat construction, technical process and material or due to
equipment quality issues.

    Party A is responsible to provide
repairs, at Party B’s cost, for the damages, break-downs and defects caused by
improper operation or improper maintenance by Party B and for the vulnerable
parts damaged due to normal wear and tear.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    2.           Notification
of Defects

    During the warranty period, Party B
must promptly notify Party A, by fax or in other written form, of any found
defect within the scope of warranty and provide explanation of the nature and
degree of the damage and the defect.  The last valid period of such
notification is 7 days after the expiration of the warranty period for the boat
(based on the post mark if the notification is sent by mail)

     

    3.           Treatment
of Defects

    3.1           In
principle, the warranty repairs on the boat must be performed at the shipyard
arranged by Party A.

    3.2           If
the boat experiences quality issues that are within the scope of warranty at a
port away from Party A’s location or during the course of sail so that the boat
is not able to return to Party A for repairs, Party B must notify Party A
promptly and Party A must dispatch someone within 7 days upon receiving the
notification to the boat to confirm and resolve the issues.  If Party
A is unable to dispatch someone, Party A must notify Party B by telegram within
5 days after receiving Party B’s telegram notification, and Party B may have the
boat repaired or its parts replaced at a nearby shipyard or repair
facility.  If the repairs or the parts replaced are indeed within the
scope of warranty provided by Party A, Party B must provide inspection documents
issued by relevant ship inspection agencies and the invoices from the facility
that has performed repairs, and Party A must be responsible for all the expenses
and fees.  The replaced parts belong to Party A and Party B must bring
them to Party A on the boat.

    3.3           After
the expiration of the warranty period, warranty repairs requested by Party B
must be arranged by Party A according to the rules.  If Party B
requests warranty repairs to be performed below the load line, the boat must be
examined and inspected after it enters the shipyard; if any defect or damage
below the load line is actually found, and such defect or damage is caused by
the quality issues arising from the construction of the boat by Party A, then
Party A is responsible for all the shipyard fees and repair expenses; otherwise,
Party B is responsible for all the shipyard fees if no such defect or damage is
found below the load line.

     

    VI.
Disputes and Arbitration

    Any disputes and conflicts between
Party A and Party B arising from the course of performance of this contract
should be settled in a timely manner through consultation; if such consultation
fails, the two parties must have the disputes submitted to China Maritime
Affairs Arbitration Commission for arbitration pursuant to the Commission's
arbitration rules.  The Commission's determination is final and
binding to both parties.

     

    VII.
Execution and Effectuation of this Contract

    1.           This
contract becomes effective immediately after it is signed by the legal
representatives, or by their authorized agents, of both parties and imprinted
with the company seals.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    2.           The
attachments hereto are the component parts hereof and have the same legal effect
as this contract.

    

    3.           This
contract, upon its execution, shall not be modified or dissolved due to the
change of legal representatives or their authorized agents; if either Party A or
Party B undergoes merger or spin-off, the party after undergoing such change
shall assume all or assume respective obligations of this contract and be
entitled to the corresponding rights.

    

    4.           This
contract proper is in duplicates, with one to each party; Party A and Party B
each will have two copies of this contract; the copies of and the attachments to
this contract have the same effect.

     

    Party
A:           Yiyang Zhonghai
Boats and Ships Limited Liability Company (seal)

    Signature
of Legal Representative:       HE Junqiang
(signature)

    Date:              
 May 20, 2009

    

    Party
B:            Fujian Xing
Gang Shipping Service Co., Ltd. (seal)

    Signature
of Legal Representative:       LIN Qing
(signature)

    Date:                May
20, 2009

     

     

    
      
        
        

      

      
        5Crewmen
Dispatch Contract

    (“Xing
Gang Dredging 3”)

    

    (Unofficial
Translation)

    

    Party
A:          
Fujian Haiyi International Shipping Service Agency Co., Ltd.

    Party
B:          
Fujian Xing Gang Shipping Service Co., Ltd.

    

    Party A and Party B, after friendly
consultation based on the principles of equality and mutual benefit, have
reached the agreement regarding the matter of Party A dispatching crewmen to
work at relevant posts on Party B’s dredging engineering boat “Xing Gang
Dredging 3” and set forth the following provisions to be adhered to by
both:

    

    Article
I          
Generals

    

    1.           
The term “dispatched crewmen” used herein means those crewmen who are
dispatched by Party A, pursuant to the provisions herein, to work at relevant
posts on Party B’s dredging engineering boat “Xing Gang Dredging 3”; see
attachment for the list of dispatched crewmen.

    

    2.           
The two parties agree that the monthly crewmen dispatch fee is RMB
Seven-Nine Thousand Five Hundred Yuan (¥79,500.00).  Party
B must pay the crewmen dispatch fee to Party A at the end of each
quarter.  If a period is less than a month, the fee for the period is
calculated on the basis of one month.

    The said labor dispatch fee includes
all the fees and expenses such as the dispatched crewmen’s salaries, all
benefits and insurances (including but not limited to pensions insurance,
unemployment insurance, medical insurance, family planning insurance, injury
insurance, housing fund and commercial insurance) and bonuses.

    

    
      	
              3.

            	
              Term
      of the contract

            

    

    This contract becomes effective on
April 21, 2008 and terminates on April 20, 2011.

    

    Article
II           Party A’s Rights
and Obligations

    

    
      	
              4.

            	
              Party
      A has the following obligations:

            

    

    4.1        
Recommend the crewmen candidates in accordance with the provisions of
this contract.

    Educate the dispatched crewmen on the
compliance with the State laws, statutes and regulations; educate the dispatched
crewmen on the compliance with Party B’s rules and policies, on maintaining
confidentiality of commercial secrets and on safeguarding Party B’s legitimate
rights and interests.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    4.2         Ensure
that the dispatched crewmen have the qualifications and skills required of their
respective posts and possess valid and complete employment qualification
documents, including but not limited to crewmen service books, maritime crewmen
professional training certificates and maritime crewmen service competency
certificates.

    4.3         Party
B must notify Party A in writing, three business days in advance, of the
boarding time and boarding location for the crewmen dispatched by Party
A.  Party A must ensure that all the dispatched crewmen will report
for duty at the time and location specified by Party B.

    If there is any factor on Party B’s
part that causes a waiting period of more than half a month before the
dispatched crewmen can be aboard, Party B must still pay the same amount
salaries to Party A; if the waiting period exceeds a month, Party A has the
right to terminate this contract.

    4.4         After
the dispatched crewmen have passed assessment and been assigned by Party B,
Party A shall not issue command at will to and replace them.  Party A
must ensure that Party B has the absolute leadership authority over the
dispatched crewmen.  During the term of the contract, the dispatched
crewmen must follow the operation arrangement from Party B’s safety and shipping
service scheduling department.

    4.5         Party
A will pay salaries and bonuses to the dispatched crewmen, withhold and pay on
their behalf personal income taxes and make payment for them of all the State
mandated insurances, including but not limited to pensions insurance,
unemployment insurance, medical insurance, family planning insurance, injury
insurance, housing fund and commercial insurance.

    

    
      	
              5.

            	
              Party
      A has the following rights:

            

    

    5.1         Party
A has the right to receive the crewmen dispatch fee pursuant to the provisions
herein;

    5.2         Upon
the occurrence of any of the following during the term of this contract, Party A
can request to dissolve the crewmen dispatch relationship with Party B without
any liabilities; but such request must be sent to Party B in writing 30 days in
advance:

    (1)         Party
B violates the State laws and statues and the relevant provisions
herein;

    (2)         Party
B’s actions violate the dispatched crewmen’s legitimate rights and
interests;

    (3)         Party
B refuses to pay the crewmen dispatch fee or Party B’s payment of such fee is a
month past due.

    

    Article
III           Party B’s Rights
and Obligations

    

    
      	
              6.

            	
              Party
      B has the following rights:

            

    

    6.1         Party
B has the right to conduct assessment on the crewmen dispatched by Party
A.

    If the
dispatched crewmen do not have the qualifications or skills required of their
respective posts, Party B has the right to demand Party A to replace them and
Party A shall not refuse such demand.  Party A must bear corresponding
responsibility if the dispatched crewmen’s lack of qualifications or skills
causes any loss to Party B.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    6.2         Party
B has the right to require the dispatched crewmen to comply with all the rules
and policies formulated in accordance with the relevant State laws and policies
and follow Party B’s production and operation arrangements.

    6.3         If
the dispatched crewmen engage in any of the following during the term of the
contract, Party B has the right, upon Party A’s acknowledgement, to send them
back to Party A without any liability for breach:

    (1)         Violation
of Party B’s work disciplines or rules and regulations, and after criticism and
education, failure to make any correction or rectification;

    (2)         Negligence
of duties, resulting in serious loss or damage to Party B’s
interests;

    (3)         Violation
of law and statutes or being the subject of criminal legal
proceedings;

    (4)         Inability
to perform original work duties after treatment period for illness or
work-related injury and inability, or refusal, to perform other work assigned by
Party A;

    If the
dispatched crewmen seriously violate Party B’s legitimate rules and regulations
(this provision should be made known to the dispatched crewmen and Party A) and
there is solid evidence of such violation, Party B may submit report in writing
to Party A and, upon Party A’s acknowledgement, terminate the said crewmen’s
dispatch.   In the meantime, Party A must dispatch replacement
crewmen.

    6.4         Party
B has the right to submit written opinion on, and negotiate with regard to, the
behavior that violates the relevant provisions of this
contract.  Party A must respond to Party B in writing within 10
business days upon receiving the written opinion from Party B.

    

    
      	
              7.

            	
              Party
      B has the following obligations:

            

    

    7.1         Manage
the dispatched crewmen in such areas as their posts’ duties and responsibilities
and labor discipline and provide them with relevant training;

    7.2         Provide
to the dispatched crewmen working environment and labor conditions that are in
compliance with the provisions of the State’s “Labor Law”;

    7.3         Pay
the crewmen dispatch fee in accordance with the provisions of this
contract;

    If Party B fails to pay the crewmen
dispatch fee on time pursuant to the provisions of this contract, Party B must
pay a breach penalty at the daily rate of 0.1% of the total of the unpaid or
past due crewmen dispatch fee; but the cumulative total of such breach penalty
shall not exceed 5% of the total crewmen dispatch fee for the corresponding
period.

    7.4         Ensure
that the dispatched crewmen have all the rights and interests provided by the
State’s “Labor Law” during the term of service and assume the obligations and
responsibilities provided by the State’s “Labor Law”;

    7.5         Shall
not suspend or terminate those dispatched crewmen while they are in pregnancy,
labor or nursing periods and in the required treatment period for illness or
injury; pay to Party A the corresponding expenses for those dispatched crewmen
who suffer work-related injury or contract occupational disease and, upon
verification, have lost, or partially lost, their ability to work and who suffer
work-related death in accordance with the relevant provisions of the “Labor
Law”;

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    7.6         Supervise
in the processing of relevant legal work documents for the dispatch crewmen
required for the term of service and educate them on the adherence of
disciplines and compliance of law;

    7.7         Notify
Party A fifteen business days in advance in the event of relocation of work
location due to business need; notify Party A two business days in advance in
the event of any change of contact telephone number, fax number or bank account
number;

    7.8         Follow
strictly the specification of the assignment posts stipulated in the contract;
consult with Party A on any need to change the posts for the dispatched crewmen
and bear all consequences resulting from changing the posts of the dispatched
crewmen without prior consultation with Party A.

    7.9         Party
A and Party B must be responsible for handling the cases of work-related
injuries and accidental death suffered by the dispatched crewmen in accordance
with the relevant State regulations, with Party B bearing the corresponding
expenses.

    

    Article
IV           Dispute and
Arbitration

    

    8.          
Any dispute arising from performance of, or in connection with, this
contract must be settled through consultation; if such consultation fails,
either party may submit the dispute to the legal proceedings at the people’s
court in Fuzhou City.

    

    Article
V          
Others

    

    9.          
Other matters not covered herein must be settled by Party A and Party B
through consultation or be provided in supplemental agreement formulated in
accordance with relevant provisions of the State law, statutes and
regulations.

    

    10.         If
any content herein conflicts with the State law or policies, or is inconsistent
due to the changes of the law and policies, the provisions of the law or such
policies shall prevail.

    

    11.         All
attachments hereto are the component parts hereto and have the same legal
effect.

    

    12.         The
contract becomes effective on the date it is signed and imprinted with the seals
by both parties.

    

    13.         This
contract is in duplicates, with one to each party, and both have the same legal
effect.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  Signature
      (Seal) of Party A’s representative:

                	 
      
	
                  /s/ HUANG Jian

                	 
      
	
                  /seal/
      (seal visible but not legible)

                	 
      
	
                  Date:   
      April 21, 2008

                	 
      

        

      

    

    

    
      
        
          	
                  Signature
      (Seal) of Party B’s representative:

                	 
      
	
                  /s/ LIN Qing

                	 
      
	
                  /seal/
      (seal visible but not legible)

                	 
      
	
                  Date:   
      April 21, 2008

                	 
      

        

      

    

    

    Attachment:
List of Dispatched Crewmen

    
      
        
          
            
              
                	
                        Post

                      	 	
                        Number

                      
	
                        Cook

                      	 	
                        1

                      
	
                        Seaman

                      	 	
                        9

                      
	
                        Mechanic

                      	 	
                        5

                      
	
                        Total

                      	 	
                        15

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