Document:

EXHIBIT 10.1

                         COMMON STOCK PURCHASE AGREEMENT

                          DATED AS OF NOVEMBER 13, 2003

                                 BY AND BETWEEN

                                 OMI CORPORATION

                                       AND

               ACQUA WELLINGTON NORTH AMERICAN EQUITIES FUND, LTD.

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                                TABLE OF CONTENTS

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ARTICLE I Definitions.............................................................................................1

         Section 1.1       Definitions............................................................................1

ARTICLE II Purchase and Sale of Common Stock......................................................................5

         Section 2.1       Purchase and Sale of Stock.............................................................5
         Section 2.2       The Shares.............................................................................5
         Section 2.3       Registration Statements................................................................6
         Section 2.4       Purchase Price and Closing.............................................................6

ARTICLE III Representations and Warranties........................................................................6

         Section 3.1       Representations and Warranties of the Company..........................................6
         Section 3.2       Representations and Warranties of the Purchaser.......................................13

Article Iv Covenants.............................................................................................15

         Section 4.1       Securities Compliance.................................................................15
         Section 4.2       Registration and Listing..............................................................15
         Section 4.3       Registration Statement................................................................15
         Section 4.4       Compliance With Laws..................................................................15
         Section 4.5       Keeping of Records and Books of Account...............................................16
         Section 4.6       Limitations On Holdings and Issuances.................................................16
         Section 4.7       Amendment to Registration Statement...................................................16
         Section 4.8       Other Agreements and Other Financings.................................................16
         Section 4.9       Stop Orders...........................................................................17
         Section 4.10      Amendments to the Registration Statement..............................................18
         Section 4.11      Prospectus Delivery...................................................................18
         Section 4.12      Selling Restriction...................................................................18
         Section 4.13      Non-public Information................................................................19
         Section 4.14      Effective Registration Statement......................................................19
         Section 4.15      Disclosure of Draw Down Notice........................................................19
         Section 4.16      Broker-dealer.........................................................................19

ARTICLE V Conditions to Closing, Draw Downs and Call Options.....................................................19

         Section 5.1       Conditions Precedent to Closing by the Company and to the Company's Obligation
                           to Sell the Shares....................................................................19
         Section 5.2       Conditions Precedent to the Closing by the Purchaser..................................20
         Section 5.3       Conditions Precedent to the Obligation of the Purchaser to Accept a Draw Down
                           or Call Option Grant and Purchase the Shares..........................................21

ARTICLE VI Draw Down Terms; Call Option..........................................................................22
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                               TABLE OF CONTENTS
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         Section 6.1       Draw Down Terms.......................................................................22
         Section 6.2       Purchaser's Call Option...............................................................25
         Section 6.3       Aggregate Limit.......................................................................26

ARTICLE VII Termination..........................................................................................26

         Section 7.1       Term; Termination by Mutual Consent...................................................26
         Section 7.2       Other Termination.....................................................................26
         Section 7.3       Effect of Termination.................................................................26

ARTICLE VIII Indemnification.....................................................................................27

         Section 8.1       General Indemnity.....................................................................27
         Section 8.2       Indemnification Procedures............................................................28

ARTICLE IX Miscellaneous.........................................................................................29

         Section 9.1       Fees and Expenses.....................................................................29
         Section 9.2       Specific Enforcement, Consent to Jurisdiction.........................................29
         Section 9.3       Entire Agreement; Amendment...........................................................30
         Section 9.4       Notices...............................................................................30
         Section 9.5       Waivers...............................................................................31
         Section 9.6       Headings..............................................................................31
         Section 9.7       Successors and Assigns................................................................31
         Section 9.8       Governing Law.........................................................................32
         Section 9.9       Survival..............................................................................32
         Section 9.10      Counterparts..........................................................................32
         Section 9.11      Publicity.............................................................................32
         Section 9.12      Severability..........................................................................32
         Section 9.13      Further Assurances....................................................................32
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                        COMMON STOCK PURCHASE AGREEMENT

         This COMMON STOCK PURCHASE AGREEMENT (this "AGREEMENT"), is dated as of
November 13, 2003 by and between OMI Corporation, a Marshall Islands Corporation
(the "COMPANY") and Acqua Wellington North American Equities Fund, Ltd., an
international business company incorporated under the laws of the Commonwealth
of The Bahamas (the "Purchaser").

         The parties hereto agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

         Section 1.1  DEFINITIONS.

                  (a) "ACCEPTABLE FINANCING" shall have the meaning assigned to
such term in Section 4.8(b) hereof.

                  (b) "AGGREGATE LIMIT" shall have the meaning assigned to such
term in Section 2.1 hereof.

                  (c) "ALTERNATE MARKET" shall mean the Nasdaq National Market,
Nasdaq Small Cap Market, the American Stock Exchange or the OTC Bulletin Board,
whichever is at the time the principal trading exchange or market for the Common
Stock.

                  (d) "AMENDMENT" shall have the meaning assigned to such term
in Section 4.7 hereof.

                  (e) "ARTICLES" shall have the meaning assigned to such term in
Section 3.1(c) hereof.

                  (f) "BELOW THRESHOLD AMOUNT" shall have the meaning assigned
to such term in Section 6.1(i) hereof.

                  (g) "BROKER-DEALER" shall have the meaning assigned to such
term in Section 8.1(A) hereof.

                  (h) "BYLAWS" shall have the meaning assigned to such term in
Section 3.1(c) hereof.

                  (i) "CALL OPTION" means the transactions contemplated under
Section 6.2 of this Agreement.

                  (j) "CALL OPTION AMOUNT" shall mean the actual amount of
proceeds received by the Company by a Call Option under this Agreement.

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                  (k) "CALL OPTION AMOUNT REQUESTED" shall mean the amount of a
Call Option requested by the Company as provided in Section 6.2 hereof.

                  (l) "CALL OPTION NOTICE" shall mean a notice sent to the
Company on the Trading Day the Purchaser elects to exercise a Call Option, as
provided in Section 6.2(e) hereof, and substantially in the form attached hereto
as Exhibit F.

                  (m) "CLOSING" shall have the meaning assigned to such term in
Section 2.4 hereof.

                  (n) "CLOSING DATE" shall have the meaning assigned to such
term in Section 2.4 hereof.

                  (o) "COMMISSION" shall mean the Securities and Exchange
Commission or any successor entity.

                  (p) "COMMISSION DOCUMENTS" shall mean all reports, schedules,
forms, statements and other documents filed by the Company with the Commission
pursuant to the reporting requirements of the Exchange Act, including material
filed pursuant to Section 13(a) or 15(d) of the Exchange Act, which have been
previously filed by the Company and which shall be filed by the Company in the
future during the Investment Period, including, without limitation the Annual
Report on Form 10-K filed by the Company for the year ended December 31, 2002,
the Quarterly Reports on Form 10-Q and the Current Reports on Form 8-K filed by
the Company after December 31, 2002.

                  (q) "COMMISSION FILINGS" means the Registration Statement, as
the same has been and may be amended from time to time, and all other filings
made by the Company with the Commission prior to or after the date hereof
pursuant to the Exchange Act.

                  (r) "COMMON STOCK" means the Company's common stock, $0.50 par
value per share.

                  (s) "DTC" shall have the meaning assigned to such term in
Section 6.1(l).

                  (t) "DWAC" shall have the meaning assigned to such term in
Section 6.1(l).

                  (u) "DRAW DOWN" means the transactions contemplated under
Section 6.1 of this Agreement.

                  (v) "DRAW DOWN AMOUNT" means the actual amount of proceeds
received by the Company by a Draw Down under this Agreement.

                  (w) "DRAW DOWN AMOUNT REQUESTED" shall mean the amount of a
Draw Down requested by the Company in its Draw Down Notice as provided in
Section 6.1(j) hereof.

                  (x) "DRAW DOWN DISCOUNT PRICE" shall have the meaning assigned
to such term in Section 6.1(b) hereof.

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                  (y) "DRAW DOWN EXERCISE DATE" shall have the meaning assigned
to such term in Section 6.1(a) hereof.

                  (z) "DRAW DOWN NOTICE" shall mean a notice sent by the Company
to exercise a Draw Down as provided in Section 6.1(j) hereof.

                  (aa) "DRAW DOWN PRICING PERIOD" shall mean a period of twenty
(20) consecutive Trading Days commencing on the first Trading Day designated as
the start date of such draw down pricing period in the Draw Down Notice, or such
other period mutually agreed upon by the Purchaser and the Company.

                  (bb) "ENVIRONMENTAL LAWS" shall have the meaning assigned to
such term in Section 3.1(r) hereof.

                  (cc) "ERISA AFFILIATE" shall have the meaning assigned to such
term in Section 3.1(y) hereof.

                  (dd) "EVENT PERIOD" shall have the meaning assigned to such
term in Section 7.2 hereof.

                  (ee) "EXCHANGE ACT" shall mean the Securities Exchange Act of
1934, as amended, and the rules and regulations of the Commission thereunder.

                  (ff) "GAAP" shall mean generally accepted accounting
principles in the United States of America as applied by the Company.

                  (gg) "INDEBTEDNESS" shall have the meaning assigned to such
term in Section 3.1(k) hereof.

                  (hh) "INVESTMENT PERIOD" shall have the meaning assigned to
such term in Section 7.1 hereof.

                  (ii) "KNOWLEDGE" shall mean actual knowledge of any officers
or directors of the Company and the knowledge that such officers and directors
should have had after reasonable inquiry.

                  (jj) "MATERIAL ADVERSE EFFECT" shall mean any effect on the
business, prospects, operations, properties or financial condition of the
Company that is material and adverse to the Company and its subsidiaries and
affiliates, taken as a whole, and/or any condition, circumstance, or situation
that would prohibit or otherwise interfere with the ability of the Company to
enter into and perform any of its obligations under this Agreement in any
material respect.

                  (kk) "MATERIAL AGREEMENTS" shall have the meaning assigned to
such term in Section 3.1(s) hereof.

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                  (ll) "MATERIAL CHANGE IN OWNERSHIP" shall mean that the
officers, directors and significant investors of the Company shall beneficially
own in the aggregate less than 1.5% of the outstanding Common Stock.

                  (mm) "NYSE" means the New York Stock Exchange or any successor
thereto.

                  (nn) "OTHER FINANCING" shall have the meaning assigned to such
term in Section 4.8(b) hereof.

                  (oo) "OTHER FINANCING NOTICE" shall have the meaning assigned
to such term in Section 4.8(b) hereof.

                  (pp) "PERMITTED TRANSACTION" shall have the meaning assigned
to such term in Section 4.8(b) hereof.

                  (qq) "PRO-RATA AMOUNT" shall equal the Draw Down Amount
Requested multiplied by a fraction, the numerator of which is one (1) and the
denominator of which equals the number of Trading Days in the Draw Down Pricing
Period.

                  (rr) "PROSPECTUS" as used in this Agreement means the
prospectus with respect to this Agreement in the form included in the
Registration Statement as supplemented by any supplement to the Prospectus filed
with the Commission pursuant to Rule 424(b) promulgated under Securities Act,
or, if the prospectus included in the Registration Statement omits information
in reliance on Rule 430A under the Securities Act, and such information is
included in a prospectus filed with the Commission pursuant to Rule 424(b) under
the Securities Act, the term "PROSPECTUS" as used in this Agreement means the
prospectus in the form included in the Registration Statement, as amended, as
supplemented by the addition of the Rule 430A information contained in the
Prospectus filed with the Commission pursuant to Rule 424(b).

                  (ss) "REGISTRATION STATEMENT" shall mean the registration
statement on Form S-3, Commission File Number 333-105195 under the Securities
Act, filed with the Securities and Exchange Commission for the registration of
the Shares, as such Registration Statement may be amended from time to time,
including by the Amendment.

                  (tt) "SECURITIES ACT" shall mean the Securities Act of 1933,
as amended, and the rules and regulations of the Commission thereunder.

                  (uu) "SETTLEMENT DATE" shall have the meaning assigned to such
term in Section 6.1(e) hereof.

                  (vv) "SHARES" shall mean, collectively, the shares of Common
Stock of the Company issuable to the Purchaser upon exercise of any Draw Down
and those shares of Common Stock issuable to the Purchaser upon exercise of any
Call Option.

                  (ww) "THRESHOLD PRICE" is the lowest price at which the
Company may set in the Draw Down Notice to sell Shares during each Draw Down
Pricing Period (not taking into account the Draw Down Discount Price during such
Draw Down Pricing Period); provided, however, that at no time shall the
Threshold Price be set below two dollars ($2.00) (as adjusted

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for stock splits, reverse stock splits, recapitalizations and the like) per
share unless the Company and the Purchaser mutually agree.

                  (xx) "TRADING DAY" shall mean a trading day on the NYSE.

                  (yy) "TRADING DAY NUMBER" shall have the meaning assigned to
such term in Section 6.1(m) hereof.

                  (zz) "TRUNCATE NOTICE" shall have the meaning assigned to such
term in Section 6.1(m) hereof.

                  (aaa) "TRUNCATED DRAW DOWN ALLOCATION AMOUNT" shall mean the
portion of the Draw Down Amount Requested that is allocated to the purchase of
Shares in accordance with Section 6.1 hereof for each Trading Day in a Truncated
Pricing Period (as provided in Section 6.1(m) hereof) that (i) the VWAP equals
or exceeds the Threshold Price, and (ii) the VWAP is below the Threshold Price
and the Purchaser elects to purchase the Common Stock at the Threshold Price in
accordance with clauses (i) and (m) of Section 6.1 hereof.

                  (bbb) "TRUNCATED PRICING PERIOD" shall have the meaning
assigned to such term in Section 6.1(m) hereof.

                  (ccc) "UNALLOCATED DAY" shall have the meaning assigned to
such term in Section 6.1 (i) hereof.

                  (ddd) "VWAP" shall mean the daily volume weighted average
price (based on a Trading Day from 9:30 a.m. to 4:00 p.m. (New York time)) of
the Company's Common Stock on the NYSE or an Alternate Market as reported by
Bloomberg Financial LP using the AQR function.

                                   ARTICLE II

                        PURCHASE AND SALE OF COMMON STOCK

         Section 2.1  PURCHASE AND SALE OF STOCK. Subject to the terms and
conditions of this Agreement, the Company shall issue and sell to the Purchaser
and the Purchaser shall purchase from the Company during the Investment Period
up to a maximum of $57,000,000 of Common Stock (the "AGGREGATE LIMIT") through
(i) up to eighteen (18) monthly Draw Downs during the Investment Period as
provided in Section 6.1 hereof and (ii) one (1) or more Call Options which the
Company may in its discretion grant to the Purchaser and which may be exercised
by the Purchaser during the applicable Draw Down Pricing Period, as provided in
Section 6.2 hereof. The aggregate dollar amount of all Draw Down Amounts and
Call Option Amounts pursuant to the terms and conditions of this Agreement shall
not exceed the Aggregate Limit.

         Section 2.2 THE SHARES. The Company has authorized and has reserved and
covenants to continue to reserve, subject to Section 4.4(b) hereof, free of
preemptive rights and other similar contractual rights of stockholders, a
sufficient number of its authorized but unissued shares of its Common Stock to
cover the Shares to be issued in connection with all Draw Downs and Call
Options.

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         Section 2.3 REGISTRATION STATEMENTS. The Company has prepared and filed
with the Commission in accordance with the provisions of the Securities Act, the
Registration Statement, including a Prospectus. The Registration Statement was
declared effective by the Commission on May 15, 2003. Pursuant to Section 4.7,
the Company will file with the Commission a post-effective amendment (the
"AMENDMENT") to the Registration Statement relating to this Agreement.

         Section 2.4 PURCHASE PRICE AND CLOSING. In consideration of and in
express reliance upon the representations, warranties, covenants, terms and
conditions of this Agreement, the Company agrees to issue and sell to the
Purchaser, and the Purchaser agrees to purchase, that number of the Shares to be
issued in connection with each Draw Down and exercise of each Call Option in
accordance with the terms and conditions of this Agreement. The execution of
this Agreement shall take place at the offices of Latham & Watkins, 505
Montgomery Street, Suite 1900, San Francisco, California 94111 (the "CLOSING")
at 10:00 a.m. (New York time) on (i) November 13, 2003 or (ii) such other time
and place or on such date as the Purchaser and the Company may agree upon (the
"CLOSING DATE"). Each party shall deliver all documents, instruments and
writings required to be delivered by such party pursuant to this Agreement at or
prior to the Closing.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         Section 3.1  REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
hereby makes the following representations and warranties to the Purchaser:

                  (a) ORGANIZATION, GOOD STANDING AND POWER. The Company is a
corporation duly incorporated, validly existing and in good standing under the
laws of the Marshall Islands and has the requisite corporate power to own, lease
and operate its properties and assets and to conduct its business as it is now
being conducted. As of the date hereof, the Company does not have any
subsidiaries (as defined in Section 3.1(g)) except as set forth in the
Commission Documents, the Commission Filings or on Schedule 3.1(a) attached
hereto. The Company and each such subsidiary is duly qualified as a foreign
corporation to do business and is in good standing in every jurisdiction in
which the nature of the business conducted or property owned by it makes such
qualification necessary except for any jurisdiction in which the failure to be
so qualified will not result in a Material Adverse Effect.

                  (b) AUTHORIZATION; ENFORCEMENT. The Company has the requisite
corporate power and authority to enter into and perform this Agreement and to
issue and sell the Shares in accordance with the terms hereof. The execution,
delivery and performance of this Agreement by the Company and the consummation
by it of the transactions contemplated hereby have been duly and validly
authorized by all necessary corporate action, and no further consent or
authorization of the Company or its Board of Directors or stockholders is
required. This Agreement has been duly executed and delivered by the Company.
This Agreement constitutes, or shall constitute when executed and delivered, a
valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation,

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conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement of, creditor's rights and remedies or by other
equitable principles of general application.

                  (c) CAPITALIZATION. The authorized capital stock of the
Company and the shares thereof issued and outstanding as of November 13, 2003
are set forth in the Registration Statement or on Schedule 3.1(c) attached
hereto. All of the outstanding shares of Common Stock have been duly and validly
authorized, and are fully paid and nonassessable. Except as set forth in the
Commission Documents, the Commission Filings or on Schedule 3.1(c) attached
hereto, as of the date hereof, there are no outstanding options or warrants of
any character whatsoever relating to, or securities or rights convertible into,
any shares of capital stock of the Company. Furthermore, except as set forth in
the Commission Documents, the Commission Filings or Schedule 3.1(c) attached
hereto, as of the date hereof, there are no contracts, commitments,
understandings, or arrangements by which the Company is or may become bound to
issue additional shares of the capital stock of the Company or options,
securities or rights convertible into shares of capital stock of the Company.
Except for customary transfer restrictions contained in agreements entered into
by the Company in order to sell restricted securities or as set forth in the
Commission Documents, the Commission Filings or Schedule 3.1(c) attached hereto,
as of the date hereof, the Company is not a party to, and it has no knowledge
of, any agreement restricting the voting or transfer of any shares of the
capital stock of the Company. Except as set forth in the Commission Documents,
the Commission Filings or Schedule 3.1(c) attached hereto, as of the date hereof
the Company is not a party to any agreement granting registration rights,
preemptive rights or subscription rights to any person with respect to any
shares of its capital stock. Except as set forth on Schedule 3.1(c) attached
hereto, the offer and sale of all capital stock, convertible securities, rights,
warrants, or options of the Company issued prior to the Closing complied with
all applicable federal and state securities laws, and no stockholder has a right
of rescission or damages with respect thereto which would result in a Material
Adverse Effect. The Company has furnished or made available to the Purchaser
true and correct copies of the Company's Articles of Incorporation as in effect
on the date hereof (the "ARTICLES"), and the Company's Bylaws as in effect on
the date hereof (the "BYLAWS").

                  (d) ISSUANCE OF SHARES. The Shares to be issued under this
Agreement have been duly authorized by all necessary corporate action and, when
paid for and issued in accordance with the terms hereof, the Shares shall be
validly issued and outstanding, fully paid and nonassessable, and the Purchaser
shall be entitled to all rights accorded to a holder of Common Stock.

                  (e) NO CONFLICTS. The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the
transactions contemplated herein do not (i) violate any provision of the
Company's Articles or Bylaws, (ii) conflict with, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, mortgage, deed of trust, indenture,
note, bond, license, lease agreement, instrument or obligation to which the
Company is a party, (iii) create or impose a lien, charge or encumbrance on any
property of the Company under any agreement or any commitment to which the
Company is a party or by which the Company is bound or by which any of its
respective properties or assets are bound, or (iv) result in a violation of any
federal,

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state, local or foreign statute, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations) applicable to the
Company or any of its subsidiaries or by which any property or asset of the
Company or any of its subsidiaries are bound or affected, except, in all cases
(other than violations of federal securities laws), for such conflicts,
defaults, terminations, amendments, acceleration, cancellations and violations
as would not, individually or in the aggregate, result in a Material Adverse
Effect. The Company is not required under federal, state or local law, rule or
regulation to obtain any consent, authorization or order of, or make any filing
or registration with, any court or governmental agency in order for it to
execute, deliver or perform any of its obligations under this Agreement, or
issue and sell the Shares to the Purchaser in accordance with the terms hereof
(other than any filings which may be required to be made by the Company with the
Commission or NYSE subsequent to the Closing and the Amendment); provided,
however, that, for purposes of the representation made in this sentence, the
Company is assuming and relying upon the accuracy of the representations,
warranties and agreements of the Purchaser herein.

                  (f) COMMISSION DOCUMENTS, FINANCIAL STATEMENTS. The Common
Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act and,
except as disclosed in the Commission Documents, the Commission Filings or on
Schedule 3.1(f) attached hereto, as of the date hereof the Company has timely
filed all Commission Documents. The Company has not provided to the Purchaser
any information which, according to applicable law, rule or regulation, should
have been disclosed publicly by the Company but which has not been so disclosed,
other than with respect to the transactions contemplated by this Agreement. As
of their respective dates, the Commission Documents complied in all material
respects with the requirements of the Exchange Act and other federal, state and
local laws, rules and regulations applicable to them, and, as of their
respective dates, such Commission Documents did not contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The financial
statements of the Company included in the Commission Documents comply as to form
in all material respects with applicable accounting requirements and the
published rules and regulations of the Commission or other applicable rules and
regulations with respect thereto as of the date of filing. Such financial
statements have been prepared in accordance with GAAP applied on a consistent
basis during the periods involved (except (i) as may be otherwise indicated in
such financial statements or the notes thereto or (ii) in the case of unaudited
interim statements, to the extent they may not include footnotes or may be
condensed or summary statements), and fairly present in all material respects
the financial position of the Company and its subsidiaries as of the dates
thereof and the results of operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit
adjustments).

                  (g) SUBSIDIARIES. The Commission Documents, the Commission
Filings or Schedule 3.1(g) attached hereto set forth each subsidiary of the
Company as of the date hereof, showing the jurisdiction of its incorporation or
organization and showing the percentage of the Company's ownership of the
outstanding stock or other interests of such subsidiary. For the purposes of
this Agreement, "subsidiary" shall mean any corporation or other entity of which
at least a majority of the securities or other ownership interest having
ordinary voting power (absolutely or contingently) for the election of directors
or other persons performing similar functions are at the time owned directly or
indirectly by the Company and/or any of its other

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subsidiaries. Except as set forth in the Commission Documents or the Commission
Filings, none of such subsidiaries is a "significant subsidiary" as defined in
Regulation S-X.

                  (h) NO MATERIAL ADVERSE EFFECT. Since December 31, 2002, the
Company has not experienced or suffered any Material Adverse Effect.

                  (i) NO UNDISCLOSED LIABILITIES. Except as disclosed in the
Commission Documents, the Commission Filings or on Schedule 3.1(i) attached
hereto, neither the Company nor any of its subsidiaries has any liabilities,
obligations, claims or losses (whether liquidated or unliquidated, secured or
unsecured, absolute, accrued, contingent or otherwise) that would be required to
be disclosed on a balance sheet of the Company or any subsidiary (including the
notes thereto) in conformity with GAAP and are not disclosed in the Commission
Documents or Commission Filings, other than those incurred in the ordinary
course of the Company's or its subsidiaries respective businesses since December
31, 2002 and which, individually or in the aggregate, do not or would not result
in a Material Adverse Effect.

                  (j) NO UNDISCLOSED EVENTS OR CIRCUMSTANCES. No event or
circumstance has occurred or exists with respect to the Company or its
subsidiaries or their respective businesses, properties, prospects, operations
or financial condition, which, under applicable law, rule or regulation,
requires public disclosure or announcement by the Company but which, at the time
the Amendment is declared effective by the Commission, will not have been so
publicly announced or disclosed except for events or circumstances which
individually or in the aggregate, do not or would not result in a Material
Adverse Effect.

                  (k) INDEBTEDNESS. Except as set forth on Schedule 3.1(k)
attached hereto, the Commission Documents or Commission Filings set forth all
outstanding secured and unsecured Indebtedness of the Company or any subsidiary,
or for which the Company or any subsidiary has commitments. For the purposes of
this Agreement, "INDEBTEDNESS" shall mean (a) any liabilities for borrowed money
or amounts owed in excess of $1,000,000 (other than trade accounts payable
incurred in the ordinary course of business), (b) all guaranties, endorsements
and other contingent obligations in respect of Indebtedness of others, whether
or not the same are or should be reflected in the Company's balance sheet (or
the notes thereto), except guaranties by endorsement of negotiable instruments
for deposit or collection or similar transactions in the ordinary course of
business; and (c) the present value of any lease payments in excess of
$1,000,000 due under leases required to be capitalized in accordance with GAAP.
Neither the Company nor any subsidiary is in default with respect to any
Indebtedness.

                  (l) TITLE TO ASSETS. Each of the Company and its subsidiaries
has good and marketable title to all of their respective real and personal
property reflected in the Commission Documents or the Commission Filings, free
of any mortgages, pledges, charges, liens, security interests or other
encumbrances, except for those indicated in the Commission Documents, the
Commission Filings or on Schedule 3.1(l) attached hereto or those that do not or
would not result in a Material Adverse Effect. All said real property leases of
the Company and each of its subsidiaries are valid and subsisting and in full
force and effect in all material respects.

                  (m) ACTIONS PENDING. There is no action, suit, claim,
investigation or proceeding pending or, to the Knowledge of the Company,
threatened against the Company or

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any subsidiary which questions the validity of this Agreement or the
transactions contemplated hereby or any action taken or to be taken pursuant
hereto or thereto. Except as set forth in the Commission Documents, the
Commission Filings or on Schedule 3.1(m) attached hereto, there is no action,
suit, claim, investigation or proceeding pending or, to the Knowledge of the
Company, threatened, against or involving the Company, any subsidiary or any of
their respective properties or assets and which, if determined adversely to the
Company or its subsidiary, would result in a Material Adverse Effect.

                  (n) COMPLIANCE WITH LAW. The business of the Company and the
subsidiaries has been and is presently being conducted in all material respects
in accordance with all applicable federal, state and local governmental laws,
rules, regulations and ordinances, except as set forth in the Commission
Documents, the Commission Filings or on Schedule 3.1(n) attached hereto, and
except as, individually or in the aggregate, do not or would not result in a
Material Adverse Effect. The Company and each of its subsidiaries have all
franchises, permits, licenses, consents and other governmental or regulatory
authorizations and approvals necessary for the conduct of its business as now
being conducted by it, except where the failure to possess such franchises,
permits, licenses, consents and other governmental or regulatory authorizations
and approvals, individually or in the aggregate, do not or would not result in a
Material Adverse Effect.

                  (o) CERTAIN FEES. Except for the placement fee paid by the
Company to Credit Lyonnais, no brokers, finders or financial advisory fees or
commissions will be payable by the Company or any subsidiary with respect to the
transactions contemplated by this Agreement.

                  (p) DISCLOSURE. Neither this Agreement , the Schedules hereto
or the certificates delivered pursuant to Sections 5.2(g) and 5.3(d) nor, to the
Company's Knowledge, any other documents or instruments furnished to the
Purchaser by or on behalf of the Company or any subsidiary in connection with
the transactions contemplated by this Agreement, taken as a whole, contain any
untrue statement of a material fact or omits to state a material fact necessary
in order to make the statements made herein or therein, in the light of the
circumstances under which they were made herein or therein, not misleading.

                  (q) OPERATION OF BUSINESS. The Company or one or more of its
subsidiaries owns or controls all patents, trademarks, service marks, trade
names, copyrights, licenses and authorizations, and all rights with respect to
the foregoing, which are necessary for the conduct of its business as now
conducted without, to the Company's Knowledge, any conflict with the rights of
others, except to the extent set forth in the Commission Documents or the
Commission Filings and except to the extent that any such conflict would not
result in a Material Adverse Effect.

                  (r) ENVIRONMENTAL COMPLIANCE. Except as disclosed in the
Commission Documents, Commission Filings or on Schedule 3.1(r) attached hereto,
the Company and each of its subsidiaries have obtained all material approvals,
authorization, certificates, consents, licenses, orders and permits or other
similar authorizations of all governmental authorities, or from any other
person, that are required under any Environmental Laws, except for any
approvals, authorization, certificates, consents, licenses, orders and permits
or other similar authorizations the failure of which to obtain does not or would
not result in a Material Adverse

                                       10
<PAGE>

Effect. "ENVIRONMENTAL LAWS" shall mean all applicable laws relating to the
protection of the environment including, without limitation, all requirements
pertaining to reporting, licensing, permitting, controlling, investigating or
remediating emissions, discharges, releases or threatened releases of hazardous
substances, chemical substances, pollutants, contaminants or toxic substances,
materials or wastes, whether solid, liquid or gaseous in nature, into the air,
surface water, groundwater or land, or relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
hazardous substances, chemical substances, pollutants, contaminants or toxic
substances, material or wastes, whether solid, liquid or gaseous in nature.
Except for such instances as would not individually or in the aggregate result
in a Material Adverse Effect, to the best of the Company's Knowledge, there are
no past or present events, conditions, circumstances, incidents, actions or
omissions relating to or in any way affecting the Company or its subsidiaries
that violate or could reasonably be expected to violate any Environmental Law
after the Closing or that could reasonably be expected to give rise to any
environmental liability, or otherwise form the basis of any claim, action,
demand, suit, proceeding, hearing, study or investigation (i) under any
Environmental Law, or (ii) based on or related to the manufacture, processing,
distribution, use, treatment, storage (including without limitation underground
storage tanks), disposal, transport or handling, or the emission, discharge,
release or threatened release of any hazardous substance.

                  (s) MATERIAL AGREEMENTS. Except for such instruments which are
described in the Commission Documents, filed with the Commission Filings or
otherwise set forth on Schedule 3.1(s) attached hereto, neither the Company nor
any subsidiary of the Company is a party to any written or oral contract,
instrument, agreement, commitment, obligation, plan or arrangement, a copy of
which would be required to be filed with the Commission as an exhibit to a
registration statement on Form S-1 or an annual report on Form 10-K
(collectively, "MATERIAL AGREEMENTS") if the Company or any subsidiary were
registering securities under the Securities Act. The Company and each of its
subsidiaries has in all material respects performed all the obligations required
to be performed by them to date under the Material Agreements, have received no
notice of default by the Company thereunder and are not in default under any
Material Agreement now in effect, the result of which would result in a Material
Adverse Effect.

                  (t) TRANSACTIONS WITH AFFILIATES. Except as set forth in the
Commission Documents, the Commission Filings or on Schedule 3.1(t) attached
hereto, there are no loans, leases, agreements, contracts, royalty agreements,
management contracts or arrangements or other continuing transactions exceeding
$60,000 between (a) the Company or any subsidiary, on the one hand, and (b) on
the other hand, any officer, employee or director of the Company, or any of its
subsidiaries, or any person who would be covered by Item 404(a) of Regulation
S-K or any corporation or other entity controlled by such officer, employee,
director or person.

                  (u) SECURITIES ACT. The Company has complied in all material
respects with all applicable federal and state securities laws in connection
with the offer, issuance and sale of the Shares hereunder.

                        (i) Each Prospectus included as part of the Registration
Statement as originally filed or as part of any amendment or supplement thereto,
including the Amendment, or filed pursuant to Rule 424 under the Securities Act,
complied and will comply, as applicable,

                                       11
<PAGE>

when so filed in all material respects with the applicable provisions of the
Securities Act. The Commission has not issued any order preventing or suspending
the use of any Prospectus.

                        (ii) The Company meets the requirements for the use of
Form S-3 under the Securities Act. The Registration Statement in the form in
which it became effective, the Amendment in the form in which it will become
effective and also in such form as the Registration Statement, as so amended,
may be further amended or supplemented from time to time, and the Prospectus and
any supplement or amendment thereto when filed with the Commission under Rule
424(b) under the Securities Act, complied and will comply, as the case may be,
in all material respects with the provisions of the Securities Act and did not
and will not at any such times contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements therein in the light of the circumstances under which they were
and are made, not misleading, except that this representation and warranty does
not apply to statements in or omissions from the Registration Statement or the
Prospectus made in reliance upon and in conformity with information relating to
the Purchaser furnished to the Company in writing by or on behalf of the
Purchaser expressly for use therein.

                        (iii) The Company has not distributed and, prior to the
completion of the distribution of the Shares, will not distribute any offering
material in connection with the offering and sale of the Shares other than the
Registration Statement, the Amendment, the related prospectus or other
materials, if any, permitted by the Securities Act.

                  (v) EMPLOYEES. As of the date hereof, neither the Company nor
any subsidiary of the Company has any collective bargaining arrangements or
agreements covering any of its employees, except as set forth in the Commission
Documents, the Commission Filings or on SCHEDULE 3.1(v) attached hereto. Except
as set forth in the Commission Filings, Commission Documents or on SCHEDULE
3.1(V) attached hereto, as of the date hereof the Company has no employment
contract or any other similar contract or restrictive covenant, relating to the
right of any officer, employee or consultant to be employed or engaged by the
Company. Each of the Company and its subsidiaries requires its officers,
technical employees and certain consultants to enter into agreements regarding
proprietary information and assignment of inventions, or other similar
agreements containing restrictive covenants. As of the date hereof, except as
disclosed in the Registration Statement, the Commission Documents, the
Commission Filings or SCHEDULE 3.1(V), no officer, consultant or key employee of
the Company or any subsidiary whose termination, either individually or in the
aggregate, would result in a Material Adverse Effect, has terminated or, to the
knowledge of the Company, has any present intention of terminating his or her
employment or engagement with the Company or any subsidiary.

                  (w) USE OF PROCEEDS. The proceeds from the sale of the Shares
will be used by the Company and its subsidiaries as set forth in the
Registration Statement.

                  (x) PUBLIC UTILITY HOLDING COMPANY ACT AND INVESTMENT COMPANY
ACT Status. The Company is not a "holding company" or a "public utility company"
as such terms are defined in the Public Utility Holding Company Act of 1935, as
amended. The Company is not, and as a result of and immediately upon Closing
will not be, an "investment company" or a

                                       12
<PAGE>

company "controlled" by an "investment company," within the meaning of the
Investment Company Act of 1940, as amended.

                  (y) ERISA. Neither the Company nor any ERISA Affiliate (as
defined below) has ever sponsored, maintained, contributed to or been obligated
to contribute to a Plan (as defined below) subject to Title IV of ERISA or
Section 412 of the Code. The Company and each ERISA Affiliate, with respect to
each Plan is, and each such Plan is, in compliance in all material respects with
ERISA, the Code, and any other applicable legal requirements. Neither the
Company nor any ERISA Affiliate nor, to the Company's knowledge, any fiduciary
of any Plan which covers or has covered employees or former employees of the
Company or any ERISA Affiliate has engaged in any non-exempt transaction in
violation of ERISA ss.ss. 404 or 406 or any "prohibited transaction," as defined
in Code ss. 4975(c)(1), or has otherwise violated in any material respect any of
the provisions of ERISA. As used in this Section 3.1(y) the term "ERISA
AFFILIATE" shall mean any other person that, together with the Company, would be
treated as a single employer under Code ss. 414(b) or (c), and solely for the
purposes of potential liability under ERISA ss. 302(c)(ii) and Code ss.
412(c)(ii) and the lien created under ERISA ss. 302(f) and Code ss. 412(n),
under Code ss. 414(m) or (o). As used in this Section 3.1(y) the term "Plan"
shall mean an "employee pension benefit plan" as defined in Section 3(3) of
ERISA that is, or at any time was, sponsored, maintained, or contributed to by
the Company or any ERISA Affiliate or to which the Company or any ERISA
Affiliate has ever been obligated to contribute.

                  (z) INSURANCE. The Company is insured by insurers of
recognized financial responsibility against such losses and risks and in such
amounts as are prudent and customary in the businesses in which it is engaged;
the Company has not been refused any insurance coverage sought or applied for;
and the Company does not have any reason to believe that it will not be able to
renew its existing insurance coverage as and when such coverage expires or to
obtain similar coverage from similar insurers as may be necessary to continue
its business at a cost that would not have a Material Adverse Effect, except as
described in or contemplated by the Prospectus or in a document incorporated by
reference in the Prospectus.

                  (aa) ACKNOWLEDGMENT REGARDING PURCHASER'S PURCHASE OF SHARES.
The Company acknowledges and agrees that the Purchaser is acting solely in the
capacity of an arm's length purchaser with respect to this Agreement and the
transactions contemplated hereunder. The Company further acknowledges that the
Purchaser is not acting as a financial advisor or fiduciary of the Company (or
in any similar capacity) with respect to this Agreement and the transactions
contemplated hereunder and any advice given by the Purchaser or any of its
representatives or agents in connection with this Agreement and the transactions
contemplated hereunder is merely incidental to the Purchaser's purchase of the
Shares.

                  (bb) MARKET VALUE OF STOCK HELD BY NON-AFFILIATES. As of
September 16, 2003, the Company's outstanding voting stock held by
non-affiliates of the Company was 76,922,281, which had an aggregate market
value in excess of $572,301,771.

         Section 3.2 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER. The
Purchaser hereby makes the following representations and warranties to the
Company:

                                       13
<PAGE>

                  (a) ORGANIZATION AND STANDING OF THE PURCHASER. The Purchaser
is an international business company duly incorporated, validly existing and in
good standing under the laws of the Commonwealth of The Bahamas.

                  (b) AUTHORIZATION AND POWER. The Purchaser has the requisite
corporate power and authority to enter into and perform this Agreement and to
purchase the Shares in accordance with the terms hereof. The execution, delivery
and performance of this Agreement by Purchaser and the consummation by it of the
transactions contemplated hereby have been duly authorized by all necessary
corporate action, and no further consent or authorization of the Purchaser, its
Board of Directors or stockholders is required. This Agreement has been duly
executed and delivered by the Purchaser. This Agreement constitutes, or shall
constitute when executed and delivered, a valid and binding obligation of the
Purchaser enforceable against the Purchaser in accordance with its terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship, receivership, or
similar laws relating to, or affecting generally the enforcement of, creditor's
rights and remedies or by other equitable principles of general application.

                  (c) NO CONFLICTS. The execution, delivery and performance of
this Agreement and the consummation by the Purchaser of the transactions
contemplated hereby and thereby or relating hereto do not and will not (i)
result in a violation of such Purchaser's charter documents or bylaws or (ii)
conflict with, or constitute a default (or an event which with notice or lapse
of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any material agreement,
mortgage, deed of trust, indenture, note, bond, license, lease agreement,
instrument or obligation to which the Purchaser is a party, (iii) create or
impose or lien, charge or encumbrance on any property of the Purchaser under any
agreement or any commitment to which the Purchaser is party or by which the
Purchaser is bound or by which any of its respective properties or assets are
bound, or (iv) result in a violation of any law, rule, or regulation, or any
order, judgment or decree of any court or governmental agency applicable to the
Purchaser or its properties, except for such conflicts, defaults and violations
as would not, individually or in the aggregate, prohibit or otherwise interfere
with the ability of the Purchaser to enter into and perform its obligations
under this Agreement in any material respect. The Purchaser is not required to
obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it to execute,
deliver or perform any of its obligations under this Agreement or to purchase
the Shares in accordance with the terms hereof; provided, however, that for
purposes of the representation made in this sentence, the Purchaser is assuming
and relying upon the accuracy of the representations, warranties and agreements
of the Company herein.

                  (d) INFORMATION. The Purchaser and its advisors, if any, have
been furnished with all materials relating to the business, finances and
operations of the Company and materials relating to the offer and sale of the
Shares which have been requested by the Purchaser. The Purchaser and its
advisors, if any, have been afforded the opportunity to ask questions of the
Company. The Purchaser has sought such accounting, legal and tax advice as it
has considered necessary to make an informed investment decision with respect to
its acquisition of the Shares. The Purchaser understands that it (and not the
Company) shall be responsible for its own tax liabilities that may arise as a
result of this investment or the transactions contemplated by this Agreement.

                                       14
<PAGE>

                                   ARTICLE IV

                                    COVENANTS

         The Company covenants with the Purchaser, and the Purchaser covenants
with the Company, as follows, which covenants of one party are for the benefit
of the other party, during the Investment Period.

         Section 4.1 SECURITIES COMPLIANCE. The Company shall notify the
Commission and NYSE, if applicable, in accordance with their rules and
regulations, of the transactions contemplated by this Agreement, and shall take
all other necessary action and proceedings as may be required and permitted by
applicable law, rule and regulation, for the legal and valid issuance of the
Shares to the Purchaser.

         Section 4.2 REGISTRATION AND LISTING. The Company will take all action
necessary to cause its Common Stock to continue to be registered under Sections
12(b) or 12(g) of the Exchange Act, will comply in all respects with its
reporting and filing obligations under the Exchange Act, and will not take any
action or file any document (whether or not permitted by the Securities Act) to
terminate or suspend such registration or to terminate or suspend its reporting
and filing obligations under the Exchange Act or Securities Act, except as
permitted herein. The Company will take all action necessary to continue the
listing or trading of its Common Stock and the listing of the Shares purchased
by Purchaser hereunder on NYSE or any Alternate Market, if applicable, and will
comply in all respects with the Company's reporting, filing and other
obligations under the bylaws or rules of the NYSE or any Alternate Market.

         Section 4.3 REGISTRATION STATEMENT. Before the Company shall issue a
Draw Down Notice, the Company shall have caused a sufficient number of shares of
Common Stock to be registered to cover the maximum number of Shares to be issued
in connection with this Agreement and the Amendment to be declared effective by
the Commission.

         Section 4.4 COMPLIANCE WITH LAWS.

                  (a) The Company shall comply, and cause each subsidiary to
comply, with all applicable laws, rules, regulations and orders (including
without limitation Rule 415(a)(4) under the Securities Act), noncompliance with
which would result in a Material Adverse Effect.

                  (b) In addition to the limitations set forth in Section 4.6
hereof, the Company will not be obligated to issue and the Purchaser will not be
obligated to purchase any shares of the Company's Common Stock which would
result in the issuance under this Agreement of more than nineteen and
nine-tenths percent (19.9%) of the issued and outstanding shares of the
Company's Common Stock, unless permitted by the NYSE or an Alternative Market.

                  (c) The Purchaser shall comply with all applicable laws,
rules, regulations and orders in connection with this Agreement and the
transactions contemplated hereby. Without limiting the foregoing, the Purchaser
shall comply with the requirements of the Securities Act and the Exchange Act
including without limitation Rule 415(a)(4) under the Securities Act and Rule
10b-5 and Regulation M under the Exchange Act.

                                       15
<PAGE>

         Section 4.5 KEEPING OF RECORDS AND BOOKS OF ACCOUNT. The Company shall
keep and cause each subsidiary to keep adequate records and books of account, in
which complete entries will be made in accordance with GAAP consistently
applied, reflecting all financial transactions of the Company and its
subsidiaries, and in which, for each fiscal year, all proper reserves for
depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made.

         Section 4.6 LIMITATIONS ON HOLDINGS AND ISSUANCES. At no time during
the term of this Agreement shall the Purchaser directly or indirectly own more
than fourteen and nine-tenths percent (14.9%), less the unsold portion of the
Aggregate Limit the Purchaser is obligated to purchase hereunder, of the issued
and outstanding shares of Common Stock. The Company will not be obligated to
issue and the Purchaser will not be obligated to purchase any shares of the
Common Stock which would result in the issuance under this Agreement to
Purchaser at any time of more than fourteen and nine-tenths percent (14.9%) of
the issued and outstanding shares of the Common Stock.

         Section 4.7 AMENDMENT TO REGISTRATION STATEMENT. The Company will cause
a post-effective amendment to the Registration Statement with respect to this
Agreement (the "AMENDMENT"), which Amendment must be reasonably satisfactory in
form and substance to Purchaser, to be filed and declared effective as soon as
reasonably practicable and will advise the Purchaser promptly and, if requested
by the Purchaser, will confirm such advice in writing, when it receives notice
that the Amendment has become effective.

         Section 4.8 OTHER AGREEMENTS AND OTHER FINANCINGS. The Company shall
not enter into any agreement in which the terms of such agreement would restrict
or impair the right to perform of the Company or any subsidiary under this
Agreement or the Articles.

                  (a) If the Company enters into any definitive agreement with a
third party, the principal purpose of which is to secure an Other Financing (as
defined below) during a Draw Down Pricing Period, the Company shall notify the
Purchaser of the material terms of such Other Financing (the "OTHER FINANCING
NOTICE") and the Purchaser shall have, within five (5) Trading Days following
the receipt of the Other Financing Notice, the option to purchase Shares of the
Draw Down Amount Requested and the Call Option Amounts Requested by the Company
for such Draw Down Pricing Period at (i) the Purchaser's price as provided in
this Agreement, (ii) the Third Party's Price (as defined below) or (iii) the
Purchaser may elect to not purchase Common Stock for that Draw Down Pricing
Period.

                  As used herein, "Other Financing" shall mean any issuance of
Common Stock or securities convertible into, exercisable for, or exchangeable
for Common Stock for the purpose of raising capital; provided, however, without
limiting the foregoing, Other Financing shall not include the Company (i)
entering into a loan, credit or lease facility with a bank, financing
institution or other creditor (including any equity component thereof), (ii)
establishing or amending an employee, director or

                                       16
<PAGE>

officer option plan or stock purchase plan, or establishing or amending a
stockholders' rights plan (the primary purpose of which is not to raise
capital), (iii) issuing shares of Common Stock in connection with the Company's
current or future employee, director or officer option plans, or stock purchase
plans or in connection with the Company' current or future stockholders' rights
plans, (iv) increasing the number of shares available under plans referred to in
(iii) above, (v) issuing securities upon exercise or conversion of currently
outstanding warrants, options, debt securities or other convertible securities
of the Company; and (vi) issuing securities in connection with the formation and
maintenance of strategic partnerships, alliances, or joint ventures, commercial
credit arrangements, equipment financings and vessel purchases, the acquisition
of products, licenses, other assets or acquisitions or mergers (each a
"PERMITTED TRANSACTION").

                  "THIRD PARTY'S PRICE" shall mean a third party's purchase
price, net of third party discounts and fees; if the Other Financing is a
convertible securities financing, then the Third Party's Price shall be the
lesser of (i) the conversion price of the convertible financing and (ii) the
Company's valuation of the average price per share of the common stock for
convertible financing, after taking into account any other securities issued in
conjunction with such convertible financing.

                  (b) If the Company enters into any Other Financing between
Draw Down Pricing Periods, the Purchaser shall have the option, which option
shall be exercised no later than five (5) Trading Days after receipt by the
Purchaser of the Other Financing Notice, to purchase up to the Draw Down Amount
that would be applicable under this Agreement using the gross price per share to
be paid for the Common Stock in the Other Financing as the Threshold Price at
the Third Party's Price and on the same terms and conditions contemplated in the
Other Financing, or, if the applicable share price is below the Minimum
Threshold Price, up to 20% of the aggregate total amount to be raised by the
Company in the Other Financing; except the Purchaser shall not have such option
if the Other Financing is an underwritten or best efforts public offering with
net proceeds in excess of $25,000,000. If the Purchaser does not exercise its
purchase option in writing before 8:00 p.m. (New York time) on the fifth (5th)
Trading Day after its receipt of the Other Financing Notice, the Company shall
have the right to close the Other Financing on the scheduled closing date with a
third party, provided that all of the terms and conditions of such closing are
the same in all material respects to those provided to the Purchaser in the
Other Financing Notice.

         Section 4.9 STOP ORDERS. The Company will advise the Purchaser promptly
and, if requested by the Purchaser, will confirm such advice in writing: (i) of
the Company's receipt of notice of any request by the Commission for amendment
of or a supplement to the Registration Statement, any Prospectus or for
additional information; (ii) of the Company's receipt of notice of the issuance
by the Commission of any stop order suspending the effectiveness of the
Registration Statement or of the suspension of qualification of the Shares for
offering or sale in any jurisdiction or the initiation of any proceeding for
such purpose; and (iii) of the Company having Knowledge of the happening of any
event, which makes any statement of a material fact made in the Registration
Statement or the Prospectus (as then amended or supplemented) untrue or which
requires the making of any additions to or changes in the Registration Statement
or the Prospectus (as then amended or supplemented) in order to state a material
fact required by the Securities Act to be stated therein or necessary in order
to make the statements therein not misleading, or of the necessity to amend or
supplement the Registration Statement (as then amended or supplemented) to
comply with the Securities Act or any other law. If at any time the Commission
shall issue any stop order suspending the effectiveness of the Registration

                                       17
<PAGE>

Statement, the Company will make commercially reasonable efforts to obtain the
withdrawal of such order at the earliest possible time.

         Section 4.10 AMENDMENTS TO THE REGISTRATION STATEMENT. Except as
provided in Section 4.7 and Section 4.11 hereof, the Company will not file any
amendment to the Registration Statement that relates to the Purchaser, this
Agreement or the transactions contemplated hereby or make any amendment or
supplement to the Prospectus that relates to the Purchaser, this Agreement or
the transactions contemplated hereby of which, in either case, the Purchaser
shall not previously have been advised or to which the Purchaser shall
reasonably object after being so advised within forty-eight (48) hours of
receipt of such amendment or supplement to the Prospectus. In addition, for so
long as, in the reasonable opinion of counsel for the Purchaser and counsel for
the Company, a Prospectus is required to be delivered in connection with any
purchase of Shares by the Purchaser, the Company will not file any Prospectus or
Prospectus supplement with respect to the Shares without delivering a copy of
such Prospectus or Prospectus supplement, to the Purchaser promptly following
such filing. It is understood that the Company may file amendments to the
Registration Statement and make amendments and supplements to the Prospectus in
connection with offerings pursuant to the Registration Statement to parties
other than the Purchaser, and that such amendments and supplements shall not be
covered by the first two (2) sentences of this SECTION 4.10.

         Section 4.11 PROSPECTUS DELIVERY. The Company shall file with the
Commission a Prospectus supplement no later than the first Trading Day
immediately following the end of each Draw Down Pricing Period during which a
Purchase has been made, which Prospectus supplement must be reasonably
satisfactory to Purchaser, and will deliver to the Purchaser, without charge, in
such quantities as reasonably requested by the Purchaser, copies of each form of
Prospectus and Prospectus supplement on each Settlement Date. The Company
consents to the use of the Prospectus (and of any amendment or supplement
thereto) in accordance with the provisions of the Securities Act and with the
securities or Blue Sky laws of the jurisdictions in which the Shares may be sold
by the Purchaser, in connection with the offering and sale of the Shares and for
such period of time thereafter as the Prospectus is required by the Securities
Act to be delivered in connection with sales of the Shares. If during such
period of time any event shall occur that in the judgment of the Company and its
counsel or in the opinion of counsel for the Purchaser is required to be set
forth in the Prospectus (as then amended or supplemented) or should be set forth
therein in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it is necessary
to supplement or amend the Prospectus to comply with the Securities Act or any
other applicable law or regulation, the Company will forthwith prepare and,
subject to Section 4.9 above, file with the Commission an appropriate supplement
or amendment to such Prospectus, and will expeditiously furnish to the Purchaser
a reasonable number of copies thereof.

         Section 4.12 SELLING RESTRICTION. The Purchaser has the right to sell
shares of the Stock during the Investment Period. However, the Purchaser
covenants that prior to and during the term of the Investment Period, neither
the Purchaser nor any affiliates of the Purchaser nor any entity managed by the
Purchaser will sell shares of the Company's Common Stock other than shares that
the Purchaser (or the respective affiliate or managed entity) owns at the time
of the sale, or any shares that the Purchaser is obligated to purchase under a
pending Draw Down Notice.

                                       18
<PAGE>

         Section 4.13 NON-PUBLIC INFORMATION. Neither the Company nor any of its
directors, officers or agents shall disclose any material non-public information
about the Company to the Purchaser.

         Section 4.14 EFFECTIVE REGISTRATION STATEMENT. The Company will use
reasonable efforts to keep the Registration Statement continuously effective
until the later of (i) one (1) year after the expiration of the Investment
Period and (ii) such time as the Purchaser is no longer required to deliver a
prospectus with respect to the Shares.

         Section 4.15 DISCLOSURE OF DRAW DOWN NOTICE. Other than disclosure in a
Prospectus Supplement, press release or filing under the Securities Act or
Exchange Act of the number of Shares sold to the Purchaser and the purchase
price, the Company shall not disclose any Draw Down Notice or any information
contained in any Draw Down Notice (other than to its legal and accounting
advisors) unless such disclosure is required by applicable law, rule or court
order; provided that the Company shall notify the Purchaser if such disclosure
during the Draw Down Pricing Period is required by law, rule, regulation or
court order.

         Section 4.16 BROKER-DEALER. Except as set forth below, the Purchaser
shall use Carlin Equities Corporation as its broker-dealer to effectuate all
sales, if any, of shares of Common Stock that the Purchaser will purchase from
the Company pursuant to this Agreement. In the event that the Purchaser desires
to use a different broker-dealer, the Purchaser shall notify the Company, and
the Purchaser shall not use such new broker-dealer until the Company has filed
with the Commission and the Commission shall have declared effective an
appropriate amendment to the Registration Statement to disclose such
broker-dealer's participation. No broker-dealer used by the Purchaser to
effectuate sales of shares of Common Stock purchased pursuant to this Agreement
will be an affiliate of the Purchaser, and the commission received by any such
broker-dealer from the Purchaser will not exceed customary brokerage
commissions.

                                   ARTICLE V

               CONDITIONS TO CLOSING, DRAW DOWNS AND CALL OPTIONS

         Section 5.1 CONDITIONS PRECEDENT TO CLOSING BY THE COMPANY AND TO THE
COMPANY'S OBLIGATION TO SELL THE SHARES. The execution of this Agreement by the
Company and the obligation of the Company to issue and sell Shares to the
Purchaser pursuant to a Draw Down Notice is subject to the satisfaction or
waiver, at or before the Closing and with respect to each Draw Down and Call
Option, at or before each Draw Down Exercise Date and Settlement Date, as
applicable, of each of the conditions set forth below. These conditions are for
the Company's sole benefit and may be waived by the Company at any time in its
sole discretion.

                  (a) ACCURACY OF THE PURCHASER'S REPRESENTATIONS AND
WARRANTIES. Except for representations and warranties that are expressly made as
of a particular date, the representations and warranties of the Purchaser in
this Agreement shall be true and correct in all material respects as of the date
when made and as of each Draw Down Exercise Date and each Settlement Date as
though made at that time.

                                       19
<PAGE>

                  (b) PERFORMANCE BY THE PURCHASER. The Purchaser shall have
performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Purchaser at or prior to the Closing, each Draw Down
Exercise Date and each Settlement Date, as applicable.

                  (c) NO INJUNCTION. No statute, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction which
prohibits the consummation of any of the transactions contemplated by this
Agreement.

                  (d) NO PROCEEDINGS OR LITIGATION. No action, suit or
proceeding before any arbitrator or any governmental authority shall have been
commenced, and no investigation by any governmental authority shall have been
threatened, against the Company or any subsidiary, or any of the officers,
directors or affiliates of the Company or any subsidiary seeking to restrain,
prevent or change the transactions contemplated by this Agreement, or seeking
damages in connection with such transactions.

                  (e) EFFECTIVE REGISTRATION STATEMENT AND AMENDMENT. With
respect to the Closing, the Registration Statement shall have been declared
effective by the Commission prior to the Closing Date and there shall be no stop
order suspending the effectiveness thereof. With respect to each Draw Down and
Call Option, the Registration Statement and the Amendment shall have been
declared effective by the Commission at or before each Draw Down Exercise Date
or Settlement Date, as applicable, and there shall be no stop order suspending
the effectiveness thereof.

         Section 5.2 CONDITIONS PRECEDENT TO THE CLOSING BY THE PURCHASER. The
execution of this Agreement by the Purchaser is subject to the satisfaction or
waiver, at or before the Closing, of eac\h of the conditions set forth below.
These conditions are for the Purchaser's sole benefit and may be waived by the
Purchaser at any time in its sole discretion.

                  (a) ACCURACY OF THE COMPANY'S REPRESENTATIONS AND WARRANTIES.
Except for representations and warranties that are expressly made as of a
particular date, the representations and warranties of the Company in this
Agreement shall be true and correct in all material respects as of the date when
made and as of the Closing as though made at that time, including, without
limitation, under Section 3.1(h).

                  (b) PERFORMANCE BY THE COMPANY. The Company shall have
performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Company at or prior to the Closing.

                  (c) NO INJUNCTION. No statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent
jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

                  (d) NO SUSPENSION, ETC. Trading in the Common Stock shall not
have been suspended by the Commission or the NYSE (except for any suspension of
trading of limited

                                       20
<PAGE>

duration agreed to by the Company, which suspension shall be terminated prior to
Closing), and, at any time prior to the Closing, trading in securities generally
as reported on the NYSE shall not have been suspended or limited, nor shall a
banking moratorium have been declared either by the United States or New York
State authorities, nor shall there have occurred any material outbreak or
escalation of hostilities or other national or international calamity or crisis
of such magnitude in its effect on, or any material adverse change in any
financial market which, in each case, in the reasonable judgment of the
Purchaser, makes it impracticable or inadvisable to purchase the Shares.

                  (e) NO PROCEEDINGS OR LITIGATION. No action, suit or
proceeding before any arbitrator or any governmental authority shall have been
commenced, and no investigation by any governmental authority shall have been
threatened, against the Company or any subsidiary, or any of the officers,
directors or affiliates of the Company or any subsidiary seeking to restrain,
prevent or change the transactions contemplated by this Agreement, or seeking
damages in connection with such transactions.

                  (f) EFFECTIVE REGISTRATION STATEMENT. The Registration
Statement shall have been declared effective by the Commission prior to the
Closing Date and there shall be no stop order suspending the effectiveness
thereof.

                  (g) OPINION OF COUNSEL, SECRETARY'S CERTIFICATE AND CLOSING
CERTIFICATE. At the Closing, the Purchaser shall have received (i) an opinion of
Coudert Brothers, LLP, counsel to the Company, dated the date of Closing, in the
form and with respect to such matters as are reasonably acceptable to the
Purchaser, (ii) an opinion of the Company's General Counsel dated the date of
Closing, in the form and with respect to such matters as are reasonably
acceptable to the Purchaser, (iii) a Secretary's Certificate from the Company,
dated the date of Closing, in the form of Exhibit B hereto, and (iv) a Closing
Certificate, dated the Closing Date, in the form of Exhibit C hereto.

         Section 5.3 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE PURCHASER TO
ACCEPT A DRAW DOWN OR CALL OPTION GRANT AND PURCHASE THE SHARES. The obligation
hereunder of the Purchaser to accept a Draw Down or Call Option grant is subject
to the satisfaction or waiver, as of such Draw Down Exercise Date, of each of
the conditions set forth below. In addition, the obligation hereunder of the
Purchaser to acquire and pay for the Shares is subject to the satisfaction or
waiver, as of such Settlement Date, of each of the conditions set forth below.
The conditions are for the Purchaser's sole benefit and may be waived by the
Purchaser at any time in its sole discretion.

                  (a) ACCURACY OF THE COMPANY'S REPRESENTATIONS AND WARRANTIES.
Except for representations and warranties that are expressly made as of a
particular date, each of the representations and warranties of the Company shall
be true and correct in all material respects as of the date when made and as of
each Draw Down Exercise Date and each Settlement Date, as though made at that
time, including, without limitation, under Section 3.1(h) hereof.

                  (b) REGISTRATION STATEMENT. The Company shall have a dollar
amount of Shares registered under the Registration Statement which are in an
amount equal to or in excess of the maximum dollar amount worth of Shares
issuable pursuant to such Draw Down Notice or

                                       21
<PAGE>

Call Option. The Registration Statement and the Amendment shall have been
declared effective by the Commission prior to each Draw Down Exercise Date and
Settlement Date and shall have been amended or supplemented, as required, to
disclose the sale of the Shares prior to each Settlement Date, as applicable.

                  (c) NO SUSPENSION. Trading in the Common Stock shall not have
been suspended by the Commission or the NYSE at any time from the applicable
Draw Down Exercise Date through the corresponding Settlement Date, and trading
in securities generally as reported on the NYSE shall not have been suspended or
limited, nor shall a banking moratorium have been declared either by the United
States or New York State authorities, nor shall there have occurred any material
outbreak or escalation of hostilities or other national or international
calamity or crisis of such magnitude in its effect on, or any material adverse
change in, any financial market which, in each case, in the reasonable judgment
of the Purchaser, makes it impracticable or inadvisable to issue the Shares at
any time from the applicable Draw Down Exercise Date through the corresponding
Settlement Date.

                  (d) PERFORMANCE BY THE COMPANY. The Company shall have
performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Company at or prior to each Draw Down Exercise Date and
each Settlement Date, and shall have delivered the Compliance Certificate
substantially in the form attached hereto as Exhibit D.

                  (e) SETTLEMENT OF PRIOR DRAW DOWNS AND CALL OPTIONS. All prior
Draw Downs and Call Options shall have settled.

                  (f) AGGREGATE LIMIT. The Draw Down Amount Requested and any
Call Option Amount Requested in the Draw Down Notice Issued by the Company, when
aggregated with all prior Draw Down Amounts and exercised Call Options, shall
not exceed the Aggregate Limit.

                  (g) DELIVERY OF OPINIONS. The Company shall have delivered to
Purchaser (i) an opinion of counsel authorized to practice in the Marshall
Islands (such opinion and such counsel to be reasonably satisfactory to
Purchaser) opining as to each of the opinions set forth in numbered paragraphs
1, 4, 6 and 7(a) of the opinion of Fredric London, Esq. delivered at the
Closing, (ii) subsequent to the effective date of the Amendment, an opinion of
Coudert Brothers, LLP, counsel to the Company in the form and with respect to
such matters as are reasonably acceptable to the Purchaser, and (iii) subsequent
to the effective date of the Amendment, an opinion of the Company's General
Counsel in the form and with respect to such matters as are reasonably
acceptable to the Purchaser.

                                   ARTICLE VI

                          DRAW DOWN TERMS; CALL OPTION

         Section 6.1 DRAW DOWN TERMS. Subject to the satisfaction of the
conditions set forth in this Agreement, and subject to Section 6.3 below, the
parties agree as follows, unless otherwise mutually agreed upon:

                                       22
<PAGE>

                  (a) Beginning on the effective date of the Amendment, the
Company may, in its sole discretion, issue a Draw Down Notice (as defined in
Section 6.1(j) hereof) for a specified Draw Down Amount Requested of (i) up to
$3,000,000 if the Threshold Price for the Draw Down Amount as set forth in such
Draw Down Notice is equal to or greater than $2.00 and less than $3.00, and (ii)
increased by up to $1,000,000 incrementally for every $1.00 increase in the
Threshold Price above $2.00 and up to and including $10.00, which Draw Down the
Purchaser will be obligated to accept. The date the Company issues any Draw Down
Notice in accordance with this Section 6.1 shall be a "Draw Down Exercise Date"
for purposes of this Agreement.

                  (b) Subject to Section 6.1(i) below, the number of Shares to
be issued by the Company to the Purchaser in connection with the Draw Down
Amount Requested in each Draw Down shall be equal to the sum of the Daily
Shares. The "Daily Shares" shall equal (x) the Pro-Rata Amount, divided by (y)
the VWAP multiplied by the Draw Down Discount Price set forth in Section 6.1(k),
for each Trading Day of the Draw Down Pricing Period for which the VWAP equals
or exceeds the Threshold Price.

                  (c) Only one Draw Down shall be allowed in each Draw Down
Pricing Period.

                  (d) Intentionally Omitted.

                  (e) Each Draw Down shall be settled on the second Trading Day
after the end of each Draw Down Pricing Period (the "SETTLEMENT DATE").

                  (f) There shall be a minimum of five (5) Trading Days between
the end of a Draw Down Pricing Period and the commencement of the next Draw Down
Pricing Period.

                  (g) There shall be a maximum of eighteen (18) monthly Draw
Downs during the Investment Period.

                  (h) Each Draw Down will automatically expire immediately after
the last Trading Day of each Draw Down Pricing Period.

                  (i) If the VWAP on a given Trading Day in the Draw Down
Pricing Period is less than the Threshold Price, then the total amount of the
Draw Down Amount Requested will be reduced by a Pro-Rata Amount for each such
Trading Day and no Shares will be purchased or sold with respect to such Trading
Day, except as provided below. The aggregate amount by which the Draw Down
Amount Requested is reduced shall be referred to herein as the "BELOW THRESHOLD
AMOUNT." At no time shall the Threshold Price be set below two dollars ($2.00)
per share (as adjusted for stock splits, reverse stock splits, recapitalizations
and the like). If trading in the Common Stock is suspended for any reason for
three (3) hours or more in any Trading Day or trading is suspended in the
markets of the United States for any reason, such day shall be deemed an
"UNALLOCATED DAY". For each Unallocated Day during the Draw Down Pricing Period
the Purchaser may, at its option, purchase up to a Pro-Rata Amount of Shares at
the previous Trading Day's VWAP. For each Trading Day during a Draw Down Pricing
Period that the VWAP is below the Threshold Price, the Purchaser may elect in
its sole discretion to purchase the Common Stock at the Threshold Price
multiplied by the applicable percentage set forth in Section 6.1(k) at the end
of such Draw Down Pricing Period. The Purchaser will inform the

                                       23
<PAGE>

Company via facsimile transmission no later than 8:00 p.m. (New York time) on
the last Trading Day of such Draw Down Pricing Period as to the number of
Shares, if any, the Purchaser chooses to purchase under such circumstances.

                  (j) As a condition to exercise of any Draw Down, the Company
must provide a notice to the Purchaser of the Company's exercise of any Draw
Down via facsimile transmission before the first Trading Day of the Draw Down
Pricing Period covered by such notice (the "DRAW DOWN NOTICE"), substantially in
the form attached hereto as Exhibit E. The Draw Down Notice shall specify the
Draw Down Amount Requested, set the Threshold Price for such Draw Down and Call
Option, designate the first Trading Day of the Draw Down Pricing Period and
specify the Call Option(s), if any, that the Company wishes to grant to the
Purchaser during the Draw Down Pricing Period. If the Company wishes the date of
the Draw Down notice to be the first Trading Day of the Draw Down Pricing
Period, such notice must be delivered to the Purchaser and such receipt
confirmed, before 9:30 a.m. (New York time) on such Trading Day.

                  (k) With respect to any Draw Down, the draw down discount
price shall be 95% of the VWAP ("the DRAW DOWN DISCOUNT PRICE").

                  (l) On each Settlement Date, the Company shall deliver the
Shares purchased by the Purchaser to the Purchaser or to The Depositary Trust
Company ("DTC") on the Purchaser's behalf via the Deposit Withdrawal Agent
Commission system ("DWAC"), and upon receipt of the Shares, the Purchaser shall
cause payment therefor to be made to the account designated by the Company by
wire transfer of immediately available funds, provided that the Shares are
received by the Purchaser no later than 1:00 p.m., New York time, or of next day
available funds if the Shares are received thereafter. In certain circumstances
and as set forth in Section 9.1(b), a failure by the Company to deliver such
Shares may result in the payment of liquidated damages by the Company to the
Purchaser.

                  (m) If during any Draw Down Pricing Period the Company
reasonably believes an event may occur which would result in or may require the
suspension of the effectiveness of the Registration Statement prior to the
applicable Settlement Date, including, without limitation, entering into an
extraordinary transaction in which the Company is not the surviving entity, the
Company shall notify the Purchaser before 9:30 a.m. (New York time) on any
Trading Day (a "TRUNCATE NOTICE") and truncate the number of Trading Days in
such Draw Down Pricing Period (a "TRUNCATED PRICING PERIOD"). If the Company
delivers the Truncate Notice (i) before 9:30 a.m. (New York time) on a Trading
Day, the last Trading Day of such Truncated Pricing Period shall be the Trading
Day preceding the receipt of the Truncate Notice between, or (ii) between 9:30
a.m. and 4:00 p.m. (New York time) on a Trading Day, then the last Trading Day
of such Truncated Pricing Period shall be the Trading Day on which the Truncate
Notice was received by the Purchaser.

         The Purchaser will purchase the Truncated Draw Down Allocation Amount
for each of the Trading Days in a Truncated Pricing Period, for an aggregate
purchase price determined in accordance with Section 6.1(b) and Section 6.1(i).

                                       24
<PAGE>

         In addition, the Purchaser may, at its option, elect to purchase Shares
in an additional dollar amount equal the difference between (i) the Draw Down
Amount Requested and (ii) the Truncated Draw Down Allocation Amount. The price
per share for such additional dollar amount shall equal the aggregate of (i) the
Truncated Draw Down Allocation Amounts and the total Call Options exercised
during the Truncated Pricing Period divided by (ii) the number of Shares to be
purchased during such Truncated Pricing Period, excluding any Shares purchased
pursuant to this paragraph of Section 6.1(m).

         Upon receipt of the Truncate Notice, the Purchaser may (x) elect to
purchase the Common Stock at the Threshold Price for any Trading Day that the
VWAP was below the Threshold Price during the Truncated Pricing Period in
accordance with Section 6.1(i) hereof, (y) elect to purchase the Common Stock in
the additional amount as set forth in the preceding paragraph of this Section
6.1(m), and (z) elect to exercise any unexercised Call Options by issuing a Call
Option Notice to the Company, in each such case, no later than 10:00 a.m. (New
York time) on the first Trading Day after the end of the Truncated Pricing
Period. The exercise price of the Call Option shall be the applicable percentage
set forth in Section 6.1(k) multiplied by the greater of (A) the VWAP for the
Common Stock on the day the Purchaser issues its Call Option Notice or (B) the
Threshold Price.

                  (n) The Settlement Date for any Truncated Pricing Period shall
be the second business day after the last Trading Day of the applicable
Truncated Pricing Period.

         Section 6.2 PURCHASER'S CALL OPTION. Subject to the satisfaction of the
conditions set forth in his Agreement, and subject to Section 6.3 below, the
parties agree as follows:

                  (a) The Company may, in its sole discretion, grant to the
Purchaser the right to exercise one (1) or more call options during each Draw
Down Pricing Period for a specified Call Option Amount Requested (the "CALL
OPTION"). The Call Option Amount Requested and the Threshold Price shall be set
forth in the Draw Down Notice.

                  (b) The number of shares of Common Stock to be issued in
connection with each Call Option shall equal (i) the Call Option Amount divided
by (ii) the applicable percentage set forth in Section 6.1(k) multiplied by the
greater of (A) the VWAP for the Common Stock on the day the Purchaser issues its
Call Option Notice or (B) the Threshold Price.

                  (c) Each Call Option exercised shall be settled on the next
Settlement Date.

                  (d) The Threshold Price designated by the Company in its Draw
Down Notice shall apply to each Call Option.

                  (e) For each Call Option that the Purchaser exercises pursuant
to this Section 6.2, as a condition to such exercise the Purchaser must issue a
Call Option Notice (as defined in Section 1.1(j) hereof) to the Company no later
than 8:00 p.m. (New York time) on the day such Call Option is exercised. If the
Purchaser does not exercise a Call Option by 8:00 p.m. (New York time) on the
last day of the applicable Draw Down Pricing Period, the Purchaser's Call
Options with respect to that Draw Down Pricing Period shall automatically
terminate.

                                       25
<PAGE>

         Section 6.3 AGGREGATE LIMIT. Notwithstanding anything to the contrary
herein, in no event may the Company issue a Draw Down Notice or grant a Call
Option to the extent that the sale of shares of Common Stock pursuant thereto
and pursuant to all prior Draw Down Notices or Call Options issued hereunder
would cause the Company to sell or the Purchaser to purchase shares of Common
Stock which in the aggregate are in a dollar amount in excess of the Aggregate
Limit.

                                  ARTICLE VII

                                   TERMINATION

         Section 7.1 TERM; TERMINATION BY MUTUAL CONSENT. The term of this
Agreement shall expire on the earlier of (i) twenty one (21) months from the
date hereof (the "INVESTMENT PERIOD"), (ii) the date that the entire number of
Shares registered under the Registration Statement have been issued and sold and
(iii) the date the Purchaser shall have purchased $57,000,000 of Common Stock.
Either party may terminate this agreement if the Company enters into a
definitive agreement with respect to a merger or acquisition of the Company as a
result of which more than fifty percent (50%) of the voting power of the Company
is acquired or the Company would not be the surviving entity so long as such
termination does not occur during a Draw Down Pricing Period, or during a
Truncated Pricing Period, or prior to a Settlement Date of any Draw Down Pricing
Period or Truncated Pricing Period. This Agreement may be terminated at any time
by mutual written consent of the parties.

         Section 7.2 OTHER TERMINATION. The Company shall inform the Purchaser,
and the Purchaser shall have the right to terminate this Agreement within the
subsequent thirty (30) days (the "EVENT PERIOD"), if (x) the Company enters into
an Other Financing without the prior consent of the Purchaser, which consent
will not be unreasonably delayed, conditioned or withheld, which provides for
(i) the issuance of Common Stock or securities convertible, exercisable or
exchangeable into Common Stock at a discount to the then current market price of
the Common Stock, including, without limitation, an equity line of credit
transaction, (ii) a mechanism for the reset of the purchase price of the Common
Stock to below the then current market price of the Common Stock, or (iii) the
issuance of Common Stock with warrants, which have an exercise price such that
together with the price of the Common Stock would result in the issuance of
shares of Common Stock at a per share price below the then current market price
of the Common Stock, or (y) an event resulting in a Material Adverse Effect or
Material Change in Ownership has occurred. The Purchaser may terminate this
Agreement upon one (1) business day's prior written notice during the Event
Period.

         Section 7.3 EFFECT OF TERMINATION. In the event of termination by the
Company or the Purchaser, written notice thereof shall forthwith be given to the
other party and the transactions contemplated by this Agreement shall be
terminated without further action by either party, provided, however, that if a
Draw Down and/or a Call Option has not yet settled, the parties shall still be
obligated to settle such Draw Down and/or Call Option on the terms set forth in
this Agreement. If this Agreement is terminated as provided in Section 7.1 or
7.2 herein, this Agreement shall become void and of no further force and effect,
except as provided in the first sentence of this Section 7.3, Section 9.1 and
Section 9.9 hereof. Nothing in this Section 7.3 shall be deemed to release the
Company or the Purchaser from any liability for any breach under this

                                       26
<PAGE>

Agreement, or to impair the rights of the Company and the Purchaser to compel
specific performance by the other party of its obligations under this Agreement.

                                  ARTICLE VIII

                                 INDEMNIFICATION

         Section 8.1 GENERAL INDEMNITY.

                  (a) INDEMNIFICATION BY THE COMPANY. The Company will indemnify
and hold harmless the Purchaser, any broker-dealer named in the Registration
Statement, as amended, (the "BROKER-DEALER") and each person, if any, who
controls the Purchaser or the Broker-Dealer within the meaning of Section 15 of
the Securities Act or Section 20(a) of the Exchange Act from and against any
losses, claims, damages, liabilities and expenses (including reasonable costs of
defense and investigation and all attorneys' fees) to which the Purchaser, the
Broker-Dealer and each such controlling person may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages,
liabilities and expenses (or actions in respect thereof) arise out of or are
based upon (i) any untrue statement or alleged untrue statement of a material
fact contained, or incorporated by reference, in the Registration Statement
(including any Prospectus or Prospectus supplement which are a part of it), or
any amendment or supplement to it, or (ii) the omission or alleged omission to
state in the Registration Statement (including any Prospectus or Prospectus
supplement which are a part of it), or any amendment or supplement to it, or any
document incorporated by reference in the Registration Statement, a material
fact required to be stated therein or necessary to make the statements therein
not misleading.

         The Company will reimburse the Purchaser, the Broker-Dealer and each
such controlling person promptly upon demand for any reasonable legal or other
costs or expenses reasonably incurred by the Purchaser, the Broker-Dealer or
such controlling person in investigating, defending against, or preparing to
defend against any such claim, action, suit or proceeding, except that the
Company will not be liable to the extent any loss, claim, damage, liability or
expense arises out of, or is based upon, an untrue statement, alleged untrue
statement, omission or alleged omission, included in any Prospectus or
Prospectus supplement or any amendment or supplement to the Prospectus or
Prospectus supplement in reliance upon, and in conformity with, written
information furnished by either the Purchaser or the Broker-Dealer to the
Company for inclusion in the Prospectus or Prospectus supplement.

                  (b) INDEMNIFICATION BY THE PURCHASER. The Purchaser will
indemnify and hold harmless the Company, each of its directors and officers, and
each person, if any, who controls the Company within the meaning of Section 15
of the Securities Act or Section 20(a) of the Exchange Act from and against any
expenses (including reasonable costs of defense and investigation and all
attorneys fees) to which the Purchaser and each such controlling person may
become subject, under the Securities Act or otherwise, insofar as such losses,
claims, damages, liabilities and expenses (or actions in respect thereof) arise
out of or are based upon (i) an untrue statement, alleged untrue statement,
omission or alleged omission, included in any Prospectus or Prospectus
supplement or any amendment or supplement to the Prospectus or Prospectus
supplement in reliance upon, and in conformity with, written information
furnished by the

                                       27
<PAGE>

Purchaser to the Company for inclusion in the Prospectus or Prospectus
supplement, or (ii) the omission or alleged omission to state in any Prospectus
or Prospectus supplement or any amendment or supplement to it a material fact
required to be stated therein or necessary to make the statements therein not
misleading, to the extent, but only to the extent, the untrue statement, alleged
untrue statement, omission or alleged omission was made in reliance upon, and in
conformity with, written information furnished by the Purchaser to the Company
for inclusion in the Prospectus or Prospectus supplement or an amendment or
supplement to it. The Purchaser will reimburse the Company and each such
director, officer or controlling person promptly upon demand for any legal or
other costs or expenses reasonably incurred by the Company or the other person
in investigating, defending against, or preparing to defend against any loss,
claim, damage, liability or expense arising out of, or based upon, an untrue
statement, alleged untrue statement, omission or alleged omission, included in
any Prospectus or Prospectus supplement or any amendment or supplement to the
Prospectus or Prospectus supplement in reliance upon, and in conformity with,
written information furnished by the Purchaser to the Company for inclusion in
the Prospectus or Prospectus supplement.

         Section 8.2 INDEMNIFICATION PROCEDURES. Promptly after a person
receives notice of a claim or the commencement of an action for which the person
intends to seek indemnification under Section 8.1, the person will notify the
indemnifying party in writing of the claim or commencement of the action, suit
or proceeding; provided, however, that failure to notify the indemnifying party
will not relieve the indemnifying party from liability under Section 8.1, except
to the extent it has been materially prejudiced by the failure to give notice.
The indemnifying party will be entitled to participate in the defense of any
claim, action, suit or proceeding as to which indemnification is being sought,
and if the indemnifying party acknowledges in writing the obligation to
indemnify the party against whom the claim or action is brought, the
indemnifying party may (but will not be required to) assume the defense against
the claim, action, suit or proceeding with counsel satisfactory to the
indemnified party. After an indemnifying party notifies an indemnified party
that the indemnifying party wishes to assume the defense of a claim, action,
suit or proceeding, the indemnifying party will not be liable for any legal or
other expenses incurred by the indemnified party in connection with the defense
against the claim, action, suit or proceeding except that if, in the opinion of
counsel to the indemnified party, one or more of the indemnified parties should
be separately represented in connection with a claim, action, suit or
proceeding, the indemnifying party will pay the reasonable fees and expenses of
one separate counsel for the indemnified parties. Each indemnified party, as a
condition to receiving indemnification as provided in Section 8.1, will
cooperate in all reasonable respects with the indemnifying party in the defense
of any action or claim as to which indemnification is sought. No indemnifying
party will be liable for any settlement of any action effected without its prior
written consent. No indemnifying party will, without the prior written consent
of the indemnified party, effect any settlement of a pending or threatened
action with respect to which an indemnified party is, or is informed that it may
be, made a party and for which it would be entitled to indemnification, unless
the settlement includes an unconditional release of the indemnified party from
all liability and claims which are the subject matter of the pending or
threatened action.

         If for any reason the indemnification provided for in this Agreement is
not available to, or is not sufficient to hold harmless, an indemnified party in
respect of any loss or liability referred to in Section 8.1 as to which it is
entitled to indemnification thereunder, each indemnifying party

                                       28
<PAGE>

will, in lieu of indemnifying the indemnified party, contribute to the amount
paid or payable by the indemnified party as a result of such loss or liability,
(i) in the proportion which is appropriate to reflect the relative benefits
received by the indemnifying party on the one hand and by the indemnified party
on the other from the sale of Shares which is the subject of the claim, action,
suit or proceeding which resulted in the loss or liability or (ii) if that
allocation is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits of the sale of such
Shares, but also the relative fault of the indemnifying party and the
indemnified party with respect to the statements or omissions which are the
subject of the claim, action, suit or proceeding that resulted in the loss or
liability, as well as any other relevant equitable considerations.

                                   ARTICLE IX

                                  MISCELLANEOUS

         Section 9.1 FEES AND EXPENSES.

                  (a) Each party shall bear its own fees and expenses related to
the transactions contemplated by this Agreement; provided, however, that the
Company shall pay, at the Closing, all fees and expenses, including attorneys'
fees, incurred by the Purchaser up to $50,000 in connection with the
preparation, negotiation, execution and delivery of this Agreement. In addition,
the Company shall pay all reasonable fees and expenses, including attorneys'
fees, incurred by the Purchaser in connection with any amendments, modifications
or waivers of this Agreement. The Company shall pay all stamp or other similar
taxes and duties levied in connection with issuance of the Shares pursuant
hereto.

                  (b) If the Company issues a Draw Down Notice and fails to
deliver the Shares on the applicable Settlement Date, and such failure continues
for ten (10) Trading Days, the Company shall pay the Purchaser in cash or
restricted shares of Common Stock, at the option of the Purchaser, as liquidated
damages for such failure and not as a penalty an amount equal to two percent
(2%) of the payment required to be paid by the Purchaser on such Settlement Date
(i.e., the sum of the Draw Down Amount and the Call Option Amount) for the
initial thirty (30) days following such Settlement Date until the Shares have
been delivered, and an additional two percent (2%) for each additional thirty
(30) day period thereafter until the Shares have been delivered, which amount
shall be prorated for such periods less than thirty (30) days.

                  (c) On each Settlement Date, the Company shall pay Credit
Lyonnais Securities (USA) Inc., a placement fee in the amount of two percent
(2%) of the corresponding Draw Down Amount or Call Option Amount.

         Section 9.2 SPECIFIC ENFORCEMENT, CONSENT TO JURISDICTION.

                  (a) The Company and the Purchaser acknowledge and agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that either party shall be entitled
to an injunction or injunctions to prevent or cure breaches of the provisions of
this Agreement by the other party and to enforce specifically the

                                       29
<PAGE>

terms and provisions hereof, this being in addition to any other remedy to which
either party may be entitled by law or equity.

                  (b) Each of the Company and the Purchaser (i) hereby
irrevocably submits to the jurisdiction of the United States District Court and
other courts of the United States sitting in the State of New York for the
purposes of any suit, action or proceeding arising out of or relating to this
Agreement, and (ii) hereby waives, and agrees not to assert in any such suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of such court, that the suit, action or proceeding is brought in an
inconvenient forum or that the venue of the suit, action or proceeding is
improper. Each of the Company and the Purchaser consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party
at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice
thereof. Nothing in this Section shall affect or limit any right to serve
process in any other manner permitted by law.

         Section 9.3 ENTIRE AGREEMENT; AMENDMENT. This Agreement represents the
entire agreement of the parties with respect to the subject matter hereof, and
there are no promises, undertakings, representations or warranties by either
party relative to subject matter hereof not expressly set forth herein. No
provision of this Agreement may be amended other than by a written instrument
signed by both parties hereto.

         Section 9.4 NOTICES. Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery or by facsimile (with facsimile
machine confirmation of delivery received) at the address or number designated
below (if delivered on a business day during normal business hours where such
notice is to be received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours where such
notice is to be received) or (b) on the second business day following the date
of mailing by express courier service, fully prepaid, addressed to such address,
or upon actual receipt of such mailing, whichever shall first occur. The address
for such communications shall be:

         If to the Company:   OMI Corporation
                              One Station Place
                              Stamford, CT  06902
                              Telephone Number:  (203) 602-6700
                              Fax:  (203) 602-6701

                              Attention:  Chief Financial Officer

                              With copies to:

                                 30
<PAGE>

                              Coudert Brothers LLP
                              1114 Avenue of the Americas
                              New York, New York 10036
                              Telephone Number:  (212) 626-4990
                              Fax:  (212) 626-4120

                              Attention:  Robert L. Clare III, Esq.

         If to the Purchaser: Acqua Wellington North American Equities
                              Fund, Ltd.
                              c/o Fortis Fund Services (Bahamas) Ltd.
                              Montage Sterling Centre
                              East Bay Street, P.O. Box 55-6238
                              Nassau, Bahamas
                              Telephone Number:  (242) 394-2700
                              Fax:  (242) 394-9667

                              Attention:  Anthony L.M. Inder Rieden

         With copies to:      Latham & Watkins
                              505 Montgomery Street, Suite 1900
                              San Francisco, CA 94111-2562
                              Telephone Number:  (415) 391-0600
                              Fax:  (415) 395-8095

                              Attention:  Laura L. Gabriel, Esq.

         Either party hereto may from time to time change its address or other
information for notices by giving at least ten (10) days advance written notice
of such changed address to the other party hereto.

         Section 9.5 WAIVERS. No waiver by either party of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any other
provisions, condition or requirement hereof, nor shall any delay or omission of
any party to exercise any right hereunder in any manner impair the exercise of
any such right accruing to it thereafter. No provision of this Agreement may be
waived other than in a written instrument signed by the party against whom
enforcement of such waiver is sought.

         Section 9.6 HEADINGS. The article, section and subsection headings in
this Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any
of the provisions hereof.

         Section 9.7 SUCCESSORS AND ASSIGNS. The Purchaser may not assign this
Agreement to any person without the prior consent of the Company, in the
Company's sole discretion. This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and assigns. After Closing, the
assignment by a party to this Agreement of any rights hereunder shall not affect
the obligations of such party under this Agreement.

                                       31
<PAGE>

         Section 9.8 GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York, without
giving effect to the choice of law provisions.

         Section 9.9 SURVIVAL. The representations and warranties of the Company
and the Purchaser contained in Article III and the covenants contained in
Article IV shall survive the execution and delivery hereof and the Closing until
the termination of this Agreement, and the agreements and covenants set forth in
Article VIII of this Agreement shall survive the execution and delivery hereof
and the Closing hereunder.

         Section 9.10 COUNTERPARTS. This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument and shall become effective when counterparts have been signed by each
party and delivered to the other parties hereto, it being understood that all
parties need not sign the same counterpart. In the event any signature is
delivered by facsimile transmission, the party using such means of delivery
shall cause four additional executed signature pages to be physically delivered
to the other parties within five days of the execution and delivery hereof.

         Section 9.11 PUBLICITY. Except as otherwise provided in Section 4.7 and
Section 4.11, prior to the Closing, neither the Company nor the Purchaser shall
issue any press release or otherwise make any public statement or announcement
with respect to this Agreement or the transactions contemplated hereby or the
existence of this Agreement without the prior written consent of the other party
to such disclosure, except that if the Company is required by law, based upon an
opinion of the Company's counsel, to issue a press release or otherwise make a
public statement or announcement with respect to this Agreement prior to the
Closing, the Company may do so and shall consult with the Purchaser in advance
on the form and substance of such press release. After the Closing, the Company
may issue a press release or otherwise make a public statement or announcement
with respect to this Agreement or the transactions contemplated hereby or the
existence of this Agreement; provided, however, that prior to issuing any such
press release, making any such public statement or announcement, the Company
shall consult with the Purchaser on the form and substance of such press release
or other disclosure.

         Section 9.12 SEVERABILITY. The provisions of this Agreement are
severable and, in the event that any court of competent jurisdiction shall
determine that any one or more of the provisions or part of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision or part of a provision of
this Agreement, and this Agreement shall be reformed and construed as if such
invalid or illegal or unenforceable provision, or part of such provision, had
never been contained herein, so that such provisions would be valid, legal and
enforceable to the maximum extent possible.

         Section 9.13 FURTHER ASSURANCES. From and after the date of this
Agreement, upon the request of the Purchaser or the Company, each of the Company
and the Purchaser shall execute and deliver such instrument, documents and other
writings as may be reasonably necessary or desirable to confirm and carry out
and to effectuate fully the intent and purposes of this Agreement.

                                       32
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officer as of the date first above
written.

                                     OMI CORPORATION

                                     By:
                                        ----------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                            ------------------------------------

                                     ACQUA WELLINGTON NORTH AMERICAN
                                     EQUITIES FUND, LTD.

                                     By:
                                        ----------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                            ------------------------------------

                                       33
<PAGE>

                                EXHIBIT A TO THE
                         COMMON STOCK PURCHASE AGREEMENT

                                   [Reserved]

<PAGE>

                                EXHIBIT B TO THE
                         COMMON STOCK PURCHASE AGREEMENT

                             SECRETARY'S CERTIFICATE

November 13, 2003

         In connection with the Common Stock Purchase Agreement dated as of
November 13, 2003, (the "AGREEMENT") by and among OMI CORPORATION (the
"Company") and Acqua Wellington North American Equities Fund, Ltd., (the
"Purchaser") the undersigned hereby certifies as follows: (capitalized terms
used herein without definition have the meanings assigned to them in the
Agreement):

         1. Attached hereto as EXHIBIT A is a true, complete and correct copy of
the Articles of Incorporation of the Company as filed with the Registrar of
Corporations of the Marshall Islands. The Articles of Incorporation of the
Company has not been further amended or restated, and no document with respect
to any amendment to the Articles of Incorporation of the Company has been filed
in the office of the Registrar of Corporations of the Marshall Islands since
__________, 2003, the date shown on the face of the certification relating to
the Company's Articles of Incorporation, which is in full force and effect on
the date hereof, and no action has been taken by the Company in contemplation of
any such amendment or the dissolution, merger or consolidation of the Company
which would require disclosure in the Prospectus.

         2. Attached hereto as EXHIBIT B is a true and complete copy of the
By-laws of the Company, as amended and restated, and as in full force and effect
on, the date hereof, and no proposal for any amendment, repeal or other
modification to the By-laws of the Company has been taken or is currently
pending before the Board of Directors or stockholders of the Company.

         3. Attached hereto as EXHIBIT C is a true and correct copy of all
written actions and resolutions of the Board of Directors (including any
committees thereof) of the Company relating to the Agreement and the
transactions contemplated thereby; said actions and resolutions have not been
amended, rescinded or modified since their adoption and remain in full force and
effect as of the date hereof; said actions and resolutions are the only
resolutions adopted by the Board of Directors of the Company, or any committee
thereof, pertaining to (A) the offering of the Common Stock to be sold by the
Company pursuant to the Agreement, (B) the execution and delivery of the
Agreement and (C) all other transactions in connection with the foregoing.

         4. Each person who, as an officer of the Company, or as
attorney-in-fact of an officer of the Company, signed (A) the Agreement, (B) the
Registration Statement and (C) any other document delivered prior hereto or on
the date hereof in connection with the transactions contemplated by the
Agreement, was duly elected, qualified and acting as such officer or duly
appointed and acting as such attorney-in-fact, and the signature of each such
person appearing on any such document is such person's genuine signature.
<PAGE>

         5. The Agreement as executed and delivered on behalf of the Company has
been approved by the Company.

         6. All records and other documents of the Company made available to the
Purchaser and its counsel were true and complete in all respects. There have
been no material changes, additions or alterations in said records and other
documents that have not been disclosed to the Purchaser.

         IN WITNESS WHEREOF, I have signed my name as of the date first above
written.

                                     By:
                                        ----------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                            ------------------------------------

         I, [NAME] Chief Financial Officer of OMI CORPORATION, do hereby certify
that [NAME] is the duly elected, qualified and acting Secretary of the above
mentioned company, and that the signature set forth above is his true and
genuine signature.

         IN WITNESS WHEREOF, I have hereunto signed my name as of the date first
above written.

                                     By:
                                        ----------------------------------------
                                        Name:
                                        Title:  Chief Financial Officer
<PAGE>

                                EXHIBIT C TO THE
                         COMMON STOCK PURCHASE AGREEMENT

                               CLOSING CERTIFICATE

         In connection with the Common Stock Purchase Agreement dated as of
November 13, 2003, (the "AGREEMENT") by and among OMI Corporation (the
"Company") and Acqua Wellington North American Equities Fund, Ltd., the
undersigned hereby certifies as follows:

         1. The undersigned is the duly elected Chief Financial Officer of the
Company.

         2. Except as set forth in the attached Schedule or the Schedule to the
Agreement, the representations and warranties of the Company set forth in
Section 3.1 of the Agreement are true and correct in all material respects as
though made on and as of the date hereof, except for representations and
warranties that speak as of a particular date.

         3. The Company has performed in all material respects all covenants and
agreements to be performed by the Company on or prior to the Closing Date and
has complied in all material respects with all obligations and conditions
contained in the Agreement.

         Capitalized terms used but not otherwise defined herein shall have the
meanings assigned to them in the Agreement.

         The undersigned has executed this Certificate this 13th day of
November, 2003.

                                     By:
                                        ----------------------------------------
                                        Name:
                                        Title:  Chief Financial Officer

                                       35
<PAGE>
                                EXHIBIT D TO THE
                         COMMON STOCK PURCHASE AGREEMENT

                             COMPLIANCE CERTIFICATE

         In connection with the issuance of shares of common stock of OMI
Corporation (the "Company") pursuant to the Draw Down Notice, dated ___________
delivered by the Company to Acqua Wellington North American Equities Fund, Ltd.
(the "Purchaser") pursuant to Article VI of the Common Stock Purchase Agreement
dated November 13, 2003, by and between the Company and the Purchaser (the
"AGREEMENT"), the undersigned hereby certifies as follows:

         1. The undersigned is the duly elected Chief Financial Officer of the
Company.

         2. Except as set forth in the attached Schedule or the Schedule to the
Agreement, the representations and warranties of the Company set forth in
Section 3.1 of the Agreement are true and correct in all material respects as
though made on and as of the date hereof, except for representations and
warranties that speak as of a particular date.

         3. The Company has performed in all material respects all covenants and
agreements to be performed by the Company on or prior to the Draw Down Exercise
Date and the Settlement Date related to the Draw Down Notice and has complied in
all material respects with all obligations and conditions contained in Section
5.3 of the Agreement.

         Capitalized terms used but not otherwise defined herein shall have the
meanings assigned to them in the Agreement.

         The undersigned has executed this Certificate this _____ day of
_________, 2003.

                                     By:
                                        ----------------------------------------
                                        Name:
                                        Title:  Chief Financial Officer
<PAGE>

                                EXHIBIT E TO THE
                         COMMON STOCK PURCHASE AGREEMENT

                            FORM OF DRAW DOWN NOTICE

         Reference is made to the Common Stock Purchase Agreement dated as of
November13, 2003, (the "PURCHASE AGREEMENT") between OMI Corporation (the
"COMPANY"), and Acqua Wellington North American Equities Fund, Ltd. Capitalized
terms used and not otherwise defined herein shall have the meanings given such
terms in the Purchase Agreement.

         In accordance with and pursuant to Section 6.1 of the Purchase
Agreement, the Company hereby issues this Draw Down Notice to exercise a Draw
Down request for the Draw Down Amount indicated below.

         Draw Down Amount:
                          ------------------------------------------------------

         Call Option Amount Requested:
                                        ----------------------------------------

         Draw Down Pricing Period start date:
                                             -----------------------------------

         Draw Down Pricing Period end date:
                                           -------------------------------------

         Settlement Date:
                         -------------------------------------------------------

         Threshold Price:
                         -------------------------------------------------------

         Minimum Threshold Price:           $2.00
                                 -----------------------------------------------

         Dollar Amount and/or Number of Shares
         of Common Stock Currently Unissued
         under the Registration Statement:
                                          --------------------------------------
<PAGE>

         Dollar Amount of Common Stock
         Currently Available under the
         Aggregate Limit:
                         -------------------------------------------------------

Dated:
       -----------------------------

                                     By:
                                        ----------------------------------------
                                        Name:
                                        Title:  Chief Financial Officer

                                     Address:
                                             -----------------------------------

                                     Facsimile No.:
                                                   -----------------------------

                                     Wire Instructions:
                                                       -------------------------

                                     Contact Name:
                                                  ------------------------------
<PAGE>

                                EXHIBIT F TO THE
                         COMMON STOCK PURCHASE AGREEMENT

                           FORM OF CALL OPTION NOTICE

To:
   ------------
Fax#:

         Reference is made to the Common Stock Purchase Agreement effective as
of November13, 2003 (the "PURCHASE AGREEMENT") between OMI Corporation, a
Marshall Islands corporation (the "COMPANY"), and Acqua Wellington North
American Equities Fund, Ltd. Capitalized terms used and not otherwise defined
herein shall have the meanings given such terms in the Purchase Agreement.

         In accordance with and pursuant to Section 6.2 of the Purchase
Agreement, the Purchaser hereby issues this Call Option Notice to exercise a
Call Option for the Call Option Amount indicated below.

         Call Option Amount Exercised:
                                      ------------------------------------------

         Number of Shares to be purchased:
                                          --------------------------------------

         VWAP on the date hereof:
                                 -----------------------------------------------

         Draw Down Discount Price:
                                  ----------------------------------------------

         Settlement Date:
                         -------------------------------------------------------

         Threshold Price:
                         -------------------------------------------------------

         Minimum Threshold Price:                 $2.00
                                 -----------------------------------------------

Dated:
       ----------------
                             Acqua Wellington North American Equities Fund, Ltd.

                             By:
                                ------------------------------------------------

                                   Name:
                                        ----------------------------------------

                                   Title:
                                         ---------------------------------------EXHIBIT 10.2
------------

         [Certain  portions of this exhibit  have been omitted  pursuant to Rule
         24b-2 and are subject to a confidential  treatment  request.  Copies of
         this  exhibit  containing  the  omitted  information  have  been  filed
         separately  with the  Securities and Exchange  Commission.  The omitted
         portions of this document are marked with a ***.]

                          TECHNOLOGY LICENSE AGREEMENT

         THIS  TECHNOLOGY  LICENSE  AGREEMENT  (this  "Agreement")  is made  and
entered into  effective as of September 29, 2003 (the  "Effective  Date") by and
between Fine Gold  Recovery  Systems,  Inc., a Nevada  corporation  ("FGRS") and
Bateman Luxembourg SA., a Luxemburg  corporation  ("Bateman").  Each of FGRS and
Bateman are sometimes  referred to herein as a "Party" and  collectively  as the
"Parties."

                                    RECITALS

         WHEREAS,  FGRS owns or has the right to  license  certain  Intellectual
Property Rights in and to the Technology and the ACJ; and

         WHEREAS,  FGRS desires to grant to Bateman a  non-exclusive  license to
make and use the ACJ and to otherwise use the Technology in connection therewith
all in accordance  with and subject to the terms and conditions  hereinafter set
forth.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and for other good and valuable consideration,  the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.  DEFINITIONS.  Capitalized  terms used but not otherwise defined herein shall
have the  respective  meanings set forth in this Section 1. Defined terms may be
used in the singular and the plural.

         1.1 "ACJ"  means the  Altair  Centifugal  Jig  described  in  Exhibit A
attached hereto and by this reference incorporated herein.

         1.2 "Affiliate," with respect to a Party hereto,  means an entity which
directly or indirectly  controls,  is  controlled by or is under common  control
with such Party.

         1.3 "Business Day" means any day other than a Saturday,  Sunday or U.S.
federal  holiday.  Any reference to "days" (unless  Business Days are specified)
shall mean calendar days. For purposes of this  Agreement,  there shall be eight
"Business Hours" in each Business Day.

         1.4  "Confidentiality   Agreement"  means  the  Mutual  Disclosure  and
Confidentiality  Agreement between the Parties and dated on or about October 22,
2002.

         1.5  "Intellectual  Property  Rights" means patent rights,  copyrights,
trade secret rights and all other intellectual and industrial property rights of
any sort.

         1.6  "Licensed  Territory"  shall have the  meaning  given in Exhibit B
attached hereto and by this reference incorporated herein.

                                       1
<PAGE>

         1.7  "Technology"  means the  technology,  inventions  (whether  or not
patentable),  ideas,  processes,  formulas  and  know-how  used or  owned  by or
licensed or otherwise  properly  available to FGRS as of the Effective Date that
relate to the design, manufacturing, production, use or operation of the ACJ.

2.       LICENSE

         2.1  License  Grant.  Subject  to the  terms  and  conditions  of  this
Agreement,  FGRS  hereby  grants to Bateman a  non-exclusive,  non-transferable,
non-sublicensable  (except as  expressly  provided in this  Section 2) right and
license, under FGRS's applicable Intellectual Property Rights in the Technology,
to make, use, import and export the ACJ.

         2.2  License  Scope.  The  foregoing  license is limited to, and may be
exercised only in connection with, the  manufacture,  installation and operation
of the ACJ as a part of Bateman mineral processing projects done in the Licensed
Territory ("Bateman Projects"); provided, however, that ACJs may be manufactured
by Bateman in the United States or the Licensed  Territory.  The ACJ may only be
used by or under the authority of Bateman (i) within the Licensed Territory, and
(ii) as part of or in connection with a Bateman Project.

         2.3 License to  Affiliates.  The  license  set forth in this  Section 2
shall also extend to Bateman's Affiliates and manufacturing  sub-licensees,  but
only to the extent that (i) such Affiliates and manufacturing  sub-licensees are
bound by a writing (that names FGRS as an express  third-party  beneficiary)  to
Bateman's   obligations   under  this  Agreement,   (ii)  Bateman  assumes  full
responsibility for compliance by such Affiliates and manufacturing sub-licensees
with such  obligations,  and (iii)  all  payments  and  reports  from  Bateman's
Affiliates  are made  through  Bateman,  together  with  Bateman's  payments and
reports.

         2.4 Manufacture of ACJ. Bateman shall be responsible to manufacture (or
to contract for the  manufacture  of) all ACJs used in  connection  with Bateman
Projects.

         2.5  Patent  Markings.  Bateman  agrees  to place  on all ACJs  used in
connection with, or incorporated  into, a Bateman Project all reasonable  patent
and patent application markings in a proper manner, as requested by FGRS.

         2.6  Ownership.  Bateman  acknowledges  and agrees that, as between the
Parties hereto,  FGRS owns and shall retain all Intellectual  Property Rights in
and to the  Technology and that,  except as expressly set forth herein,  Bateman
shall have no right or license in or to the Technology.

3.       EVALUATION PERIOD

         3.1 Pre-Evaluation Trip. As soon as is reasonably practicable following
the execution of this  Agreement,  at Bateman's  sole cost and expense,  Bateman
will send at least one  technical  representative  to FGRS's  facility  in Reno,
Nevada (the "Pre-Evaluation  Trip") to (i) receive technical information related
to the ACJ,  (ii)  observe the  operation of the ACJ, and (iii) confer with FGRS
regarding  Bateman's  anticipated  installation  and use of the ACJ  during  the
Evaluation Period (as defined below).

                                       2
<PAGE>

         3.2 Evaluation Period. The evaluation period (the "Evaluation  Period")
shall  commence  on the date the first ACJ  arrives  at a Bateman  test site and
shall  continue  for a period  of six  months,  unless  extended  by the  mutual
agreement of the Parties.  During the Evaluation Period,  Bateman shall have the
right to test and evaluate the ACJ.  FGRS may provide two sample ACJs to Bateman
for such  purposes  (the "Sample  ACJs").  One of the Sample ACJs will be a skid
mounted Model 12-8 ACJ which includes an ACJ, ACJ controls,  a pulse water pump,
a pulse water tank, and a pulse water distribution system (the electrical motors
and controls of the ACJ, ACJ controls and the pulse water pump are  manufactured
for use in the United  States).  The Parties shall mutually agree upon the model
of the other Sample ACJ to be shipped to Bateman for evaluation purposes and the
timing  of  such  shipment(s).  Upon  the  expiration  or  termination  of  this
Agreement, Bateman shall return to FGRS, at Bateman's sole cost and expense, the
Sample ACJs and any other ACJs or equipment provided to Bateman by FGRS.

3.3      Availability of ACJ Engineer.

         (a) FGRS will make an ACJ  engineer  (an "ACJ  Engineer")  available to
Bateman  during  the  Evaluation  Period  in  accordance  with the terms of this
Section  3.3. An ACJ Engineer (as selected by FGRS) will be available to Bateman
for (i) up to 50% of the  Business  Hours in each month  during the first  three
months of the Evaluation Period, and (ii) for up to 30% of the Business Hours in
each month  during the final three  months of the  Evaluation  Period.  Upon the
reasonable  request of Bateman,  but subject to the  availability  of FGRS's ACJ
Engineers, an ACJ Engineer shall travel to such domestic or foreign locations as
Bateman shall direct; provided, however, that the timing of such travel shall be
mutually  agreeable to Bateman and FGRS. All costs and expenses  associated with
such travel shall be the sole responsibility of Bateman.

         (b) If the  Evaluation  Period  is  extended  for a period  beyond  six
months,  the  Parties  shall  mutually  determine  whether ACJ  Engineers  shall
continue to be made  available to Bateman  and, if so, the terms and  conditions
pursuant to which such ACJ Engineers shall be made available.

         3.4 Evaluation Period Expenses. Bateman shall be solely responsible for
all
costs and expenses  associated with (i) the shipping and  transportation  of the
ACJs  and  other  equipment  as  contemplated  hereby,  (ii)  with  the  design,
installation  and operation of Bateman's  evaluation  and test  facilities,  and
(iii) all travel  expenses  incurred by ACJ  Engineers  while  traveling  at the
request or on behalf of Bateman.

         3.5  Obligations  After  Expiration  of  Evaluation  Period.  After the
expiration of the Evaluation  Period,  FGRS shall have no further  obligation to
support or train Bateman personnel and FGRS shall be under no obligation to hire
any additional ACJ Engineers.  FGRS, within its sole discretion, may maintain an
ACJ test facility in Reno, Nevada, which may be moved to FGRS's Edison facility,
at FGRS's discretion.

4.       OWNERSHIP OF INVENTIONS

         4.1  Ownership  of  ACJ   Improvements.   Any  technology,   discovery,
improvement,  modification or invention (whether patentable or not) specifically
related  to the ACJ or the  Technology  developed,  conceived  or made by either
Party during the term of this Agreement,  and all know-how,  designs,  formulae,
processes,  manufacturing techniques, trade secrets, ideas, artwork, software or

                                       3
<PAGE>

other copyrightable or patentable works related thereto (collectively,  the "ACJ
Improvements"),  shall be solely owned by FGRS and FGRS shall have the exclusive
right  to  obtain  patents  and  such  other  protection  worldwide  as it deems
appropriate to secure any Intellectual  Property Rights in such ACJ Improvements
at its own expense.

         4.2  Assignment of Rights in ACJ  Improvements.  Bateman shall promptly
notify FGRS of each ACJ  Improvement  conceived,  developed or first  reduced to
practice by Bateman  (whether  independently  of or jointly  with FGRS).  In the
event that all of the  Intellectual  Property  Rights in any ACJ Improvement are
not deemed to be solely and  exclusively  owned by FGRS for any reason,  Bateman
hereby  assigns,  transfers  and  conveys  to FGRS all of its  right,  title and
interest  in and to such ACJ  Improvement,  including,  but not  limited to, all
related Intellectual Property Rights.  Bateman further agrees to assist FGRS, at
FGRS's expense, to further evidence, record and perfect such assignment,  and to
perfect, obtain, maintain,  enforce, and defend any rights so assigned.  Bateman
shall also  cooperate  with FGRS in  connection  with  FGRS's  efforts to obtain
patent or other  intellectual  property  protection for any such ACJ Improvement
and Bateman and its  employees and  representatives  shall,  at FGRS's  request,
execute and deliver any documents,  including, without limitation, any patent or
other Intellectual Property Right assignments or applications, to permit FGRS to
exercise its rights  under this  Section 4. In the event that  Bateman  fails or
refuses to execute and deliver any such document,  Bateman hereby  appoints FGRS
as Bateman's  attorney-in-fact  (this  appointment to be irrevocable and a power
coupled  with an  interest)  to act on  Bateman's  behalf  and to  execute  such
documents.

         4.3 License of ACJ  Improvements.  For purposes of this Agreement,  any
ACJ  Improvement  shall be deemed to be a part of the  Technology or the ACJ (as
applicable) and licensed to Bateman,  without  additional  charge, in accordance
with the terms and conditions of this Agreement.

         4.4  Ownership  of Project  Improvements.  Any  technology,  discovery,
improvement,  modification or invention (whether patentable or not) specifically
related to the equipment or processes used in connection  with a Bateman Project
(but not specifically related to the ACJ or the Technology) developed, conceived
or made by either Party  during the term of this  Agreement,  and all  know-how,
designs, formulae,  processes,  manufacturing techniques,  trade secrets, ideas,
artwork,  software or other  copyrightable  or patentable  works related thereto
(collectively, the "Project Improvements"), shall be solely owned by Bateman and
Bateman  shall  have  the  exclusive  right to  obtain  patents  and such  other
protection worldwide as it deems appropriate to secure any Intellectual Property
Rights in such Project Improvements at its own expense.

         4.5 Assignment of Rights in Project  Improvements.  FGRS shall promptly
notify Bateman of each Project Improvement conceived, developed or first reduced
to practice by FGRS (whether  independently of or jointly with Bateman).  In the
event that all of the  Intellectual  Property Rights in any Project  Improvement
are not deemed to be solely and  exclusively  owned by Bateman  for any  reason,
FGRS hereby  assigns,  transfers and conveys to Bateman all of its right,  title
and interest in and to such Project Improvement,  including, but not limited to,
all related Intellectual Property Rights. FGRS further agrees to assist Bateman,
at Bateman's expense,  to further evidence,  record and perfect such assignment,
and to perfect,  obtain,  maintain,  enforce, and defend any rights so assigned.

                                       4
<PAGE>

FGRS shall also cooperate with Bateman in connection  with Bateman's  efforts to
obtain patent or other  intellectual  property  protection  for any such Project
Improvement and FGRS and its employees and  representatives  shall, at Bateman's
request, execute and deliver any documents,  including,  without limitation, any
patent or other  Intellectual  Property Right  assignments or  applications,  to
permit  Bateman to exercise  its rights  under this Section 4. In the event that
FGRS fails or refuses to execute  and  deliver  any such  document,  FGRS hereby
appoints Bateman as FGRS's  attorney-in-fact (this appointment to be irrevocable
and a power  coupled with an  interest)  to act on FGRS's  behalf and to execute
such documents.

         4.6 License of Project  Improvements.  Bateman  hereby grants to FGRS a
perpetual,   irrevocable,   worldwide,   royalty-free,    non-exclusive,   fully
sublicensable  license to make,  use, sell,  offer to sell,  import,  export and
otherwise fully exploit any Project Improvement.

5.       UTILIZATION OF ACJs

         Bateman  shall  use its best  efforts  to  include  the ACJ in  Bateman
Projects,  which  efforts shall  include the testing of new  feedstocks  and the
demonstration  of process  capabilities.  Bateman will  incorporate the ACJ into
Bateman  Projects  and will  install  and  operate  ACJs where  appropriate.  In
addition,   Bateman  shall  use   reasonable   efforts  to  develop  new  design
applications utilizing the unique characteristics of the ACJ.

6.       LICENSE FEES

         6.1 License Fees. In  consideration  of the rights and licenses granted
to Bateman  hereunder,  Bateman  shall pay to FGRS  license  fees (the  "License
Fees"),  which  License  Fees shall be based upon the value  added by the ACJ to
each Bateman Project, as determined in accordance with the terms of this Section
6.

         6.2 Proposed  Project Budget.  Prior to the commencement of any Bateman
Project in which an ACJ will be used, sold or incorporated, Bateman will provide
a proposed  project budget (a "Proposed  Project Budget") to FGRS for its review
and approval.  Each Proposed  Project  Budget shall include (i) a description of
the value of the products  processed by the ACJ (the "ACJ Processed  Products"),
(ii) the value of the  products  not  processed  by the ACJ ("Other  Products"),
(iii) the Relative  Value (as defined in Section 6.3 below),  (iv) the amount of
budgeted  profit  ("Budgeted  Profit"),  (v)  the  amount  of the  License  Fees
(calculated in accordance with the terms of Section 6.6 below),  (vi) a proposed
schedule for the payment of the License Fees (the "Payment Schedule"), and (vii)
such  other  details  about the  proposed  Bateman  Project  as FGRS  reasonably
requests. The Budgeted Profit contained in each Proposed Project Budget shall be
made on a pre-tax basis and shall not carry corporate overhead allocations.

         6.3  Relative  Value.  The  "Relative  Value"  shall be  calculated  by
dividing the value of the ACJ Processed  Products by the sum of the value of the
ACJ Processed Products and the value of the Other Products.

         6.4 Payment  Schedule.  Unless the Parties  otherwise agree in writing,
the Payment Schedule shall be structured such that it is similar to the schedule
of the payments to be made to Bateman in connection with the applicable  Bateman

                                       5
<PAGE>

Project. By way of example only, if the amounts payable to Bateman in connection
with a Bateman  Project are to be paid in twelve equal  monthly  payments over a
one-year period,  the License Fees shall be paid to FGRS in twelve equal monthly
payments over a one-year period.

         6.5 Review and Approval of Project Budget.  As provided in Section 6.2,
Bateman  shall  provide a  Proposed  Project  Budget to FGRS for its  review and
approval prior to the commencement of any Bateman Project. FGRS, within its sole
discretion, shall have the right to accept or reject any Proposed Project Budget
and,  notwithstanding any other provision of this Agreement,  Bateman shall have
no  right to use any ACJ in  connection  with,  or  incorporate  an ACJ in,  any
Bateman  Project  unless and until FGRS has  accepted  the  applicable  Proposed
Project Budget in writing.

         6.6  Calculation  of License Fees.  The License Fees payable to FGRS in
connection  with each  Bateman  Project  shall equal the ***  multiplied  by the
Relative Value  multiplied by ***. For  convenience  and by way of  illustration
only, two examples of the License Fee calculation are provided below.

         (a)      Example #1 (Annual Operating Contract).  Assuming that Bateman
                  enters into an annual  operating  contract  for $3 million per
                  year with a *** of 20%  ($600,000) and that the Relative Value
                  of the ACJ  Processed  Products  is 50% of the  total  product
                  value,  the License Fee payable to FGRS would be $*** per year
                  and calculated as follows:

<TABLE>
<CAPTION>

------------------------------------------------- ---------------------- ---------------------------------------------
                      ***                            Relative Value                      License Fee
                      ---                            --------------                      -----------
------------------------------------------------- ---------------------- ---------------------------------------------
<S>                                               <C>                    <C>
***                                               ***                    ***
------------------------------------------------- ---------------------- ---------------------------------------------
</TABLE>
         (b)      Example #2 (Lump-Sum  Contract).  Assuming that Bateman enters
                  into a lump-sum  contract  for $50  million  with a *** of 15%
                  ($7,500,000)  and that the Relative Value of the ACJ Processed
                  Products is 25% of the total  product  value,  the License Fee
                  payable to FGRS would be $*** and calculated as follows:

<TABLE>
<CAPTION>
------------------------------------------------- ---------------------- ---------------------------------------------
                      ***                            Relative Value                      License Fee
                      ---                            --------------                      -----------
------------------------------------------------- ---------------------- ---------------------------------------------
<S>                                               <C>                    <C>
***                                               ***                    ***
------------------------------------------------- ---------------------- ---------------------------------------------
</TABLE>

7.       BATEMAN COVENANTS

         7.1 FGRS's  Intellectual  Property  Rights.  Bateman  acknowledges  and
agrees that neither it nor any of its  Affiliates  are currently in the business
of  producing  ACJs  or  any  products  similar  thereto.  Accordingly,  Bateman
acknowledges  and  agrees  that any  activity  in that  area by  Bateman  or its
Affiliates  after  Bateman  has  had  access  to  FGRS's  Technology  and  other
Confidential  Information would almost certainly rely on, be built on or include
FGRS's Technology or other  Confidential  Information.  Bateman therefore agrees
that, except as specifically authorized under this Agreement, during the term of

                                       6
<PAGE>

this Agreement and during the five-year period  thereafter,  neither Bateman nor
any of its  Affiliates  will  directly or  indirectly  engage in the business of
producing products similar to the ACJ.

         7.2 Competitive Products.  Bateman further agrees that, during the term
of this Agreement, it shall not manufacture,  offer to sell, or sell any product
competitive with and similar to the ACJ on Bateman Projects.

         7.3 Reports.  Bateman  shall submit  periodic  reports to FGRS with the
content and pursuant to such schedule as FGRS reasonably requests.

         7.4  Infringement.  If Bateman becomes aware of any product or activity
of any third party that may involve the  infringement  or  violation of any FGRS
Intellectual  Property Right, then Bateman shall promptly notify FGRS in writing
of such suspected infringement or violation.  FGRS may in its discretion take or
not take whatever action it believes is appropriate;  provided, however, if FGRS
elects to take action,  Bateman will fully  cooperate with such action at FGRS's
expense.

8.       CONFIDENTIALITY

         8.1 Confidential Information. The term "Confidential Information" shall
mean all information,  in whatever form, disclosed by one Party (the "Disclosing
Party") to the other (the "Receiving Party")  pertaining to the Technology,  the
ACJ, or to the  properties,  composition or structure  thereof or to the design,
manufacturing or processing  thereof,  regardless of whether such information is
identified in any manner as being confidential or proprietary.  The Confidential
Information  shall further  include  information  pertaining  to the  Disclosing
Party's business, finances, technology, ideas, inventions (whether patentable or
not), marketing strategies and/or product offerings that is identified, or would
reasonably  be  understood  by the  Receiving  Party,  as being  proprietary  or
confidential.  Confidential  Information shall not include information that: (i)
was in the possession of the Receiving Party without confidentiality restriction
prior to  disclosure  by the  Disclosing  Party;  (ii) at or  after  the time of
disclosure by the  Disclosing  Party becomes  generally  available to the public
through  no act or  omission  on the  part of the  Receiving  Party  that is not
expressly  authorized  hereunder;  (iii)  has come  into the  possession  of the
Receiving Party without confidentiality  restriction from a third party and such
third party is under no  obligation  to  maintain  the  confidentiality  of such
information;  or (iv) was independently  developed by or for the Receiving Party
without the use of any  Confidential  Information  received from the  Disclosing
Party.

         8.2   Restrictions   on  Use  and   Disclosure.   The  Receiving  Party
acknowledges the confidential and proprietary  nature of the Disclosing  Party's
Confidential Information and agrees, except as expressly authorized or permitted
under  this  Agreement,   (i)  to  hold  the  Disclosing  Party's   Confidential
Information in confidence and to take all reasonable precautions to protect such
Confidential  Information  (including,  without limitation,  all precautions the
Receiving Party employs with respect to its own  confidential  materials),  (ii)
not to divulge any such Confidential  Information to any third person, and (iii)
not to make any use whatsoever of such Confidential Information.

                                       7
<PAGE>

         8.3  Employees and Others.  The  Receiving  Party agrees to require its
employees,  representatives  and  agents,  and  others  who have  access  to the
Confidential  Information,  to agree in writing to  safeguard  the  Confidential
Information  according  to the  terms  of this  Section  8.  Any  breach  of the
provisions  of this  Section  8 by any  such  person  shall  be  deemed a breach
hereunder  by the  Receiving  Party,  and the  Receiving  Party  shall be liable
therefor.

         8.4 Judicial Order. In the event that the Receiving Party is ordered to
disclose the Disclosing Party's Confidential  Information pursuant to a judicial
or government  request,  requirement or order, the Receiving Party will promptly
notify the Disclosing  Party and take reasonable  steps to assist the Disclosing
Party,  at  the  Disclosing   Party's  expense,   in  contesting  such  request,
requirement or order or in otherwise  protecting  the Disclosing  Party's rights
prior to disclosure.

         8.5 Confidentiality of Agreement. Each Party agrees not to disclose any
of the terms and conditions of this  Agreement  except as and to the extent that
it may be  mutually  agreed by the  Parties in writing or as may be  required by
law. Notwithstanding the foregoing,  either Party may disclose the terms of this
Agreement to potential investors or acquisition partners in connection with such
party's due diligence in connection  with a proposed  financing or  acquisition,
provided   that  such  third  party  has  executed  an   agreement   prohibiting
unauthorized  use or disclosure of the terms of this  Agreement and agrees to be
bound by the confidentiality terms of this Agreement.

         8.6  Return  of  Confidential  Information.  Upon  the  termination  or
expiration  of this  Agreement,  at the  request of the  Disclosing  Party,  the
Receiving  Party shall destroy or return to the Disclosing  Party all originals,
copies and summaries of documents,  materials and other tangible  manifestations
of Confidential  Information in the possession or control of the Receiving Party
or its Affiliates or sublicensees.

         8.7 Remedies.  The Receiving Party  acknowledges and agrees that due to
the unique nature of the Disclosing Party's Confidential Information,  there can
be no adequate remedy at law for any breach of its obligations  hereunder,  that
any such  breach may allow the  Receiving  Party or third  parties  to  unfairly
compete  with  the  Disclosing  Party  resulting  in  irreparable  harm  to  the
Disclosing  Party,  and  therefore,  that  upon any such  breach  or any  threat
thereof, the Disclosing Party shall be entitled to appropriate  equitable relief
(without the posting of any bond) in addition to whatever remedies it might have
at law and to be  indemnified  by the  Receiving  Party  from  any loss or harm,
including,  without limitation,  lost profits and attorneys' fees, in connection
with any breach or enforcement of the Receiving Party's obligations hereunder or
the  unauthorized  use or  release  of any such  Confidential  Information.  The
Receiving Party will notify the Disclosing Party in writing immediately upon the
occurrence of any such unauthorized  release or other breach. Any breach of this
Section 8 will constitute a material breach of this Agreement.

9.       REPRESENTATIONS AND WARRANTIES

         9.1 Right to License.  FGRS hereby  represents and warrants that it has
the right to grant the rights and licenses to the Technology and the ACJ granted
under this Agreement.

                                       8
<PAGE>

         9.2 Disclaimer of Warranties.  EXCEPT AS PROVIDED IN SECTION 9.1 ABOVE,
FGRS MAKES NO WARRANTY WITH RESPECT TO THE ACJ OR THE TECHNOLOGY OR TO ANY OTHER
GOODS,  SERVICES,  RIGHTS OR OTHER SUBJECT  MATTER OF THIS  AGREEMENT AND HEREBY
EXPRESSLY  DISCLAIMS  ALL  OTHER  WARRANTIES,  EXPRESS,  IMPLIED  OR  STATUTORY,
INCLUDING  BUT  NOT  LIMITED  TO  THE  IMPLIED  WARRANTIES  OF  MERCHANTABILITY,
NON-INFRINGEMENT,  FITNESS FOR A  PARTICULAR  PURPOSE.  MOREOVER,  FGRS MAKES NO
WARRANTY OF ANY KIND AS TO THE RESULTS THAT MAY BE OBTAINED  FROM THE  OPERATION
OR USE OF THE ACJ.

10.      INDEMNIFICATION

         10.1  Indemnification  by FGRS.  FGRS shall defend,  indemnify and hold
Bateman and its directors,  officers,  employees,  shareholders  and agents (the
"FGRS Indemnified Parties") harmless, from and against any and all claims, suits
or  actions  (i)  alleging  that  Bateman's  manufacture  or use  of the  ACJ in
accordance  with  the  term  of the  license  granted  hereunder  infringes  the
intellectual  property rights of a third party; or (ii) otherwise arising out of
this  Agreement  to the  extent  such  claim,  suit or action is a result of the
negligent,  wrongful  or  intentional  act  of  FGRS  (collectively,  the  "FGRS
Indemnified Claims").  FGRS agrees to pay all costs,  expenses,  liabilities and
damages (including reasonable attorneys' fees) incurred or paid in settlement by
the FGRS Indemnified Parties in connection with any FGRS Indemnified Claim.

         10.2 Exceptions.  In no event will FGRS have any obligations under this
Section  10 or any  liability  for  any  FGRS  Indemnified  Claim  if  the  FGRS
Indemnified  Claim is caused by, or results from:  (a) Bateman's  combination or
use of the Technology or the ACJ with other  technologies  or products,  (b) any
modification  of the  Technology or the ACJ by anyone other than FGRS or someone
authorized  to do so by FGRS  in  writing,  (c)  Bateman's  continued  allegedly
infringing  activity  after  being  notified  thereof  or after  being  provided
modifications  that would have avoided the alleged  infringement,  (d) Bateman's
use of the  Technology  or the ACJ in a manner not strictly in  accordance  with
this  Agreement,  or (e)  any  modification  of  the  Technology  or the  ACJ in
compliance with Bateman's specifications.

         10.3  Indemnification by Bateman.  Bateman shall defend,  indemnify and
hold FGRS and its directors,  officers, employees,  shareholders and agents (the
"Bateman  Indemnified  Parties") harmless,  from and against any and all claims,
suits or actions arising out of this Agreement to the extent such claim, suit or
action is a result of the  negligent,  wrongful  or  intentional  act of Bateman
(collectively,  the  "Bateman  Indemnified  Claim").  Bateman  agrees to pay all
costs, expenses,  liabilities and damages (including reasonable attorneys' fees)
incurred or paid in settlement by the Bateman  Indemnified Parties in connection
with any Bateman Indemnified Claim.

         10.4   Indemnification   Procedure.   The  Party  making  a  claim  for
indemnification (the "Indemnified Party") shall notify the indemnifying Party of
any such  claim or suit,  and the  indemnifying  Party  shall  have the right to
defend  itself  and,  if  the  Indemnified  Party  consents,   also  defend  the
Indemnified  Party through counsel of the  indemnifying  Party's choice provided
such counsel is acceptable to the Indemnified Party. The Indemnified Party shall

                                       9
<PAGE>

also be free to retain the  Indemnified  Party's own counsel,  in which case the
Indemnified Party's reasonable  attorneys' fees and expenses shall be covered by
the indemnity set forth in this Section 10.

11.      LIMITATION OF LIABILITY

         11.1 No Consequential Damages. EXCEPT FOR ANY OBLIGATIONS ARISING UNDER
SECTION  10  (INDEMNIFICATION)  OR  ACTIONS  OF  BATEMAN  OR ITS  AFFILIATES  OR
SUBLICENSEES  BEYOND  THE  SCOPE  OF THE  LICENSE  GRANTED  HEREUNDER,  UNDER NO
CIRCUMSTANCES   SHALL  EITHER  PARTY  BE  LIABLE  FOR  ANY  SPECIAL,   INDIRECT,
INCIDENTAL,  CONSEQUENTIAL,  EXEMPLARY  OR  PUNITIVE  DAMAGES  ARISING OUT OF OR
RELATING IN ANY WAY TO THIS AGREEMENT,  THE TECHNOLOGY,  AND/OR THE ACJ, EVEN IF
SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

         11.2 Limitation of Liability.  EXCEPT FOR ANY OBLIGATIONS ARISING UNDER
SECTION  10  (INDEMNIFICATION)  OR  ACTIONS  OF  BATEMAN  OR ITS  AFFILIATES  OR
SUBLICENSEES  BEYOND THE SCOPE OF THE  LICENSE  GRANTED  HEREUNDER,  IN NO EVENT
SHALL EITHER PARTY'S  AGGREGATE  LIABILITY UNDER THIS AGREEMENT EXCEED AN AMOUNT
EQUAL TO THE TOTAL  AMOUNT OF  LICENSE  FEES PAID BY  BATEMAN TO FGRS UNDER THIS
AGREEMENT.  THIS SECTION 11 SHALL NOT LIMIT  EITHER  PARTY'S  LIABILITY  FOR THE
DEATH OR BODILY INJURY OF A PERSON.

12.      TERM AND TERMINATION

         12.1 Term. The term of this  Agreement  shall commence on the Effective
Date and, unless sooner  terminated in accordance with the terms of this Section
12, shall continue for a period of three years. Thereafter, this Agreement shall
automatically  renew for  successive  periods  of one year  each  unless a Party
furnishes the other Party with written  notice of  non-renewal  at least 30 days
prior to the expiration of the then-current term.

         12.2 Termination With Cause.  Either Party may terminate this Agreement
upon the material  breach of the other Party, if such breach remains uncured for
30 days  following  written  notice to the other Party  specifying the breach in
reasonable detail and demanding its cure.

         12.3  Payment  Default.  Notwithstanding  any other  provision  of this
Agreement,  FGRS shall have the right to immediately terminate this Agreement if
Bateman fails to make any payment within 30 days of the date such payment is due
under the  applicable  Payment  Schedule  agreed to by the Parties in accordance
with the terms of Section 6.

         12.4 Termination During Evaluation Period. Bateman shall have the right
to terminate this Agreement at any time and for any reason during the Evaluation
Period upon 30 days written notice to FGRS.

         12.5 License Fee Targets.  The Parties have established the License Fee
targets (the  "License Fee  Targets")  set forth in the  following  table.  Each
License Fee Target is for a particular  two-year  period during the term of this

                                       10
<PAGE>

Agreement  (each, a "License Fee Target  Period").  Each such License Fee Target
Period begins on the  termination  of the  Evaluation  Period or the  applicable
anniversary thereof.

------------------------------------------------------------- ------------------
License Fee Target Period                                     License Fee Target
------------------------------------------------------------- ------------------
Years 1-2 (following termination of Evaluation Period)        $50,000
------------------------------------------------------------- ------------------
Years 3-4 (following termination of Evaluation Period)        $50,000
------------------------------------------------------------- ------------------
Years 5-6 (following termination of Evaluation Period)        $50,000
------------------------------------------------------------- ------------------
All Subsequent License Fee Target Periods                     $50,000
------------------------------------------------------------- ------------------

         In the event that Bateman  fails to meet the License Fee Target for any
given  License  Fee Target  Period,  FGRS  shall  have the right to  immediately
terminate this Agreement upon written notice to Bateman.

         12.6   Immediate   Termination.   FGRS  may  terminate  this  Agreement
immediately,  with or without  notice,  upon (i) the  institution  by or against
Bateman of insolvency,  receivership or bankruptcy or liquidation proceedings or
any other  proceedings  for the  settlement of Bateman's  debts,  (ii) Bateman's
making  of  an  assignment  for  the  benefit  of  creditors,   (iii)  Bateman's
dissolution or ceasing to do business,  or (iv) any failure by Bateman to comply
with all applicable laws of the United States and the Licensed Territory.

         12.7 Effects of Termination. Upon the termination or expiration of this
Agreement:  (i) Bateman shall have the right to complete any binding commitments
it may have in connection  with any Bateman  Project,  provided that all license
fees are paid to FGRS in connection  therewith in  accordance  with the terms of
this  Agreement,  (ii)  except as set forth in clause  (i)  above,  the  license
granted  hereunder to Bateman  shall  immediately  terminate  and Bateman  shall
discontinue  all manufacture and use of the ACJ and the Technology and any other
property  belonging to FGRS,  and (iii)  Bateman shall make all payments to FGRS
due and owing as of the effective date of termination.

         12.8  Survival.  The provisions of Sections 1, 4.1, 4.2, 4.4, 4.5, 4.6,
7.1, 8, 10, 11, 12 and 13 shall  survive any  termination  or expiration of this
Agreement.

         12.9  Termination  Liability.  Neither  Party shall incur any liability
whatsoever for any damages,  losses or expenses of any kind suffered or incurred
by the other Party arising from or incident to any termination of this Agreement
(or any part thereof) which complies with the terms of this  Agreement,  whether
or not the terminating Party is aware of any such damages, losses or expenses.

         12.10  Termination Not Sole Remedy.  Termination is not the sole remedy
under this Agreement  and,  whether or not  termination  is effected,  all other
remedies will remain available.

                                       11
<PAGE>

13.      GENERAL PROVISIONS

         13.1 Independent  Contractors.  The Parties are independent contractors
and not partners,  joint  venturers or otherwise  affiliated and neither has any
right or authority to bind the other in any way.

         13.2  Assignment.  Neither  Party may assign its rights or delegate its
obligations  under this Agreement without the prior written consent of the other
Party,  which  shall  not be  unreasonably  withheld,  conditioned  or  delayed;
provided,  however,  that either Party shall have the right to assign its rights
and obligations  under this Agreement to an Affiliate or to any successor to its
business or assets to which this Agreement relates,  whether by merger,  sale of
assets,  sale of stock,  reorganization or otherwise.  Subject to the foregoing,
this  Agreement  shall be binding  upon and inure to the  benefit of the parties
hereto, their successors and assigns.

         13.3 Waiver or Modification. No waiver of any of the provisions of this
Agreement shall be deemed, or shall constitute, a waiver of any other provision,
whether or not similar, nor shall any waiver constitute a continuing waiver. Any
waiver,  modification  or amendment of any provision of this Agreement  shall be
effective  only if in  writing in a document  that  specifically  refers to this
Agreement and such document is signed by both of the Parties hereto.

         13.4 Governing Law;  Jurisdiction.  This Agreement shall be governed by
and  construed  in  accordance  with the laws of the  State of  Nevada,  without
reference  to  conflict  of law  principles.  All  disputes  hereunder  shall be
resolved in the applicable  state or federal courts of the State of Nevada.  The
Parties consent to the  jurisdiction of such courts,  agree to accept service of
process  by mail,  and  waive any  jurisdictional  or venue  defenses  otherwise
available.  In the event of any litigation  arising out of this  Agreement,  the
prevailing Party shall be entitled to be reimbursed for all reasonable costs and
expenses,  including reasonable attorneys' fees incurred in connection with such
litigation.

         13.5 Notices. Any notices or other communications required or permitted
to be given or delivered  hereunder  shall,  unless otherwise  permitted,  be in
writing and shall be  delivered  personally,  by courier  service,  by facsimile
machine or by registered or certified mail,  return receipt  requested,  postage
pre-paid, to the Parties as follows:

         If to Bateman:

         Bateman Engineering Inc.
         12200 East Iliff Ave., Suite 100
         Aurora, Colorado  80014
         Telephone: (303) 338-7002
         Facsimile: (303) 338-7010
         Attn: Mr. Basil Smidt

                                       12
<PAGE>

         If to FGRS:

         Fine Gold Recovery Systems, Inc.
         204 Edison Way
         Reno, Nevada  89502
         Telephone: (775) 858-3750
         Facsimile: (775) 856-1619
         Attn: Mr. Edward Dickinson

         With a copy to:

         Brian G. Lloyd
         Stoel Rives LLP
         201 South Main Street, Suite 1100
         Salt Lake City, Utah  84111
         Telephone: (801) 328-3131
         Facsimile: (801) 578-6999

or to such other  addresses  as a Party may  designate  pursuant  to this notice
provision. Any notice given shall be deemed to have been received on the date on
which it is delivered  personally,  by courier  service or by facsimile,  or, if
mailed, on the third business day following the mailing thereof.

         13.6 Entire Agreement. This Agreement constitutes the full and complete
understanding  and  agreement of the Parties with respect to the subject  matter
covered  herein and  supersedes  all prior oral or  written  understandings  and
agreements with respect thereto.

         13.7 Force  Majeure.  Except  for  obligations  to make  payment or the
Parties' obligations under Section 8 hereof (Confidentiality), nonperformance by
either  Party  shall be excused  to the  extent  that  performance  is  rendered
impossible  by  war,  strike,  revolution,  fire,  flood,  lack  or  failure  of
transportation  facilities,  governmental  acts, orders or restrictions,  or any
other  reason  where  failure to perform is beyond the control and not caused by
the negligence of the  non-performing  Party. The Party facing an event of force
majeure  shall use  commercially  reasonable  efforts to remedy the situation as
well as to minimize its effects.

         13.8 Export Control. Each Party shall comply with all applicable export
laws,  restrictions,  and  regulations of any United States or foreign agency or
authority and will not export or re-export, or authorize the export or re-export
of any product,  technology or information it obtains or learns pursuant to this
Agreement  (or any  direct  product  thereof)  in  violation  of any such  laws,
restrictions or regulations.

         13.9 Severability.  If any provision of this Agreement is held illegal,
invalid or  unenforceable by a court of competent  jurisdiction,  that provision
will be limited or  eliminated  to the  minimum  extent  necessary  so that this
Agreement shall otherwise remain in full force and effect and enforceable.

         13.10   Counterparts.   This  Agreement  may  be  executed  in  several
counterparts,  each of which  shall  constitute  an  original,  but all of which
together shall constitute one and the same instrument.

                                       13
<PAGE>

         13.11 Facsimile Signatures.  The Parties hereto agree that transmission
to the other Party of this Agreement with its facsimile signature shall bind the
Party  transmitting  this by  facsimile  in the same  manner as if such  Party's
original  signature had been  delivered.  Without  limiting the foregoing,  each
Party who  transmits  this  Agreement  to the  other  Party  with its  facsimile
signature  covenants to deliver the original  thereof to the other Party as soon
as practicable thereafter.

         13.12  Headings.  The headings  contained in this  Agreement  have been
inserted for convenience of reference only and shall not modify,  define, expand
or limit any of the provisions of this Agreement.

                            [Signature Page Follows]

                                       14

<PAGE>

         IN WITNESS WHEREOF,  the Parties hereto have executed this Agreement as
of the Effective Date.

FINE GOLD RECOVERY SYSTEMS, INC.                  BATEMAN LUXEMBOURG SA .

By: /s/ C . Patrick Costin                        By: /s/ B.G. Schmidt
    -----------------------------                     --------------------------
Name: C . Patrick Costin                          Name: B.G. Schmidt
Title: President                                  Title: Attorney-in-Fact

                                       15
<PAGE>

                                    Exhibit A
                             Altair Centrifugal Jig

         Conventional Jigs

         A conventional jig separates a slurry of mineral  particles as it flows
across the top of a screen.  Water is periodically  pulsed up through the screen
to eliminate interparticle friction and allow differential settling according to
the variations in the net specific  gravities of the ore.  Heavier  minerals are
allowed to pass downward through the screen while lighter  materials flow across
the screen to a discharge point.

         The ACJ

         The Altair Centrifugal Jig or ACJ is the jig produced by FGRS using the
Technology.  The ACJ operates  according to conventional  jig principles  except
that the screen surface is  cylindrical  and is rotated to subject the particles
to centrifugal forces. As currently  designed,  materials to be processed by the
ACJ are  introduced  into the top of the ACJ in a slurry  mix  with  water.  The
slurry is  diffused  across the top of the  interior  of a vertical  cylindrical
screen  which  is  rotating.   Water  is  pulsed  through  the  screen  allowing
differential separation in the slurry material. Heavy particles pass through the
screen, are collected,  and exit the machine in a "concentrate" stream.  Lighter
particles flow down the screen  interior,  are collected and exit out the bottom
of the machine in a separate "tails" stream. Use of the ACJ requires no chemical
additives.  In operation,  the ACJ utilizes a combination of standard mechanical
jig and centrifugal technologies.

<PAGE>

                                    Exhibit B
                               Licensed Territory

         The  "Licensed  Territory"  is determined by reference to the following
table. The Licensed Territory for a given application (the relevant applications
are listed  along the top row of the  table)  shall  include  each  region  with
respect to which there is a "B" included in the box representing such region. By
way of  example,  for use of the ACJ with coal,  the  Licensed  Territory  would
include Africa, the former Soviet Union and Australia.

<TABLE>
<CAPTION>
ACJ Geographical Areas and Applications
------------------------------------------------------------------------------------------------------------------------------------
            Region                  ***              ***         ***             ***          ***              ***         ***
------------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>              <C>         <C>             <C>           <C>             <C>          <C>
   Africa                            B                B           B               B            B                B           B
   Former Soviet Union               B                B           B               B            B                A           B
   Australia                         B                A           A               A            A                A           B
   North America                     B                A           A               A            A                A           A
   South America                     B                A           A               A            A                A           A
   China                             B                A           A               A            A                A           A
   India                             B                A           A               B            A                A           A
   Middle East                       B                A           A               A            A                A           A
   Rest of the World                 B                A           A               A            A                A           A
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
A = FGRS
B = Bateman

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]