Document:

exhibit_10-4.htm

    
      

    

    EXHIBIT 10.4

     

    

    

     

    AGREEMENT
REGARDING RESEARCH AND RECOVERY

    OF
..ARCHAEOLOGICAL MATERIAL

    BETWEEN

    FLORIDA
DIVISION OF HISTORICAL RESOURCES

    AND

    TULCO RESOURCES, LTD. &
SEAFARER EXPLORATION,
INC.

     

    This
agreement is made this 4th
day of Nov,by and between the State of Florida. Department of
State. Division of
historical Resources, hereinafter referred to as the Division,
whose address is B. Calvin Jones Center for Archaeology, 1001 deSolo Park Drive,
Tallahassee. H. 32301, and the
partnership. hereinafter referred to as TR/SF, of Tulco

    Resources,
LTD. (TR), whose address is Box 3045, Tequesta. FL 33469, and Seafarer
Exploration,
Inc. (SF), whose address is 14497 north Dale Mabry
Blvd. Pampa. FI, 33618.

     

    WHEREAS,
in September, 1987. Mr. Nelson Wait found evidence of a
shipwreck on state-owned sovereignty
submerged lands near Juno Beach, Florida. hereinafter referred to as the TR Wreck,
and

     

    WHEREAS,
in January, 1988, an in
rem admiralty action was tiled
under Case No
88-802I­-CIV-NESBITT in the United States District Court for the
Southern District of Florida in order to establish sal age rights on that
particular shipwreck within a 1.500 yard radius of a point at 26 degrees 50 minutes 35 seconds North
latitude and 80 degrees 0 minutes 10 seconds West
longitude. and

     

    WHEREAS,
in May. 1988, the federal court awarded Archaeological Recovery Sen. ices. Inc.,
hereinafter referred to as ARS, ownership. title and possession of the wrecked
vessel and all of its artifacts located within the area described above against all
claimants except the State of Florida, and

     

    WHEREAS,
on April 2,
1992, Judge Edward Garrison in Case Number CE92-3480 AL
in
the 15th
Judicial Circuit Court in and for Palm Beach County, Florida awarded Final
Judgment in favor of Judson Laird against ARS. and

     

    WHEREAS,
on
May 19, 1992, the
Clerk of the Circuit Court in Palm Beach County, Florida issued
instructions to
each Sheriff in the state to levy on the property of ARS pursuant to
the final Judgment in Case Number CI.92-3480 AE, and

     

    WHEREAS,
on May 12,
1993, at a duly advertised Sheriff's Sale held at the Palm Beach
County Courthouse in West Palm Beach.
Florida., Judson Laird, Plaintiff,
was the highest and best bidder and received and acknowledged
receipt of all interests of the Defendant, Archaeological Recovery Services.
Inc.. a Florida Corporation, as set
forth in the copy of
the Final Default Judgment. Case 4#
88-802 I-CIV-NESBIITT in the U.S. District of Florida., In
Admiralty., entered May 25,
1988. and

     

    WHEREAS,
in May 1994, the Department of Legal Affairs of
the Office of
the Attorney General of the State of Florida rendered the legal opinion
to the Florida Division of historical Resources that Judson Laird had acquired
through legal process the total assets of ARS and one
of those assets was the
Admiralty Arrest in Case
Number 86
-8021-CIA-NESBITT,,
and

    WHEREAS,
in
April. 1988,  I
he Abandoned I Shipwreck Act
of
1987 was
signed into law,  giving
the
states undisputed title to
all shipwrecks within state waters, and

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

     

    WHEREAS,
the title to treasure trove, artifacts, and such objects having intrinsic or
historical and archaeological value which have been abandoned on State-owned
sovereignty submerged lands is granted to the State and vested in the Division
of historical Resources by 267.061(1)(b). Florida Statutes, and

     

    WHEREAS.
the TR Wreck is in an active environment and subject to exposure of portions of
the wreck site which. because of widespread publicity. could lead to looting and
other destruction of the archaeological and historical integrity of the site,
and

     

    WHEREAS,
it is the intent of the parties that because of the unique circumstances of this
particular shipwreck. which circumstances include the tact that the action was
filed prior to the passage of the Abandoned Shipwreck Act of 1987 and the
immediate danger to the present integrity of the wreck site due to erosion, the
parties therefore agree as follows:

     

    I.

     

    1.
Although the Federal District Court will adjudicate title for recovered items in
Case 88-8021- C1V-NESBITT, vis-a-vis third parties, this Research and Recovery
Agreement controls title vis-a-vis the State of Florida and TR/SF. For purpose
of this Agreement, the parties agree that title to all of the wreck is vested in
the State of Florida.

     

    II.

     

    This
agreement shall be for a tract of sovereignty submerged lands lying offshore of
Palm Beach County, Florida
being more precisely described as follows:

     

    The above
described area excludes submerged bottom lands a distance of 133 yards east of
the mean low water line and all points of
land above the mean low water line that fall within this rectangular
geographic boundary.

     

    III.

     

    1.      This
agreement relates to archaeological work to be conducted on sovereignty
submerged lands of
the Stale of Florida fOr the purpose of recording archaeological
information and recovering historic shipwreck artifacts. The Division hereby
grants to TR/SF permission to remove artifacts from certain sovereignty
submerged lands described in Section 11 in accordance with the covenants and
conditions provided in
this agreement.

     

    2.      This
agreement shall he for a term of one (1) year beginning as of the date written
above.

     

    3.     
This agreement is subject to written renewal by the parties, and it is
the responsibility of TR/SF to give written notification of intent to renew at
least 60 days prior to the expiration dale. TR/SF shall have the right to
continuously renew this contract in areas within and beyond those specified in
Section LI so long as I R/SF faithfully performs in accordance with the
covenants and conditions provided herein and so long as such areas are within
the area and specific to the ship  wreck corresponding to Admiralty Case
88-802 I -CIV-NESITT.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

     

    4.         
This agreement may he canceled by the Division should TR/SF fail to comply with
any of the provisions contained herein, including the Archaeological Guidelines
in Attachment A, provided that 4'R/SF shall be given written notice of the
intent to cancel and a reasonable time to cure any failure to comply. lf, in the
opinion of the Division, TR/SF has failed to comply, written notice of such
cancellation will he sent at the time of such cancellation.

     

    IV.

     

    1.         
 TR/SF agrees to survey and assess the agreement area to determine the
distribution of potential shipwreck remains. TR/SF agrees to provide a
comprehensive Site Plan based on all existing data as part of the annual
report.

     

    2.         
TR/SF  agrees
to conduct test excavations in the agreement area necessary to determine the
nature of such potential shipwreck remains.

     

    3.          
TR/SF agrees that certain classes or
artifacts will be mapped and measured in place and left in their original
location or, with the permission of the Division, removed for further study.
These include anchors, cannons, ballast stones (except a representative sample).
and ship's structure. All other artifacts encountered during the project shall
he professionally evaluated, mapped. and recovered, until such time as the
Division and the archaeologist in charge agree that additional recoveries of
specific types of artifacts would serve no archaegogical or interpretive
purpose.

     

    4.          
TR/SF
agrees to conduct recovery of artifacts and associated archaeological
information in the agreement area.

     

    5.         
 TR/SI agrees to obtain any and all necessary permits for dredge and fill
activities connected with its work.

     

    6.         
 The Division and TR/SF agree that any material collected from the IR Wreck
befOre execution of this agreement shall he treated in the following
manner:

     

                 
a.       TR/SF shall prepare a complete inventory
of all extant artifacts including description, catalog number, archaeological
provenience. and present location and shall submit such inventory to the
Division.

     

                 
b.        Upon request by the Division. TR/SF
shall make all artifacts available for inspection by the Division.

     

                 
c.       The Division shall inspect such artifacts
to confirm the inventory and assess conservation needs as well as adequacy of
record keeping.

     

                
d.       Any artifacts recovered in the
area described herein, including those recovered prior to the execution of this
Agreement, which, in the opinion of the Division and an independent professional
conservator retained by TR/SF, require conservation care greater than that being
provided by TR/SF, shall be transported to Tallahassee by mutually agreeable
means for treatment in the Division's conservation laboratory. TR/SF shall
reimburse the Division for reasonable, actual costs incurred during conservation
of the artifacts, if any is necessary.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

     

         
e.        The Division may recover mutually
agreed upon artifacts from the
TR Wreck site, and conservation of such items shall he the responsibility
of the Division.

     

    7.         
The Division and TR/SF agree that no division of artifacts collected before the
date of this agreement will occur until all such artifacts have been conserved
or it is demonstrated that conservation is ongoing and that such conservation
will he completed in a timely manner.

     

    8.        
 All recoveries, stabilization, cleaning, conservation (with the exception
of artifacts conserved by the Division in accordance with Section IV.6d-f above)
and cataloging of items will be carried out by TR/SF and TR/SF will bear all
costs of this process, including reasonable, actual costs incurred by the
Division
in accordance with Section IV.6 d-f above.

     

    9.          
Popular publications and videos may be prepared by TR/SF. Such productions may
he copyrighted by TR/SF and will belong to TR/SF and may he used for public or
private purposes by TR/SF as it sees fit.

     

    10.         In
any report. publication, or video by TR/SF there will he acknowledgement of the
close working relationship between the Department of State, Division of
Historical Resources and TR/SF. No report. publication, or video will he made
without consultation between the Division and FR/SF on the format and content,
and no statement regarding the Division will be made without the Division's
prior written approval which will not he unreasonably withheld.

     

    V.

     

    1.          
During the term of this agreement all artifacts and materials collected at the
TR Wreck except as specified in Section IV.6 d-f above shall remain in
possession of TR/SF and TR/SF shall be responsible for their safekeeping and
proper care.

     

    2.         
TR/SF shall he liable for reimbursing the Florida Department of State for the
loss of that part of the total artifact suite adding up to the first $500.00
worth of recoveries made during the term of this agreement
and while such artifacts are in their possession or under their control.
TR/SI: shall
obtain adequate loss protection insurance to cover the value of the total
artifact suite when the value of artifacts recovered exceeds $500.00 and such
insurance shall list the Division of historical Resources as a beneficiary.
Proof of
insurance shall he submitted to the Division as part of the annual
report.

     

    VI

     

    1.          
Artifacts collected under this agreement shall be divided between TR/SF and the
Division according to the following conditions:

     

         
a.        The Division shall receive
artifacts of its choosing to total 20% of the value of all items recovered based
upon an archaeological point system that is mutually agreed upon.

     

         
b.       TR/SF shall receive the remaining
artifacts to he divided into two categories as agreed to by the exhibit
committee specified in paragraph V11(2):

     

                   
i.    Exhibit artifacts, selection of which is approved by
the exhibit committee, and that will be incorporated into a permanent exhibit to
be developed, fabricated and installed by TR/SF and which is to remain
permanently intact, which TR/SF will own with condition as
specified in paragraphs V I1(3) and V li(4 ): and

     

    ii.    All
remaining artifacts, which TR/SF will own without condition, and to which "FR/SF
shall receive fee simple title from the Division.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

        
c.        The Division agrees to make
available on loan on a priority basis to qualified institutions or organizations
in the Jupiter area any artifacts retained by the Division from the TR
Wreck and not incorporated in its own
museum exhibits or not currently used for research purposes, subject to
the standard procedures for loan of such material, and TR/SF is granted access
for such loans upon reasonable request and subject to conditions to he mutually
agreed upon.

     

        
d.        TR/SF is granted access for
research purposes to all artifacts retained by the Division from the T'R Wreck
upon reasonable request. Similarly, the Division is granted similar access to
all artifacts retained by TR/SF.

     

    2.        
 The Division and TR/SF agree that a division of artifacts from the TR
Wreck shall occur on an annual basis consistent with the renewal of the
agreement according to the following conditions:

     

       
a.        No division will occur until all
artifacts collected during the term of the research permit have been conserved
with the exception of special items requiring lengthy conservation treatment.
Such items must be in continuous process of conservation sufficient to
demonstrate that such conservation will he completed in a timely manner.
Successive divisions will occur until all artifacts collected
arc divided.

     

         
b.       TR/SF shall supply to the Division
written notice of its intent to divide at least 30 days before a proposed
division. This written notice shall include a complete inventory of all items
recovered during the year.

     

        
c.        TR/SF shall provide the Division an
opportunity to examine all artifacts recovered during the year for the purposes
of verifying the inventory and the conservation status, and making a
determination of items to he retained or distributed.

     

        
d.        The Division shall notify
TR/SF of the terms of the proposed division within 30 days of its exam
illation.

     

        
e.         the Division shall he
responsible for the transportation of the artifacts to
Tallahassee.

     

    3.        
At the time of the distribution of material the Division
and TR/SI: shall
exchange copies of all documentation collected during the year regarding
inventory. archaeological provenience, conservation treatment, and historical
research.

     

    VII.

     

    1.         
 TR/SF agrees to design. develop, fabricate, and install a permanent museum
exhibit incorporating sufficient artifacts to convey to the public a Rill
account of the TR Wreck
site. Such
exhibit shall meet current professional museum
standards and shall remain permanently: intact.

     

    2.        
 TR/SF and the Division
agree to form an exhibit committee consisting of one member selected by TR/SF, one member selected
by the Division. and a
third member selected by
the other two members. The
exhibit committee shall be responsible for determining the adequacy of
the exhibit with respect
to the following factors.

     

        
a.        The exhibit shall he of
sufficient scope and size
to adequately convey to the public the history and archaeology of the FR
Wreck.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

     

         
b.       The completed exhibit shall he at least
1000 square feet in area.

     

         
c.        The exhibit shall he designed and
fabricated in accordance with
currently accepted professional
museum standards.

     

        
d.        The exhibit shall include a
sufficient range and quantity of artifacts to accurately represent the history
and archaeology of the ship and to fully represent the range and scope of the
total artifact collection divided to TR/SF.

     

         
e.       TR/SF shall prepare. publish, and make
available to the public an exhibit catalog presenting a popular account of the
history and archaeology of the TR
Wreck.

     

         
f.        The exhibit shall be completed and
installed within one year of the division of artifacts adequate to comply w ith
section VII, 2(d) above.

     

    3.           TR/SF
agrees that the exhibit shall be permanent and shall be owned by TR/SF and its
lawful successors tOr as long as they shall exist. TR/SF may display the exhibit
in its facility, or in any accredited museum approved by the
exhibit committee. I'll/SF may charge admission to the exhibit in its
facility.

     

    4.     
   FR/SF agrees that upon its dissolution the exhibit shall he
transferred to a not-for-prolit organization willing and able to arrange for
continued permanent display. Such organization shall agree to make the exhibit
permanently available to the public, and to transfer it to another
not-for-profit organization under the same terms when it can no longer be
displayed by that organization. Should no organization he willing to provide
permanent display, the exhibit and its artifacts will he transferred to the
Division.

     

    VIll.

     

    1.        
 TR/SF shall adhere to Florida Law and the established public policy which
provides that all treasure trove, artifacts and other similar objects having
intrinsic, historical, prehistorical or archaeological value which have been
abandoned on State-owned sovereignty submerged lands of the State are the
property of the State of Florida with title thereto vested in the Division. for
the purposes of protection and administration.

     

    2.      
   TR/SF shall comply with all rules and official directives
issued by the Division regarding policies and procedures to he followed in the
conduct of survey. excavation and recovery activities.

     

    3.      
   TR/SF shall comply w ith all laws and regulations of the State
of Florida including but not limited to State law governing mineral resources,
freshwater and marine life, dredge and till activities. navigation and riparian
rights.

     

    4.      
   TR/SF is to assume all responsibility for, indemnify, defend and
hold harmless the Division from all claims, demands, liabilities. suits of any
nature whatsoever arising out of, because of. or due to any act or occurrence of
omission or commission arising out of TR/SF's operations pursuant to this
agreement.

     

    5.         
 No delay or omission to exercise any right, power or remedy accruing to
either party upon breach or default by either party under this agreement, shall
impair any such right. power or remedy of either party: nor shall such delay or
omission be construed as a waiver of any such breach or default, or any similar
breach or default thereafter.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    6.           The
agreement is executed and entered into in the State of Florida. and shall he
construed, performed, and enforced in all respects in accordance with the laws
and rules of the State of Florida. Each party shall perform its obligations in
accordance with the terms and conditions of this agreement.

     

    7.    
    TR/SF will not discriminate against any employee employed in
the performance of this agreement, or against any applicant for employment
because of race, religion, color, handicap. national origin, or sex. TR/SF shall
insert a similar provision in all subcontracts for services by this
agreement.

     

    8.     
    The parties hereto agree that TR/SF, its officers, agents and
employees, in performance of this agreement. shall act in the capacity of an
independent contractor and not as an officer, employee or agent of the State.
TR/SF, its officers, agents and employees are not entitled to accrue any
benefits of state employment, including retirement benefits and any other rights
or privileges connected with employment in the State Career Service. TR/SF
agrees to take such steps as may be necessary to ensure that each subcontractor
of TR/SF will he deemed to be an independent contractor and will not be
considered or permitted to he an agent. servant, joint venture, or partner of
the State.

     

    9.      
   The State of Florida. acting by and through its departments and
agencies. reserves the right to enter into agreements and leases covering this
agreement area described above for purpose other than as provided in this
agreement, including sale or lease of oil, gas and mineral rights, oysters and
oyster shells, sand, gravel, or other similar products, and removal of same,
provided such purposes shall not unreasonably interfere with the operations of
TR/SF and further provided that any prior agreements entered into by the
Trustees of the Internal Improvement Trust Fund shall prevail over this contract
if conflicts exist between said prior agreements and this
agreement.

     

    10.     
  Neither party shall assign. sublicense, nor otherwise transfer its
rights, duties. or obligations under this agreement without prior written
consent of the other party. Any sublicense. assignment, or transfer otherwise
occurring shall be null and void: provided, however, that the State shall at all
times be entitled to assign or transfer its rights, duties, or obligations under
this agreement to another governmental agency in the State of Florida, upon
giving prior written notice to TR/SF. In the event the State approves transfer
of this agreement's obligations. TR/ SF remains responsible for all work
performed and all expenses incurred in connection with this agreement.
In addition. this agreement shall bind the successors, assigns, and legal
representatives of the agreement and of any legal entity that succeeds to the
obligations of the State.

     

    I
I.        TR/SF shall be responsible for all work
performed and all expenses incurred in connection with this agreement. TR/SF may
subcontract as necessary to perform the services set forth in this agreement,
including entering into subcontracts with vendors for services and commodities.
provided that such subcontract has been approved in writing by the Division
prior to its execution, and provided that it is understood by TR/SF that the
Division shall not be liable to the subcontractor for any expenses or
liabilities incurred under the subcontract and that TR/SF shall he solely liable
to the subcontractor for all expenses and liabilities incurred under the
subcontract.

     

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    12.        
If any term or provision of this agreement is found to be illegal and
unenforceable, the remainder of this agreement shall remain in fall force and
effect and such term or provision shall he deemed stricken.

     

    IX.

     

    I.         
 TR/SF agrees to extend all reasonable cooperation to the Division and to
allow the Division to participate in TR/SF's operation and to have access to all
artifacts, data, logs, records, and materials relating to the shipwreck site to
the extent necessary to determine whether such Operation is consistent with the
terms of this agreement. Insuring compliance with the terms of this agreement
shall riot
constitute interference by the Division,

     

    2.         
TR/SF shall provide the Division a description of vessels to be used in the
operation. a list of persons in charge of each vessel, and a list of personnel
involved in TR/SF's operation two weeks prior to the beginning of field
work.

     

    3.         
The Division reserves the right to temporarily terminate operations should the
Division in consultation with the TR/SF archaeologist in charge determine that
archaeological features or artifacts discovered or uncovered during operations
are
of sufficient scientific, historical, or prehistoric importance to
warrant special handling or protection. Termination of operations shall remain
in effect until such reasonable time as the Division and TR/SF determine proper
techniques and TR/ SF secures the ability to institute these special procedures
or until the
Division authorizes return to normal operations. Such termination shall
not preclude operations by TR/SF elsewhere on site so
long as such operations do not endanger the artifacts or features being
protected.

     

    4.           The
Division reserves the right to enter on the agreement area at any
time.

     

    5.           FR/SF
agrees that spinning, shafts, high vacuum suction intakes and propellers shall
he caged while divers are in the water: that dive flags shall he displayed, and
standard dive safety precautions shall he followed in accordance with DOL-011SA.
Part 1910,
Title 29, or Coast Guard DOT 197.202, Subchapter V, whichever
applies.

     

    6.           T'R/SF understands
that this agreement conveys no right or right of expectation with respect to any
shipwreck site other than the single shipwreck specified in this agreement, as
represented by a demonstrable distribution of artifacts consistent with
those already recovered from the admiralty arrest area.

     

    7.        
  I he Division agrees to lend its assistance, within the limits of
its legal authority and its available resources, in the protection of the
agreement area against other parties believed to be acting in
violation of Chapter 267, Florida Statutes, regarding unauthorized
recovery of artifacts.

     

    8.        
 This instrument including Attachment A, Archaeological Guidelines,
embodies the whole agreement of the parties. There arc no other provisions,
terms, conditions, or obligations other than those contained herein: and this
agreement shall supersede all previous communication, representation, or
agreement. either verbal or written, between the parties. No amendment shall be
effective unless reduced in writing and signed by the parties.

     

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      IN
WITNESS WHEREOF, the parties hereto affix their signatures in execution of this
Agreement the day and year first above written.

       

      /s/
Frederick P. Gaske

    

    Frederick P. Gaske, Director Division of Historical Resources

     

    /s/ Kyle
Kennedy

    Kyle Kennedy, CEO Seafarer Exploration, Inc.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    ATTACHMENT
A: ARCHAEOLOGICAL GUIDELINES

     

    1.          
TR/SF agrees to retain the services of professional archaeologists, conservators
and historians in sufficient number necessary to carry out the terms of this
agreement.

     

    2.        
 TR/SF agrees that its archaeologist in charge shall hold a Masters or
Ph.D. in archaeology and meet the professional qualifications of the Secretary
of the Interior's Standards, or, in the opinion of the State Archaeologist, meet
the necessary criteria for professional underwater archaeological
work.

     

    3.         
All field decisions regarding archaeological methods and techniques are to be
made by the archaeologist in charge. The archaeologist in charge shall have
absolute authority over all aspects of work relating to the archaeological
investigation and will be responsible for its quality.

     

    4.           The
archaeologist in charge or his assistant meeting the qualifications specified in
paragraph 2 above shall be at the site at all times that work is being
conducted.

     

    5.           A
minimum of one archaeological crew chief for every four divers will be present
during field work in order to provide adequate supervision of untrained
personnel. Crew chief archaeologists shall possess at least a B.A. degree in
archaeology and have at least one year prior field experience on underwater
archaeological investigations.

     

    6.          
TR/SF shall acquire the services of a professional documentary historian
experienced in translation
and interpretation of period documents to conduct historical research pertain to
the nationality, identity, cargo, and other circumstances surrounding the
sailing and loss of the TR Wreck.

     

    7.           Remote
Sensing Survey

         
a.       TR/SF shall supply the Division a copy of
any remote sensing surveys conducted during the term of this
agreement.

     

         
b.       All remote sensing methods shall follow
the same positioning system as the previously completed survey, so that results
may he easily compared.

     

    8.          
Site Testing and Evaluation

         
a.       The area of site testing and evaluation
shall he the area listed in Section I l of the Research and Recovery
Agreement.

     

         
b.      The first phase of data recovery shall include
excavation of selected test units in order to assess the potential significance
of the site and shall have the following goals: I) assess the age of the site.
2) assess the condition of the wreck remains. 3) assess the potential volume and
classes of artifacts, 4) develop a current Site Plan, and 5) initiate historical
research.

     

         
c.      Archaeological research shall be conducted
on the site within a framework specified in the TR/SF Research Design to
consider the ship as 1) a machine designed for harnessing a source of power in
order to serve as a means of transport, 2) an element of a military or economic
system, and 3) a closed community with its own hierarchy, customs. and
conventions.

     

         
d.      Excavation of selected test units shall be
accomplished to expose critical sections of the site for recording. Placement of
test excavation units shall be guided by the results of the magnetometer survey
with the purpose of determining the nature of recorded
anomalies.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

     

        
e.       Prior to conducting any excavations or
removal of artifacts three permanent site datum points shall he established and
their precise location established by DGPS positioning. All horizontal and
vertical measurements on the site shall be made within a three dimensional grid
system incorporating the three permanent site datum points.

     

         
f.       At least twenty 2-meter by 2-meter test
units shall be excavated in areas of magnetic anomalies selected by the
archaeologist in charge. At least 10% of the excavated units shall be placed in
areas not directly associated with magnetic anomalies in order to test for
historic remains that are not revealed by magnetometry.

     

         
g.       The precise location of test units
shall be determined by use of a hand-held magnetometer to determine the location
of greatest magnetic deviation in relation to anomalies recorded during
magnetometer transects.

     

         
h.       The location of all test units shall
be precisely determined with reference to the site grid.

     

         
i.        When necessary, test units shall
include removal of the overlying indurate calcium carbonate layer by
non-destructive methods. Samples of the layer shall be x-rayed to test for
artifacts.

     

          j.   
    Subsequent excavation of test units shall proceed using
a three inch hydraulic dredge or air jet fitted with a V4
inch wire basket at the exhaust end. If the condition of the sediments
permits, artifact bearing layers shall he excavated in 10 cm
levels.

     

    9.         
 Artifact Treatment

         
a.      Artifacts recovered from any location will he
video recorded and tagged with a unique catalog number which shall remain with
the
artifact throughout the project. An artifact inventory by catalog number
recording provenience shall he maintained throughout the
project.

     

         
b.        All recovered artifacts shall
he handled so
as to allow no
deterioration between collection and completion of
conservation.

     

    10.        
Reporting and Coordination

        
a.        Upon completion of test excavations
an interim site report will be prepared by the archaeologist in charge
describing the methods, results, and preliminary conclusions of the field work.
Such report shall meet professional standards as detailed in Rule
1A-46.

     

    11.        
Evaluation and Planning

        
a.        Upon review of the interim site report
the Division in conjunction with the archaeologist in charge shall have the
opportunity to reline and expand archaeological guidelines for further work
beyond initial testing that would constitute Phase fl of the
project.

     

    12. Site
Recording

         
a.       Site recording shall include an
overall site plan. measured drawings of all ship structure encountered, location
of collected and observed artifacts, and location of excavations.

     

          
b.       Profile and plan drawings of all
excavation units shall he made.

     

        
c.         Unit record fin-ms shall be
maintained for each excavation unit. These forms shall he completed at the
conclusion of each provenience unit and will include plan drawings of the unit
floor, depth below datum, catalog numbers of recovered artifacts, photographic
records. excavation techniques and a general discussion of
observations.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

     

        
d.        The site and excavations will he
documented in color still photographs and in video.

     

    13.       
Artifact Recovery

         
a.       The area of
artifact recovery shall he the area listed in section ll of the Research
and Recovery Agreement.

     

         
b.       Certain classes of artifacts shall
be mapped and measured in place and either left in their original location or
with the permission of the Division removed for further study. These include
anchors, cannons. ballast stones (except a representative sample), and ship's
structure.

     

         
c.      All other artifacts encountered during the
project will he recovered until such time as the Division and the archaeologist
in charge agree that additional recoveries of specific types of artifacts would
serve no archaeological or interpretive purpose.

     

         
d.       Artifacts will be recovered only
when qualified archaeological staff, as per Paragraphs 2 and 4 above, is
directly involved in the recovery.

     

         
e.        Before artifacts are removed, the
archaeologist shall ensure that all necessary provenience data are properly
recorded and that the artifact is assigned a unique catalog number.

     

         
f.        The catalog number shall remain
with the artifact and its associated data such that the identity and original
provenience of any artifact can be determined at all times.

     

        
g.      On hoard storage, transport and land holding
facilities shall he in place before any artifacts are recovered as necessary to
ensure that artifacts
are handled without physical damage, without loss, without chemical change due
to drying out, and without loss of catalog information.

     

    14.        
Research Reports

        
a.        An interim report meeting
professional standards set forth in Rule 1 A-46 shall be prepared by TR/SF and
submitted to the Division at the conclusion of each annual permit and before the
issuance of the next permit. Such report shall he accompanied by copies of all
available data collected during the term of the permit.

     

        
b.       Within one year of the conclusion of
field work on the shipwreck site TR/SF shall submit to the Division a final
report meeting professionally accepted standards snthesizing results of the
entire project.

     

    
      15.        
Funding
of Report

    

        
a.       In order to ensure publication of the
final report TR/SF shall establish an interest bearing escrow account to cover
salaries and direct costs associated with report preparation. The initial
deposit to this account shall be $20,000. These funds must he used only for
those direct costs deemed reasonable by the DHR and TR/SF for the
preparation and publication of a final report and any unused balance will revert
to TR/SF. Upon renewal of this agreement and subsequent agreements TR/SF and the
Division shall review the balance of the escrow account to ensure that
sufficient funds are available to complete a final report of work accomplished
to date and work anticipated during the term of the renewed agreement. TR/SF
shall supply proof of the continuing account with its annual
report.

     

    
       

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    16.         Preservation
of Artifacts 

     

                 
a.        All artifacts recovered from the
shipwreck shall he conserved by TR/SF.

     

        
b.        In the event that the Division and
the TR/SF conservator agree that safe and proper conservation of particular
artifacts is beyond the ability of TR/SF. such items shall be conserved by the
Division and TR/SF shall
reimburse the Division for its actual costs.

     

     
    c.        Conservation
shall he accomplished under the direct supervision in the laboratory of a
professional conservator with experience in marine materials.

     

         
d.       All artifacts shall be photographed
including, a scale and the catalog number before and after
conservation.

     

                 
e.        Accurate records shall he
maintained of conservation procedures for each artifact that is
conserved.exhibit_10-5.htm

    
      

    

    EXHIBIT 10.5

     

    

      CANCELLATION
AGREEMENT

       

      This
Voluntary Cancellation Agreement (the "Agreement") is made effective as of
December 9, 2008, by and between Sinclair Educational Archaeological Research
Expeditions, Inc. ("SeaRex, Inc."), Vanessa E. Friedman ("Friedman), and James
J. Sinclair ("Sinclair") (SeaRex, Inc., Friedman, and Sinclair herein
collectively referred to as the "Sellers"), and Seafarer Exploration, Inc. (the
"Buyer").

       

      RECITALS

       

      WHEREAS the Sellers and the
Buyer entered into a Purchase and Sale Agreement on or about July 10, 2008 (the
"Existing Agreement") pursuant to which the Sellers agreed to deliver to the
Buyer proprietary historical and archival research for the DaVinci Project (the
"Documents") in exchange for total consideration from the Buyer of two hundred
and fifty thousand dollars ($250,000); and

       

      WHEREAS the Sellers desire that the Buyer
agrees to cancel the Existing Agreement and the Buyer is willing to do so
pursuant to this Agreement.

       

      NOW, THEREFORE in
consideration of the premises and for good and other valuable consideration, the
receipt and sufficiency of which is acknowledged, the parties agree as
follows:

      
        
        

      

       

      
        	
                1.

              	
                Cancellation of Existing
      Agreement. The Existing Agreement is cancelled effective as of
      December 9, 2008 (the "Effective Date") without further obligation or
      liability to either the Sellers or the Buyer. The Sellers and the Buyer
      specifically acknowledge and agree that neither party owes any
      consideration or any fees of any kind to the other party in relation to
      the Existing Agreement.

              

      

       

      
        	
                2.

              	
                No Inducement. The Buyer
      has not induced the Sellers to enter into this
  Agreement.

              

      

       

      
        
          	
                  3. 

                	
                  Previous Consideration.
      As of the Effective
Date:

                

        

      

       

      
        	
                 
      

              	
                a.

              	
                The
      Buyer has paid the Sellers $10,000 towards the purchase price of the
      Documents; and

              

      

      
        	
                 
      

              	
                b.

              	
                The
      Sellers have not delivered the Documents to the
  Buyer.

              

      

       

      
        	
                 4.

              	
                Complete Agreement. This
      Agreement contains the entire understanding between the parties to it and
      with respect to its subject matter and supersedes all prior and
      contemporaneous agreements, understandings, representations, inducements
      or conditions, express or implied, oral or written, except as set forth in
      this Agreement. This Agreement may not be modified, amended or
      supplemented other than by an agreement in writing executed by the Sellers
      and the Buyer.

              

      

       

      
        	
                 5.

              	
                Miscellaneous. This
      Agreement may be signed in counterparts, including by facsimile, and all
      counterparts together with the body of this Agreement shall constitute a
      single, integrated agreement.

              

      

      
        
          
            
              	
                       

                    

            

            

          

           

        

        
           

          
            

          

        

        
           

        

      

      

       

      
        	
                 6.

              	
                Legal Matters. This Agreement shall be
      interpreted under and governed by the laws of the State of
      Florida,

              

      

       

      IN WITNESS WHEREOF, the
parties have caused this Agreement to he executed on the date stated on the
first page of this Agreement in a manner appropriate for each.

       

      Sellers:

       

      /s/ Vanessa E
Friedman

      Vanessa E Friedman

      President

      SeaRex, Inc.

       

      /s/ James J.
Sinclair

      
        By: James
J. Sinclair

        Vice
President

        SeaRex, Inc.

         

        /s/ Vanessa E
Friedman

      

      Vanessa E Friedman, Personally

       

      /s/  James J.
Sinclair

      James J. Sinclair, personally

       

      Buyer:

       

      /s/ Kyle
Kennedy

      Chief Executive Officer

      Seafarer Exploration, Inc.

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