Document:

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                                                                  EXHIBIT 10(f)

[CLIFFORD CHANCE LETTERHEAD]

                     AMENDMENT AND RESTATEMENT OF A CONTRACT

                             ORIGINALLY MADE BETWEEN

                          NORWEGIAN CRUISE LINE LIMITED

                                       AND

                          LLOYD WERFT BREMERHAVEN GMBH

                              AND NOW MADE BETWEEN

                                SHIP HOLDING LLC

                                       AND

                          LLOYD WERFT BREMERHAVEN GMBH

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                                    CONTENTS
CLAUSE                                                                  PAGE
------                                                                  ----

1.       DEFINITIONS......................................................2

2.       YARD'S REPRESENTATIONS...........................................8

3.       YARD'S OBLIGATIONS...............................................8

4.       OWNERSHIP AND RISK..............................................12

5.       ADMINISTRATION OF THE PROJECT...................................12

6.       MODIFICATIONS...................................................14

7.       DATE FOR COMPLETION.............................................16

8.       TESTS AND TRIALS................................................20

9.       MECHANICAL COMPLETION AND REDELIVERY............................20

10.      YARD'S WARRANTY.................................................22

11.      CONTRACT PRICE AND PAYMENT TERMS................................25

12.      ADJUSTMENT OF CONTRACT PRICE....................................28

13.      ENCUMBRANCES....................................................30

14.      INDEMNITIES AND LIABILITY.......................................32

15.      INSURANCES......................................................32

16.      TAXES AND DUTIES................................................34

17.      CONFIDENTIALITY.................................................34

18.      SUBCONTRACTORS AND ASSIGNMENT...................................35

19.      TERMINATION AND REMOVAL OF WORK.................................36

20.      PATENT RIGHTS...................................................40

21.      NOTICES.........................................................40

22.      GOVERNING LAW AND ARBITRATION...................................41

23.      EFFECTIVE DATE..................................................43

24.      GENERAL PROVISIONS..............................................43

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THIS CONTRACT, which takes effect as an amendment and restatement of a contract
originally dated 28 December 2000, is made between:

(1)      SHIP HOLDING LLC, a Delaware limited liability corporation (the
         "OWNER"); and

(2)      LLOYD WERFT BREMERHAVEN GMBH, a corporation incorporated and existing
         under the laws of Germany with its registered office at Bruckenstrasse
         25, P.O. Box 120542, 27519 Bremerhaven, Germany ("LWB").

WHEREAS:

(A)      Northrop Grumman Ship Systems, Inc. ("NGSSI") has partially completed
         the construction of two cruise ships, bearing hull number 1 (the
         "VESSEL") and hull number 2 (the "HULL"), at the Ingalls facility at
         Pascagoula, Mississippi, USA.

(B)      The Owner has purchased the Vessel and the Hull, together with all
         equipment parts relating thereto (the "PARTS"), from NGSSI.

(C)      LWB has previously completed the construction of two cruise ships for
         Norwegian Cruise Line Limited ("NCLL"), m.v. "Norwegian Sky" ("SKY ")
         and m.v. "Norwegian Sun" ("SUN "). LWB completed construction of the
         SKY on the basis of a partly built hull purchased by NCLL from another
         shipyard. LWB completed construction of the SUN on the basis of a hull
         the construction of which was sub-contracted by LWB to another
         shipyard.

(D)      This contract was originally signed on 28 December 2000 by NCLL and LWB
         in order to record LWB's agreement to build two further cruise ships
         for NCLL on a similar basis to the SUN .

(E)      By a separate agreement made between the Owner, LWB and NCLL this
         contract was novated to the Owner.

(F)      The Owner desires to have the Vessel fully completed at LWB's facility
         in Bremerhaven (the "SHIPYARD") and parties hereto have therefore
         agreed: (a) to complete the construction of the Vessel at the shipyard;
         (b) to arrange for the secure storage of the Hull and Parts relating to
         it, all in accordance with the terms and conditions of this Contract;
         and (c) that the contract signed on 28 December 2000 shall be in all
         respects merged herein and amended, restated and superseded hereby.

(G)      The Owner and LWB have therefore agreed to amend and restate the
         contract signed on 28 December 2000 so as to provide for the matters
         described in recital (F) above.

NOW THEREFORE IT IS AGREED AS FOLLOWS:

1.       DEFINITIONS

1.1      IN THIS CONTRACT:

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         "BANKING DAY" means any day on which banks in each of London, New York
         and Germany are open for the transaction of normal banking business.

         "CLASSIFICATION BODIES" means American Bureau of Shipping and Det
         Norske Veritas Classification AS.

         "CONTRACT" means this contract as now amended and restated by the Owner
         and LWB, and as from time to time further amended, restated or
         supplemented hereafter by agreement of the parties.

         "CONTRACT PRICE" has the meaning given in Clause 11.1.

         "COMPONENT" means the individual components of the Works to be defined
         in the Specification to the satisfaction of the Owner.

         "DATE FOR COMPLETION" has the meaning given in Clause 7.1.

         "DAY(S)" means calendar day(s) including any Sunday, Saturday or
         holiday.

         "DEFECTS" means (a) any defect in the Vessel or in any Equipment
         installed or incorporated in, stowed on or otherwise redelivered with
         the Vessel which is due to defective materials, workmanship,
         construction or design or any failure by LWB or any of its
         Subcontractors to comply with the relevant recommendations of any
         manufacturers, makers, suppliers or other parties , (b) any inherent
         vice, breakdown, incompleteness, omission or other deficiency in or of
         the Vessel or any Equipment, (c) any failure of the Vessel or any
         Equipment or any component of the Works to comply with any of the
         requirements of this Contract or the Specification or the requirements
         of any Sub-contractors used by LWB in connection with the Contract, or
         (d) the existence of any condition, notation, qualification,
         recommendation, reservation or restriction in relation to any
         certificate issued by the Classification Bodies or any of the
         Regulatory Bodies provided that the term "DEFECT" shall not include any
         defect in any of the OFI properly received, handled, installed and
         incorporated in, stowed on or otherwise redelivered with, the Vessel by
         LWB or its Subcontractors in accordance with the requirements of this
         Contract and the Specification.

         "DRAWINGS" means the general arrangement plan and the technical
         drawings hereafter approved by the Owner and for the purposes of
         identification initialled by or on behalf of the parties, which shall
         be deemed to form part of the Specification.

         "EFFECTIVE DATE" has the meaning given in Clause 23.

         "ENCUMBRANCE" means (a) any claim (whether IN PERSONAM or IN REM
         including any arrest or other detention in connection with any claim)
         and any debt, and/or (b) any mortgage, charge, pledge, maritime or
         possessory or other lien, assignment, hypothecation, trust arrangement,
         encumbrance or other security interest securing any obligation of any
         person or any other type of preferential arrangement (including,
         without limitation, title transfer and retention arrangements having a
         similar effect), and/or (c) any of the German law encumbrance rights
         but does not include any "ENCUMBRANCE" created by the Owner or relating
         to any claims against the Owner for which the Owner would not be
         entitled to bring an indemnity or other claim against LWB.

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        "EQUIPMENT" means the Parts relating to the Vessel and all other
        components, equipment, machinery, materials, supplies, outfittings and
        spare parts to be appropriated for fully developing and completing the
        Vessel in accordance with the terms and conditions of this Contract and
        the Specification.

        "EXCLUDED REGULATORY PROVISIONS" means the provisions of the US flag
        rules to be defined in the Specification in terms acceptable to the
        Owner.

        "GERMAN LAW ENCUMBRANCE RIGHTS" means any: retention of title
        (EIGENTUMSVORBEHALT, AUCH ERWEITERT, VERLANGERT, WEITERGELEITET,
        NACHGESCHALTET, NACHTRAGLICH, ALS KONTOKORRENTVORBEHALT, ALS
        KONZERNVORBEHALT U.S.W.), right of retention (ZURUCKBEHALTUNGSGRECHT),
        pledge, lien (PFANDRECHT) and any other encumbrance (SONSTIGE BELASTUNG)
        or other similar rights under German law.

        "FINAL COMPLETION CERTIFICATE" has the meaning given in Clause 9.4.

        "FLAG STATE" means any of the Bahamas, Panama or the United States of
        America.

        "INDEMNIFIED PARTIES" means the Owner's subcontractors and the
        directors, officers, employees, consultants, agents and other
        representatives of the Owner and its sub-contractors.

        "INFORMATION" means all technical information relating to the Vessel
        unless designated by the Owner from time to time in writing as not
        confidential, except information (a) which was developed by and/or in
        possession of LWB before receipt from the Owner and/or (b) which at the
        date hereof or hereafter becomes, through no wrongful act or omission on
        the part of LWB (or any of its sub-contractors or any of its or their
        directors, officers, employees, consultants, agents or other
        representatives), generally known and/or (c) which hereafter is
        furnished to LWB by a third party as a matter of right without
        restriction on disclosure.

        "INSTALMENT" means an instalment of the Contract Price payable to LWB
        pursuant to Clause 11 and "INSTALMENTS" shall be construed accordingly.

        "INTELLECTUAL PROPERTY RIGHTS" means inventions, patent applications,
        patents, registered and unregistered designs, and copyright.

        "LMAA TERMS" means the London Maritime Arbitrators Association Terms
        current at any given time.

        "LEGAL OPINION" means a legal opinion from such German and/or other law
        firm as may be approved by the Owner, in a form hereafter approved by
        the Owner, confirming that each of the Performance Guarantee, the Refund
        Guarantee and the Pledge of LWB's Account has been duly authorised and
        validly executed and that each is enforceable against LWB in accordance
        with its terms

        "LOSSES" means any and all causes of action, charges (including interest
        charges), costs, claims (in contract, tort of otherwise), controls,
        liquidated or unliquidated damages, demands, expenses, fees (including
        legal fees), fines, liabilities (civil, criminal or otherwise), losses

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        (other than consequential or indirect losses), payments, penalties,
        proceedings, restrictions, suits and any other sanctions of a monetary
        nature other than taxes.

        "LWB" means Lloyd Werft Bremerhaven GmbH and shall include its legal
        representative(s), successor(s) and permitted assign(s).

        "LWB'S ACCOUNT" means an account to be held by LWB's Bank and to which
        all payments by the Owner under this Contract shall be made, the details
        of which shall be provided by LWB to the Owner.

        "LWB'S BANK" means an first class bank to be nominated by LWB and to be
        acceptable to the Owner.

        "MECHANICAL COMPLETION" means the completion of each component of the
        Works in accordance with the provisions of this Contract and the
        Specification .

        "MECHANICAL COMPLETION CERTIFICATE" has the meaning given in Clause 9.1.

        "OPTION AGREEMENT" means a legally binding agreement to be made between
        LWB and the Owner (or an affiliate of the Owner) under which LWB grants
        to the Owner (or its affiliate) an option to convert the Hull into a
        sister ship of the Vessel on terms acceptable to the Owner (or its
        affiliate).

        "OMT" has the meaning given in Clause 5.1.3.

        "OWNER" means Ship Holding LLC, as owner of the Vessel, and shall
        include its legal representative(s), successor(s) and permitted
        assign(s).

        "OFI" means the items of Equipment supplied by the Owner in accordance
        with the terms of this Contract and the Specification or which belong to
        the Owner and are brought onto the Work Site or placed on board the
        Vessel at any time.

        "OFI COSTS" means in relation to any OFI which becomes a Total Loss the
        aggregate of (a) the costs incurred by the Owner in relation to the
        carriage, insurance and delivery of the relevant OFI and (b) the cost to
        the Owner of obtaining replacements for such OFI .

        "OIPR" means all Intellectual Property Rights of the Owner and all
        similar rights of ownership or such other proprietary rights created or
        developed, now or in the future, by the Owner or its contractors and/or
        LWB (or any of its Subcontractors or any of its or their directors,
        officers, their employees, agents, consultants or other representatives)
        in connection with the Works.

        "PARTIAL LOSS" means any loss or damage to the Vessel which does not
        constitute a Total Loss and "PARTIAL LOSS PROCEEDS" means any insurance
        proceeds paid and/or payable in respect of a Partial Loss.

        "PARTS" has the meaning given in Recital B above.

        "PERFORMANCE GUARANTEE" means an irrevocable performance guarantee in
        the amount of [***] [Confidential Treatment] to

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        be issued by LWB's Bank (or a first class international insurance
        company acceptable to the Owner) in a form hereafter approved by the
        Owner.

        "PERMISSIBLE DELAY" has the meaning given in Clause 7.3.1.

        "PLEDGE OF LWB'S ACCOUNT" means a security pledge of LWB's Account to be
        executed by LWB in favour of the Owner, and to be acknowledged by LWB's
        Bank, each in the form approved by the Owner.

        "PROTOCOL OF REDELIVERY" has the meaning give in Clause 9.6.

        "REDELIVERY DOCUMENTS" means : (a) a builder's certificates, executed in
        a form and manner acceptable to the Owner, confirming that LWB has
        completed the construction of the Vessel in accordance with the
        requirements of this Contract and the Specification; (b) a declaration
        of warranty by LWB, executed in a form and manner acceptable to the
        Owner, confirming that the Vessel is redelivered to the Owner free and
        clear of all Encumbrances whatsoever and that the Vessel is free of all
        burdens in the nature of taxes imposed by the nation, city, state or
        port of redelivery; (c) a detailed inventory showing the Equipment
        installed on the Vessel, and the spares, stores and other consumable
        items delivered with the Vessel; (d) all of the approvals, certificates,
        licenses and other documents to be issued or supplied by the Regulatory
        Bodies, including all specified Classification, trading and other
        certificates; (e) a protocol showing the results of the Tests and Sea
        Trials; (f) a full set of the makers' certificates, instructions books,
        manuals, drawings, plans and other specified construction completion
        documents; (g) a commercial invoice showing the amounts payable by the
        Owner to LWB on redelivery of the Vessel in accordance with this
        Contract and Specification; (h) such documents as the Owner may
        reasonably require to procure the deletion of the Vessel from the
        Registry of Ships under Construction; and (i) such other documents as
        the Owner may reasonably require in connection with the Owner's
        financing and/or registration of the Vessel.

        "REGULATORY BODIES" means those authorities, bodies and entities having
        regulatory responsibilities and authority in respect of the Vessel or
        specific areas or parts of the Vessel including those who would have
        regulatory responsibilities and authority in respect of the Vessel
        during its deployment, use or trade by the Owner including, without
        limitation, the Classification Bodies, the maritime administration of
        the Flag State selected by the Owner pursuant to Clause 3.3.8, the
        International Maritime Organisation, the World Health Organisation, the
        United States Coast Guard and Public Health Services Authorities, and
        all other national or international authorities, bodies and entities
        referred to in the Specification.

        "REFUND GUARANTEE" means an irrevocable refund guarantee in the amount
        of [***] [Confidential Treatment] to be issued by LWB's Bank (or a first
        class insurance company acceptable to the Owner) in a form hereafter
        approved by the Owner.

        "RELEVANT RATE" means LIBOR plus 2 % per annum.

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        "RULES" means the applicable regulations, resolutions, rules, standards
        and other requirements of the Classification Bodies and/or the
        Regulatory Bodies other than the Excluded Regulatory Provisions.

        "SHIPYARD" has the meaning given in Recital F above.

        "SPECIFICATION" shall mean the technical specification hereafter
        approved by the Owner and for the purposes of identification initialled
        by or on behalf of the parties which, together with the Drawings, shall
        be deemed to form part of this Contract including an Addendum to the
        Specifications of today's date.

        "SUBCONTRACTORS" means any consultants, makers, suppliers, vendors or
        other third parties with whom LWB enters into a contract for the supply
        of labour, Equipment, other materials, supplies and/or services for the
        purpose of completing the Works.

        "TESTS AND SEA TRIALS" means (a) the shop, dock, sea and other tests,
        trials and inspections described in the Specification, and (b) such
        other tests, trials and other inspections (or retests, retrials or
        reinspections) as the Owner and/or the Classification Bodies and/or any
        of the Regulatory Bodies may require from time to time in order to
        demonstrate and confirm the complete correction of any Defects.

        "TOTAL LOSS" means any actual, constructive, compromised or arranged or
        agreed total loss of the Vessel.

        "TRIBUNAL" has the meaning given in Clause 23.2.5.

        "VESSEL" has the meaning given at Recital A above and includes the
        Equipment.

        "WARRANTY PERIOD" has the meaning given in Clause 10.1 .

        "WORKS" means all of the design and other work and services to be
        carried out and provided by LWB after it has taken possession of the
        Vessel and the Equipment pursuant to the provisions of this Contract and
        Specification and includes (without limitation) all necessary
        construction work, the procurement, installation onboard, support for
        testing and commissioning of all Equipment, and all other engineering,
        outfitting, contracting, testing, certification and Mechanical
        Completion of the Vessel as further described in the Specification and
        Drawings including (without limitation) achieving compliance with the
        applicable Rules of the Classification Bodies and the Regulatory Bodies
        and extending to the preservation of the Vessel, the Equipment and all
        other materials required for completion of the Vessel, and to all
        correction, repair and other works undertaken (or to be undertaken)
        pursuant to the warranty provisions of Clause 10.

        "WORK SITE" means the shipyard and all other places and premises,
        including Subcontractors' premises, at which any parts of the Works are
        performed.

1.2     In the event of any conflict between: (a) the provisions of this
        Contract and the Specification, this Contract shall take precedence; or
        (b) the provisions of the Specification and the Drawings, the
        Specification shall take precedence.

1.3     The Index, Clause and sub-headings are inserted for convenience only and
        shall not affect the interpretation of this Contract.

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2.       YARD'S REPRESENTATIONS

2.1      LWB REPRESENTS AND WARRANTS:

        2.1.1   that, after due consideration of the present condition and state
                of completion of the Vessel and the composition of the Parts,
                LWB has, or has the ability to subcontract, the necessary
                construction facilities and capabilities, and sufficient and
                competent supervisors and other personnel, efficiently and
                expeditiously to accomplish the Works and complete the Vessel in
                accordance with this Contract and the Specification;

        2.1.2   that it has no knowledge of any further aspects of the Works or
                other circumstances which could in any materially adverse way
                affect or delay the Works or completion of the Vessel in
                accordance with this Contract and the Specification; and

        2.1.3   that is has taken and that it shall take (throughout the term of
                this Contract) all commercially reasonable steps to prevent and,
                where necessary, to mitigate and overcome the effects of any
                breakdown in any labour relations, work stoppages or other
                events or circumstances whatsoever (including any which are not
                related to labour relations or work stoppages) which might
                jeopardise the timely completion of the Works.

3.       YARD'S OBLIGATIONS

3.1      LWB'S PERFORMANCE OF THE WORKS

        3.1.1   LWB, with full knowledge of the Owner's performance and quality
                requirements and standards, shall undertake and complete the
                Works as expeditiously as commercially reasonable and in a
                competent, efficient and workmanlike manner and in accordance
                with the highest shipbuilding and marine engineering qualities,
                practices and standards for new passenger cruise ships, and so
                that (unless specified to the contrary in the Specification )
                the quality of workmanship, quality of materials and aesthetic
                design of the passenger cabins and public areas shall not be of
                a lower standard than on the Sun except where the quality
                standards of the OFI, the materials and design are lower than
                the same standards of corresponding items on the SUN .

        3.1.2   As required by the Owner, LWB shall provide all such design and
                engineering services, labour, materials, supplies, facilities
                and other related services, whether of a permanent or temporary
                nature, as may be required (whether directly or indirectly) for,
                or by reason of, timely completion of the Works in accordance
                with this Contract and the Specification.

        3.1.3   The construction, installation and outfitting stages of the
                Works shall be undertaken at the shipyard.

        3.1.4   Any overtime carried out by LWB or any of its Subcontractors
                shall be for the account of LWB.

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3.2      QUALITY STANDARDS

        3.2.1   The Works shall be undertaken and performed in all respects in
                accordance with this Contract, in compliance with the Rules of
                the Classification Bodies and of the Regulatory Bodies, and to
                the reasonable satisfaction of the Owner, and LWB shall in
                particular be responsible for ensuring adherence in all aspects
                of the Works, whether undertaken and performed by itself or by
                any of its own Subcontractors, with the quality assurance
                standards and procedures detailed in the Specification.

        3.2.2   In so far as concerns all matters falling within the scope of
                the Works, the Vessel shall upon Mechanical Completion be ready
                for commissioning and completion of all Tests and Sea Trials in
                compliance with this Contract and the Specification, and shall
                at all times comply with all applicable Rules of the
                Classification Bodies and the Regulatory Bodies, which shall be
                the responsibility of LWB in all respects.

3.3      DESIGN RESPONSIBILITIES, CLASSIFICATION AND REGULATORY BODIES

        3.3.1   LWB shall be fully and solely responsible for all aspects and
                features of its Works, and for carrying out all such detailed
                design and engineering work as may be required to complete the
                Vessel in accordance with this Contract and the Specification,
                and in compliance with the Rules of the Classification Bodies
                and the Regulatory Bodies.

        3.3.2   The Works shall be carried out under the supervision and special
                survey of the Classification Bodies, in accordance with the
                Rules of the Classification Bodies which are (a) in force as of
                the Effective Date and (b) announced as of the Effective Date as
                intended thereafter to come into force or to be implemented, so
                that on redelivery to the Owner the Vessel achieves the class
                rating DNV + 1A1 PASSENGER VESSEL EO and ABS + A1 PASSENGER
                VESSEL E + AMS ACCU free of all conditions, qualifications,
                notations, recommendations, reservations and restrictions.

        3.3.3   The Classification Bodies decision as to compliance or
                non-compliance of the Works with the Rules of the Classification
                Bodies shall be final and binding on the parties but this
                provision shall not in any manner or to any extent relieve LWB
                from (or otherwise reduce) any of LWB's obligations to comply
                with this Contract or the Specification and in respect of
                requirements which exceed such Rules.

        3.3.4   The Works shall also be carried out under the supervision and in
                accordance with the Rules of the Regulatory Bodies which are (a)
                in force as of the Effective Date and (b) announced as of the
                Effective Date as intended thereafter to come into force or to
                be implemented. Provided always that (without in any manner or
                to any extent reducing the scope of LWB's other obligations with
                respect to the Works) the Owner acknowledges and agrees (a) that
                LWB is not required to comply with the Excluded Regulatory
                Provisions, and (b) that the Owner shall be responsible for
                obtaining from the relevant Regulatory Bodies any exemptions
                that may be required as a result of the Vessel's non-compliance
                with the Excluded Regulatory Provisions.

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        3.3.5   The decision of any Regulatory Body which is to issue specified
                certificates shall be final and binding on the parties as to
                compliance or non-compliance of the Works with the regulations,
                resolutions and Rules of such Regulatory Body but this provision
                shall not in any manner or to any extent relieve LWB from (or
                otherwise reduce) any of LWB's obligations to comply with this
                Contract or the Specification and in respect of requirements
                which exceed such Rules.

        3.3.6   All classification, certification, testing, survey and other
                fees and charges payable to the Classification Bodies, the
                Regulatory Bodies and other third parties in relation to the
                Works shall be for the account of LWB.

        3.3.7   Although the Classification Bodies will be appointed and paid
                for by LWB, and although LWB will be exclusively responsible for
                the correct interpretation and application of the Rules of the
                Classification Bodies, the parties intend that in performing its
                role in relation to the Works the Classification Bodies shall be
                acting for, and shall owe identical duties to, both of the
                parties to this Contract AND that LWB will ensure that the
                provisions of this Clause 3.3.7 are communicated to, and
                accepted by, each of the Classification Bodies before its
                appointment under this Contract.

        3.3.8   All fees and charges incidental to the registration of the
                Vessel under the laws of the Flag State (which may be selected
                at any time by the Owner from the three states referred to in
                the Flag State definition in Clause 1.1) shall be for the
                account of the Owner.

        3.3.9   The Owner has the right to have copies of all correspondence and
                other documents passing between LWB and the Classification
                Bodies, and to attend all meetings between LWB and the
                Classification Bodies, in relation to the Works and LWB shall
                promptly copy all such correspondence to the Owner and keep it
                well and regularly informed (in advance) of all such meetings.

        3.3.10  LWB and all its Subcontractors shall comply with all laws,
                rules, and regulations applicable to the Works, and LWB shall
                obtain all licenses, permits, certificates and permissions
                required for the execution and the completion of the Works,
                including but not limited to those required by the
                Classification Bodies and the Regulatory Bodies.

        3.3.11  LWB shall be responsible for obtaining the approval of all
                drawings, calculations and other necessary matters by the
                Classification Bodies and/or the Regulatory Bodies; and shall
                arrange for all applicable certificates issued by the
                Classification Bodies or any of the Regulatory Bodies to be
                issued direct to the Owner.

3.4      OFI

        3.4.1   Apart from the first containers that have been unpacked with the
                agreement of the Owners, upon arrival at the Work Site of each
                box or other container of OFI, LWB shall in the presence of the
                Owner's designated representatives, open and unpack and then
                inspect and check the contents of each such box and container.

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                Thereafter, LWB shall repack each box and container and then
                keep it safely stored and well protected in readiness for the
                installation or incorporation or stowage of the OFI on or in the
                Vessel.

        3.4.2   If not already so marked, as soon as practicable after their
                delivery to the Work Site all OFI and all Equipment shall be
                marked by LWB with the notation "PROPERTY OF SHIP HOLDING LLC -
                HULL NUMBER 1", for those items which will be incorporated in or
                otherwise appropriated for the Vessel, and "PROPERTY OF SHIP
                HOLDING LLC - HULL NUMBER 2" for all other items.

        3.4.3   LWB:

                (a)     shall not be liable to the Owner for any damage to or
                        deficiency in or loss or misdescription of any OFI
                        provided and to the extent that LWB can prove that any
                        such damage, deficiency, loss or misdescription existed
                        before LWB took possession of the relevant OFI and could
                        not have been detected or avoided by reasonable steps on
                        the part of LWB (or its Subcontractors and other
                        representatives) before or after LWB took possession of
                        such OFI;

                (b)     shall notify the Owner's senior representative at the
                        shipyard as soon as practicable of any loss or
                        misdescription of or damage to, or deficiency in the
                        supply or performance of, any of the OFI or any late
                        delivery thereof; and

                (c)     acknowledges and confirms that as at the date of its
                        signature of this Agreement there has been no loss or
                        misdescription of or damage to or deficiency or delay in
                        the supply of any OFI delivered to the shipyard save for
                        or in respect of the specific items expressly agreed in
                        writing between the parties before or after the date of
                        signature of this Contract.

        3.4.4   Where LWB is liable to the Owner for any damage to or loss of
                any OFI, LWB will promptly replace the relevant OFI with
                identical items at its risk and expense.

        3.4.5   LWB shall make and keep fully itemised and up-to-date records of
                all OFI from time to time delivered to any part of the Work Site
                and, without prejudice to the generality of the foregoing, LWB
                shall ensure that such records are made and kept in the form
                used by LWB for its own stocks and show:

                (a)     the date of delivery to the Work Site of each
                        consignment of OFI;

                (b)     where and how each consignment of OFI is stored;

                (c)     when each batch of OFI units is or will be incorporated
                        or installed in, or stowed in or on, the Vessel; and

                (d)     the balance (in units) of any unused OFI.

                                       11
<PAGE>

        3.4.6   LWB shall provide the Owner, on a monthly basis, with a complete
                set of the records described in Clause 3.4.5 and all amendments
                of, or supplements to, such records.

4.      OWNERSHIP AND RISK

4.1     With effect from the moment of delivery to LWB of the Vessel and the
        Hull and each batch of Equipment, LWB shall (a) bear all risks of loss
        and damage, and (b) assume full responsibility for the due and proper
        care, custody, safety, and security of the Vessel and the Hull and
        Equipment.

4.2     The Owner shall retain full and unrestricted ownership of the Vessel and
        the Hull, the OFI, the Parts, Equipment and the Works (in each case
        whether under construction or completed, whether unfinished or partly or
        wholly finished and whether at the Work Site or elsewhere) at all times
        during the term of this Contract.

4.3     The Owner shall be entitled to mortgage the Vessel and the Hull for the
        purposes of financing or refinancing its acquisition and completion of
        the Vessel and the Hull.

4.4     The Owner shall also be entitled to charge or pledge the OFI, Parts and
        other Equipment for the purposes of financing or refinancing its
        acquisition and completion of the Vessel and the Hull.

4.5     The Yard shall at its own cost promptly give all such assistance,
        provide all such information, and execute and deliver all such documents
        to the Owner and/or any other relevant person, body or entity
        (including, but not limited to the Registry of Ships under construction
        and the Bundesamt fur Seeschiffahrt und Hydrographie) as may from time
        to time be requested by the Owner in connection with the registration
        and deletion of the Vessel and/or the Hull in and from the Registry of
        Ships under Construction. In addition to the obligations set out in
        Clause 3.4.2, if the Vessel and/or the Hull are registered the Yard
        undertakes to identify and/or mark the Vessel and/or the Hull for the
        purposes of such registration.

4.6     Upon delivery the Yard will obtain actual possession (UNMITTELBARER
        BESITZ) of the Vessel, the OFI, the Parts and other Equipment thereby
        providing to the Owner German law constructive possession (MITTELBARER
        BESITZ) until the Owner re-obtains actual possession (UNMITTELBARER
        BESITZ) thereof. The same applies to all Parts and Equipment purchased
        by the Yard and built into the Vessel during completion of the Vessel as
        well as to all Parts and Equipment purchased by the Owner and delivered
        to the Yard and/or the Vessel during completion of the Vessel.

4.7     LWB shall at its own cost store the Hull and any Parts relating to the
        Hull for the Owner thereby obtaining actual possession (UNMITTELBARER
        BESITZ) and providing to the Owner constructive possession (MITTELBARER
        BESITZ) thereof for the period of the option granted under the terms of
        the Option Agreement, and up to sixty (60) Days following expiry of that
        option, in a safe and secure manner at the shipyard.

5.       ADMINISTRATION OF THE PROJECT

5.1      ADMINISTRATION OF THE PROJECT

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<PAGE>

        5.1.1   Representatives of the Owner and of LWB shall co-operate closely
                with each other in order to achieve the timely completion of the
                Vessel.

        5.1.2   LWB shall be responsible for the management of the project and
                for all related activities including, but not limited to, labour
                relations and management, the appointment and supervision of
                Sub-contractors, procurement, Equipment provision and
                maintenance, quality control, safety and security, planning and
                scheduling and project administration.

        5.1.3   The Owner shall provide and pay for a site management team (the
                "OMT") which shall act as the principal interface between the
                Owner and LWB and shall have responsibility for overseeing, on
                the Owner's behalf, the activities of LWB and its Subcontractors
                in bringing about the timely completion of the Vessel.

        5.1.4   LWB shall prepare and deliver to the OMT on Monday morning of
                each week a weekly report which shall be discussed on the Monday
                afternoon of that week at a weekly management meeting to be
                attended by senior members of the OMT and of LWB's project
                management team. Each weekly report shall identify:

                (a)     matters critical to the project and matters relating to
                        safety identified during the preceding week and
                        anticipated for the forthcoming week;

                (b)     progress made during the preceding week towards
                        completion of the Vessel; and

                (c)     the planned expenditure for the next week comprising
                        labour costs, sub-contractor costs, Equipment costs and
                        materials costs.

                The above items shall be discussed at the weekly management
                meeting for the purpose of agreeing a strategy for the next
                week.

        5.1.5   The outcome of the discussions and agreements reached in the
                weekly management meetings shall be minuted and rolled-up in a
                monthly report prepared by LWB which shall be discussed at a
                monthly meeting attended by representatives of the OMT and LWB.

        5.1.6   It is expressly agreed and understood that the Owner may wish to
                undertake, concurrently with LWB's execution of the Works,
                certain other works on the Vessel and that the Owner and/or
                their subcontractors will require access to the Work Site and to
                the Vessel at all times for such purpose. The Owner will give
                LWB reasonable advance notice of any such works and shall ensure
                that such works will not impede or delay or prevent the Works.

        5.1.7   To the extent that such are available, LWB will provide at cost
                (on a twenty-four hour, seven day week basis if required by the
                Owner) all necessary facilities for such Owner's work, including
                electricity supply, lighting, compressed air, steam, warehousing
                and cranage as well as dock space and all other services
                required by the Owner or their subcontractors to undertake such
                works.

                                       13
<PAGE>

        5.1.8   LWB will otherwise co-operate to the maximum practical extent to
                permit successful and efficient completion of such Owner's work.

        5.1.9   The Owner shall have the right to object to the conduct or
                performance of any person assigned to the project by LWB and, if
                LWB has within thirty (30) Days failed to take remedial action
                satisfactory to the Owner following any such complaint, the
                Owner shall have the right to require that such person be
                removed from the project.

        5.1.10  LWB shall have the right to object to the conduct or performance
                of any person assigned to the project by the Owner and, if the
                Owner has within thirty (30) Days failed to take remedial action
                satisfactory to LWB following any such complaint, LWB shall have
                the right to require that such person be removed from the
                project.

6.       MODIFICATIONS

6.1      VOLUNTARY MODIFICATIONS

        6.1.1   The scope of the Works and any other aspect of the Specification
                may be modified from time to time by agreement of the parties
                PROVIDED THAT any reasonable and timely modifications requested
                by the Owner, and/or any modifications required to be made under
                Clause 6.2 which are occasioned by any changes in the Rules of
                the Classification Bodies and/or the Rules of any of the
                Regulatory Bodies after the Effective Date, shall be implemented
                by LWB if the Owner assents to necessary modifications to the
                Contract Price, the Date for Completion and any other relevant
                provisions of this Contract and the Specification, LWB agreeing
                to act in good faith and use its best efforts to accommodate any
                such reasonable requests by the Owner so that any such
                modifications shall be made:

                (a)     at the lowest cost reasonably possible;

                (b)     within the shortest period of time reasonably possible;
                        and

                (c)     without any loss in the relative priority of the Works
                        compared to other construction work at the Work Site,

                PROVIDED THAT nothing in this Clause 6.1 shall require LWB to
                jeopardise its contracted work schedule(s) for other ships at
                the Work Site.

        6.1.2   Any agreement on a modification of this Contract or the
                Specification shall include:

                (a)     any increase or decrease in the Contract Price;

                (b)     any extension of, or reduction in, the Date for
                        Completion, and

                (c)     any other adjustment to or amendment of any relevant
                        provisions of this Contract or the Specification,

                which is directly, necessarily and reasonably occasioned by such
                modification.

                                       14
<PAGE>

        6.1.3   Any agreement on a modification of this Contract or the
                Specification shall be recorded and evidenced by an exchange of
                letters or telefaxes, each of which shall constitute an
                amendment to this Contract and/or the Specification and shall be
                sequentially numbered, marked "CONTRACT MODIFICATION UNDER
                CLAUSE 6" and duly signed by the parties' representatives, and
                following any such agreement LWB shall modify the Works or the
                Vessel in accordance therewith.

        6.1.4   If there is any dispute between the parties as to any of the
                matters referred to in this Clause 6.1 then, if the Owner so
                requires, LWB will make the requested modification before the
                dispute has been resolved provided the Owner confirms its
                willingness to pay any amount found due to LWB in respect of
                such modification.

6.2      CLASSIFICATION AND REGULATORY CHANGES

        6.2.1   If, after the Effective Date, any Rules of the Classification
                Bodies and/or any of the Regulatory Bodies (or the
                interpretation of such Rules) are changed by the Classification
                Bodies or such Regulatory Bodies, LWB shall promptly notify the
                Owner in writing of the relevant change(s) and of the necessary
                modifications to be made to this Contract and/or the
                Specification.

        6.2.2   If, following its receipt of a notice under Clause 6.2.1, the
                Owner reasonably considers that the operation of the Vessel in
                its intended service would permit of a dispensation or waiver,
                LWB will at the request of the Owner apply for a dispensation
                from, or waiver of compliance with, the relevant change(s).

        6.2.3   If the Owner does not require LWB to apply for a dispensation or
                waiver (or it has not been possible to obtain a dispensation or
                waiver) within a period of fifteen (15) Days after the Owner's
                receipt of a notice under Clause 6.2.1 (or such longer period of
                time as the parties may agree to be reasonable in the light of
                all the circumstances then prevailing), the parties shall make
                an agreement to modify this Contract and/or the Specification in
                accordance with Clause 6.1 and thereafter LWB shall make the
                relevant change(s) in the Vessel.

6.3      SUBSTITUTION OF EQUIPMENT

        6.3.1   If (notwithstanding all reasonable efforts on the part of LWB
                and PROVIDED THAT orders for the same were placed in good time
                by LWB) any items of Equipment are not available at the time
                required for their installation or incorporation in the Vessel,
                LWB may (with the prior written approval of the Owner) use
                suitable substitute items which are at least equal to the
                standard and quality of the items which were not available and
                which are capable of meeting all of the requirements of:

                (a)     this Contract and the Specification; and

                (b)     the Classification Bodies and the Regulatory Bodies.

        6.3.2   Where a proposed substitution of any Equipment is approved by
                the Owner, LWB shall:

                                       15
<PAGE>

                (a)     bear all additional costs and expenses whatsoever in
                        relation to such substitution; and

                (b)     credit the Owner with any cost savings occasioned by
                        such substitution.

6.4     COMPLIANCE WITH EXCLUDED REGULATORY PROVISIONS

        If the Owner fails to obtain any exemption from the Regulatory Bodies
        which is required as a result of the Vessel's non-compliance with any of
        the Excluded Regulatory Provisions and if the Owner therefore requests
        LWB to comply with the relevant Excluded Regulatory Provisions, such
        request shall be treated as a request for a modification under Clause
        6.1, always provided that compliance with the relevant Excluded
        Regulatory Provisions would be technically feasible.

7.      DATE FOR COMPLETION

7.1     FINAL COMPLETION CERTIFICATE

        7.1.1   For the purpose of this Clause 7 completion of the Works shall
                be deemed to coincide with the Owner's issuance of the Final
                Completion Certificate or (if earlier) the time at which the
                Owner should rightfully have issued the Final Completion
                Certificate.

        7.1.2   The Date for Completion of the Works shall be 31 December 2003.

7.2     TERMINATION FOR EXCESSIVE DELAY IN COMPLETION

        7.2.1   If the total accumulated time of all delays on account of the
                causes specified in Clause 7.3, and unauthorised delays on
                account of which the Contract Price is subject to adjustment as
                provided for in Clause 12 hereof, amounts to [***] [Confidential
                Treatment] or more, then, in such event, the Owner may terminate
                this Contract in accordance with the provisions of Clause 19
                hereof. LWB may, at any time after the accumulated time of the
                aforementioned delays justifying termination by the Owner,
                demand in writing that the Owner shall make an election, in
                which case the Owner shall, within twenty (20) Days after such
                demand is received by the Owner, either notify LWB of its
                intention to terminate this Contract, or consent to a
                postponement of the Date for Completion to a specific future
                date; it being understood and agreed by the parties hereto that,
                if any further delay occurs on account of causes justifying
                termination as specified in this Clause 7, the Owner shall have
                the same right of termination upon the same terms as hereinabove
                provided. Failure by the Owner to answer to LWB's claim for an
                election within the above-mentioned period shall be deemed to be
                a waiver by the Owner of its right to object to such
                postponement.

        7.2.2   The Owner shall at any time after six (6) months following the
                Effective Date, have the right to terminate this Contract upon
                giving LWB ten (10) Banking Days prior written notice in the
                event that LWB is significantly behind the building program for
                the Vessel and the Owner in its reasonable opinion deems that
                LWB will not be able to complete the Vessel within the period of
                One Hundred and Eighty (180) Days from the Date of Completion

                                       16
<PAGE>

                (adjusted for Permissible Delays). The Owner shall not be
                obliged to pay any further Instalments after having terminated
                this Contract under this Clause 7.2.2, and all Instalments paid
                shall be reimbursed together with interest thereon at the
                Relevant Rate.

        7.2.3   If the Owner elects to treat this Contract as so repudiated,
                then the Owner shall give notice in writing to LWB that this
                Contract is terminated (which shall be effective from receipt
                thereof by LWB) in which case the provisions of Clauses 19.3
                and 19.4 shall apply.

7.3     PERMISSIBLE DELAYS

        7.3.1   Any delay in respect of which LWB shall be entitled, pursuant to
                the provisions of Clauses 7.3 and 7.4, to an extension of the
                Date for Completion shall be known as a "PERMISSIBLE DELAY".

        7.3.2   If LWB gives notice as provided in Clauses 7.4.1, 7.4.2 and
                7.4.3 LWB shall be entitled to an extension of the Date for
                Completion but only if:

                (a)     there is a specific cause of delay which LWB can prove
                        will solely and directly delay redelivery of the Vessel
                        beyond the Date for Completion and which cause is
                        delaying or will delay Works which are in the critical
                        path of redelivery of the Vessel for more than one Day;

                (b)     such cause of delay is one of the excusable causes set
                        out in Clause 7.3.4;

                (c)     LWB proves that it has used and is continuing to use all
                        reasonable efforts to avoid, prevent, minimise and
                        overcome the actual delay in redelivery of the Vessel
                        including, without limitation, by the performance of
                        other or additional work; and

                (d)     but for such cause of delay the Vessel would have been
                        redelivered on time,

                PROVIDED THAT the length of any such extension shall be the
                number of Days by which LWB can prove that the Date for
                Completion of the Vessel actually will be delayed solely and
                directly by each such cause of delay.

        7.3.3   LWB shall at all times have the burden of proving each of the
                matters required to be established by this Clause 7.3 and in the
                event that it is not possible for it to prove whether, or to
                what extent, any delay in redelivery is directly and solely
                attributable to a cause which is excused by the provisions of
                this Clause 7, LWB shall not be entitled to any extension of the
                Date for Completion.

        7.3.4   LWB shall be entitled to an extension of the Date for
                Completion, as provided in Clauses 7.3.1 and 7.3.2, for any
                delay caused:

                (a)     by the Owner (other than such delays, if any, as are
                        caused by the Owner in the proper and timely exercise of
                        any of its rights or obligations under this Contract);

                                       17
<PAGE>

                (b)     by legislation or other formal action by or on behalf of
                        any government (or any agency or other authority of such
                        government) which directly prohibits or otherwise
                        prevents LWB from proceeding with the Works;

                (c)     by war or warlike events involving any country which is
                        directly relevant to the performance of the Works;

                (d)     by extraordinary weather conditions, or other
                        circumstances beyond LWB's control;

                (e)     by typhoons, hurricanes or other extraordinary weather
                        conditions preventing LWB from proceeding with the
                        Works;

                (f)     by such blockades, strikes, lockouts and other labour
                        disturbances as are beyond LWB's control;

                (g)     by such accidents, explosions, fires, disruptions of
                        power supplies and other similar occurrences as are
                        beyond LWB's control;

                (h)     by the short, late or non-delivery to LWB of any
                        Equipment, or the late performance of any Subcontractors
                        PROVIDED THAT the late, short or non-delivery or late
                        performance resulted from causes which would entitle LWB
                        to an extension of the Date for Completion under this
                        Clause 7.3 and PROVIDED THAT LWB proves that it has
                        exercised due diligence (a) in contracting for such
                        Equipment and with such Subcontractors, (b) in the
                        performance of any acts required of it with respect to
                        such Equipment or Subcontractors, (c) in monitoring the
                        acts and circumstances of such Subcontractors, and (d)
                        in expediting deliveries or performance under LWB's
                        purchase or subcontracts or procuring equivalent
                        substitute performance in the event of the late delivery
                        of such Equipment or the under-performance in such
                        purchase or subcontracts; or

                (i)     by unfavourable weather conditions if commencement of
                        the Tests and Sea Trials is postponed or such Tests or
                        Sea Trials are discontinued by reason of such conditions
                        and the number of Days thereafter during which such
                        Tests and Sea Trials cannot be undertaken exceed three
                        in total, then any further Days during which the weather
                        conditions remain unfavourable may be claimed (subject
                        to the provisions of this Clause 7) as a Permissible
                        Delay; or

                (j)     subject to the provisions of clauses 3.4.3 and 3.4.4,
                        delays resulting from defects inherent in the Vessel or
                        OFI before LWB took possession of the same which could
                        not have been detected or avoided by reasonable steps on
                        the part of LWB (or its Subcontractors and other
                        representatives) before or after LWB took possession of
                        the Vessel and relevant OFI.

        7.3.5   Notwithstanding anything to the contrary in this Clause 7, LWB
                shall not be entitled to any extension of the Date for
                Completion on account of:

                                       18
<PAGE>

                (a)     any delay resulting from a cause of delay which has
                        itself been caused or contributed to by the negligence
                        or other default of LWB;

                (b)     any delay resulting from a cause of delay in existence
                        as of the Effective Date; or

                (c)     any delay resulting from a cause of delay, which was or
                        reasonably should have been foreseen or anticipated by
                        LWB by reason of facts which were, or after reasonable
                        enquiry should have become, known to LWB as of the
                        Effective Date; or

                (d)     any delay resulting from a cause of delay which
                        reasonably could have been avoided by LWB;

                (e)     any delay resulting from the late performance or default
                        of a Subcontractor, if such delay results from a cause
                        of delay in effect published and announced as of the
                        date of the award of the relevant purchase contract or
                        subcontract; or

                (f)     any delay resulting from any dispute or arbitration
                        proceeding under this Contract, PROVIDED THAT in the
                        case of any Works under dispute or arbitration which
                        would otherwise be commenced prior to the resolution
                        thereof LWB shall not be required to proceed therewith
                        (and a corresponding extension of the Date for
                        Completion shall be allowed) if, after written request
                        by LWB, the Owner fails to confirm forthwith its
                        willingness to pay the amount found due in respect of
                        such work.

7.4     DELAY NOTICES

        7.4.1   LWB shall give written notice to the Owner of a cause of delay
                pursuant to Clause 7.3 as soon as practicable and no later than
                five (5) Days after the date on which LWB first has knowledge of
                such cause of delay and in such notice LWB shall describe the
                cause of the delay, the date of commencement (or first
                occurrence) of the cause, its expected duration and its expected
                effect on LWB's ability to carry on with the Works.

        7.4.2   LWB will provide the Owner with regular written status reports
                (at such reasonable intervals as the Owner may request) with
                respect to any delay in respect of which LWB has given notice
                pursuant to Clause 7.4.1 and as to the steps being taken (and
                planned) by LWB to minimise and overcome any actual delay in
                delivery of the Vessel.

        7.4.3   Within five (5) Days after any cause of delay set forth in
                Clause 7.3 has ceased to exist, LWB shall notify the Owner of
                such cessation and give the Owner a written statement of the
                actual or estimated delay in the completion of the Works
                resulting from such cause together with such detailed
                documentation as is then available to it justifying such
                extension, and any such detailed documentation thereafter
                becoming available to LWB shall be promptly be given to the
                Owner.

                                       19
<PAGE>

        7.4.4   On the basis of the notices, reports, statements and information
                given to the Owner by LWB relating to any actual or estimated
                delay in redelivery (and such further information and
                documentation as the Owner may reasonably request), the Owner
                and LWB shall confer and attempt to agree upon the number of
                days by which the Date for Completion shall be extended PROVIDED
                THAT if the Owner and LWB cannot so agree within thirty (30)
                Days after the completion of any such conference, the extension
                of the Date for Completion (if any) shall be determined as a
                dispute pursuant to the provisions of Clause 22.

        7.4.5   The extension of the Date for Completion provided for in this
                Clause shall be the only remedy for delay to which LWB shall be
                entitled and, by way of illustration but not limitation, LWB
                shall not be entitled to damages or any adjustment in the
                Contract Price.

8.      TESTS AND TRIALS

        Following completion of construction of the Vessel, installation and
        commissioning of the Equipment, and completion of all other components
        of the Works, the Vessel and the Equipment referred to in the
        Specification shall be subjected to detailed Tests and Sea Trials by LWB
        at its sole responsibility, risk and expense.

9.      MECHANICAL COMPLETION AND REDELIVERY

9.1     Within three (3) Days of Mechanical Completion of each Component of the
        Works, LWB shall notify the Owner in writing of the results of the same
        and shall, where appropriate, confirm to the Owner that the relevant
        Component has been duly mechanically completed. Each such notification
        and confirmation shall be approved and countersigned by the
        Classification Bodies and (where appropriate) the Regulatory Bodies.
        Unless the Owner is in disagreement with LWB that the relevant Component
        has been duly completed the Owner shall, within three (3) Days of
        receipt of LWB's notice confirming due completion of the relevant
        Component, issue an interim completion certificate (the "MECHANICAL
        COMPLETION CERTIFICATE") in respect of that Component of the Works.
        Issuance of the Mechanical Completion Certificate in respect of any
        Component of the Works shall in no respect or extent release LWB from
        its obligations under this Contract or the Specification.

9.2     If, however, in the view of the Owner any part of the Works confirmed by
        LWB as having been mechanically completed does not conform to the
        requirements of this Contract and the Specification, the Owner shall so
        advise LWB (again within three (3) Days of the receipt of LWB's notice
        in respect of the relevant Component) and shall specify the respects in
        which the same fails to conform with the requirements of this Contract
        and the Specification. Thereafter LWB shall take the necessary steps to
        rectify such non-conformity and, upon completion of such remedial works,
        LWB shall notify the Owner.

9.3     Upon completion of such remedial works, the Owner shall, within three
        (3) Days of receipt of such further notice from LWB, issue the
        applicable Mechanical Completion Certificate or shall again specify to
        LWB the respects in which the Works still fail to conform with the
        requirements of this Contract and the Specification. This process shall

                                       20
<PAGE>

        be repeated until the earlier of (a) the Owner's issuance of the
        applicable Mechanical Completion Certificate or (b) the referral by
        either party of the unresolved matter applicable to that Component of
        the Works to adjudication by an expert in accordance with the provisions
        of Clause 22.2.1.

9.4      When each of the following conditions has been fully satisfied:

        (a)     the Mechanical Completion Certificate for each individual
                Component of the Works has been issued;

        (b)     the Vessel has been fully commissioned and is in all respects
                complete;

        (c)     the Vessel has successfully passed all of the Tests and Trials;

        (d)     the Classification Bodies and the Regulatory Bodies have issued
                all applicable certificates, licences and all other required
                authorisations and approvals; and

        (e)     all of the Redelivery Documents are ready for delivery to the
                Owner and are free of all conditions, qualifications, notations,
                recommendations, reservations and restrictions,

        LWB shall request the Owner to issue a final completion certificate (the
        "FINAL COMPLETION CERTIFICATE").

9.5     Unless the Owner is in disagreement with LWB that each of the conditions
        referred to in Clause 9.4 has been fully satisfied the Owner shall,
        within three (3) Days of receipt of LWB's request under Clause 9.4,
        issue the Final Completion Certificate. If, however, in the view of the
        Owner, any of such conditions has not been fully satisfied, the Owner
        shall so advise LWB and the provisions of Clauses 9.2 and 9.3 above
        shall apply, with necessary modification, to the issuance of the Final
        Completion Certificate save that either party may elect to refer any
        disputes to arbitration in accordance with the provisions of Clause 22.

9.6     As soon as reasonably practicable after the Owner's issuance of the
        Final Completion Certificate LWB shall tender redelivery of the Vessel,
        and delivery of the Redelivery Documents, to the Owner. The time and
        date of redelivery of the Vessel shall be confirmed and recorded by the
        concurrent delivery by each party to the other of a Protocol of
        redelivery and acceptance (the "PROTOCOL OF REDELIVERY") in the
        following form:-

                "IT IS THIS DAY AGREED THAT M.V. [      ], COMPLETED BY LWB AT
                ITS SHIPYARD IN BREMERHAVEN UNDER A CONSTRUCTION COMPLETION
                CONTRACT DATED [        ] 2003 AND MADE BETWEEN LLOYD WERFT
                BREMERHAVEN GMBH ("LWB") AND SHIP HOLDING LLC ("OWNER"), WAS
                AT [            ] HOURS BREMERHAVEN TIME TODAY REDELIVERED BY
                LWB AND ACCEPTED BY THE OWNER.

                DATED [         ]

                SIGNED                                 SIGNED

                FOR LWB                                FOR OWNER."

                                       21
<PAGE>

9.7     If any aspects of the Works and/or any of the Redelivery Documents do
        not correspond to the requirements of this Contract and the
        Specification even after the completion of remedial steps mentioned in
        Clauses 9.2, 9.3 and/or 9.5 above, the Owner may, in its sole
        discretion, agree to accept the Vessel. In such an event the aspects of
        the Works and/or the Redelivery Documents which in the Owner's view do
        not conform with the requirements of this Contract and the Specification
        shall be mentioned by the Owner on the Final Completion Certificate and
        the Protocol of Redelivery, and LWB shall be obliged to remedy such
        non-conformities (at LWB's risk and expense) to the Owner's
        satisfaction.

9.8     Acceptance of redelivery of the Vessel by the Owner under this Contract
        shall not constitute a waiver of or otherwise prejudice any of the
        Owner's rights under Clause 10 with respect to any Defect, whether known
        or unknown, and whether or not noted in any document issued or signed
        by, or sent or handed to, either party in connection with redelivery and
        acceptance of the Vessel and any such Defect may be reported, and
        corrected or otherwise dealt with, pursuant to Clause 10.

10.     YARD'S WARRANTY

10.1    The guarantee and warranty provided for in this Clause 10 shall apply to
        all Works performed and materials supplied by LWB and its Subcontractors
        under or in connection with this Contract and the Specification. Subject
        to the provisions of this Clause 10 , LWB guarantees the Vessel and
        Equipment against all Defects for the period of three hundred and sixty
        five (365) Days from the date of the Vessel's redelivery to the Owner
        under this Contract (the "WARRANTY PERIOD") and undertakes to correct
        (or to pay for the correction) of any Defects in accordance with this
        Clause 10.

10.2    Where any Defect in the Vessel or any Equipment is corrected during or
        after the Warranty Period, LWB's guarantee under this Clause 10 shall
        apply to such correction for a further period of three hundred and sixty
        five (365) Days from the date on which the correction was completed.

10.3    If any corrective works made or agreed to be made during the Warranty
        Period indicate the existence of any recurring Defect, LWB shall carry
        out such investigations as may be necessary to ascertain the cause, and
        shall correct the Defect and the cause in order to ensure that there is
        no recurrence.

10.4     LWB shall not be responsible for the correction of any Defect due to:

        (a)     a peril of the sea, an accident (other than any accident caused
                by a Defect for which LWB or its Subcontractors are
                responsible), negligence (other than negligence on the part of
                LWB or its Subcontractors), or improper maintenance or handling
                (including, without limitation, overloading) of the Vessel or
                any Equipment by the Owner or any of its employees; or

        (b)     the Owner's use of fuels or lubricants not recommended by the
                relevant manufacturer; or

        (c)     ordinary wear and tear; or

                                       22
<PAGE>

        (d)     any fault in (or caused by) any OFI properly (i) received, (ii)
                handled, (iii) installed or incorporated in, (iv) stowed on, or
                (v) otherwise delivered with the Vessel by LWB in accordance
                with all of the requirements of this Contract and the
                Specification; or

        (e)     repairs carried out by parties other than LWB or its
                Subcontractors.

10.5    The Owner shall give written notice to LWB as soon as reasonably
        possible and in any event within twenty one (21) Days after the
        discovery of any Defect for which a claim is made under this Clause 10.
        The Owner's notice shall give full details (so far as it is possible for
        the Owner to do so) of the nature of the Defect and the extent of any
        damage caused thereby.

10.6    Within thirty (30) Days after the end of the Warranty Period, the Owner
        will draw up, and send to LWB, a list identifying every Defect for which
        a claim is to be made under this Clause 10 provided that this Clause
        10.6 will not preclude the Owner from giving notice to LWB of, and
        making claims in respect of, any Defect which is covered by Clause 10.2.

10.7    Subject always to the Owner's rights under Clauses 10.8 and 10.9, each
        Defect will be corrected by LWB free of charge to the Owner as soon as
        may reasonably be practicable and all correction works shall be
        scheduled so as to minimise delay of and disruption to the Vessel's
        service and the availability of cabins, public rooms and areas, and
        other passenger facilities

10.8    The Owner may require any Defect to be corrected under the instruction
        or supervision of LWB at a suitably qualified shipyard or workshop
        selected by the Owner, in which case LWB shall pay to the Owner all
        costs incurred by it for the correction of such Defect but limited to
        the amount which such correction would have cost (on an arms length
        basis) if made at the shipyard. For the avoidance of doubt, in view of
        the intended area of the Vessel's operation during the Warranty Period,
        LWB will not be entitled to require the Vessel to be returned to the
        shipyard or any other part of the Work Site for the correction of any
        Defects.

10.9    Where the Owner discovers any Defect which (in the reasonable opinion of
        the Owner) requires correction on an urgent basis, the Owner will
        (acting in good faith) give such notice to LWB as is practicable in the
        circumstances then prevailing (the intention being that LWB shall have a
        reasonable opportunity to obtain necessary remedial instructions from
        the relevant sub-contractor(s) and to relay such instructions to the
        Owner) and thereafter the necessary corrective works may be carried out
        by the Vessel's crew or, if practicable having regard to the degree of
        urgency, by the nearest suitably qualified shipyard or workshop selected
        by the Owner.

10.10   Irrespective of whether a Defect is corrected by LWB under Clause 10.7
        or by any other parties under Clause 10.8 or Clause 10.9 above, LWB
        shall bear and pay:

        (a)     the cost of all equipment, parts and materials required to
                correct the Defect (including, without limitation, the cost of
                delivering the same to the selected shipyard or workshop by such

                                       23
<PAGE>

                means as the Owner may reasonably require in order to minimise
                delay of and disruption to the Vessel's service); and

        (b)     the cost of all labour required to correct the Defect including,
                without limitation, the expenses of independent contractors in
                travelling to the Vessel; and

        (c)     the cost of any necessary underwater inspection of the Vessel by
                divers; and

        where the Vessel is drydocked solely on account of the need to
        investigate or correct any Defect in the Vessel's external underwater
        parts at any time before the Vessel's first scheduled drydocking after
        redelivery, the drydocking costs (including, without limitation, the
        costs of taking the Vessel from her berth to the nearest available
        dry-dock and vice versa) as well as the costs of correcting any such
        Defect. Provided however that the costs payable by LWB for the
        correction of any Defect shall be limited to the amount which the
        correction would have cost (on an arms length basis) if made at the
        shipyard.

10.11   To the extent that the Owner incurs and pays any of the costs and
        charges which LWB is liable to bear and pay under this Clause 10, LWB
        shall reimburse the Owner in cash for the Owner's documented costs in
        the currency(ies) actually expended by the Owner. Provided however that
        the costs payable to the Owner for the correction of any Defect shall be
        limited to the amount which the correction would have cost (on an arms
        length basis) if made at the shipyard.

10.12   With effect from the expiry of the Warranty Period or (if later) final
        completion of all corrective works to be made by LWB under this Clause
        10, LWB will:

        (a)     assign to the Owner, to the fullest extent possible and without
                any charge to the Owner, that part of every warranty or
                guarantee made or given by any Subcontractors with respect to
                any aspect of the Works or the Equipment which extends beyond
                the Warranty Period or which is otherwise more favourable to the
                Owner than the warranty or guarantee of LWB under this Clause
                10; or

        (b)     if it is not possible fully and effectively to assign the
                relevant part of any such warranty or guarantee, hold and
                enforce the relevant warranty and guarantee as trustee and agent
                for the Owner and promptly account to the Owner for all monies
                received in or pursuant to the holding or enforcement of any
                such warranty or guarantee.

10.13   During the Warranty Period the Owner may require LWB to employ and place
        on board the Vessel a suitably qualified and experienced
        English-speaking guarantee engineer acceptable to the Owner. The
        guarantee engineer shall, at all times and in all respects, be an
        employee of LWB. The Owner shall be under no liability whatsoever for
        the death of or any personal injury suffered by the guarantee engineer
        during the time when he is on board the Vessel unless caused by the
        gross negligence of the Owner or any of its employees. Nor shall the
        Owner be under any liability whatsoever for any damage to or the loss or
        destruction of any property of the guarantee engineer unless caused by
        gross negligence on the part of the Owner or any of its employees. If so
        requested by the Owner, LWB and the guarantee engineer shall sign the

                                       24
<PAGE>

        Owner's letter of indemnity and waiver. Although the guarantee engineer
        will be employed by LWB at its expense, the Owner will at its cost
        provide the guarantee engineer with suitable food and accommodation on
        board the Vessel. The salary of the guarantee engineer will be
        reimbursed by the Owner to LWB up to a maximum amount which is to be
        agreed between the parties before the Vessel's redelivery to the Owner.

10.14    If:

        (a)     any Defect in the Vessel's external underwater parts is
                discovered during the Warranty Period or the period of thirty
                (30) Days referred to in Clause 10.6; or

        (b)     any Defect in the Vessel's external underwater parts is
                discovered during the Vessel's first scheduled drydocking after
                redelivery and either LWB accepts that the Defect arose during
                the Warranty Period or LWB is unable to prove that the Defect
                arose after the end of the Warranty Period,

        LWB shall be responsible for such Defect and the correction thereof in
        accordance with this Clause 10 PROVIDED THAT the Owner shall bear and
        pay for the haul day and any drydocking costs incurred in the ordinary
        course of the Vessel's normal drydocking maintenance and LWB, in
        addition to the costs of all necessary corrective works, shall bear and
        pay for such additional drydocking day(s) as may be required to correct
        such Defect.

10.15   If a Defect results in or causes damage to the Vessel or any Equipment,
        LWB's obligation and liability under this Clause 10 shall extend to the
        correction (or, as the case may be, reimbursement of the cost of
        correction) of any parts of the Vessel and any Equipment that have been
        directly damaged as a direct result of the Defect. Otherwise, LWB shall
        have no responsibility or liability for any consequential defects. Nor
        shall LWB in any circumstances be responsible or liable towards the
        Owner or any third party for any consequential damages or expenses
        including, but not limited to, loss of time, loss of profit or earnings
        directly or indirectly caused by any Defect or due to repairs or other
        works done to the Vessel to remedy any Defects.

10.16   In this Clause 10, the expression "CORRECT" shall be construed so as to
        mean and include rectify, remedy, repair or replace with the intent that
        LWB's duty under this Clause 10 shall be to take all necessary
        corrective action by (as may be appropriate) correcting or rectifying or
        repairing or replacing, or paying for the correction or rectification or
        remedy or repair or replacement of, every Defect to which this Clause 10
        applies.

11.     CONTRACT PRICE AND PAYMENT TERMS

11.1    The Contract Price for the Works shall be (EURO)298,000,000 (Two Hundred
        Ninety Eight Million Euros).

11.2    The Contract Price:

        11.2.1  is a fixed price and may be adjusted only in strict accordance
                with, and subject to, the express provisions of this Contract;
                and

                                       25
<PAGE>

        11.2.2  includes a lump sum allowance of (EURO)23,000,000 (Twenty Three
                Million Euros) in respect of Equipment to be purchased by LWB
                from time to time at the direction of the Owner.

        11.2.3  Any amount of the allowance set forth in 11.2.2 above which is
                not used to purchase such Equipment at the request of Owner
                shall result in a reduction in the Contracted Price of equal
                amount.

11.3    For the avoidance of doubt, the Contract Price includes:

        11.3.1  the cost of all Works, completed in accordance with the
                requirements of this Contract and the Specification, and the
                provision by LWB and its Subcontractors of all ancillary and
                related services;

        11.3.2  the cost of all Tests and Sea Trials;

        11.3.3  the cost of procuring the classification rating for the Vessel,
                and of obtaining all certificates and other documents which are
                required to be delivered pursuant to this Contract and the
                Specification; and

        11.3.4  all other costs and expenses of LWB otherwise incurred by LWB in
                connection with the Works unless expressly specified in this
                Contract as being for the Owner's account.

11.4    No commission of any kind whatsoever is or will be payable (whether
        directly or indirectly) by or to any person in relation to or in
        connection with this Contract or any of the business transactions
        described in or contemplated by this Contract.

11.5    The Contract Price shall be paid by the Owner to LWB's Account in
        Instalments, as follows:

<Table>
<Caption>
       ------------------ ------------------------- ----------------------------
<S>                         <C>                             <C>
       First Instalment:    [***] [Confidential Treatment]  [***] [Confidential Treatment]
       ------------------ ------------------------- ----------------------------
       Second Instalment:   [***] [Confidential Treatment]  [***] [Confidential Treatment]
        ------------------ ------------------------- ----------------------------
       Third Instalment:    [***] [Confidential Treatment]  [***] [Confidential Treatment]
       ------------------ ------------------------- ----------------------------
       Fourth Instalment:   [***] [Confidential Treatment]  [***] [Confidential Treatment]
       ------------------ ------------------------- ----------------------------
       Fifth Instalment:    [***] [Confidential Treatment]  [***] [Confidential Treatment]
       ------------------ ------------------------- ----------------------------
       Sixth Instalment:    [***] [Confidential Treatment]  [***] [Confidential Treatment]
       ------------------ ------------------------- ----------------------------

</Table>
                                       26
<PAGE>

11.6    LWB shall by not less than fourteen (14) Days advance written notice
        advise the Owner of the date upon which each of the payments referred to
        Clause 11.5 shall become due and payable and, in addition the notice
        relating to payment of the Seventh Instalment will show (in reasonable
        detail) LWB's calculation of the balance of the Contract Price payable
        at such time and, in particular, the amounts of any reductions in or
        additions to the Contract Price occasioned by the terms and conditions
        of this Contract.

11.7    The Owner's obligation to pay each of the Instalments referred to in
        Clause 11.5 shall be subject to and conditional upon the Owner's receipt
        of:

        11.7.1  LWB's invoice for the relevant payment; and

        11.7.2  in the case of the First Instalment only, (a) the Performance
                Guarantee, (b) the Refund Guarantee, (c) the Pledge of LWB's
                Account (and acknowledgement thereof by LWB's Bank), and (d) the
                Legal Opinion - all of which shall be delivered to the Owner not
                later than three (3) Banking Days before the First Instalment
                Date.

11.8    LWB shall not be entitled to use the proceeds from any Instalment, or
        any amount standing to the credit of LWB's Account, for any purpose
        other than to pay for work done and deliveries made in relation to the
        completion of the Vessel. LWB shall however be entitled to draw amounts
        from LWB's Account for this purpose as long as LWB is not in breach of
        its obligations hereunder, and LWB's Account shall forthwith be blocked
        in favour of the Owner when the Owner notifies LWB's Bank that LWB is in
        breach of its obligations under this Contract. The Owner shall nominate
        a representative to monitor and control LWB's Account, and LWB shall
        give the Owner and its representative full access to LWB's Account as
        well as to all invoices and documentation relating to any payments
        therefrom. Any invoice exceeding the amount of (EURO)500,000 (in words,
        Five Hundred Thousand Euros) must be pre-approved by the Owner's
        representative before payment from LWB's Account, such approval not to
        be unreasonably withheld or delayed.

11.9    The other payments from time to time due under this Contract shall be
        made as follows:

        (i)     payment or credits for any modification(s) pursuant to Clause 6
                and/or any other amount(s) accruing before redelivery and
                acceptance of the Vessel (but for which no specific date is
                stipulated in this Contract) shall be made simultaneously with
                redelivery and acceptance of the Vessel, and the amount(s)
                thereof shall be shown in the final invoice to be issued and
                delivered by LWB;

        (ii)    any amount for which a specific payment date is stipulated in
                this Contract shall be paid on such date; and

                                       27
<PAGE>

        (iii)   for any amount accruing after redelivery and acceptance of the
                Vessel in respect of a defect, payment shall be made as follows:

                (a)     if the parties agree that the defect in question is a
                        Defect, not later than fifteen (15) Days after LWB's
                        receipt of an invoice for the Defect remedied pursuant
                        to Clause 10; or

                (b)     if the parties are in dispute as to whether the defect
                        is a Defect, on the date on which it is finally
                        determined or adjudged to be a Defect under Clause 22,
                        together with interest thereon at the Relevant Rate
                        calculated from the date of LWB's receipt of an invoice
                        for the Defect remedied pursuant to Clause 10 up to and
                        including the date of the Owner's receipt of the
                        relevant amount.

11.10   Every amount from time to time due under this Contract but unpaid for
        longer than fifteen (15) Days from (and excluding) the due date shall
        bear interest at the Relevant Rate from the due date up to and including
        the date of receipt by the party to which the amount is owed.

11.11   All amounts payable to LWB under this Contract shall be paid direct to
        LWB's Account, and the parties shall consult with each other in good
        faith about the mode of payment with a view to reducing the amount of
        any applicable bank transfer charges.

11.12   All payments made by the Owner to LWB prior to redelivery and acceptance
        of the Vessel shall be in the nature of advances to LWB.

11.13   All fees, costs and other charges whatsoever:

        11.13.1 in connection with each of the guarantees and other securities
                referred to in Clause 11.7 (including, without limitation, fees
                payable to the relevant bank(s) and/or insurance company(ies) in
                respect of payments made thereunder) shall be borne and paid by
                LWB; and

        11.13.2 arising in connection with any payment made under this Contract
                shall be borne and paid by the paying party PROVIDED THAT any
                fees, costs or other charges levied by the receiving party's
                bank(s) (including correspondent banks, whether in Germany or
                elsewhere) shall be borne and paid by that party.

12.     ADJUSTMENT OF CONTRACT PRICE

12.1    LATE DELIVERY

        12.1.1  The Contract Price shall be subject to adjustments in the event
                of delayed redelivery (it being understood and agreed by both
                parties that any reduction of the Contract Price will be by way
                of liquidated damages and not by way of penalty), and LWB shall
                not in any way be responsible or liable for any other
                consequences by way of damages or otherwise as a consequence of
                delayed redelivery.

        12.1.2  LWB shall prior to the second instalment being paid provide the
                Buyer with a production plan for the construction of the Vessel,
                and shall on each payment date as set out in Clause 11.5, notify
                the Owner of any delay in the production plan of the

                                       28
<PAGE>

                construction of the Vessel and/or change in the scheduled Date
                for Completion of the Vessel.

        12.1.3  If the delivery of the Vessel is delayed after the Date for
                Completion (as the same may be reset pursuant to Clause 7.3),
                then, in such event, beginning at 12:00 midnight on the Day
                falling [***] [Confidential Treatment] after the Date for
                Completion, the Contract Price shall be reduced by deducting
                therefrom: [***] [Confidential Treatment] per Day for each
                further Day of delay between 12:00 midnight on the [***]
                [Confidential Treatment] Day and 12:00 midnight on the [***]
                [Confidential Treatment] Day after the Date for Completion; and
                [***] [Confidential Treatment] for each further Day of delay
                between 12:00 midnight on the [***] [Confidential Treatment] Day
                and 12:00 midnight on the [***] [Confidential Treatment] Day
                after the Date for Completion.

        12.1.4  However, the total reduction in the Contract Price shall not be
                more than would be the case for a delay of One Hundred and
                Twenty (120) Days, counting from 12:00 midnight on the Date for
                Completion, at the rates of reduction applicable to the relevant
                periods of delay as specified in subclause 12.1.3

        12.1.5  If the delay in redelivery of the Vessel should continue for a
                period of [***] [Confidential Treatment] from the Date for
                Completion (adjusted for Permissible Delay), then in such event,
                and after such period has expired, the Owner may at its option
                terminate this Contract in accordance with the provisions of
                Clause 19 hereof. If [***] [Confidential Treatment] of delay
                have elapsed after the Date for Completion (adjusted for
                Permissible Delay) and provided that the Owner has not sent
                notice of termination as provided for in Clause 19 hereof, LWB
                may demand in writing that the Owner shall make an election, in
                which case the Owner shall, within [***] [Confidential
                Treatment] after such demand is received by the Owner, notify
                LWB of its intention either to terminate this Contract or to
                consent to the acceptance of redelivery of the Vessel at an
                agreed future date; it being understood that, if the Vessel is
                not delivered by such agreed future date, the Owner shall have
                the same right to terminate as herein above provided.

        12.1.6  If the Owner fails to make an election as specified above within
                such Fifteen (15) Day period, the Owner shall be deemed to have
                consented to the redelivery of the Vessel at the future date
                proposed by LWB.

12.2    SAVINGS

        12.2.1  From time to time at the request of the Owner, LWB will make
                available to the Owner, on an open-book basis, all calculations
                made and all costs and other data used by LWB in determining the
                Contract Price and any of the savings referred to in this Clause
                12.2.

        12.2.2  LWB has used, and will continue to use, its best efforts to
                minimise the costs implicit in the Contract Price and to reduce
                the Contract Price wherever possible by achieving savings

                                       29
<PAGE>

                between LWB's budgeted costs and the costs actually incurred
                under or in connection with this Contract.

        12.2.3  The full amount of any cost savings directly or indirectly
                achieved through the Owner's efforts (including through the
                purchase by the Owner from NGSSI of materials, Parts and other
                Equipment items), whether through the purchase of Equipment by
                the Owner or through the Owner negotiating or procuring the
                supply of Equipment to LWB or any of its Subcontractors or
                through any other means, shall be credited to the Owner.

        12.2.4  The full amount of any cost savings directly or indirectly
                achieved by LWB in relation to the [***] [Confidential
                Treatment] component of the Contract Price referable to the
                upgrading, commissioning and post-redelivery guarantee in
                respect of the Vessel's MERMAID POD units shall be credited to
                the Owner.

        12.2.5  One half of any discounts, rebates or other cost savings
                directly or indirectly achieved by LWB (irrespective of the form
                which they take) shall be credited to the Owner.

        12.2.6  Save for any increase in the Contract Price expressly occasioned
                by the operation of Clause 6, LWB shall bear the full amount by
                which its actual expenditure under or in connection with this
                Contract exceeds its budgeted expenditure.

        12.2.7  At each of the monthly meetings referred to in Clause 5.1.6, LWB
                will inform the Owner about the status of its efforts to achieve
                savings pursuant to this Clause 12.2, and provide the Owner with
                details of any cost savings achieved in the preceding month and
                an updated calculation of the total savings achieved to the date
                of the relevant meeting.

        12.2.8  The credits to be given to the Owner in respect of savings
                achieved by LWB or the Owner shall be applied and reflected in
                the invoice for the Seventh Instalment and the related notice
                referred to in Clause 11.6.

13.     ENCUMBRANCES

13.1    LWB expressly, unconditionally and irrevocably waives any right to any
        Encumbrance granted by law, or otherwise, and shall undertake not to
        permit or create or do any act, deed or thing which would or might
        result in the creation or assertion of any Encumbrance on any part of
        the Owner's property (which for all purposes of this Contract shall mean
        the Vessel, the Hull, the Equipment, OFI, Parts and any other property
        of the Owner relating to or connected in some way with this Contract or
        the arrangements described herein or contemplated hereby).

13.2    LWB shall promptly and fully indemnify and hold harmless and defend the
        Owner and the Indemnified Parties from and against all liabilities for
        the payment of the amount of any Encumbrance claimed or asserted against
        or imposed on any property of the Owner by LWB, any Subcontractors, or
        any other third party whatsoever.

                                       30
<PAGE>

13.3    In the event that:

        13.3.1  LWB has a PRIMA FACIE valid claim against the Owner; and

        13.3.2  LWB has commenced arbitration proceedings in respect of such
                claim in accordance with the terms of this Contract (such
                commencement being the service by LWB of a notice referring the
                claim to arbitration and advising of the appointment of a first
                arbitrator); and

        13.3.3  the Owner at any time wishes to remove any of its property from
                the Work Site (upon or before completion of the Works),

        then the Owner shall be entitled to remove such property from the Work
        Site upon provision by the Owner of a guarantee issued by a first class
        bank in a form reasonably acceptable to LWB in an amount equivalent to
        LWB's claim (exclusive of interest and legal costs), less the value of
        any PRIMA FACIE valid counterclaims asserted by the Owner (exclusive of
        interest and legal costs).

13.4    At any time when a payment is due to LWB under this Contract, and at all
        other reasonable times, the Owner may require LWB to provide a written
        statement satisfactory to the Owner showing what, if any, Encumbrance of
        any kind has been or is liable to be or may be imposed on or asserted
        against any property of the Owner located at any part of the Work Site.

13.5    If any Encumbrance of any kind is imposed on or asserted or claimed
        against any property of the Owner located at any part of the Work Site,
        LWB shall promptly notify the Owner and shall, not later than ten (10)
        Days thereafter, secure the discharge or release of such Encumbrance
        PROVIDED THAT if the Owner desires to contest any such Encumbrance and
        such discharge or release is not available under law during such contest
        (including, without limitation, through the filing of a bond or other
        security), LWB shall immediately take such steps as in the opinion of
        the Owner shall prevent such Encumbrance from delaying or otherwise
        adversely affecting the execution of the Works and shall indemnify
        fully, hold harmless and defend the Owner and all other Indemnified
        Parties from and against all Losses which any of them may sustain or
        incur as a result of the imposition of any such Encumbrance.

13.6    Notwithstanding the provisions of Clause 13.5, the Owner may secure the
        removal of any such Encumbrance in which event LWB shall reimburse the
        Owner for its costs (including legal fees) of securing such discharge or
        release by deducting such sum from any payments due or to become due to
        LWB under this Contract save that if any such cost is in excess of the
        amount of any such reimbursement by deduction, LWB shall pay the amount
        of such excess to the Owner promptly upon demand.

13.7    Notwithstanding the provisions of Clause 13.5, the Owner, without
        securing the discharge or release of any such Encumbrance, may
        nevertheless withhold from any payments due or to become due to LWB,
        unless and until such Encumbrance is discharged or released by LWB, a
        sum equal to the amount reasonably determined by the Owner to be
        required to secure the discharge or release of such Encumbrance (which

                                       31
<PAGE>

        amount shall include the estimated amount of all expenses which might be
        incurred in connection therewith, including legal fees).

14.     INDEMNITIES AND LIABILITY

14.1    LWB agrees to fully indemnify and hold harmless and defend the Owner and
        the Indemnified Parties from and against any and all Losses except to
        the extent that any Losses are caused directly or indirectly by the acts
        or omissions of the Owner or any of the Indemnified Parties in respect
        of:

        14.1.1  sickness or injury to and death of the directors, officers,
                employees and agents of the Owner, LWB and the Subcontractors,
                and/or

        14.1.2  loss of or damage to the property of the Owner, LWB and the
                Subcontractors including, without limitation, equipment,
                materials, machines, vehicles, plants, assets and the facilities
                owned, hired or rented by the Owner, LWB, the Subcontractors and
                any of its or their directors, officers, employees, consultants,
                agents and other representatives, and/or

        14.1.3  loss of or damage to any of the Owner's property whilst in the
                care and custody of, or under the control of, LWB, and/or

        14.1.4  sickness or injury to or death of any third party and/or loss of
                or damage to the property of any third party, including wreck
                removal and pollution, and/or any other loss or damage claimed
                against the Owner for which LWB and/or any Subcontractor is
                legally liable,

        arising in connection with the Works and regardless of the cause or
        reason therefor.

14.2    LWB's indemnities and liabilities under this Clause 14 shall be
        limited to a total amount of (EURO)5,000,000 (in words, Five Million
        Euros) for all and any events mentioned in this Clause 14.

15.     INSURANCES

15.1    During the term of this Contract and until issuance of the Final
        Completion Certificate, the Vessel, the Hull, the Equipment, the Parts,
        the OFI and all other property of the Owner at the Work Site shall be at
        the sole, direct and entire risk of LWB which shall at its own expense
        keep the same insured against construction risks on terms, in amounts
        and with insurers reasonably acceptable to the Owner.

15.2    All insurances (the "INSURANCES") shall be taken out in the name of LWB
        and the Owner as co-insured for their respective interests, and all
        losses under the Insurances shall be made payable to LWB and the Owner
        for distribution between them in accordance with Clauses 15.6, 15.9 and
        15.10.

15.3    All insurances shall provide that there shall be no recourse against the
        Owner or the Indemnified Parties for whatsoever reason, and in
        particular for the payment of any premiums or commissions and that no
        alteration or cancellation of any of the Insurances shall become
        effective unless and until fourteen (14) Days prior written notice has
        been given by the relevant brokers or insurers to the Owner.

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15.4    LWB shall provide the Owner with an original cover note specifying the
        terms of the Insurances and all such other documentation and information
        relating to the Insurances as the Owner may request from time to time.

15.5    If at any time there is:

        15.5.1  any lapse in the insurance coverage which LWB is required to
                arrange under this Clause 15, the Owner may effect replacement
                coverage at LWB's expense; or

        15.5.2  any failure by LWB to pay any premiums due in respect of the
                Insurances, the Owner may pay the same and recover the relevant
                payment(s) from LWB.

15.6    In the event of any Partial Loss of the Vessel and/or Parts and/or
        Equipment and/or OFI and/or Hull before issuance of the Final Completion
        Certificate:

        15.6.1  the loss shall be made good by LWB as soon as reasonably
                possible, the Date for Completion shall be extended in
                accordance with Clause 7.3 (PROVIDED THAT the cause of the
                Partial Loss is excused under that Clause) and the Partial Loss
                proceeds referable to the Vessel and/or OFI and/or Parts and/or
                Equipment (other than the Hull) which are subject to the Partial
                Loss shall be applied by LWB in making good the Partial Loss to
                the approval of the Owner, the Classification Bodies and the
                Regulatory Bodies; and

        15.6.2  the partial loss proceeds referable to the Hull which are
                subject to the Partial Loss shall be paid to the Owner.

15.7    In the event of the Total Loss of the Vessel before issuance of the
        Final Completion Certificate, either LWB or the Owner shall be entitled
        to terminate this Contract by written notice to the other, such notice
        to be delivered within thirty (30) Days after the date (the
        "DETERMINATION DATE") on which it is determined that the Vessel has
        become a Total Loss pursuant to Clause 15.11 below.

15.8    If, following the Total Loss of the Vessel, neither party terminates
        this Contract pursuant to Clause 15.7, LWB shall proceed with the Works
        in accordance with this Contract and the Date for Completion shall be
        extended in accordance with Clause 7.3 PROVIDED THAT the cause of the
        Total Loss is excused under that Clause.

15.9    If there is a Total Loss of the Vessel before issuance of the Final
        Completion Certificate, then:-

        15.9.1  if either party elects to terminate this Contract pursuant to
                Clause 15.7, LWB shall within forty five (45) Days from (and
                including) the Determination Date pay to the Owner an amount
                equal to the sum of: (a) all payments previously made by the
                Owner to LWB under this Contract together with interest thereon
                at the Relevant Rate calculated from the date on which LWB
                received each such payment to the date on which the
                reimbursement is received by the Owner, and (b) the OFI Costs in
                respect of any OFI which are subject to the Total Loss; or

                                       33
<PAGE>

        15.9.2  if neither party terminates this Contract pursuant to Clause
                15.7: (a) the Total Loss proceeds referable to the Vessel and/or
                OFI and/or Parts and/or Equipment (other than the Hull) shall be
                paid to and applied by LWB in completing the Works pursuant to
                Clause 15.8 above, and (b) LWB shall within forty five (45) Days
                from (and including) the Determination Date pay to the Owner the
                OFI Costs in respect of any OFI which are subject to the Total
                Loss.

15.10   In the event of a total loss of the Hull, the Total Loss proceeds
        relating thereto shall be paid to the Owner.

15.11   A Total Loss shall be deemed to have occurred:

        15.11.1 if it consists of an actual Total Loss, at noon Bremerhaven time
                on the actual date of the loss; or

        15.11.2 if it consists of a constructive or compromised or arranged or
                agreed Total Loss, at noon Bremerhaven time on the date on which
                notice of abandonment of the Vessel or Hull is given to her
                insurers or (if her insurers do not admit the claim for a total
                loss) at the time on the date at which a Total Loss is
                subsequently adjudged to have occurred by a competent court or
                arbitration tribunal or liability in respect thereof as a Total
                Loss is admitted by underwriters.

16.     TAXES AND DUTIES

16.1    All taxes and duties levied on the importation into Germany of the
        Vessel, the Parts, the OFI and Equipment shall be for LWB's account.

16.2    All taxes and duties levied on the importation into the United States of
        America or any other state of the Vessel, the Parts, the OFI and
        Equipment shall be for the Owner's account.

16.3    All other taxes and duties arising in connection with the Works shall be
        for LWB's account. In particular, LWB shall be responsible for all
        taxes, duties and/or levies assessed or payable in respect of the
        operation of the Work Site as well as in respect of LWB's or its
        Sub-contractors income on business activities.

17.     CONFIDENTIALITY

17.1    LWB, its Subcontractors and its or their directors, officers, employees,
        consultants, agents and other representatives shall not, except to the
        extent required by law:

        17.1.1  make any announcement, or issue any circular, in connection with
                this Contract or the Works without the prior written approval of
                the Owner;

        17.1.2  divulge any Information to any person, natural or legal, other
                than the Owner except as may properly be required for the
                execution of the Works; or

        17.1.3  use any Information or OIPR, except as may properly be required
                for the performance of the Works.

17.2    LWB shall procure and enforce similar confidentiality undertakings from
        its Subcontractors and all other persons engaged by it in relation to
        the Works.

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18.      SUBCONTRACTORS AND ASSIGNMENT

18.1     SUBCONTRACTORS

        18.1.1  LWB may subcontract the performance of certain parts of the
                Works to reputable and suitably qualified and experienced
                Subcontractors.

        18.1.2  LWB's appointment or use of any Subcontractors (including,
                without limitation, any such persons appointed or employed or
                contracted by LWB with the approval or at the request of the
                Owner) shall not in any manner or to any extent relieve LWB from
                (or otherwise reduce) any of LWB's obligations and/or
                liabilities under or in connection with this Contract and the
                Specification nor diminish the responsibility of LWB adequately
                to manage and supervise the Subcontractors and to ensure that
                such Subcontractors conduct themselves in a thoroughly efficient
                and workmanlike manner.

        18.1.3  LWB agrees and covenants with the Owner that:

                (a)     it shall ensure that there is not and will not be
                        created by LWB any direct or indirect contractual or
                        other legal relationship (including but not limited to
                        any relationship arising out of or by reason of or in
                        connection with any German law encumbrance rights)
                        between the Owner and any Subcontractors appointed or
                        otherwise used by LWB (save for such relationships as
                        may be created by reason of the warranty and guarantee
                        assignments to be made by LWB under Clause 10.12 );

                (b)     it shall take reasonable care in the selection,
                        appointment and supervision of all Subcontractors, and
                        shall use its best endeavours to procure their
                        appointment on the best possible terms consistent with
                        the Owner's rights, and LWB's obligations and
                        liabilities, under this Contract and the Specification
                        including, without limitation, such matters as (i) the
                        best possible guarantees and warranties and liberty for
                        LWB to assign all or any part(s) of such guarantees and
                        warranties to the Owner, (ii) the safety of passengers
                        and crew, (iii) good service, (iv) reliability of
                        Subcontractors, and (v) availability of spares and
                        post-delivery service and other support;

                (c)     it shall procure a waiver from each Subcontractor (in
                        terms acceptable to the Owner) of any rights (including
                        without limitation any German law encumbrance rights) to
                        arrest, attach, detain or encumber any property of the
                        Owner or to cease work, and if LWB fails to procure any
                        such waiver LWB shall (i) promptly notify the Owner of
                        such failure and provide it with all such information
                        and documentation as the Owner may require regarding
                        contracts with any Subcontractor(s) who refuse to waive
                        such rights, and (ii) prevent the relevant
                        Subcontractor(s) from exercising such rights;

                (d)     it shall promptly provide the Owner with (i) such
                        documentation or information as it may request from time
                        to time in connection with the terms of appointment

                                       35
<PAGE>

                        (actual or proposed) of any Subcontractors and (ii) such
                        rights of access to any part of the Work Site as the
                        Owner may require from time to time in order to verify
                        the performance of any parts of the Works carried out by
                        Subcontractors;

                (e)     it shall promptly (i) deal with the Owner's reasonable
                        complaints regarding the terms of engagement or contract
                        of any Subcontractors, and/or (ii) take necessary steps
                        to ensure the proper performance of any such
                        Subcontractors, and/or (iii) comply with any reasonable
                        requests by the Owner to terminate any such engagement
                        or contract and appoint substitute Subcontractors; and

                (f)     it shall be fully, directly and solely responsible (as
                        between LWB, the Owner and the other Indemnified
                        Parties) for the acts, omissions and defaults of
                        Subcontractors (including, without limitation, any
                        persons appointed, employed or contracted by LWB with
                        the approval or at the request of the Owner) and for the
                        acts, omissions and defaults of the respective
                        directors, officers, employees, workmen, consultants,
                        agents and other representatives of LWB and its
                        Subcontractors.

        18.1.4  If any Subcontractor nominated by LWB is not acceptable to the
                Owner, or if the actual or proposed terms of appointment of any
                Subcontractor are not acceptable to the Owner, LWB shall not
                appoint any such Subcontractor or shall make such changes to the
                terms of appointment as the Owner may reasonably require.

        18.1.5  Further, if the Owner wishes any Subcontractors not nominated by
                LWB to be appointed by LWB in relation to the Works, LWB shall
                take all reasonable steps to secure the appointment of any such
                Subcontractors.

18.2    ASSIGNMENT

        18.2.1  LWB shall not be entitled to assign or transfer (and shall not
                purport to assign or transfer) any of its rights, liabilities or
                obligations under this Contract without the prior written
                consent of the Owner.

        18.2.2  The Owner may assign or transfer any of its obligations and
                liabilities under this Contract to any third party, subject to
                the written approval of LWB, such approval not to be
                unreasonably withheld.

        18.2.3  The Owner may assign any of its rights and benefits under or in
                connection with this Contract, and in respect of all related
                insurances claims, without the need to apply for or obtain the
                approval or consent of LWB.

19.     TERMINATION AND REMOVAL OF WORK

19.1    TERMINATION BY LWB FOR CAUSE

        19.1.1  The Owner shall be deemed to be in default of performance of its
                obligations under this Contract in the following cases:

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<PAGE>

                (a)     if, without due cause, the Owner fails to pay to LWB any
                        amount due and owing under the provisions of Clause 11
                        for a period of twenty (20) Banking Days from the due
                        date; or

                (b)     if an order or an effective resolution is passed for the
                        winding-up of the Owner (otherwise than for the purposes
                        of a reconstruction or amalgamation) or if a receiver is
                        appointed over the whole or any part of the undertaking
                        or property of the Owner or if the Owner becomes
                        insolvent or suspends payment generally of its debts or
                        ceases to carry on its business or makes any composition
                        with its creditors.

        19.1.2  If the Owner is in default as to the payment of any amount as
                provided in Clause 19.1.2, then without prejudice to any other
                rights of LWB or of the Owner, the Owner shall be liable to pay
                interest at the Relevant Rate on the unpaid amount from the day
                from which the same became due to LWB up until the date of
                actual payment thereof.

        19.1.3  If any default on the part of the Owner as provided in Clause
                19.1.1 continues for a further period of twenty (20) Banking
                Days, LWB shall have the right at its sole discretion to cease
                work until such default is cured by the Owner or, alternatively,
                to terminate this Contract by giving prompt written notice to
                the Owner which notice shall be effective from receipt thereof
                by the Owner. In the event of such termination LWB shall be
                entitled by way of exclusive compensation to payment by the
                Owner of a sum equivalent to that part of the Works already
                undertaken but not paid for by the Owner as at the date of the
                Owner's receipt of the notice of termination.

19.2    TERMINATION BY THE OWNER FOR CONVENIENCE

        19.2.1  The Owner shall have the right to terminate this Contract at any
                time by giving a minimum of seven (7) Days written notice to LWB
                and termination shall take effect from the expiry of such notice
                period.

        19.2.2  Following such termination, the Owner shall pay:

                (a)     the unpaid balance due to LWB for that part of the Works
                        already completed but not paid for;

                (b)     all reasonable costs directly and properly incurred by
                        LWB and its Subcontractors in connection with materials
                        ordered prior to receipt of the notice of termination,
                        and compensation for work properly performed on such
                        materials prior to such date, unless such costs are
                        covered by payment under (a) above;

                (c)     all necessary, reasonable and unavoidable cancellation
                        charges and administration costs directly incurred by
                        LWB in connection with termination of this Contract;

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<PAGE>

                (d)     LWB's and its Subcontractors other necessary, reasonable
                        and unavoidable expenses which are directly attributable
                        to an orderly close-out of this Contract; and

                (e)     any other amounts which LWB is required by law to pay to
                        its Subcontractors which are directly attributable to
                        this Contract, always provided that LWB has used its
                        best endeavours to minimise the amounts so due.

19.3    TERMINATION BY THE OWNER FOR CAUSE

        19.3.1  In the event that any of the following events should occur and
                LWB fails to remedy, if remedy is possible, within thirty (30)
                Days of receiving a written remedy request from the Owner:

                (a)     LWB shall without legal justification fail to proceed
                        and continue with the Works with all reasonable
                        despatch;

                (b)     LWB shall (i) fail to effect or maintain the insurances
                        required to be effected or maintained by it under this
                        Contract, or (ii) any insurer shall avoid or cancel any
                        such insurances, or (iii) LWB shall commit any breach of
                        or make any misrepresentation in respect of any such
                        insurances the effect of which is to entitle the
                        relevant insurer to avoid the policy or otherwise to be
                        excused or released from all or any of its liability
                        thereunder, or (iv) any of such insurances shall cease
                        for whatsoever reason to be in full force and effect, or
                        (v) commit any other material breach of this Contract;

                (c)     LWB shall fail to provide any of the Performance
                        Guarantee, the Refund Guarantee or the Pledge or any of
                        the same, or the security thereby given, is or proves to
                        be or becomes wholly or partially invalid, ineffective
                        or unenforceable in the reasonable opinion of the Owner;

                (d)     the filing of a bankruptcy petition by LWB, its
                        shareholders, its representatives and/or any other
                        person, the making of any order or passing of an
                        effective resolution for the winding-up of LWB (other
                        than for the purposes of reconstruction or amalgamation
                        which has been previously approved in writing by the
                        Owner), the appointment of a receiver of the whole or
                        any substantial part of the undertaking or property of
                        LWB, the insolvency of or a suspension of payments by
                        LWB, the cessation of the carrying on of business by
                        LWB, or the making by LWB of any special arrangement or
                        composition with creditors of LWB; or

                (e)     any time the Owner, acting reasonably and in good faith,
                        considers that LWB's performance of the Works is
                        unsatisfactory,

                the Owner may elect to terminate this Contract by giving written
                notice to LWB.

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<PAGE>

        19.3.2  The Owner may also terminate this Contract for cause if it
                becomes entitled to do so under any of the other provisions of
                this Contract including, without limitation, those contained in
                Clauses 7 and 12.

        19.3.3  If the Owner elects to terminate this Contract for cause
                pursuant to the provisions of this Clause 19, then the Owner
                shall give notice in writing to LWB that the Owner regards this
                Contract as terminated in which case the provisions of Clauses
                19.3.4 and 19.4 shall apply. Such notice shall be effective from
                receipt thereof by LWB and shall operate without prejudice to
                the Owner's rights under this Contract before the time of
                despatch of the notice.

        19.3.4  If the Owner elects to terminate this Contract for cause
                pursuant to any of the provisions of Clauses 19.3.1 or 19.3.2
                then:

                (a)     the Owner may retain and/or claim from LWB (which shall
                        immediately pay to the Owner) all liquidated damages
                        paid or payable by LWB to the Owner under Clause 12 ;
                        and

                (b)     the Owner may also claim from LWB (which shall
                        immediately refund to the Owner) the aggregate of (i)
                        all payments previously made by the Owner to LWB under
                        this Contract together with interest thereon at the
                        Relevant Rate calculated from the date upon which LWB
                        received each such payment to the date on which the
                        refund is received by the Owner and (ii) all other
                        amounts payable by LWB to the Owner under or in
                        connection with this Contract; and

                (c)     the Owner may also claim from LWB (which shall
                        immediately pay to the Owner) a termination payment
                        sufficient to cover all of the costs incurred and to be
                        incurred by the Owner in order to effect the orderly
                        removal of the Vessel, Hull, Equipment, Parts, OFI and
                        other property of the Owner from the Work Site to the
                        premises of another European contractor selected by the
                        Owner; and

                (d)     if the Owner's right to terminate this Contract becomes
                        exercisable as a result of any negligence or wilful
                        misconduct on the part of LWB, the Owner shall, in
                        addition to the payments referred to above, be entitled
                        to claim and recover from LWB (which shall immediately
                        pay to the Owner) the proved loss of the Owner resulting
                        from LWB's default.

19.4    GENERAL PROVISIONS RELATING TO TERMINATION OF THIS CONTRACT

        19.4.1  If this Contract is terminated for whatever reason, upon the
                fulfilment by the Owner of all of its obligations hereunder LWB
                shall deliver to the Owner at the Owner's expense all completed
                and partially completed portions of the Works as directed by
                Owner, and LWB shall execute and deliver to the Owner all
                documents required by Owner and take all steps necessary to vest
                fully in Owner the rights and benefits of LWB under its existing
                agreements with its Subcontractors, in so far as relevant for
                the Works. LWB shall cause the Vessel, the Hull, the Equipment,
                Parts, OFI and all other property of the Owner to be redelivered
                to the Owner as soon as possible following termination and the
                Owner shall promptly remove the same as soon as LWB has made it

                                       39
<PAGE>

                available to him and LWB shall not arrest or attach or lien or
                encumber or detain or delay or otherwise restrict or withhold
                the Vessel, the Hull, the Equipment, Parts, OFI and other
                property of the Owner from being removed from the Work Site by
                the Owner.

        19.4.2  Without prejudice to the Owner's other rights in respect of such
                termination of the Contract, LWB shall at the Owner's request
                and cost, as soon as practicable: (a) complete all works
                required as a minimum to permit the Vessel and all other items
                of the Owner's property to depart from the Work Site in an
                orderly, safe and seaworthy condition; (b) thereafter remove its
                and its Subcontractors' employees and agents, together with
                their equipment, from the Vessel; and (c) render all necessary
                assistance to enable the Vessel and all other items of the
                Owner's property to leave the Work Site at the earliest moment
                convenient to the Owner.

        19.4.3  If this Contract is terminated for whatever reason, a redelivery
                certificate shall be drawn up, signed by both parties, attesting
                that the Vessel and all other items of the Owner's property have
                been redelivered to the Owner by LWB.

        19.4.4  Should there be a dispute over the amounts, if any, which are
                due to LWB from the Owner at the time of redelivery, the Owner
                shall be entitled to take redelivery of the Vessel by paying the
                undisputed amount, if any, or by establishing a bank guarantee,
                or by paying funds into an escrow account or providing other
                reasonable security, for the disputed amount.

20.     PATENT RIGHTS

20.1    Nothing contained this Contract shall be construed as transferring any
        patent, registered design, copyright or any similar right in machinery,
        equipment, outfittings and other parts covered by this Contract, and all
        such rights are hereby expressly reserved to the true and lawful owners
        thereof. However the Owner shall be provided for its sole use with a
        royalty free licence in respect of any patents, registered designs,
        copyrights or any similar rights developed through or as a direct or
        indirect result of the Works.

20.2    The Owner reserves the right to seek patents on any items or idea
        invented or otherwise arising as a result of the Works done under this
        Contract. LWB shall promptly disclose to the Owner any potentially
        patentable ideas conceived by LWB as a direct or indirect result of the
        Works under this Contract.

20.3    Notwithstanding the above, all OIPR shall belong exclusively to the
        Owner, for his free use and licensing world wide, with no payment to LWB
        in respect thereof.

21.     NOTICES

21.1    Any notice required or permitted to be given by the parties under the
        terms of this Contract shall be in writing and given by registered mail
        or facsimile by one party to the other at the following addresses or to
        such other address or facsimile number as may from time to time be
        designated by either of them in writing to the other.

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<PAGE>

        IF TO LWB, TO:

                                        Lloyd Werft Bremerhaven GmbH

                                        Bruckenstra(beta)e 25, 27568
                                        Bremerhaven, Germany

        Telefax:                        +49 471 478 610

        Attention:                      Mr Werner Luken

        IF TO THE OWNER, TO:            Ship Holding LLC
                                        c/o 7665 Corporate Centre Drive
                                        Miami, Florida 33126

       Telefax:                         +1 305 436 4113
       Attention:                       Mr Colin Veitch
                                        President & CEO

         and with a copy telefax to:    +1 305 436 4117
         Attention:                     Mr Robert Kritzman
                                        Sr. Vice President and General Counsel

21.2    Any such notice shall be in the English language and shall be deemed to
        have been received and given (a) in the case of registered mail, two (2)
        Banking Days after the date of despatch and (b) in the case of
        facsimile, immediately following transmission if within the normal
        business hours of the addressee and in any other event on the next
        working day falling thereafter.

22.     GOVERNING LAW AND ARBITRATION

22.1    GOVERNING LAW

        This Contract shall be governed by and construed in all respects in
        accordance with English law save that the ambit and effect of (a) the
        rights referred to in the definition of "GERMAN LAW ENCUMBRANCE RIGHTS"
        in Clause 1.1, (b) the rights of actual possession and constructive
        possession referred to in Clauses 4.6 and 4.7, and (c) the right to seek
        interlocutory relief in the German courts referred to in Clause 22.2.2,
        shall be governed by and construed in accordance with German law.

22.2    DISPUTE RESOLUTION AND ARBITRATION

        22.2.1  In the event of a dispute under Clause 9 relating to any
                technical deficiencies or non-conformities or other Defects with
                an aggregate value of less than (EURO)50,000 (in words, Fifty
                Thousand Euros) either LWB or the Owner may upon three (3) Days
                notice to the other refer such dispute for resolution to a duly
                qualified surveyor appointed or employed by the Classification
                Society, who shall act as an expert (and not as an arbitrator)
                and whose decision shall be final and binding on the parties.

        22.2.2  In the event of any other dispute, difference or claim arising
                out of, or relating to or in connection with this Contract which
                is not resolved amicably, the same shall be submitted to and

                                       41
<PAGE>

                settled by arbitration in London or at such other venue as may
                hereafter be agreed by the parties in writing but the Owner
                reserves the right to proceed under this Contract against LWB in
                the German state courts for interlocutory relief (EINSTWEILIGER
                RECHTSSCHUTZ).

        22.2.3  The arbitration tribunal shall be entitled to determine in its
                award which party shall bear the costs of the arbitration, or
                the proportion of such expenses which each party shall bear.

        22.2.4  The parties agree to utilise a fast-track arbitration procedure
                to resolve any dispute, difference or claim arising out of or
                relating to or in connection with this Contract. Such
                arbitration shall be conducted in London in accordance with the
                criteria specified in this Clause 23. The party requiring
                arbitration of any dispute, difference or claim shall serve on
                the other party written notice thereof, specifying the issues to
                be arbitrated, appointing their arbitrator (who shall be a
                lawyer with experience as a maritime arbitrator) and inviting
                the other party to identify, within fourteen (14) Days, any
                further issues which it wishes to be arbitrated and giving
                notice of the appointment of a second arbitrator (who shall also
                be a lawyer with experience as a maritime arbitrator).

        22.2.5  The arbitration shall be conducted before a tribunal of three
                arbitrators (the "TRIBUNAL") in accordance with the Arbitration
                Act 1996 (or any statutory modification thereof) and the LMAA
                Terms current at the time when the arbitration proceedings are
                commenced (save insofar as those terms are inconsistent with the
                express terms of this arbitration agreement in which
                circumstance the latter will prevail). The two party-appointed
                arbitrators shall forthwith upon the appointment of the second
                arbitrator appoint a third arbitrator who shall act as chairman
                of the Tribunal. It is expressly agreed that arbitration shall
                proceed before a sole arbitrator (being the arbitrator first
                appointed) if the party called upon to appoint the second
                arbitrator fails to do so within the time period specified
                herein or agrees that the first appointed arbitrator should
                serve as a sole arbitrator.

        22.2.6  The Tribunal shall be instructed to hear the merits of the
                dispute as presented by the parties. The arbitration shall be
                concluded as promptly as is reasonably practicable, and in any
                event within two hundred (200) Days of the commencement of
                proceedings.

        22.2.7  The parties agree that the decision of the Tribunal shall be
                final and binding on the parties except that either party shall
                have the right of appeal to the English High Court in London in
                respect of manifest errors of law. The decision of the Tribunal
                shall be recorded in writing with reasons.

        22.2.8  LWB shall proceed with the Works with all due diligence whilst
                any matter is under dispute in accordance with the provisions of
                this Clause 22.

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<PAGE>

23.     EFFECTIVE DATE

23.1    Notwithstanding the execution of this Contract by or on behalf of both
        parties, this Contract shall not be to any extent legally binding on the
        Owner until the time on the date (the "EFFECTIVE DATE") when each of the
        following conditions has been satisfied.

        23.1.1  all of the insurances to be arranged by LWB in connection with
                this Contract have been unconditionally approved in writing by
                the Owner;

        23.1.2  the Option Agreement shall have been signed by both parties and
                all outstanding commercial issues in relation to the option
                arrangements shall have been finally agreed between the parties;
                and

        23.1.3  the Owner shall have confirmed in writing to LWB (i) that it has
                approved the form and terms of each of the Drawings, the Legal
                Opinion, the Performance Guarantee, the Pledge of LWB's Account,
                the Refund Guarantee and the Specification, and (ii) that it has
                obtained satisfactory commitments for the pre and post
                redelivery financing which the Owner requires in connection with
                the completion of the Vessel.

23.2    If the Effective Date has not occurred by 15 February 2003 either party
        may terminate this Contract by notice to the other whereupon this
        Contract will terminate without any liability whatsoever on the part of
        either party save for any accrued rights of the Owner, and any accrued
        obligations or liabilities of LWB, under or in connection with the
        Contract.

24.     GENERAL PROVISIONS

24.1    This Contract does not constitute either party the agent, partner or
        legal representative of the other party for any purposes whatsoever, and
        neither party shall have any express or implied right or authority to
        assume or create any obligation or responsibility on behalf of or in the
        name of the other party.

24.2    This Contract may not be amended, modified or changed except by an
        instrument in writing executed by the duly authorised representatives of
        each of the parties hereto.

24.3    Where any matter requires an instruction from the Owner, a waiver by the
        Owner or the approval, authority or consent of the Owner any such
        instruction, waiver, approval, authority or consent shall not be deemed
        to have been given or to any extent effective unless it is given in
        writing by a duly authorised representative of the Owner. If any matter
        is required to be acceptable or satisfactory to the Owner, the Owner
        shall not be deemed to have accepted, or to be satisfied with such
        matter, unless its acceptance or satisfaction is communicated in writing
        to LWB by a duly authorised representative of the Owner.

24.4    Except as otherwise expressly provided herein, nothing in this Contract
        shall convey or confer any rights upon any person or entity which is not
        a party or permitted assignee of a party to this Contract.

24.5    This Contract may be executed in two counterparts, each of which shall
        be deemed an original and both counterparts shall together constitute a
        single instrument.

                                       43
<PAGE>

24.6    Each of the Owner and LWB acknowledges and agrees that the design and
        usage of certain public areas may differ depending upon whether the
        Owner selects the US flag or another flag under Clause 3.3.8. For
        example, the casino area will be put to another use if the Vessel is
        flagged into the US. In addition, the design and usagee of the extra
        areas created by the "stretch" have not been finalised at the time of
        signing. Subject to the Owner refining and finalising alternative plans
        and designs for these areas, and subject to the specification of these
        areas being consistent with other public areas on the Vessel, LWB shall
        not be entitled to increase the Contract Price (but shall decrease it if
        any savings can be achieved) as a result of changed designs and usages
        for these areas. If this subclause should conflict with any other
        provisions of this Contract or the Specification, the provisions of this
        subclause shall prevail.

IN WITNESS WHEREOF the duly authorised representatives of the parties have
executed this Contract as of February 2003 :

SHIP HOLDING LLC

/s/
-------------------------------------
COLIN VEITCH

LLOYD WERFT BREMERHAVEN GMBH

/s/
-------------------------------------
WERNER LUKEN

                                       44
<PAGE>
         THIS AGREEMENT is dated as of February 5, 2003 and made between:

         (1)      Norwegian Cruise Line Limited ("NCLL");

         (2)      Ship Holding LLC ("SH"); and

         (3)      Lloyd Werft Bremerhaven ("LWB").

         INTRODUCTION:

         (A)      NCLL and LWB are parties to a shipbuilding contract dated 28
                  December 2000 (as amended or supplemented at any time by
                  agreement of the parties thereto, the "ORIGINAL AGREEMENT").

         (B)      As a pre-condition to the proposed amendment and restatement
                  of the Original Agreement, the parties have agreed to novate
                  the Original Agreement to SH.

         THE PARTIES AGREE as follows:

1.       NOVATION

         With effect from the moment when this Agreement has been signed by
         NCLL, SH and LWB:

         (i)      SH shall perform NCLL's obligations under the Original
                  Agreement and shall be bound by the terms of the Original
                  Agreement in every way as if SH had at all times been a party
                  to the Original Agreement in place of NCLL;

         (ii)     LWB releases and discharges NCLL from further performance of
                  the Original Agreement and all liabilities, claims and demands
                  whatsoever and howsoever arising from or in connection with
                  the Original Agreement, whether in contract, tort or
                  otherwise, and LWB accepts the liability of SH under the
                  Original Agreement in place of the liability of NCLL; and

         (iii)    LWB shall perform its obligations under the Original Agreement
                  and shall be bound by the terms of the Original Agreement in
                  every way as if SH had at all times been a party to the
                  Original Agreement in place of NCLL.

2.       GOVERNING LAW AND JURISDICTION

2.1      This Agreement and all matters arising from or connected with it are
         governed by English law.

2.2      The English courts have exclusive jurisdiction to settle any dispute (a
         "DISPUTE") arising from or connected with this Agreement.

2.3      This Clause 2 is for the benefit of NCLL and SH only. As a result it
         shall not prevent NCLL and/or SH from taking proceedings relating to a
         Dispute in any other courts with jurisdiction.

                                       45
<PAGE>

         EXECUTED by the duly authorised representatives of the parties

         Signed by                                                  )
         for and on behalf of                                       )
         NORWEGIAN CRUISE LINE LIMITED                              )

         /S/                                                  Signature
         -----------------------------------------
         Signed by                                                  )
         for and on behalf of                                       )
         SHIP HOLDING LLC                                           )

         /S/                                                  Signature
         -----------------------------------------
         Signed by                                                  )
         for and on behalf of                                       )
         LLOYD WERFT BREMERHAVEN GMBH                               )

         /S/                                                  Signature
         -----------------------------------------

                                       46
<PAGE>
ADDENDUM NO. 1 TO THE CONTRACT DATED AS OF 5 FEBRUARY 2003 BETWEEN SHIP HOLDING
               LLC (OWNER) AND LLOYD WERFT BREMERHAVEN GMBH (LWB)

1.       The Owner and LWB have made the following amendments to the Contract:

         (i)      in Clause 1.1, the following new definition has been inserted
                  "POST-REDELIVERY PERFORMANCE GUARANTEE" means an irrevocable
                  performance guarantee to secure LWB's obligations and
                  liabilities under Clause 10 of this Contract which is to be
                  issued by LWB's Bank (or a first class insurance company
                  acceptable to the Owner) in the amount of [***] [Confidential
                  Treatment] and otherwise in a form hereafter approved by the
                  Owner;

         (ii)     in Clause 1.1, a new sub-paragraph has been inserted in the
                  definition "REDELIVERY DOCUMENTS" as follows "and (j) the
                  Post-Redelivery Performance Guarantee";

         (iii)    in Clause 11.6, the words "Seventh Instalment" have been
                  replaced by "Sixth Instalment";

         (iv)     in Clause 12.2.8, the words "Ninth Instalment" have been
                  replaced by "Sixth Instalment";

         (v)      in Clause 23.1.3, the words "the Post-Redelivery Performance
                  Guarantee," have been inserted after "Performance Guarantee,";

         (vi)     in Cause 23.2, the reference to "15 February 2003" has been
                  replaced by a reference to "17 March 2003"; and

         (vii)    every reference to "Yard" in the Contract has been replaced by
                  a reference to "LWB".

2.       The Owner and LWB have agreed that the assignments referred to below
         will be made at such time or times hereafter as the parties may agree,
         and that they each will take all such steps and sign all such documents
         as may reasonably be required to effect and perfect the assignments:

         (i)      LWB will assign to its financiers all of LWB's rights and
                  interests under the Contract;

         (ii)     the Owner will assign to its financiers all of the Owner's
                  rights and interests under the Contract, the Performance
                  Guarantee, the Post-Redelivery Performance Guarantee, the
                  Refund Guarantee, and (if so required) the Pledge; and

                                       47
<PAGE>

         (iii)    each of the Owner and LWB will assign to the Owner's
                  financiers all of the respective rights and interests of the
                  Owner and LWB under the insurances arranged (and to be
                  arranged) by LWB under Clause 15 of the Contract.

3.       All other terms and conditions of the Contract shall remain unamended.

4.       Words and expressions defined in the Contract shall have the same
         respective meanings in this Addendum.

5.       This Addendum shall be effective immediately.

Signed on 7 March 2003 by:                  [illegible signature]
for and on behalf of SHIP HOLDING LLC       Senior Vice President

Signal on 7th March 2003 by:
for and on behalf of LLOYD WERFT BREMERHAVEN GMBH

[illegible signature]

(END OF ADDENDUM NO. 1)

                                       48
<PAGE>

ADDENDUM NO. 2 TO THE CONTRACT DATED AS OF 5 FEBRUARY 2003 BETWEEN SHIP HOLDING
               LLC (OWNER) AND LLOYD WERFT BREMERHAVEN GMBH (LWB)

1.       In view of the replacement in Clause 23.2 of the date 15 February 2003
         by the date 17 March 2003, the Owner and LWB have made the following
         amendments to the Contract:

         (i)      Clause 12.1.3 shall be replaced by the following:

                  "If the Delivery of the Vessel is delayed after the Date for
                  Completion (as the same may be reset pursuant to Clause 7.3),
                  then, in such event, beginning at 12:00 midnight on the Day
                  falling [***] [Confidential Treatment] Days after the Date for
                  Completion, the Contract Price shall be reduced by deducting
                  therefrom: [***] [Confidential Treatment] per Day for each
                  further Day of delay between 12:00 midnight on the [***]
                  [Confidential Treatment] Day and 12:00 midnight on the [***]
                  [Confidential Treatment] Day after the Date for Completion;
                  and [***] [Confidential Treatment] for each further Day of
                  delay between 12:00 midnight on the [***] [Confidential
                  Treatment] Day and 12:00 midnight on the [***] [Confidential
                  Treatment] Day after the Date for Completion," and

         (ii)     in Clause 11.5 there has been added the following sentence:

                  "If the delivery of the Vessel is delayed after the Date for
                  Completion (as the same may be reset pursuant to Clause 7.3),
                  then, in such event, the Sixth Instalment of the Contract
                  Price shall be effected as follows: [***] [Confidential
                  Treatment].

2.       All other terms and conditions of the Contract shall remain unamended.

3.       Words and expressions defined in the Contract shall have the same
         respective meanings in this Addendum.

4.       This Addendum shall be effective immediately.

Signed on 14 March 2003 by: [illegible signature]
for and on behalf of SHIP HOLDING LLC

Signed on     March 2003 by: [illegible signature]
for and on behalf of LLOYD WERFT BREMERHAVEN GMBH

(END OF ADDENDUM NO. 2)

                                       49
<PAGE>

Addendum No. 3 to the Contract dated as of 5 February 2003 (as amended and
supplemented from time to time, the "Contract") between Ship Holding LLC
("Owner") and Lloyd Werft Bremerhaven GmbH ("LWB")

<PAGE>
--------------------------------------------------------------------------------

THE PARTIES HEREBY AGREE as follows:

1.       The definition of "Contract Price" has been amended to read:

         "HAS THE MEANING GIVEN IN CLAUSE 11.1 SAVE THAT, PURSUANT TO ADDENDUM
         NO. 3, THE AMOUNT OF THE UNPAID BALANCE OF THE CONTRACT PRICE AS OF THE
         ADDENDUM NO. 5 EFFECTIVE DATE HAS BEEN REDUCED TO Euro 165,00,000".

2.       The definition of "DATE FOR COMPLETION", and the related data reference
         in Clause 7.1.2, have been amended to read "6 June 2005".

3.       Paragraph (d) in the definition of "DEFECTS" has been redesignated
         "(e)" and a new paragraph (d) has been inserted in the following terms:

         "TO THE EXTENT NOT ALREADY COVERED BY (A) OR (B) OR (C), ANY PATENT OR
         PATENT DEFECT, DEFICIENCY BREAKDOWN, INCOMPLETENESS, INHERENT VICE,
         OMISSION, FAILURE OR ANY OTHER FAULT WHATSOEVER IN THE VESSEL OR IN ANY
         EQUIPMENT WHICH DIRECTLY OR INDIRECTLY ARISES OUT OF OR RESULTS FROM
         THE CASUALTY SUFFERED BY THE VESSEL WHEN SHE LISTED HEAVILY AND
         GROUNDED ON BREMERHAVEN ON ABOUT 13 JANUARY 2004 (THE "CASUALTY").

4.       The following new definitions have been inserted in Clause 1.1:

         "THE ADDENDUM NO. 5 EFFECTIVE DATE" MEANS THE DATE ON WHICH EACH OF THE
         CONDITIONS SPECIFIED IN PARAGRAPH 18 OF ADDENDUM NO. 3 STILL HAVE BEEN
         SATISFIED OR EXPRESSLY WAIVED IN WRITING BY THE OWNER AND LWB;

         "THE CASUALLY WORKS" MEANS THE SALVAGE, PRESERVATION, REPAIR,
         RECONDITIONING, REINSTATEMENT AND RENEWAL WORKS CARRIED OUT AND TO BE
         CARRIED OUT BY OR ON BEHALF OF LWB PURSUANT TO THE CONTRACT IN ORDER TO
         PUT THE VESSEL BACK INTO HER PRE-CASUALTY CONDITION;

         "THE ER DATE" MEANS THE DATE FROM TIME TO TIME DETERMINED BY THE OWNER,
         ACTING REASONABLY AND IN GOOD FAITH AND TAKING INTO ACCOUNT LWB'S
         REQUIREMENT TO HAVE SUFFICIENT FUNDS AVAILABLE TO PROCEED WITH THE
         WORKS, FOR THE PURPOSES OF FIXING THE INSTALMENT PAYMENT DATES REFERRED
         TO IN SUB-PARAGRAPHS 6(B) AND (C) OF ADDENDUM NO. 3, AS THE DATE ON
         WHICH THE VESSEL IS EXPECTED TO BE READY FOR REDELIVERY IN ACCORDANCE
         WITH THIS CONTRACT.

         "THE REMAINING CONTRACT PRICE", EXCLUDING PAYMENTS FROM UNDERWRITERS
         FOR CASUALTY WORKS, MEANS THE SUM OF EURO 165,000,000, BEING THE
         AGREED UNPAID BALANCE OF THE CONTRACT PRICE AS AT THE ADDENDUM NO. 3
         EFFECTIVE DATE AND THIS SUM SHALL BE SUBJECT TO

                                       2
<PAGE>

         ADJUSTMENT ONLY IN STRICT ACCORDANCE WITH, AND SUBJECT TO THE EXPRESS
         CONDITIONS OF THIS CONTRACT; AND "THE SHAREHOLDER" MEANS LPS
         DIENSTLEISTUNGS AND VERWATUNGSGESELLSCHAFT BREMERHAEN GMBH OF
         BRICKENSTRA(BETA)E 25, 27568 BREMERHAVEN, REPRESENTED BY THEIR MANAGING
         DIRECTORS MR. WERNET LUKEN AND MR. RADIGER PALLENBIN, BEING THE
         REGISTERED OWNER OF 94.5% OF ALL SHARES IN THE CAPITAL OF LWB, AND W.I.
         WERNER LUKEN VERWALTUNGS AND BETALLGUNGS GMBH OF NARBANSWEG 19, 27007
         LANGAN, REPRESENTED BY WERNER LUKEN AS A GENERAL MANAGER, BEING THE
         REGISTERED OWNER OF THE BALANCE OF 5.5% OF THE SHARES IN THE CAPITAL OF
         LWB.

5.       The final paragraph of Clause 11.5 has been amended to read as follows:

         "THE REMAINING CONTRACT PRICE SHALL BE PAID IN THE FOLLOWING
         INSTALLMENTS: (A) A SIXTH INSTALLMENT IN THE SUM OF [***] [CONFIDENTIAL
         TREATMENT] SHALL BE PAID WITHIN [***] [CONFIDENTIAL TREATMENT]; (B) A
         SEVENTH INSTALMENT IN THE SUM OF [***] [CONFIDENTIAL TREATMENT] SHALL
         BE PAID ON THE DATE [***] [CONFIDENTIAL TREATMENT]; (C) AN EIGHTH
         INSTALMENT IN THE SUM OF [***] [CONFIDENTIAL TREATMENT] SHALL BE PAID
         ON THE DATE [***] [CONFIDENTIAL TREATMENT]; (D) A NINTH INSTALMENT IN
         THE SUM OF [***] [CONFIDENTIAL TREATMENT] SHALL BE PAID ON THE DATE
         [***] [CONFIDENTIAL TREATMENT]; (E) A TENTH INSTALMENT IN THE SUM OF
         [***] [CONFIDENTIAL TREATMENT] SHALL BE PAID ON THE DATE [***]
         [CONFIDENTIAL TREATMENT]; AND (F) AN ELEVENTH INSTALMENT BEING [***]
         [CONFIDENTIAL TREATMENT], SHALL BE PAID AGAINST ACTUAL REDELIVERY OF
         THE VESSEL AND HER ACCEPTANCE BY THE OWNER IN ACCORDANCE WITH THIS
         CONTRACT. THE NINTH AND TENTH INSTALMENTS SHALL BE REDUCED BY THE
         EQUIVALENT IN EURO OF [***] [CONFIDENTIAL TREATMENT] IF LWE SHALL NOT
         HAVE INCREASED THE VALUE OF THE CONSTRUCTION RISKS POLICY TO [***]
         [CONFIDENTIAL TREATMENT] BY 31 DECEMBER 2004, IN WHICH CASE THE
         ELEVENTH INSTALMENT SHALL BE INCREASED BY THE EQUIVALENT IN EURO OF
         [***] [CONFIDENTIAL TREATMENT]."

6.       Clause 11.6 has been amended as follows: the reference to the "SIXTH
         INSTALMENT" has been amended to "ELEVENTH INSTALMENT"; and the
         following new sentence has been inserted at the end of Clause 11.6:

         "IN ADDITION TO ANY FUTURE PERMITTED REDUCTIONS FROM THE CONTRACT PRICE
         PROVIDED FOR ELSEWHERE IN THIS CONTRACT, THE REMAINING CONTRACT PRICE
         MAY BE REDUCED BY THE OWNER IN ACCORDANCE WITH AND AS PROVIDED IN THE
         AGREEMENT REFERRED TO IN SUBPARAGRAPH 18(F) OF ADDENDUM NO. 3."

         The final two sentences in Clause 11.7 have been amended to read as
         follows:

         "THE OWNER SHALL DESIGNATE REPRESENTATIVES TO MONITOR AND CONTROL LWB'S
         ACCOUNT AND PAYMENTS MADE AND TO BE MADE BY LWB IN RELATION TO CASUALTY
         WORKS, LWB SHALL GIVE THE OWNER AND ITS REPRESENTATIVES FULL
         INFORMATION ABOUT LWB'S ACCOUNT AND ANY OTHER ACCOUNT FROM TIME TO TIME
         ESTABLISHED BY OR ON BEHALF OF LWB OR ITS SACHWALTER MR. VAN BATTERY IN
         CONNECTION WITH THIS CONTRACT AS WELL AS TO ALL INVOICES AND OTHER
         DOCUMENTATION RELATING TO ANY PAYMENTS FROM SUCH ACCOUNTS. ALL INVOICES
         EQUIVALENT TO OR EXCEEDING THE AMOUNT OF EURO 200,000 MUST BE
         PRE-APPROVED BY ONE OF THE OWNER'S DESIGNATED REPRESENTATIVES BEFORE
         PAYMENT, SUCH APPROVAL WILL NOT BE UNREASONABLY WITHHELD OR DELAYED AND
         THE OWNER WILL ENSURE THAT ITS DESIGNATED REPRESENTATIVES

                                       3
<PAGE>

         RESPOND TO REQUESTS FOR APPROVAL AS SOON AS REASONABLY PRACTICABLE AND,
         IN ANY EVENT, WITHIN FIVE BANKING DAYS OF EACH REQUEST FOR APPROVAL."

7.       LWB agrees that (i) the weekly reports referred to in Clause 5.1.4 of
         the Contract shall cover the status of the Works and Casualty works,
         actual expenditures in respect of the Works and Casualty works in the
         preceding week, and planned expenditures for the Works and Casualty
         works during the next month; and (ii) if so requested by the Owner, LWB
         shall meet with the Owner's designated representatives at least once a
         week to discuss the matters referred to above as well as other matters
         covered by Clause 5.1.4.

8.       In Clause 12.3.8 the reference to the "SIXTH INSTALMENT" has been
         amended to "ELEVENTH INSTALMENT".

9.       The parties:

         (a)      have agreed to work closely together in good faith and use
                  their best efforts in order to agree all such amended or
                  supplemental approval, inspection, testing and other
                  procedures as the Owner may reasonably require in relation to
                  (i) the planning, approval, execution and testing of the
                  renewal and repair works required to reinstate the Vessel to
                  her pre-Casualty condition, and (ii) the Tests and Sea Trials
                  programmes required to ensure that all Defects, and in
                  particular (but without limitation) those arising out of or
                  resulting from the Casualty, are identified and corrected or
                  eradicated before the Vessel is tendered for redelivery to the
                  Owner, and LWB agree that these programmes will include tests
                  of the weldings relating to the Vessel's new mid-section;

         (b)      have agreed that any disputes between the Owner and LWB in
                  relation to the approval, inspection, testing and other
                  procedures referred to in subparagraph 9(a) above shall be
                  decided by either the Classification Bodies in accordance with
                  Clause 3.3.3 of the Contract or (as appropriate) by the
                  Regulatory Bodies according to Clause 3.3.5 of the Contract;
                  and

         (c)      have agreed to work closely in good faith and use their best
                  efforts in order to obtain extended warranties wherever
                  possible, including, without limitation, in connection with
                  the pods (in respect of which the parties will endeavour to
                  obtain a two year warranty extension giving a total warranty
                  period of three years from the date of the Vessel's redelivery
                  to the Owner) and in connection with the electrical systems
                  (in respect of which the parties will endeavour to obtain a
                  one year warranty extension giving a total warranty period of
                  two years from the date of the Vessel's redelivery to the
                  Owner), always provided that this will not increase the costs
                  or the costs are borne by underwriters.

10.      LWS (a) have irrevocably and unconditionally waived all rights
         whatsoever (i) to make any claims whatsoever against the Owner with
         respect to all Works before the Addendum No. 2 Effective Date and with
         respect to all other claims whatsoever against the Owner made or
         arising before the Addendum No. 3 Effective Date, (ii) to claim any
         extension of the revised Date for Completion referred to in paragraph 2
         above or any other relief on

                                       4
<PAGE>

         account of any cause of delay (including any cause of delay referable
         directly or indirectly to Subcontractors) resulting from the Casualty
         or any other cause of delay in existence as of the Addendum No. 3
         Effective Date or any other cause of delay which was known to LWB (or
         which should have been foreseen or anticipated by LWB) as of the
         Addendum No. 3 Effective Date, and (iii) to make any claim against the
         Owner, whether for interest or any other relief, or to exercise any
         termination or other rights under the Contract including any in respect
         of non payment of LWB's invoice dated 6 January; and (b) hereby cancel
         their invoice dated 6 January 2004.

11.      Without prejudice to the Owner's rights and remedies in respect of any
         non-Permissible Delay in the redelivery of the Vessel beyond the
         revised Date for Completion referred to in paragraph 2 above, LWB and
         the Shareholder, on a joint and several basis, have agreed to pay the
         Owner the sum of EURO 30,000,000 in full and final compensation (the
         "Casualty Compensation") for the 120 Days' delay in redelivery from the
         original Date for Completion and any other damage arising out of the
         Casualty. The Casualty Compensation will be paid by LWB or the
         Shareholder pursuant to this Addendum and the agreement referred to in
         subparagraph 1800 below, For the avoidance of doubt, the provisions of
         the Contract (including, without limitation, Clause 12.1) shall apply
         in full in respect of any delay in redelivery beyond the new Data for
         Completion defined in paragraph 2 above and payments from time to time
         made to the Owner in respect of the Casualty Compensation shall not in
         any manner or to any extent reduce the amount of any reduction in the
         Contract Price to be made or liquidated damages to be paid by reason of
         any delay in redelivery beyond the new Date for Compensation.

12.      The Owner has irrevocably waived all of its rights whatsoever to claim
         compensation from LWB (apart from the Casualty Compensation) or to
         terminate the Contract on account of the Casualty provided always that
         the Owner's agreement is without prejudice to the Owner's ability to
         exercise any rights that may arise in the future.

13.      LWB acknowledge and agree that the Vessel is not within the scope of
         OFI.

14.      The Parties have acknowledged and agreed that:

         (a)      the Remaining Contract Price is fixed and is subject to
                  adjustment only in strict accordance with, and subject to the
                  express conditions of, the Contract as amended by this
                  Addendum No. 3;

         (b)      the Remaining Contract Price includes, without limitation, (i)
                  all of the matters referred to in Clause 11.3 of the Contract;
                  (ii) all post-Casualty start-up and re-start costs of LWB and
                  the Subcontractors other than as may be referred to in
                  subparagraph 15(d); (iii) all of the works specified in the
                  list, initialled by the parties for purposes of
                  identification, the parties hereby agreeing that the list is a
                  full and final categorisation of the works specified therein
                  which will not be subject to further recategorisation and nor
                  will the Owner be entitled to any credits if it requires that
                  any of such works shall not be carried out by LWB, and an
                  allowance of EURO 2,000,000 in respect of new modifications
                  (or changes to existing modifications) to be designated by the
                  Owner and if any part of this

                                       5
<PAGE>

                  allowance of EURO 2,000,000 is not utilised by the Owner, the
                  final Instalment of the Remaining Contract Price shall be
                  reduced by an equivalent amount; (iv) all cost increases
                  claimed or claimable by LWB in relation to works commenced or
                  carried out before the Addendum No. 3 Effective Date by LWB or
                  any Subcontractors, whether or not such works are the subject
                  of the agreements or modifications ("AOM's") made between the
                  parties and regardless of the state of completion of such
                  works; (v) all cost increases which LWB are entitled to claim
                  pursuant to AOM's made between the parties before the Addendum
                  No. 3 Effective Date, regardless of the state of completion of
                  the underlying works and whether or not any of the works
                  covered by such AOM's remain to be done after that date; (vi)
                  all past and future berthing and storage charges (up to the
                  date of redelivery of the Vessel) in relation to SS Norway;
                  (vii) all past and future berthing and storage charges (up to
                  the date of redelivery of the Vessel) in relation to the
                  Vessel, the Parts related to the Vessel and Equipment; (viii)
                  the full cost of all warranty claim works to be performed by
                  (or on behalf of) LWB in relation to m.v. Norwegian Sun and
                  m.v. Pride of Aloha (ex-Norwegian Sky); and (ix) all premia
                  payable for the maintenance of the Refund Guarantee, the
                  Performance Guarantee and the construction risks policy; and

         (c)      save for the operation of Clause 6 in respect of any AOM's
                  made between the parties after the Addendum No. 3 Effective
                  Date in respect of matters arising after the Addendum No. 3
                  Effective Date, LWB shall bear and pay the full amount by
                  which its actual costs and expenditures in connection with the
                  Contract (whether in relation to the remaining Works or the
                  Casualty works or otherwise) exceeds its budgeted costs and
                  expenditures, and (save only as specified in subparagraph
                  15(d) below) irrespective of any cost increases required or
                  imposed by any Subcontractors.

15.      The parties have agreed that:

         (a)      they will work together in good faith, on an open-book basis,
                  with a view to minimizing the prices to be charged by
                  Subcontractors in relation to the remaining Works and the
                  Casualty works;

         (b)      LWB has provided the Owner with a list of key Subcontractors
                  who are trying to increase their prices ("KSC's") and a list
                  of the next 20 to 25 Subcontractors who are proceeding on the
                  basis of their original pricing, and agrees to allow the Owner
                  to negotiate direct with such Subcontractors in relation to
                  charges as well as warranty and other post-redelivery support
                  issues;

                                       6
<PAGE>

         (c)      LWB will accede to all reasonable requests by the Owner to
                  replace Subcontractors provided that LWB shall not be obliged
                  to comply with any such request if such compliance would
                  result in any increase in LWB's costs or any delay in the
                  redelivery of the Vessel; and

         (d)      if, after compliance by LWB with its obligations under (a),
                  (b) and (c) above, and after the Owner has had a reasonable
                  and timely opportunity (not causing any delay in the
                  redelivery of the Vessel) to negotiate direct with the KSC's,
                  the principal amount actually charged to LWB by any of the
                  KSC's exceeds 100% of the charges contractually agreed between
                  LWB and such KSC's before the Casualty then the amount of the
                  next Instalment falling due after such excess charges have
                  been paid will be increased by the sum total of such excess
                  charges.

16.

         (a)      The parties have agreed that [***] [Confidential Treatment] of
                  all cost savings, profits or other financial benefits
                  whatsoever directly or indirectly achieved by LWB or the Owner
                  (irrespective of the form they take) under or in connection
                  with the Contract shall be credited to the Owner and that any
                  such credits shall be applied by the Owner to reduce the
                  Casualty Compensation provided that this paragraph does not
                  affect and will not affect the operation of Clause 6 of the
                  Contract so that [***] [Confidential Treatment] of any
                  decrease in the Contract Price realized by the operation of
                  Clause 6 shall be deducted from the instalment payable by the
                  Owner PRIOR to the period in which the related work was
                  intended to be carried out.

         (b)      The parties have also agreed that the full amount of all
                  insurance cost savings to be credited to the Owner and LWB
                  under Clause 5 of the "Vereinberung" settlement terms (up to a
                  limit of [***] [Confidential Treatment] shall be paid by LWB
                  to the Owner and applied by the Owner to reduce the Casualty
                  Compensation. If LWB have increased the value of the
                  construction risks policy to [***] [Confidential Treatment] by
                  31 December 2004, these savings will be paid by LWB to the
                  Owner immediately in reduction of the Casualty Compensation.
                  If LWB have not increased the value of the construction risks
                  policy to [***] [Confidential Treatment] by 31 December 2004,
                  the savings referred to above shall be paid to the Owner at
                  redelivery of the Vessel in reduction of the Casualty
                  Compensation. Any insurance cost savings recalled beyond [***]
                  [Confidential Treatment] will be shared 50:50 between LWE and
                  the Owner in reduction of the Casualty Compensation.

         (c)      LWB and the Shareholder have agreed to work on an open-book
                  basis with the Owner and the Owner's designated accountants at
                  PricewaterhouseCoopers GmbH, Hamburg ("PWC") before and after
                  redelivery of the Vessel until the Casualty Compensation has
                  been fully paid. Each party will bear and pay the costs of
                  their own designated accountants.

                                       7
<PAGE>

         (d)      LWB and the Shareholder have agreed that they will promptly
                  provide the Owner and PWC with all such information,
                  documentation and assistance as may be required by the Owner
                  or PWC in connection with paragraphs 16 and 17 of this
                  Addendum and the agreement (the "KfW Agreement") referred to
                  in subparagraph 18(f) below and, with effect from the Vessel's
                  redelivery and until such time as the Owner has received the
                  full amount of the Casualty Compensation, LWB and the
                  Shareholder have also agreed to promptly provide the `Owner'
                  and PWC with: (i) their annual budget, annual report, (long
                  form) audit report (including any prepared for subsidiary
                  companies) and investment plan; and (ii) semi-annual
                  management accounts including a balance sheet, cash flow
                  statement, liquidity plan going forward and any proposed
                  changes to the investment plan.

         (e)      LWB and the Shareholder have agreed and will procure that: (i)
                  PWC shall have full and free access to the auditors (the
                  "Auditors") of LWB and the Shareholder as well as to all
                  documentation and information from time to time held by the
                  Auditors relating to the matters covered by paragraphs 16 and
                  17 of this Addendum and the KfW Agreement; (ii) PWC and the
                  Auditors shall have a free right to discuss the documentation
                  and information referred to at (d)(i) above and all related
                  maters; and (iii) for all purposes relating to paragraphs 16
                  and 17 of this Addendum and the KfW Agreement, the Auditors
                  are released from their duties of confidentiality to the LWB
                  and the Shareholder.

17.

         (a)      LWB and the Shareholder have agreed and will procure that PWC
                  shall be permitted:

                  (i)      to monitor compliance by LWB and the Shareholder with
                           certain restrictions (described below) with which
                           they agree to comply pending full payment to the
                           Owner of the Casualty Compensation;

                  (ii)     to determine the amount of any savings, profits and
                           other financial benefits achieved by LWB in the
                           course of the repair and construction completion
                           works; and

                  (iii)    to determine the free cash position from time to time
                           of LWB and the Shareholder.

         (b)      LWB and the Shareholder agree and will procure that until such
                  time as the Owner has received the full amount of the Casualty
                  Compensation, the following restrictions and obligations shall
                  apply:

                  (i)      neither LWB nor the Shareholder shall declare, make
                           or pay any dividend or other distribution (in cash or
                           in kind) in respect of its share capital or any other
                           payment to their respective shareholders or any
                           subsidiary, affiliated, connected or otherwise
                           related persons or entities whatsoever ("Related
                           Persons");

                                       8
<PAGE>

                  (ii)     neither LWB nor the Shareholder shall make any loan,
                           advance or provide credit to their respective
                           shareholders or any Related Persons, nor will either
                           of them enter into any other transactions or
                           arrangements which might reduce or delay any Casualty
                           Compensation payments to the Owner;

                  (iii)    with the exception of salary and bonus payments to
                           the management of LWB (to be defined by PWC in
                           accordance with the normal past practices of LWB) and
                           cost of living increases on an annual basis (also to
                           be defined by PWC in accordance with the normal past
                           practices of LWB), neither LWB nor the Shareholder
                           shall make any payments or other distributions (in
                           cash or kind) to their management or any Related
                           Persons;

                  (iv)     with the exception of costs expended by LWB in the
                           ordinary course of its business which do not exceed
                           the minimum necessary investment and maintenance
                           expenditures required to maintain the current
                           technical standards of LWB in accordance with an
                           investment plan (the terms of which are to be
                           approved in advance by the Owner and KfW), neither
                           LWB nor the Shareholder shall make any acquisitions
                           or investments of any nature whatsoever;

                  (v)      with the exception of scheduled payments of interest
                           on principal (not on interest) at the ordinary rate
                           (i.e. not at a default rate or any other increased
                           rate) under the loan facility, hereinafter referred
                           to as the "LPS Loan", of up to [***] [Confidential
                           Treatment] granted by an agreement dated 10 March
                           2003, which payments may recommence only after the
                           end of LWB's insolvency, neither LWB nor the
                           Shareholder or any Related Persons shall make any
                           repayments or prepayments of principal, payments of
                           interest or of any other costs, fees, expenses or
                           liabilities arising from or representing indebtedness
                           of LWB or the Shareholder or any Related Persons;

                  (vi)     neither LWB nor the Shareholder shall purchase,
                           cancel or redeem any of their respective share
                           capital or issue any further shares or permit any
                           disposals or transfers of any of their respective
                           shares;

                  (vii)    LWB and the Shareholder will notify the Owner
                           immediately of any breach or other failure to comply
                           with any of the above restrictions; and

                  (viii)   On each anniversary of the Addendum No. 3 Effective
                           Date, EITHER the management of LWB and the
                           Shareholder will certify in writing to the Owner that
                           throughout the previous twelve months they have
                           complied in full with all of their obligations under
                           this Addendum and that such full compliance is
                           continuing as of the date of the certificate OR they
                           will notify the Owner in writing of any past or
                           present non-compliance with such obligations.

                                       9
<PAGE>

         (c)      The remaining Casualty Compensation which has not been paid
                  out of the Pride of America Project pursuant to this Addendum
                  shall be paid as quickly as possible after the end of LWB's
                  insolvency, and in any event by no later than the sixth
                  anniversary of the date of the Vessel's redelivery to the
                  Owner, from the free cash of LWB and (as and when available)
                  the free cash of the Shareholder pursuant to this Addendum and
                  the agreement referred to in subparagraph 18(f) below. Except
                  as provided in this Addendum and in the agreement referred to
                  in subparagraph 18(f) below, and without in any manner or to
                  any extent whatsoever relieving LWB or the Shareholder from
                  any of their obligations or restrictions under this Addendum
                  or under such Agreement, during the period commencing on the
                  Addendum No. 3 Effective Date and ending on the 6th
                  anniversary of the Vessel's redelivery under the Contract
                  payment of the Casualty Compensation shall be fully
                  subordinated to the other obligations of LWB and the
                  Shareholder RANGRUCKIRIN. The free cash position of LWB and
                  the Shareholder will be determined within 5 business days
                  after the end of each financial half of each of LWB and the
                  Shareholder, in either case counting from the end of the first
                  financial quarter falling after the date of the Vessel's
                  redelivery to the Owner, and at such other times as the Owner
                  may require, on the following basis:

                  (i)      gross cash, which will be deemed to include all
                           income, interest and other cash items (including any
                           of a non-recurring or extraordinary nature) which in
                           PWC's opinion fail to be credited to the profit and
                           loss account and any asset accounts of LWB or the
                           Shareholder; loss

                  (ii)     in the case of LWB, costs expended by LWB in the
                           ordinary course of its business provided they do not
                           exceed the minimum necessary investment and
                           maintenance expenditures required to maintain the
                           current technical standards of LWB in accordance with
                           an investment plan (the terms of which are to be
                           approved by the Owner and KfW) and also excluding (i)
                           any costs which are not of a routine operational
                           nature incurred on a regular basis, and (ii)
                           depreciation, non-cash charges, reserves,
                           amortization and similar bookkeeping entries;

                  (iii)    in the case of LWB and the Shareholder, the scheduled
                           payment of ordinary interest under the LPS loan as
                           described above; and

                  (iv)     in the case of LWB, a minimum cash reserve in an
                           amount approved from time to time by the Owner and
                           KfW.

         (d)      If LWB or the Shareholder or the Sachwalter or LWB's
                  Creditors' Committee, acting in good faith, should disagree
                  with any of PWC's determinations in relation to the matters
                  set out above, the parties will work together in good faith
                  and use their best efforts to resolve the disagreement through
                  discussions between senior management of the Owner together
                  with their designated PWC Partners, and LWB plus the
                  Shareholder together with their designated
                  PricewaterhouseCoopers GmbH partner.

                                       10
<PAGE>

18.      This Addendum No. 3 shall not be to any extent legally binding on the
         Owner or LWB until all of the following conditions have been satisfied:

         (a)      LWB's financiers and LWB's Creditors' Committee shall have
                  given their written approval of this Addendum in terms
                  acceptable to LWB and the Owner;

         (b)      the Owner's financiers shall have given their written approval
                  of this Addendum and of all necessary changes to the Owner's
                  finance agreement, in terms acceptable to the Owner;

         (c)      the issuers of the Refund Guarantee shall have given written
                  confirmation, in terms acceptable to the Owner, that the
                  Refund Guarantee will remain in full force and effect;

         (d)      the contribution risks insurers shall have signed the
                  "Vareinbarung" settlement terms acceptable to LWB, the Owner
                  and the Owner's financiers, for payment of the sums required
                  to fund all necessary Casualty works, and such terms shall
                  have come into full force and effect;

         (e)      LWB and the Owner shall have agreed in writing the detailed
                  steps for the Casualty works;

         (f)      the Owner, LWB, the Shareholder and the Shareholder's
                  financiers shall have entered into a legally binding
                  agreement, in terms acceptable to the Owner, regarding payment
                  to the Owner of the Casualty Compensation and all related
                  security and subordination arrangements which shall include
                  provision for all indebtedness of LWB and the Shareholder
                  (save for scheduled interest payments under the LPS Loan) to
                  be fully subordinated to Owner's rights to claim and receive
                  the Casualty Compensation, and for the Owner's Casualty
                  Compensation rights to be secured through pledges (or other
                  legally effective arrangements) over the shares in the capital
                  of LWB and the Shareholder; and

         (g)      the Sachwalter shall have opened the account referred to in
                  paragraph 24 below and pledged such account to the Owner with
                  the consent of LWB's Bank, and the pledge shall have been
                  signed by or on behalf of the Owner and acknowledged by LWB's
                  Bank.

19.      LWB acknowledge and agree that they shall not be entitled to use any
         part of the Remaining Contract Price Instalments for any purpose other
         than for the Pride of America Project including payments to be effected
         under the insolvency plan. In particular, but without limitation, no
         part of the Remaining Contract Price shall be used by LWB (directly or
         indirectly) in connection with or for the purposes of any past, present
         or future Casualty works.

20.

         (a)      Subject to satisfaction of the conditions specified in
                  paragraph 18, the Owner authorizes and instructs LWB pursuant
                  to Clause 15.6.1 of the Contract to carry

                                       11
<PAGE>

                  out the Casualty works on the strict understanding that all
                  costs in relation to such works shall be for the account of
                  LWB even if the aggregate total of such costs exceeds the
                  aggregate total of the sums recoveries made from the
                  construction risks underwriters.

         (b)      LWB warrant that the sums to be paid by underwriters pursuant
                  to the insurance settlement to be made between, amongst
                  others, the underwriters LWB and the Owner will be sufficient
                  to fund due completion of all Casualty works.

         (c)      LWB will endeavour to dispose of all scrap and (with the prior
                  written approval of the Owner) to sell all other materials
                  relating to the Vessel that become surplus to the Owner's
                  needs as a result of the repair of the Vessel by LWB, and all
                  proceeds of any such disposals or sales will be shared 50:50
                  between LWB and the Owner in reduction of the Casualty
                  Compensation.

         (d)      For the avoidance of doubt, LWB acknowledge and agree that
                  they are obligated to carry out all necessary Casualty works
                  (including, without limitation, the works specified in the
                  Addendum to the Specification) and to complete all of the
                  remaining Works so that the Vessel will be completed and
                  rendered for redelivery in accordance with the Contract and
                  the Specification and (save only in respect of reconditioning
                  works, the scope of which have been expressly accepted by the
                  Owner, for specified damaged parts of the Vessel rather than
                  the renewal of such parts) as if the Casualty had not
                  occurred.

         (e)      If any Casualty works are not specified in the Addendum, or if
                  any additional Casualty works or other Works are required to
                  enable LWB to render the Vessel for redelivery in accordance
                  with the Contract and the Specification and (subject to the
                  reservation specified in the preceding paragraph) as if the
                  Casualty had not occurred, such works or Works will be deemed
                  to be included within the scope of the Addendum to the
                  Specification or (as the case may be) in the Specification,
                  all related costs will be fully absorbed by LWB, there will be
                  no increase in the Contract Price or the Remaining Contract
                  Price, and there will be no extension of the Date for
                  Completion in respect of any additional time required to
                  complete the additional works or Works.

                                       12
<PAGE>

21.      The Owner and LWB agree that neither Mr. Wolfgang van Betteray as
         Sachwalter nor the Sachwalter's representatives shall be personally
         liable for any actual or alleged default under or in connection with
         the Contract or this Addendum but the Sachwalter and his
         representatives shall be liable, to the scope of coverage and financial
         limits of their respective professional negligence insurance policies,
         if they are proven to have acted, or to have failed to act,
         negligently, or with the intention of causing damage or harm.

22.      The Owner and LWB agree that, notwithstanding any express or implied
         terms or conditions to the contrary, the termination provisions
         contained in the Contract will prevail over those referred to in the
         settlement terms referred to in subparagraph 18(d) above.

23.      By way of security for the due performance of their obligations under
         this Contract as indicated by this Addendum, LWB hereby assign and
         agree to assign to the Owner all of LWB's rights under and in
         connection with the contracts and other agreements made after 31 May
         2004 with Subcontractors who are hereafter designated by the Owner to
         be material Subcontractors for the purposes of the Contract, and hereby
         agree to provide the Owner with full details of such subcontracts and
         other agreements, to sign such further documents and to take such
         further steps as may be required by the Owner to implement and give
         full effect to the assignments contemplated by this paragraph.

24.      The Sachwalter will open a new account with LWB's Bank for receipt of
         the Remaining Contract Price (the parties agreeing that, from the time
         of its opening, such account will be deemed to be the account defined
         in the Contract as "LWB'S ACCOUNT") and will execute a pledge of this
         account in favour of the Owner (the parties agreeing that, from the
         time of its signature by or on behalf of the Sachwalter, LWB, the Owner
         and LWB's Bank, such pledge will be deemed to be the pledge defined in
         the Contract as the "PLEDGE OF LWB'S ACCOUNT").

25.      LWB acknowledge and agree that nothing contained in this Addendum shall
         in any manner or to any extent reduce or impair the Owner's entitlement
         to obtain the full and timely benefit of the lump sum allowance
         specified in Clause 11.2.2 of the Contract.

26.      If the Addendum No. 3 Effective Date has not occurred by 1 July 2004,
         either party shall be entitled to cancel this Addendum by written
         notice to the other in which event this Addendum No. 3 shall be null
         and void.

27.      This Addendum replaces Addendum No. 2 which, with affect from
         occurrence of the Addendum No. 3 Effective Date, shall be deemed
         cancelled in all respects.

28.      Save as expressly provided in this Addendum, all other terms and
         conditions of the Contract (and previous addenda thereto) shall remain
         unamended and in full force and effect. By their signature of this
         Addendum each of the Owner, LWB, the Shareholder and the Sachwalter
         fully and unconditionally affirm the Contract as amended by this
         Addendum.

                                       13
<PAGE>

29.      Words and expressions defined in the Contract shall have the same
         meanings when used in this Addendum.

SIGNATURES

Signed on 1 July, 2004 by:

/s/
-------------------------------------
For and on behalf of
Ship Holding LLC

Signed on 1 July, 2004 by:

/s/
-------------------------------------
For and on behalf of
Lloyd Werit Bramerhaven GmbH

Signed on 1 July, 2004 by:

/s/
-------------------------------------
Mr. Wolfgang van Betteray as Sachwalter of LWB

Signed on 1 July, 2004 by:

/s/
-------------------------------------
For and on behalf of
LPS Diemelalattings und Verwaltuagagesgeshaft Bramerhaven GmbH

Signed on 1 July, 2004 by:

/s/
-------------------------------------
For and on behalf of
W.L. Werner Luken Verwaltungs-und Bettallgungs GmbH

(END OF ADDENDUM NO. 3)

                                       14<PAGE>

                                                                   EXHIBIT 10(g)

                              SHIPBUILDING CONTRACT

                                     BETWEEN

                               JOS. L. MEYER GMBH

                                       AND

                                 ARRASAS LIMITED

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

                          IN RELATION TO HULL NO. S.667

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

<PAGE>

                                                                  First Original

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                                                 PAGE
------                                                                                                 ----
<S>                                                                                                    <C>
Article 1: Subject matter of Contract.............................................................      1

1.      Agreement to build, sell and purchase.....................................................      1

2.      Description of the Ship...................................................................      1

3.      Specification and Plans...................................................................      3

4.      Classification............................................................................      4

5.      Builder's right to subcontract............................................................      5

6.      Buyer's Supplies..........................................................................      7

7.      Builder's tally of Buyer's Supplies.......................................................      8

Article 2: Supervision............................................................................      9

1.      Supervisor................................................................................      9

2.      Plan approval.............................................................................     10

3.      Work approval.............................................................................     11

4.      Planned Programme.........................................................................     12

5.      Minor alterations.........................................................................     12

6.      Technical disputes........................................................................     13

Article 3: Modifications..........................................................................     14

1.      Modifications.............................................................................     14

2.      Classification and regulatory changes.....................................................     14

3.      Substitution of Parts.....................................................................     15

Article 4: Title and insurances...................................................................     16

1.      Title, risk and encumbrances..............................................................     16

2.      Insurances................................................................................     18

3.      Loss or damage............................................................................     19

Article 5: Permissible delays.....................................................................     21

1.      Extension of time for building work.......................................................     21

2.      Delay notices.............................................................................     23

Article 6: Tests and liquidated damages...........................................................     24

1.      Tests.....................................................................................     24

2.      Liquidated damages........................................................................     26

Article 7: Delivery and guarantee.................................................................     32

1.      Delivery and acceptance...................................................................     32

2.      Guarantee.................................................................................     35
</TABLE>

<PAGE>

                                                                  FIRST ORIGINAL

<TABLE>
<S>                                                                                                    <C>
Article 8: Contract Price and payment terms.......................................................     40

1.      Contract Price............................................................................     40

2.      Payments..................................................................................     40

Article 9: Termination............................................................................     43

1.      Termination by Builder....................................................................     43

2.      Termination by Buyer......................................................................     44

3.      Termination by either party...............................................................     46

Article 10: Builder's representations, covenants and indemnities..................................     47

1.      Representations, warranties and covenants.................................................     47

2.      Indemnities...............................................................................     47

Article 11: Intellectual property rights..........................................................     49

1.      Patents, trade marks and copyrights.......................................................     49

2.      Rights to engineering and design data.....................................................     50

Article 12: Taxes and contract expenses...........................................................     51

1.      Taxes.....................................................................................     51

2.      Contract expenses.........................................................................     51

Article 13: Disputes..............................................................................     52

1.      Technical disputes........................................................................     52

2.      Arbitration...............................................................................     53

3.      Governing law.............................................................................     54

4.      Notices...................................................................................     54

Article 14: General matters.......................................................................     56

1.      Computation of time.......................................................................     56

2.      Assignments...............................................................................     56

3.      Partial illegality........................................................................     57

4.      Confidentiality...........................................................................     57

5.      Amendments................................................................................     57

6.      No waiver.................................................................................     57

7.      Consents..................................................................................     57

8.      Language..................................................................................     58

9.      Models....................................................................................     58

10.     Counterparts .............................................................................     58

11.     Effective Date ...........................................................................     58

12.     Protected Parties.........................................................................     59

13.     Guarantee ................................................................................     59
</TABLE>

<PAGE>

                                                                  FIRST ORIGINAL

<TABLE>
<S>                                                                                                    <C>
SCHEDULE..........................................................................................     60

1.      Definition of certain terms...............................................................     60

2.      Interpretation of certain references......................................................     63

3.      Priority of Contract, Plans and Specification.............................................     64
</TABLE>

<PAGE>
                                                                  First Original

THIS SHIPBUILDING CONTRACT is dated as of 15 September 2003 and made between:

(1)      JOS. L. MEYER GMBH, a company organised and existing under the laws of
         Germany, and having its principal office at Industriegebiet Sud,
         D-26871 Papenburg, Germany (the "BUILDER"); and

(2)      ARRASAS LIMITED, a company incorporated in the Isle of Man and having
         its registered office at International House, Castle Hill, Victoria
         Road, Douglas, Isle of Man, British Isles (the "BUYER").

NOW IT IS HEREBY AGREED as follows:

ARTICLE 1: SUBJECT MATTER OF CONTRACT

1.       AGREEMENT TO BUILD, SELL AND PURCHASE

1.1      On and subject to the provisions of this Contract, the Plans and the
         Specification:-

         (i)      the Builder shall:

                  (a)      design, engineer, build, launch, equip and outfit the
                           Ship at the Shipyard, and

                  (b)      provide all components, equipment, gear, fittings,
                           machinery, materials, parts, plant, outfit, spares
                           and supplies which are necessary to achieve the
                           objects and purposes described in clause 1.1(i) (a)
                           (the "Parts") other than the specified supplies to be
                           provided by the Buyer (the "Buyer's Supplies"), and

                  (c)      complete, finish, sell and deliver the Ship to the
                           Buyer at a North European sea port (the "Delivery
                           Port") selected by the Builder and approved by the
                           Buyer (such approval not to be unreasonably withheld
                           or delayed) after successful performance and
                           completion of the tests relating to the Ship; and

         (ii)     the Buyer shall purchase and accept delivery of the duly
                  completed Ship at the Delivery Port.

1.2      The Builder, as a first class shipbuilder with a reputation for
         excellence and with knowledge of the Buyer's performance and quality
         requirements and standards shall ensure that all building work shall be
         carried out in a good and workmanlike manner and in accordance with the
         highest shipbuilding and marine engineering practices and standards for
         new passenger cruise ships, and so that (unless specified to the
         contrary in the Specification) the quality of workmanship, quality of
         materials and aesthetic design of the passenger cabins and public areas
         shall not be lower than the corresponding quality standards on m.v.
         Norwegian Dawn.

2.       DESCRIPTION OF THE SHIP

2.1      The Ship shall be a luxury passenger cruise ship suitable for
         continuous year-round worldwide cruising, with the following main
         dimensions and characteristics:

                                      -1-
<PAGE>

                                                                  First Original

         (i)      Dimensions

                  Length overall about - 294.13 metres
                  Length between perpendiculars: - 264.80 meters
                  Breadth moulded - 32.20 metres
                  Depth bulkhead deck - 11.50 metres
                  Design draft - 8.30 metres

                  *In this paragraph "about" means a tolerance of +/- 1 metre

         (ii)     Deadweight

                  Guaranteed deadweight at a draft of 8.30 metres - 7,500 metric
                  tons in seawater of 1.025 t/m3 density (and under the
                  conditions further described in section G.2.3 of the
                  Specification).

         (iii)    Passenger Cabins

                  Garden Villas - 2
                  Executive suites - 4
                  Junior suites - 20
                  Studio - 20
                  Deluxe - 132
                  Standard outside with balcony - 352
                  Standard outside - 234
                  Standard inside - 399
                  Handicapped - 25

         (iv)     Crew Cabins

                  Captain class - 7
                  Officer, single occupancy - 54
                  Petty officers - 52
                  Crew, two (2) berth - 93
                  Crew, four (4) berth - 81
                  Crew, six (6) berth - 118

         (v)      Life Saving Equipment

                  Total number of persons on board for the purposes of long
                  international voyages - 4,000.

         (vi)     Machinery

                  Diesel engines        5 x MAN B&W 12V 48/60 B each capable of
                                        a maximum continuous rating of 14,400 kW
                                        at 514 rpm (or equivalent)

                  Pod units             2 pod units each developing 19,500 kW at
                                        approximately 150 rpm

                                      -2-
<PAGE>

                                                                  First Original

         (vii)    Speed

                  The trial speed of the Ship at a draft of [***] [Confidential
                  Treatment] shall be at least [***] [Confidential Treatment]
                  under the conditions specified in Section G.2.5 of the
                  Specification.

2.2      The details of the dimensions and characteristics referred to in clause
         2.1 above, as well as the definitions and method of measurements and
         calculations, are as indicated in the Specification and no changes
         shall be made to such dimensions and characteristics without the
         Buyer's prior written approval.

2.3      The hull number of the Ship will be S.667 and that number shall in
         accordance with clause 1.1 and 1.2 in Article 4 be placed upon the Ship
         and the Parts during construction.

3.       SPECIFICATION AND PLANS

3.1      The Specification and the Plans describe in detail building work
         standards, the features of the building work and the general scope of
         the building work but, although the contents of the Specification and
         the Plans are believed by the Builder and the Buyer to be accurate, all
         dimensions and other details shall be independently verified and
         checked by the Builder and, if there are any errors or omissions in the
         Specification or Plans which may adversely affect the safety,
         seaworthiness or technical performance of the Ship, the Builder shall
         correct the same, after first notifying the Buyer in writing and
         obtaining the Buyer's written approval (which is not to be unreasonably
         withheld), without any increase in the Contract Price.

3.2      The Builder shall be solely and directly responsible for all aspects of
         the design, performance and quality of the building work, and the fact
         that any calculations, measurements, drawings, plans, test results or
         any other documents and data relating to the building work shall have
         been made, prepared or supplied by the Buyer or shown to the Buyer or
         approved by the Buyer and/or any Regulatory Authority and/or the
         Classification Society and/or any other specified person(s) or that
         modifications or alterations shall have been carried out in accordance
         with the Buyer's requirements shall not in any manner or to any extent
         relieve the Builder from (or otherwise reduce) any of the Builder's
         obligations and/or liabilities under this Contract.

3.3      The Builder has purchased various shipbuilding materials, which were
         manufactured and processed in the United States of America, for use in
         the construction of the Ship. Otherwise, all Parts shall be new or
         (with the Supervisor's prior written approval which shall not be
         unreasonably withheld) unused, of high quality, and in strict and full
         accordance and compliance with this Contract, the Plans and the
         Specification and shall otherwise be in strict and full accordance and
         compliance with the Builder's usual high standards and practices of
         construction for similar ships. The materials to be used for certain
         components are stated in the Specification.

3.4      The Builder shall pay for all Parts promptly on or before delivery of
         the Ship or in accordance with usual commercial credit terms.

3.5      The Builder shall furnish: spare parts in accordance with the
         Specification; and maintenance tools of the kind and in at least the
         quantities required by the Specification, the Classification Society,
         and the maker's standards, for items furnished by the Builder.

                                      -3-
<PAGE>

                                                                  First Original

         The cost of such spares and tools are included in the Contract Price.
         The Builder at its own cost and risk shall be responsible for the
         handling, storing and bringing on board the Ship of all spares and
         tools. Spares and tools furnished by the Builder shall be properly
         protected against physical decay, corrosion and mechanical damage and
         shall be properly listed so that replacements may be readily ordered by
         the Buyer.

4.       CLASSIFICATION

4.1      The Builder shall build the Ship under the supervision and special
         survey of Det Norske Veritas (the "Classification Society"), in
         accordance with the regulations, requirements, resolutions and rules of
         the Classification Society (the "Class Rules") that are (i) in force as
         of the Effective Date and (ii) announced as of the Effective Date as
         intended thereafter to come into force or to be implemented, so that on
         delivery the Ship achieves the class notation + 1A1 Passenger Vessel,
         ECO, CLEAN free of all conditions, notations, qualifications,
         recommendations, reservations and restrictions.

4.2      The Classification Society's decision as to compliance or
         non-compliance of the building work with the Class Rules shall be final
         and binding on the parties but this provision shall not in any manner
         or to any extent relieve the Builder from (or otherwise reduce) any of
         the Builder's obligations to comply with this Contract, the Plans and
         the Specification in respect of requirements that exceed the Class
         Rules.

4.3      The Ship shall also be designed and built under the supervision and in
         accordance with the regulations, requirements, resolutions and rules of
         the Regulatory Authorities (the "Regulatory Rules") as well as all
         other specified regulations, requirements, resolutions and rules that,
         are (i) in force as of the Effective Date and (ii) announced as of the
         Effective Date as intended thereafter to come into force or to be
         implemented.

4.4      The decision of any Regulatory Authority which is to issue specified
         certificates shall be final and binding on the parties as to compliance
         or non-compliance of the building work with the relevant Regulatory
         Rules but this provision shall not in any manner or to any extent
         relieve the Builder from (or otherwise reduce) any of the Builder's
         obligations to comply with this Contract, the Plans or the
         Specification in respect of requirements which exceed the Regulatory
         Rules.

4.5      All classification, certification, testing, survey and other fees and
         charges payable to the Classification Society and other third parties
         in relation to the building work shall be for the account of the
         Builder.

4.6      Although the Classification Society will be appointed and paid for by
         the Builder, and although the Builder will be exclusively responsible
         for the correct interpretation and application of the Class Rules:

         (i)      the parties intend that, in performing its role in relation to
                  the building work, the Classification Society shall be acting
                  for, and shall owe identical duties to, both of the parties to
                  this Contract; and

         (ii)     the Builder will ensure that the provisions of this clause 4.6
                  are communicated to, and accepted by, the Classification
                  Society prior to its appointment under this Contract.

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                                                                  First Original

4.7      All fees and charges incidental to the registration of the Ship under
         the flag and laws of the Flag State shall be for the account of the
         Buyer.

4.8      In relation to the building work, the Buyer has the right:

         (i)      to inspect all correspondence, minutes of meetings and other
                  documents passing between the Builder and the Classification
                  Society and to have copies thereof upon request of the
                  Supervisor or the Buyer; and

         (ii)     to attend all scheduled meetings between the Builder and the
                  Classification Society,

         and the Builder shall provide (or procure that the Classification
         Society provides) copies of all documents requested under paragraph (i)
         above and shall keep the Buyer well informed (in advance) of all of the
         meetings referred to in paragraph (ii) above. The Builder will promptly
         inform the Supervisor of any unscheduled meetings between the Builder
         and the Classification Society and, if the Supervisor does not attend
         any of such meetings, the Builder will give the Supervisor a reasonably
         detailed account of the matters discussed and decisions taken at the
         meeting.

4.9      The Builder and its subcontractors shall comply with all laws, rules
         and regulations applicable to the building work, and the Builder shall
         obtain all licenses, permits, certificates and permissions required for
         the execution and completion of the building work, including those
         required by the Classification Society and the Regulatory Authorities.

4.10     The Builder shall be responsible for obtaining the approval of all
         drawings, calculations and other necessary matters by the
         Classification Society and the Regulatory Authorities, and shall
         arrange for all applicable certificates and approvals to be issued.

5.       BUILDER'S RIGHT TO SUBCONTRACT

5.1      The Builder shall not subcontract the whole of the building work but it
         may subcontract the performance of certain parts of the building work
         to reputable and suitably qualified and experienced subcontractors
         provided that for any major subcontracting the Builder shall obtain the
         prior written consent of the Buyer (which consent shall not be
         unreasonably withheld), it being agreed that "Major Subcontracting"
         shall mean any construction or assembly of the Ship's volume sections
         or installation of the Ship's machinery and other main Parts, or any
         other major building work, to be done outside the Shipyard unless
         customarily done outside the builders' yards in connection with the
         construction of luxury passenger ships within the North/Northwest
         European shipbuilding industry.

5.2      The Builder's appointment, contracting, employment or use of any
         workmen, subcontractors, agents and other representatives (including,
         without limitation, any such persons appointed or employed or
         contracted by the Builder with the Buyer's approval) shall not in any
         manner or to any extent relieve the Builder from (or otherwise reduce)
         any of the Builder's obligations and/or liabilities under or in
         connection with this Contract nor diminish the Builder's responsibility
         adequately to manage and supervise

                                      -5-
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                                                                  FIRST ORIGINAL

         such persons and to ensure that they conduct themselves in an efficient
         and workmanlike manner and in accordance with the practices and
         standards referred to in clauses 1.2.

5.3      The Builder covenants with the Buyer that:

         (i)      it shall ensure that there is not and will not be created by
                  the Builder any direct or indirect contractual or other legal
                  relationship between the Buyer and any subcontractors
                  appointed or otherwise used by the Builder (save for such
                  relationships as may be created by reason of the warranty and
                  guarantee assignments to be made by the Builder under clause
                  2.10 of Article 7);

         (ii)     it shall take reasonable care in the selection, employment,
                  appointment and supervision of all subcontractors, and shall
                  use its best endeavours to procure their employment or
                  appointment on the best possible terms consistent with the
                  Buyer's rights, and the Builder's obligations and liabilities,
                  under this Contract including, without limitation, such
                  matters as (a) the best possible guarantees and warranties and
                  liberty for the Builder to assign all or any part(s) of such
                  guarantees and warranties to the Buyer, (b) the safety of
                  passengers and crew, (c) good service, (d) reliability of
                  subcontractors, and (e) availability of spares and
                  post-delivery service support;

         (iii)    it shall prevent its subcontractors from exercising any rights
                  (including without limitation, any German Law Encumbrance
                  Rights) to arrest, attach, detain or encumber the Ship, the
                  Parts or any other of the Buyer's property;

         (iv)     it shall promptly provide the Buyer with such information and
                  access as it may require from time to time in order to verify
                  the performance of the supply and building work carried out by
                  the Builder's subcontractors;

         (v)      it shall promptly (a) deal with the Buyer's reasonable
                  complaints regarding the terms of engagement or contract of
                  any of its subcontractors, and/or (b) take necessary steps to
                  ensure the proper performance of any such subcontractors,
                  and/or (c) comply with any reasonable requests by the Buyer to
                  terminate any such engagement or contract and appoint a
                  substitute subcontractor or; and

         (vi)     it shall be fully, directly and solely responsible (as between
                  the Builder, the Buyer and the other protected parties) for
                  the acts, omissions and defaults of the Builder's
                  subcontractors (including, without limitation, any persons
                  appointed, employed or contracted by the Builder with the
                  approval of the Buyer) and for the acts, omissions and
                  defaults of the respective officers, employees, workmen,
                  agents and other representatives of the Builder and its,
                  subcontractors.

5.4      The Buyer shall have the right to approve the identity of all main
         subcontractors other than those specified in the List of Suppliers,
         such approval not to be unreasonably withheld.

5.5      All labour costs (including overtime costs) of the Builder and of the
         workmen, subcontractors, and others used by the Builder shall be for
         the account of the Builder.

                                      -6-
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                                                                  FIRST ORIGINAL

6.       BUYER'S SUPPLIES

6.1      The Buyer, at its own risk and expense, shall contract for, supply and
         deliver the Buyer's Supplies to the Shipyard and, in the case of
         certain materials, to the Builder's facility at the base port for
         trials in proper condition for installation or incorporation in, or
         stowage on board, the Ship in precise accordance with a delivery
         schedule to be agreed between the Buyer and the Builder within one
         hundred and eighty (180) days after the Effective Date.

6.2      The Builder shall, at its own risk and expense, receive, check as to
         agreement with transport documents, insure (in accordance with clause 2
         of Article 4), safely store and keep well protected, and properly
         inspect, put on board and thereafter install or incorporate in or stow
         on the Ship, all of the Buyer's Supplies from time to time delivered to
         the Shipyard, and (whenever so requested by the Supervisor) the Builder
         shall also assist the Buyer to clear any Buyer's Supplies through
         German customs and (in relation to the materials which are to be
         delivered at the base port for trials) through the relevant customs.
         Upon request by the Builder, the Buyer's available personnel at the
         Shipyard will assist in the installation of the Buyer's Supplies.

6.3      In order to facilitate the inspection, installation and incorporation
         of the Buyer's Supplies by the Builder, the Buyer shall furnish the
         Builder with all plans, instruction books, test reports and
         certificates provided to the Buyer by its suppliers and, if so
         requested by the Builder, the Buyer shall without charge to the Builder
         cause the relevant suppliers to assist the Builder in the installation
         and incorporation of such Buyer's Supplies at the Shipyard. If any
         Buyer's Supplies (including any Buyer's Supplies to be replaced by the
         Buyer pursuant to this clause 6) have not been delivered within five
         (5) working days after the Supervisor's receipt of a notice from the
         Builder under clause 6.4(ii), the Builder shall be entitled to proceed
         with the construction of the Ship without installing or incorporating
         such Supplies in or on the Ship and the lack of any such installation
         or incorporation shall not be treated as a Defect in the Ship provided
         that if, having regard to the nature and/or expected delivery date(s)
         of the relevant Buyer's Supplies and/or the Builder's programme for the
         building work, it is reasonable for the Buyer to request the Builder to
         arrange the building work so that the relevant Supplies can be
         installed or incorporated in or on the Ship at a later date then, in
         each such case, the Builder will use its best efforts to accommodate
         any such reasonable request.

6.4      The Builder:

         (i)      shall be liable to the Buyer for any damage to or loss of any
                  Buyer's Supplies occurring or arising after their delivery by
                  (or on behalf of) the Buyer under clause 6.1 unless such
                  damage or loss is caused by the inadequate packing or inherent
                  vice of such Buyer's Supplies; and

         (ii)     shall notify the Supervisor as soon as practicable of any loss
                  of, damage to, or deficiency in the supply or performance of,
                  any of the Buyer's Supplies or any late delivery thereof in
                  accordance with clause 6.3.

6.5      Where the Builder is liable to the Buyer (under clause 6.4) for any
         damage to or loss of any Buyer's Supplies, the Builder will promptly
         replace the relevant Supplies with

                                      -7-
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                                                                  First Original

         identical items at its risk and expense; in all other cases where the
         Builder gives notice to the Buyer under clause 6.4(ii), the Buyer will
         promptly replace the relevant Supplies at its risk and expense.

6.6      Within fifteen (15) days after the Ship has been delivered by the
         Builder and accepted by the Buyer in accordance with the provisions of
         this Contract, the Buyer will remove from the Shipyard any of the
         Buyer's Supplies which have not been used in the construction of, or
         otherwise delivered with, the Ship.

7.       BUILDER'S TALLY OF BUYER'S SUPPLIES

7.1      The Builder shall make and keep fully itemised and up-to-date records
         of all Buyer's Supplies from time to time delivered to the Shipyard
         and/or other premises of the Builder (and/or its subcontractors) and,
         without prejudice to the generality of the foregoing, the Builder shall
         ensure that such records are made and kept in the form used by the
         Builder for its own stocks and show:

         (i)      the date of delivery to the Builder (or its subcontractors) of
                  each batch or consignment of Buyer's Supplies;

         (ii)     where and how such Buyer's Supplies are stored;

         (iii)    when such Buyer's Supplies are incorporated or installed in,
                  or stowed on, the Ship; and

         (iv)     the balance (in units) of any unused Buyer's Supplies.

7.2      The Builder shall provide the Supervisor, on a monthly basis, with a
         complete set of the records described in clause 7.1 and all amendments
         of, or supplements to, such records.

                                                              (end of article 1)

                                      -8-
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                                                                  First Original

ARTICLE 2: SUPERVISION

1.       SUPERVISOR

1.1      The Buyer may retain a supervisor (the "Supervisor") and a supervision
         team at the Shipyard to maintain close contact with the Builder and, on
         behalf of the Buyer, to supervise the building work, and the Builder
         will assist the Buyer to obtain any necessary German permissions and
         authorisations for the Supervisor and his team to carry out their
         duties.

1.2      The Supervisor and his team shall at all times be deemed to be the
         employees of the Buyer and the Builder shall be under no liability
         whatsoever for personal injuries or other harm to, or death of, the
         Supervisor or any of his team, or for damage to, or loss or destruction
         of, their property, unless such injury, harm, death, damage, loss or
         destruction is caused by the negligence and/or wilful default of the
         Builder and/or any of the Builder's subcontractors.

1.3      The Supervisor and his team shall carry out their inspections and
         supervision in an efficient manner and in such a way as to avoid any
         increase in the building costs or delays to the building work.

1.4      All salaries and, subject to clause 1.5, costs and expenses of the
         Supervisor and his team shall be for the Buyer's account.

1.5      The Builder shall provide, free of charge to the Buyer, the Supervisor
         and the Supervisor's team:

         (i)      adequately equipped, maintained and serviced changing rooms
                  and offices in reasonable numbers (including, without
                  limitation, tables, chairs, filing cabinets, direct call
                  national and international telephones and telefaxes, word
                  processing workstations with laser printers in each office all
                  in reasonable numbers, and one (1) full time secretary)
                  conveniently located in the Shipyard and in close proximity to
                  the Ship, and

         (ii)     lodgings in Papenburg (or vicinity) and meals at the Shipyard
                  (as far as available),

         provided that the Builder may charge the Buyer at cost for such
         lodgings and meals, for the secretary and for the use by the Supervisor
         and his team of the national and international postage, telephone and
         telefax services provided by the Builder under this clause 1.5.

1.6      A written statement confirming the Supervisor's appointment and the
         scope of his actual authority shall be given by the Buyer to the
         Builder within thirty (30) days after the Effective Date. Written
         notice of revocation of appointment of the Supervisor and/or any change
         in the scope of his actual authority shall be given by the Buyer to the
         Builder immediately after any such revocation and/or change has been
         decided upon by the Buyer.

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                                                                  FIRST ORIGINAL

1.7      The Supervisor and his team shall be deemed to have notice of and shall
         observe the safety, security and other rules and precautions in force
         from time to time at the Shipyard and at the premises of the Builder's
         sub-contractors.

2.       PLAN APPROVAL

2.1      Each of the Builder and the Buyer acknowledges and agrees that the
         construction of the Ship requires co-operation and flexibility on the
         part of both parties, especially during the design phase.

2.2      Notwithstanding the generality of clause 2.1, the building work shall
         be carried out in strict accordance with the provisions of this
         Contract, the Specification and the Plans, and prior to commencement of
         the building work (and from time to time thereafter as and when the
         Buyer may request) the Builder will provide the Supervisor with a work
         schedule containing a critical path treatment of the major and
         significant elements of the building work, in their proper sequence,
         which must be completed to ensure delivery of the Ship by the Delivery
         Date.

2.3      All plans, drawings and other documents required to be developed and
         supplied by the Builder to the Buyer for approval shall be
         hand-delivered by the Builder in their proposed final form in three (3)
         copies to the Supervisor (or, if the Supervisor is not at the Shipyard
         at the relevant time, to any member of the Supervisor's team at the
         Shipyard unless a specified member of the team has been nominated by
         the Supervisor for this purpose by notice to the Builder and is
         available at the Shipyard) for the Buyer's approval, and the Builder
         agrees to use its best endeavours to submit all such plans, drawings
         and documents in such a manner that the Buyer may reasonably review and
         approve or comment on the same within the periods provided for in
         clauses 2.4 and 2.5.

2.4      Within five (5) working days after the Supervisor's receipt of the
         plans, drawings and other documents referred to in clause 2.3, the
         Supervisor will notify the Builder in writing whether or not such
         plans, drawings and other documents are sufficient to enable the Buyer
         to review them pursuant to this clause 2; and if any of the plans,
         drawings or other documents are deficient in any way, the Supervisor
         must specify the deficiency and give his reasons in such notice.

2.5      Any plans, drawings and other documents submitted to the Supervisor and
         accepted by him as being sufficient for the Buyer's review must be
         returned to the Builder as soon as practicable and, at the latest,
         within fifteen (15) days after the Supervisor's receipt of those plans,
         drawings and other documents which the Supervisor has authority to
         approve on behalf of the Buyer.

2.6      One copy of all plans, drawings and other documents submitted to the
         Supervisor and accepted by him as being sufficient for the Buyer's
         review shall be returned to the Builder (in accordance with the
         timetable laid down in clause 2.5) either as approved or as rejected by
         the Buyer provided that all rejections shall specify with reasons all
         aspects of the rejected plans, drawings or documents which do not, or
         which provide for building work which does not, conform to the
         requirements of this Contract, the Plans or the Specification.

                                      -10-
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                                                                  FIRST ORIGINAL

2.7      If a plan, drawing or other document is approved, the Builder shall
         proceed with the building work shown therein.

2.8      If a plan, drawing or other document is not accepted by the Supervisor
         as being sufficient for the Buyer's review in accordance with clause
         2.4, the Builder shall promptly alter the relevant plan, drawing or
         document without charge to the Buyer and resubmit it as altered for
         approval by the Buyer in accordance with clauses 2.3 to 2.6.

2.9      All building work performed by the Builder prior to approval by the
         Buyer of all plans, drawings or documents relating to such work shall
         be at the sole risk and expense of the Builder.

2.10     If the Buyer (or the Supervisor on the Buyer's behalf) fails to return
         to the Builder, in accordance with the timetable laid down in clause
         2.5, any plan or drawing or other document and this failure is not
         remedied within two (2) working days after the Supervisor's receipt of
         a written notice from the Builder specifying such failure, such plan or
         drawing or other document shall be deemed to have been automatically
         approved by the Buyer without any comments.

2.11     If the Builder discovers any feature in the Plans or the Specification
         which appears to be inconsistent with the general scheme of the
         building work or which might (in the reasonable opinion of the Builder)
         expose the Builder or the Buyer to any product liabilities, the Builder
         shall promptly notify the Supervisor and submit a proposal to the
         Supervisor for the Buyer's approval (such approval not to be
         unreasonably withheld) for the removal of the inconsistency or risk of
         product liability at the Builder's cost and in the Builder's time.

3.       WORK APPROVAL

3.1      Throughout the period during which the Ship is being built the Builder
         will conduct its usual quality control programme of inspections,
         testing and supervision by a team of the Builder's staff specially
         designated for this purpose but the building work and all Parts, as the
         same may at any time and at any place be completed or be in progress,
         shall also be subject to inspection by and the approval of the Buyer
         (acting through the Supervisor and his team) and the Classification
         Society.

3.2      The Builder shall at all times during normal working hours give the
         Supervisor and the Supervisor's team free and ready access to (and a
         free right to inspect) the Ship and Parts at any place where building
         work is being done or tests are being carried out or Parts are being
         processed or stored in connection with the building of the Ship
         including, without limitation, the Shipyard and other yards, workshops
         and stores of the Builder, and the premises of the Builder's
         subcontractors who are doing work in connection with the building of
         the Ship or processing or storing Parts, and the Builder shall ensure
         that the provisions of this clause 3.2 are inserted into all
         subcontracts from time to time made by it in connection with the
         building work.

3.3      The Buyer shall be entitled (but not obliged) to reject all building
         work and Parts which do not comply with the requirements of this
         Contract, the Plans and the Specification unless and to the extent that
         such non-compliance is the direct result of the Builder

                                      -11-
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                                                                  First Original

         seeking to avoid (in a manner approved by the Buyer, such approval not
         to be unreasonably withheld) the product liabilities described in
         clause 2.11 provided that all rejections shall be made in writing, and
         shall specify with reasons those aspects of the building work or Parts
         inspected which do not comply with the requirements of this Contract,
         the Plans or the Specification.

3.4      If any building work or Parts shall be duly rejected by the Buyer as
         not complying with the Contract, the Plans or the Specification, the
         Builder shall promptly correct or replace such work or Parts at the
         Builder's cost and in the Builder's time.

4.       PLANNED PROGRAMME

4.1      The Ship shall be constructed in accordance with the planned programme
         contained in the Specification which defines certain stages of the
         construction process ("Milestones") which must be completed by the
         dates therein specified.

4.2      The Builder shall submit to the Buyer each month, commencing on the
         date falling one month after the Effective Date, until delivery, the
         following documentation (the accuracy of which the Builder hereby
         warrants):

         (a)      a status report on the building work as compared with the
                  planned programme, including the critical path;

         (b)      a report setting out the actual progress of the building work
                  during the previous month as compared with the planned
                  programme;

         (c)      a list of modifications (if any) agreed during the previous
                  month, including Contract adjustments, if any, agreed during
                  that month;

         (d)      a report on the delivery of subcontracted materials during the
                  previous month (the precise nature and form of which report
                  shall be agreed, from time to time, between the Buyer and the
                  Builder).

4.3      Without prejudice to the Builder's obligations under this Contract, if
         the construction of the Ship should, for any reason whatsoever, be
         delayed beyond the time-frame indicated in the planned programme, the
         Builder shall immediately notify the Buyer. If the delay which has
         occurred is not a permissible delay, the Builder shall within fourteen
         (14) working days after provision of such notification provide to the
         Buyer a written schedule describing the steps (including any
         appropriate increase in manpower and material resources) the Builder
         intends to take to recover the time lost. The Builder and the Buyer
         shall meet at the earliest opportunity to discuss the proposal and the
         Builder's detailed plans for implementation of the same.

5.       MINOR ALTERATIONS

5.1      Subject to clause 3.2 in Article 1 and to Article 3, approvals and
         other decisions of the Buyer in relation to the design and performance
         of the building work shall be final and may not be revised or revoked
         without the prior written approval of the Builder provided that the
         Builder shall not withhold its approval for any minor alterations or
         revisions requested by the Buyer which (in the reasonable opinion of
         the Builder) would not:

                                      -12-
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                                                                  First Original

         (i)      delay or increase the cost of the building work or have a
                  material adverse affect on the Builder's planning or programme
                  for the building work; or

         (ii)     otherwise constitute a material modification of this Contract,
                  the Plans or the Specification; or

         (iii)    require the Builder to jeopardise its contracted building
                  schedule(s) for other ships.

6.       TECHNICAL DISPUTES

6.1      If, at any time during the design phase or any other stage of the
         building work, there is a difference of opinion between the Builder and
         the Buyer in relation to any technical matter, then either party may
         give a notice (a "Dispute Notice") to the other party and if the
         parties do not resolve the difference of opinion within five (5)
         working days after the date of service of the Dispute Notice, the
         Builder or the Buyer may require that the difference of opinion be
         treated as a technical dispute to be resolved in accordance with clause
         1 of Article 13.

                                                              (End of article 2)

                                      -13-
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                                                                  FIRST ORIGINAL

ARTICLE 3: MODIFICATIONS

1.       MODIFICATIONS

1.1      This Contract, the Plans and the Specification may be modified from
         time to time by agreement of the parties provided that any reasonable
         and timely modifications requested by the Buyer, and/or any
         modifications required to be made under clause 2 which are occasioned
         by any changes in the Class Rules or in any of the Regulatory Rules
         after the Effective Date, shall be implemented by the Builder if the
         Buyer assents to necessary modifications to the Contract Price, the
         Delivery Date and any other relevant provisions of this Contract, the
         Builder agreeing to act in good faith and use its best efforts to
         accommodate any such reasonable requests by the Buyer so that any such
         modifications shall be made:

         (i)      at the lowest cost reasonably possible;

         (ii)     within the shortest period of time reasonably possible; and

         (iii)    without any loss in the relative priority of the building work
                  for the Ship compared to other construction work in the
                  Shipyard,

         provided that nothing in this clause 1.01 shall require the Builder to
         jeopardise its contracted building schedule(s) for other ships.

1.2      Any agreement on a modification of this Contract, the Plans or the
         Specification shall include:

         (i)      any increase or decrease in the Contract Price;

         (ii)     any change in the Delivery Date, and

         (iii)    any other adjustment to or amendment of any relevant
                  provisions of this Contract, the Plans or the Specification,

         which is directly, necessarily and reasonably occasioned by such
         modification.

1.3      Any agreement on a modification of this Contract, the Plans or the
         Specification shall be recorded and evidenced by an exchange of letters
         or telefaxes which shall constitute an amendment to this Contract
         and/or the Plans and/or the Specification and shall be sequentially
         numbered, marked "Contract modification under Clause 3" and signed by
         the parties duly authorised representatives, and following any such
         agreement the Builder shall modify the building of the Ship in
         accordance therewith.

1.4      If there is any dispute between the parties as to any of the matters
         referred to in clause 1.2 then, if the Buyer so requires, the Builder
         will make the requested modification before the dispute has been
         resolved provided the Buyer confirms its willingness to pay the amount
         found due to the Builder in respect of such modification.

2.       CLASSIFICATION AND REGULATORY CHANGES

2.1      If, after the Effective Date, any Class Rules and/or any Regulatory
         Rules are changed by the Classification Society or any Regulatory
         Authority, the Builder shall promptly notify

                                      -14-
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                                                                  First Original

         the Buyer in writing of the relevant change(s) and of the necessary
         modifications to be made to this Contract, the Plans and the
         Specification.

2.2      If, following its receipt of a notice under clause 2.1, the Buyer
         reasonably considers that the operation of the Ship in its intended
         service would permit of a dispensation or waiver, the Builder will at
         the request of the Buyer apply for a dispensation from, or waiver of
         compliance with, the relevant change(s).

2.3      If the Buyer does not require the Builder to apply for a dispensation
         or waiver (or it has not been possible to obtain a dispensation or
         waiver) within a period of fifteen (15) days after the Buyer's receipt
         of a notice under clause 2.1 (or such longer period of time as the
         parties may agree to be reasonable in the light of all the
         circumstances then prevailing), the parties shall make an agreement to
         modify this Contract in accordance with clause 1 and thereafter the
         Builder shall make the relevant change(s) in the design or building of
         the Ship.

3.       SUBSTITUTION OF PARTS

3.1      If (notwithstanding all reasonable efforts on the part of the Builder
         and provided that orders for the same were placed in good time by the
         Builder) any Parts are not available at the time required for their
         installation or incorporation in the Ship, the Builder may (with the
         prior written approval of the Buyer) use suitable substitute Parts
         which are at least equal to the standard and quality of the Parts which
         were not available and which are capable of meeting all of the
         requirements of:

         (i)      this Contract, the Plans and the Specification; and

         (ii)     the Classification Society and the Regulatory Authorities.

3.2      Where a proposed substitution of Parts is approved by the Buyer, the
         Builder shall:

         (i)      bear all additional costs and expenses whatsoever in relation
                  to such substitution; and

         (ii)     credit the Buyer with any cost savings occasioned by such
                  substitution.

                                                              (end of article 3)

                                      -15-
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                                                                  FIRST ORIGINAL

ARTICLE 4: TITLE AND INSURANCES

1.       TITLE, RISK AND ENCUMBRANCES

1.1      On and from the Effective Date, the Builder (as legal and beneficial
         owner) hereby transfers and agrees to transfer to the Buyer (free and
         clear of all encumbrances whatsoever) - and the Buyer hereby agrees to
         accept such transfer - the Ship, as it is constructed from time to time
         including without limitation all of the Builder's ownership and
         interest (legal and beneficial) in the appurtenances, components,
         equipment items, machinery fittings and all materials of whatsoever
         kind (whether marked or not) from time to time intended for the
         construction of the Ship which the Builder has acquired or will acquire
         for this purpose, the agreed and irrevocable intention of the parties
         being that from the Effective Date the Buyer has and shall have full
         title (free and clear of all encumbrances whatsoever) to:

         (i)      the Ship itself as it is in the course of progressive stages
                  of construction.

         (ii)     all materials and equipment from time to time appropriated or
                  allocated for the construction on the Ship, all of which shall
                  be marked as allocated to hull number S.667 as soon as
                  reasonably practicable after the Effective Date;

         (iii)    all parts assembled, fabricated or manufactured from the
                  materials and equipment referred to above; and

         (iv)     all other Parts.

         All risks in relation to the Ship and all the materials and equipment
         referred to above and all other Parts (including delivered Buyer's
         Supplies) shall be and remain with the Builder until the Ship is
         delivered to and accepted by the Buyer in accordance with Clause 1 in
         Article 7.

1.2      Immediately upon:

         (i)      the delivery to the Builder (or any of its subcontractors) of
                  any Buyer's Supplies; and

         (ii)     the delivery to, or fabrication by, the Builder (or any of its
                  subcontractors) of all other Parts,

         the Builder shall mark (or cause its relevant subcontractors to mark)
         the same and the Ship (as it is from time to time built) with hull
         number S.667.

1.3      The Builder shall have no authority to create (and waives all rights to
         create) any encumbrances whatsoever over any of the Buyer's property
         (which for all purposes of this Contract shall include the Ship, the
         Buyer's Supplies, the Parts and other materials referred to in
         subclause 1.1 and any other property of the Buyer), nor shall it permit
         any of its subcontractors to impose or assert any encumbrances of any
         kind on or against any of the Buyer's Property.

1.4      At any time when a payment is due to the Builder under this Contract,
         and at all other reasonable times, the Buyer may require the Builder to
         provide a written statement

                                      -16-
<PAGE>

                                                                  FIRST ORIGINAL

         satisfactory to the Buyer showing what, if any, encumbrances of any
         kind (other than permitted encumbrances) have been or are liable to be
         imposed on or asserted against any of the Buyer's property.

1.5      If any encumbrance of any kind (other than any permitted encumbrance)
         is imposed on or asserted against any of the Buyer's property, the
         Builder shall promptly notify the Buyer and shall, not later than ten
         (10) days thereafter, secure the discharge or release of such
         encumbrance provided that if the Builder desires to contest any such
         encumbrance and such discharge or release is not available under law
         during such contest (including, without limitation, through the filing
         of a bond or other security), the Builder shall immediately take such
         steps as in the opinion of the Buyer shall prevent such encumbrance
         from delaying or otherwise adversely affecting the building work and
         shall indemnify fully, hold harmless and defend the Buyer and all other
         protected parties from and against all Losses which any of them may
         sustain or incur as a result of the imposition of any such encumbrance.

1.6      Notwithstanding the provisions of clause 1.5, the Buyer may secure the
         removal of any such encumbrance in which event the Builder shall
         reimburse the Buyer in full for its costs (including legal fees) of
         securing such discharge or release by deducting such sum from any
         payments due or to become due to the Builder under this Contract save
         that if any such cost is in excess of the amount of any such
         reimbursement by deductions, the Builder shall pay the amount of such
         excess to the Buyer promptly upon demand.

1.7      Notwithstanding the provisions of clause 1.5, the Buyer, without
         securing the discharge or release of any such encumbrance, may
         nevertheless withhold from any payments due or to become due to the
         Builder, unless and until such encumbrance is discharged or released by
         the Builder, a sum equal to the amount reasonably determined by the
         Buyer to be required to secure the discharge or release of such
         encumbrance (which amount shall include the estimated amount of all
         expenses which might be incurred in connection therewith, including
         legal fees).

1.8      Prior to the installation of any of the Buyer's Supplies:

         (i)      the Builder may require the Buyer to state in writing whether
                  any permitted encumbrances have been imposed on or asserted
                  against the relevant Buyer's Supplies and to discharge any
                  such permitted encumbrances prior to the installation of such
                  Buyer's Supplies, and if the Buyer fails to discharge any such
                  permitted encumbrances, the Builder may withhold the
                  installation of the relevant Buyer's Supplies in which case
                  any resulting delays will be the Buyer's responsibility; and

         (ii)     the Buyer may require the Builder to confirm in writing that
                  the representations made by it in Article 10, clause 1.2(ii)
                  remain in all respects true and accurate and to procure that
                  the Builder's financiers confirm in writing to the Buyer that
                  they have no grounds for making (nor any expectation of
                  acquiring grounds for making) any claims against the Builder
                  or the Ship, and if the Builder or its financiers fails to
                  deliver any such statement, the Buyer may require the Builder
                  to withhold the installation of the relevant Buyer's Supplies
                  in which case any resulting delays will be the Builder's
                  responsibility.

                                      -17-
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                                                                  First Original

1.9      Until delivery and acceptance of the Ship under and in accordance with
         this Contract, the parties agree that:

         (i)      as a substitute for the transfer of physical possession to the
                  Buyer, the Builder will have actual possession (unmittelbarer
                  Besitz) of the Ship, the Parts and delivered Buyer's Supplies
                  and will keep the same in safe custody for the Buyer (and free
                  of charge to the Buyer); and

         (ii)     and the Buyer will have constructive possession (mittelbarer
                  Besitz) of the Ship, the Parts and delivered Buyer's Supplies
                  until the Buyer takes delivery thereof or obtains possession
                  thereof in accordance with this Contract.

2.       INSURANCES

2.1      During the currency of this Contract and until her delivery to the
         Buyer the Ship, all Parts, and all Buyers' Supplies (up to a maximum
         aggregate value of $25,000,000 (twenty five million dollars) delivered
         to the Builder (or any of its subcontractors), shall be at the sole,
         direct and entire risk of the Builder which shall at its own expense
         keep the same insured on terms, and with brokers and underwriters,
         approved by the Buyer and its financiers in respect of and against all
         usual building risks, including protection and indemnity risks, tests
         risks and war risks. All premiums and deductibles shall be for the sole
         account of the Builder. Neither the brokers nor the underwriters shall
         have any rights of recourse against the Buyer or the Ship, or any
         rights to make any deduction, set-off or other withholding from or
         against any sum payable to the Buyer in connection with the Insurances.

2.2      The amount of the insurances (the "Insurances") to be arranged by the
         Builder under this Article shall be not less than the Contract Price.

2.3      All Insurances shall be taken out by the Builder naming the Buyer as
         the assured party and the Builder as the co-insured party for their
         respective interests. The Insurances shall contain loss payable
         provisions reasonably acceptable to the Buyer and its financiers.

2.4      All Insurances shall provide that there shall be no recourse against
         the Buyer or its assignees for the payment of any premiums or
         commissions and that no cancellation of the Insurances, for any reason
         whatsoever, shall become effective unless and until fourteen (14) days
         prior written notice has been given by the relevant brokers or insurers
         to the Buyer.

2.5      The Builder shall supply the Buyer prior to the commencement of
         construction of the Ship with an original cover note specifying the
         terms of the Insurances and security (which shall be as usual for the
         London insurance market) for the Ship.

2.6      If at any time there is:

         (i)      any lapse in the insurance coverage which the Builder is
                  required to arrange under this clause 2, the Buyer may effect
                  replacement coverage at the Builder's expense; or

                                      -18-
<PAGE>

                                                                  First Original

         (ii)     any failure by the Builder to pay any premiums due in respect
                  of the Insurances, the Buyer may pay the same and recover the
                  relevant payment(s) from the Builder.

3.       LOSS OR DAMAGE

3.1      In the event of any partial loss of the Ship before delivery:

         (i)      the loss shall be made good by the Builder as soon as
                  reasonably possible, the Delivery Date shall be extended in
                  accordance with clause 1 in Article 5 (provided that the cause
                  of the partial loss is excused under that clause) and the
                  partial loss proceeds referable to the Ship and/or Parts
                  (other than Buyer's Supplies) subject to the partial loss
                  shall be applied by the Builder in making good the partial
                  loss to the approval of the Buyer, the Classification Society
                  and the Regulatory Authorities; and

         (ii)     the partial loss proceeds referable to any Buyer's Supplies
                  subject to the partial loss shall be paid to the Buyer.

3.2      In the event of the total loss of the Ship before delivery, either the
         Builder or the Buyer shall be entitled to terminate this Contract by
         written notice to the other, such notice to be delivered within thirty
         (30) days after the date (the "Determination Date") on which it is
         determined that the Ship has become a total loss pursuant to clause 3.6
         below.

3.3      If, following the total loss of the Ship, neither party terminates this
         Contract pursuant to clause 3.2, the Builder shall proceed with the
         building of the Ship in accordance with this Contract and the Delivery
         Date shall be extended in accordance with clause 1 in Article 5
         provided that the cause of the total loss is excused under that clause.

3.4      If there is a total loss of the Ship before delivery, then:-

         (i)      if either party elects to terminate this Contract pursuant to
                  clause 3.2, the Builder shall within ninety (90) days from
                  (and including) the Determination Date pay to the Buyer an
                  amount equal to the sum of:

                  (a)      all payments previously made by the Buyer to the
                           Builder under this Contract together with interest
                           thereof at the relevant rate calculated from the date
                           on which the Builder received each such payment to
                           the date on which the reimbursement is received by
                           the Buyer, and

                  (b)      the Buyer's Supply Costs in respect of any Buyer's
                           Supplies which are subject to the total loss; or

         (ii)     if neither party terminates this Contract pursuant to clause
                  3.2, the Builder shall within ninety (90) days from (and
                  including) the Determination Date pay to the Buyer the Buyer's
                  Supply Costs in respect of any Buyer's Supplies which are
                  subject to the total loss.

3.5      To the extent that amounts are paid to the Buyer under clause 3.4, any
         insurance proceeds received on that account shall be paid to the
         Builder.

                                      -19-
<PAGE>

                                                                  FIRST ORIGINAL

3.6      A total loss shall be deemed to have occurred:

         (i)      if it consists of an actual loss, at noon Papenburg time on
                  the actual date of loss; or

         (ii)     if it consists of a constructive or compromised or arranged or
                  agreed total loss, at noon Papenburg time on the date on which
                  notice of abandonment of the Ship is given to her insurers or
                  (if her insurers do not admit the claim for a total loss) at
                  the time on the date at which a total loss is subsequently
                  adjudged to have occurred by a competent court or arbitration
                  tribunal or liability in respect thereof as a total loss is
                  admitted by underwriters.

                                                              (END OF ARTICLE 4)

                                      -20-
<PAGE>

                                                                  FIRST ORIGINAL

ARTICLE 5: PERMISSIBLE DELAYS

1.       EXTENSION OF TIME FOR BUILDING WORK

1.1      If the Builder gives notice as provided in clauses 2.1, 2.2 and 2.3 the
         Builder shall be entitled to an extension of the Delivery Date but only
         if:

         (i)      there is a specific cause of delay which the Builder can prove
                  will solely and directly delay delivery of the Ship beyond the
                  Delivery Date and which cause is delaying or will delay
                  building work which is in the critical path of delivery of the
                  Ship for more than one working day;

         (ii)     such cause of delay is one of the excusable causes set out in
                  clause 1.3;

         (iii)    the Builder proves that it has used and is continuing to use
                  all reasonable efforts to avoid, prevent, minimise and
                  overcome the actual delay in delivery of the Ship including,
                  without limitation, by the performance of other or additional
                  building work provided that such other or additional building
                  work does not jeopardise the Builder's contracted obligations
                  for the construction of other ships; and

         (iv)     but for such cause of delay the Ship would have been delivered
                  on time,

         provided that the length of any such extension shall be the number of
         days by which the Builder can prove that the Delivery Date for the Ship
         actually will be delayed solely and directly by each such cause of
         delay.

1.2      The Builder shall at all times have the burden of proving each of the
         matters required to be established by this clause 1 and in the event
         that it is not possible for it to prove whether, or to what extent, any
         delay in delivery is directly and solely attributable to a cause which
         is excused by the provisions of this clause 1, the Builder shall not be
         entitled to any extension of the Delivery Date.

1.3      The Builder shall be entitled to an extension of the Delivery Date, as
         provided in clause 1.1, for any delay caused:

         (i)      by the Buyer (other than such delays, if any, as are caused by
                  the Buyer in the proper and timely exercise of any of its
                  rights or obligations under this Contract);

         (ii)     by legislation or other formal action by or on behalf of the
                  German government (or any agency or other authority of such
                  government) prohibiting or otherwise preventing the Builder
                  from proceeding with the building work;

         (iii)    by war or warlike events involving any country which is
                  directly relevant to the building of the Ship;

         (iv)     by extraordinary weather conditions not included in normal
                  planning;

         (v)      by such strikes, lockouts and other labour disturbances of the
                  Builder or those of its subcontractors who supply important
                  parts (such as engines, major castings or major forgings) as
                  are beyond the Builder's control;

                                      -21-
<PAGE>

                                                                  FIRST ORIGINAL

         (vi)     by such accidents, explosions, fires, disruptions of power
                  supplies and other similar occurrences as are beyond the
                  Builder's control;

         (vii)    by the short, late or non-delivery to the Builder of any
                  Parts, or the late performance of the Builder's subcontractors
                  provided that the late, short or non-delivery or late
                  performance resulted from causes which would entitle the
                  Builder to an extension of the Delivery Date under this clause
                  1 and provided that the Builder proves that it has exercised
                  due diligence (a) in contracting for such Parts and with such
                  subcontractors, (b) in the performance of any acts required of
                  it with respect to such Parts or subcontractors, (c) in
                  monitoring the acts and circumstances of such subcontractors,
                  and (d) in expediting deliveries or performance under the
                  Builder's purchase or subcontracts or procuring equivalent
                  substitute performance in the event of the late delivery of
                  such Parts or the under-performance in such purchase or
                  subcontracts; or

         (viii)   by unfavourable weather conditions if commencement of the sea
                  trials tests is postponed or such tests are discontinued
                  pursuant to clause 1.4 in Article 6 by reason of such
                  conditions and the number of days thereafter during which such
                  tests cannot be undertaken exceed three (3) in total, then any
                  further days during which the weather conditions remain
                  unfavourable may be claimed (subject to the other provisions
                  of this clause 1) as a permissible delay.

1.4      Notwithstanding anything to the contrary in this clause 1, the Builder
         shall not be entitled to any extension of the Delivery Date for:

         (i)      any delay resulting from a cause of delay which has itself
                  been caused or contributed to by the negligence or other
                  default of the Builder;

         (ii)     any delay resulting from a cause of delay in existence as of
                  the Effective Date; or

         (iii)    any delay resulting from a cause of delay, which was or
                  reasonably should have been foreseen or anticipated by the
                  Builder by reason of facts which were, or after reasonable
                  enquiry should have become, known to the Builder as of the
                  Effective Date; or

         (iv)     any delay resulting from a cause of delay which reasonably
                  could have been avoided by the Builder;

         (v)      any delay resulting from the late performance or default of a
                  subcontractor, if such delay results from a cause of delay in
                  effect published and announced as of the date of the award of
                  the relevant purchase contract or subcontract;

         (vi)     any delay resulting from any dispute or arbitration proceeding
                  under this Contract, provided that in the case of any building
                  work under dispute or arbitration which would otherwise be
                  commenced prior to the resolution thereof the Builder shall
                  not be required to proceed therewith (and a corresponding
                  extension of the Delivery Date shall be allowed) if, after
                  written request by the Builder, the Buyer fails to confirm
                  forthwith its willingness to pay the amount found due in
                  respect of such work; or

                                      -22-
<PAGE>

                                                                  FIRST ORIGINAL

         (vii)    any delay in moving the Ship from the Shipyard to the Delivery
                  Port due to extraordinary weather conditions not included in
                  normal planning.

2.       DELAY NOTICES

2.1      The Builder shall give written notice to the Buyer of a cause of delay
         pursuant to clause 1.3 as soon as practicable and no later than five
         (5) days after the date on which the Builder first has knowledge of
         such cause of delay and in such notice the Builder shall describe the
         cause of the delay, the date of commencement (or first occurrence) of
         the cause, its expected duration and its expected effect on the
         Builder's ability to carry on with the building work.

2.2      The Builder will provide the Buyer with regular written status reports
         (at such reasonable intervals as the Buyer may request) with respect to
         any delay in respect of which the Builder has given notice pursuant to
         clause 2.1 and as to the steps being taken (and planned) by the Builder
         to minimise and overcome any actual delay in delivery of the Ship.

2.3      Within five (5) days after any cause of delay set forth in clause 1.3
         has ceased to exist, the Builder shall notify the Buyer of such
         cessation and give the Buyer a written statement of the actual or
         estimated delay in the completion of the building work resulting from
         such cause together with such detailed documentation as is then
         available to it justifying such extension, and any such detailed
         documentation thereafter becoming available to the Builder shall be
         promptly be given to the Buyer.

2.4      On the basis of the notices, reports, statements and information given
         to the Buyer by the Builder relating to any actual or estimated delay
         in delivery (and such further information and documentation as the
         Buyer may reasonably request), the Buyer and the Builder shall confer
         and attempt to agree upon the number of days by which the Delivery Date
         shall be extended provided that if the Buyer and the Builder cannot so
         agree within thirty (30) days after the completion of any such
         conference, the extension of the Delivery Date (if any) shall be
         determined as a dispute pursuant to the provisions of Article 13.

2.5      The extension of the Delivery Date provided for in this Article shall
         be the only remedy for delay to which the Builder shall be entitled
         and, by way of illustration but not limitation, the Builder shall not
         be entitled to damages or any adjustment in the Contract Price.

                                                              (END OF ARTICLE 5)

                                      -23-
<PAGE>

                                                                  FIRST ORIGINAL

ARTICLE 6: TESTS AND LIQUIDATED DAMAGES

1.       TESTS

1.1      At its sole and direct risk and expense, the Builder shall subject the
         Ship and specified Parts to the tests in order to ascertain whether the
         Ship and such Parts have been completed in full accordance with this
         Contract, the Plans and Specification.

1.2      The Buyer shall be entitled to have the Supervisor and his team present
         at all tests and the Builder shall give the Supervisor:

         (i)      two (2) days prior written notice of all tests (except sea
                  trials tests) (a) designated for such notice by the Buyer
                  after its receipt from the Builder of an agreed schedule of
                  tests and (b) scheduled to take place on week-ends or other
                  non-working days; and

         (ii)     twenty four (24) hours prior written notice of all other tests
                  (except sea trials tests).

1.3      The Builder shall give the Supervisor fifteen (15) days' estimated, and
         seven (7) days' definite, prior written notice of the time and the
         place for the sea trials tests provided that only one (1) day's prior
         written notice need be given to the Supervisor with respect to retrials
         at sea conducted within three (3) days after completion of a previous
         sea trial at or upon which the need for such retrial was determined.

1.4      If the weather conditions on the date specified for the sea trials
         tests are (in the reasonable opinion of the Builder) so unfavourable
         that they would prevent the Builder from carrying out such tests then
         the same shall take place on the first available day thereafter that
         weather conditions permit. If, during the sea trials tests sudden and
         unexpected changes in the weather occur which, in the reasonable
         opinion of the Builder, are such as to prevent the continuation of such
         tests then the Builder shall have the option of continuing such tests
         or of postponing them until the next following favourable day unless
         the Buyer shall (in its option) agree to accept the Ship on the basis
         of the tests made.

1.5      The failure of the Supervisor to be present at any test, after due
         notice, shall (unless such failure is due an event or combination of
         events outside the Supervisor's control) be deemed to be a waiver of
         the Supervisor's right to be present at the relevant test and the Buyer
         shall be obliged to accept the results of such test on the basis of
         acceptance by the Builder and the Classification Society.

1.6      All tests conducted without notice to the Supervisor shall be
         reconducted by the Builder on due notice to the Supervisor at the sole
         risk and expense of the Builder.

1.7      If a Defect is discovered during any test the Builder shall, after
         correcting such Defect, be required to make such further tests as may
         be necessary in extent and number to demonstrate and confirm the
         complete correction thereof provided that additional sea trials tests
         will not be required if the correction of any such Defect can be
         verified in shop or dock tests, and the sole and direct risk and
         expense of all such further or additional tests shall be borne by the
         Builder.

                                      -24-
<PAGE>

                                                                  First Original

1.8      The term "Defect" means:

         (i)      any defect in the Ship or in any Part installed or
                  incorporated in, stowed on or otherwise delivered with the
                  Ship (including Buyer's Supplies installed by the Builder or
                  its subcontractors) which is due to defective materials,
                  workmanship, construction or design or any failure to comply
                  with the relevant recommendations of any subcontractors or
                  other parties,

         (ii)     any inherent vice, breakdown, incompleteness, omission or
                  other deficiency of the Ship or any Part,

         (iii)    any failure of the Ship or any Part or any aspect of the
                  building work to comply with any of the requirements of this
                  Contract, the Specification or the Plans, or the requirements
                  of any of the subcontractors used in connection with this
                  Contract, or

         (iv)     the existence of any condition, notation, qualification,
                  recommendation, reservation or restriction in relation to any
                  certificate issued by the Classification Society or any
                  Regulatory Authority,

         provided that the term "Defect" shall not include any fault in any of
         the Buyer's Supplies which were properly received, handled, installed
         or incorporated in, stowed on or otherwise delivered with, the Ship by
         the Builder in accordance with the requirements of this Contract, the
         Specification and the Plans.

1.9      After all tests have been satisfactorily performed and completed, the
         Builder shall:

         (i)      take the Ship to the sea port referred to in Article 1, clause
                  1.1(i)(c) and open up such machinery as (a) the Classification
                  Society and/or the Regulatory Authorities may require and/or
                  (b) the Buyer may reasonably require, for post-tests
                  inspection and examination;

         (ii)     correct any Defects then appearing in such machinery; and

         (iii)    close, connect, retry and retest the machinery, as
                  appropriate, and then make the Ship ready for service, and

         thereafter the Buyer may require a final post-tests examination and
         inspection at which the Builder shall demonstrate and confirm to the
         Buyer the complete correction of any and all Defects in such machinery.

1.10     Not later than two (2) weeks before the anticipated Delivery Date, the
         Builder and the Buyer shall prepare a final punch list of items which
         the Buyer considers defective from the perspective of first class
         shipping and/or shipbuilding practice and, subject always to Article 7
         clauses 1.5 and 1.6, the Builder shall be obliged to rectify such items
         before delivery.

                                      -25-
<PAGE>

                                                                  First Original

2.       LIQUIDATED DAMAGES

2.1      The Builder agrees that certain Defects and certain delays in the
         delivery of the Ship shall result in the reduction of the Contract
         Price by way of the liquidated damages provided for in this clause 2.

2.2      The guaranteed trial speed ("GTS") of the Ship at a draft of [***]
         [Confidential Treatment] shall be [***] [Confidential Treatment] and
         shall be demonstrated by the Builder during the sea trials tests under
         the conditions described in section G.2.5 of the Specification.

2.3      If the Builder fails to remedy any deficiency in the Ship's speed
         before delivery, the Builder shall have no liability to the Buyer if
         the actual speed of the Ship as determined during the final sea trials
         tests is up to [***] [Confidential Treatment] of a knot below GTS but
         commencing with a deficiency of more than [***] [Confidential
         Treatment] of a knot in actual speed below the GTS the Contract Price
         shall be reduced by way of liquidated damages as follows:

         (i)      for [***] [Confidential Treatment], a total sum of [***]
                  [Confidential Treatment];

         (ii)     for [***] [Confidential Treatment], a total sum of [***]
                  [Confidential Treatment];

         (iii)    for [***] [Confidential Treatment], a total sum of [***]
                  [Confidential Treatment];

         (iv)     for [***] [Confidential Treatment], a total sum of [***]
                  [Confidential Treatment];

         (v)      for [***] [Confidential Treatment], a total sum of [***]
                  [Confidential Treatment];

         (vi)     for [***] [Confidential Treatment], a total sum of [***]
                  [Confidential Treatment];

         (vii)    for [***] [Confidential Treatment], a total sum of [***]
                  [Confidential Treatment];

         (viii)   for [***] [Confidential Treatment], a total sum of [***]
                  [Confidential Treatment];

         with fractions of a knot being calculated in proportion provided that
         if the Defect in the actual speed of the Ship is more than [***]
         [Confidential Treatment] below the GTS, then (subject to the following
         proviso to this clause 2.3) the Buyer may, at its option, accept the
         Ship at a reduction in the Contract Price for such Defect of [***]
         [Confidential Treatment] or reject the Ship and terminate this Contract
         pursuant to clause 2 in Article 9.

2.4      The guaranteed fuel consumption ("GFC") of each of the diesel engines
         of the Ship at [***] [Confidential Treatment] without attached pumps
         shall be [***] [Confidential Treatment] with a [***] [Confidential
         Treatment] and shall be demonstrated by the Builder in tests conducted
         at the engine manufacturers' testbed.

2.5      If the Builder fails to remedy any deficiency in the fuel consumption
         of the Ship's diesel engines before delivery, the Builder shall have no
         liability to the Buyer if such fuel consumption as determined during
         the final tests is more than the GFC provided such excess is not more
         than [***] [Confidential Treatment] over the GFC but commencing with an
         excess

                                      -26-
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                                                                  FIRST ORIGINAL

         of more than [***] [Confidential Treatment] in actual fuel consumption
         the Contract Price shall be reduced by way of liquidated damages by the
         sum of [***] [Confidential Treatment] for each [***] [Confidential
         Treatment] increase in fuel consumption above such [***] [Confidential
         Treatment] level up to a maximum of [***] [Confidential Treatment] over
         the GFC with fractions of [***] [Confidential Treatment] being
         calculated in proportion provided that if the fuel consumption is more
         than [***] [Confidential Treatment] above the GFC, the Buyer may, at
         its option, accept the Ship at a reduction in the Contract Price for
         such Defect of [***] [Confidential Treatment] or reject the relevant
         engine(s) (without prejudice to its other rights with respect to the
         Ship).

2.6      The guaranteed deadweight capacity of the Ship shall be [***]
         [Confidential Treatment] metric tons under the conditions defined in
         sections G.2.3 and G.2.4 of the Specification and shall be demonstrated
         by the Builder in the specified deadweight capacity test.

2.7      If the Builder fails to remedy any deficiency in the Ship's deadweight
         capacity before delivery, the Builder shall have no liability to the
         Buyer if the actual deadweight capacity of the Ship as determined in
         accordance with the Specification is less than [***] [Confidential
         Treatment] below the guaranteed deadweight capacity but the Contract
         Price for the Ship shall be reduced by way of liquidated damages by the
         sum of [***] [Confidential Treatment] of such deficiency being more
         than [***] [Confidential Treatment] up to a maximum deficiency of [***]
         [Confidential Treatment] at a draft of not more than [***]
         [Confidential Treatment] even keel with fractions of each metric ton
         being calculated in proportion provided that if the actual deadweight
         deficiency at a draft of not more than [***] [Confidential Treatment]
         even keel is more than [***] [Confidential Treatment], the Buyer may,
         at its option, accept the Ship at a reduction in the Contract Price of
         [***] [Confidential Treatment] for such Defect or reject the Ship and
         terminate this Contract pursuant to clause 2 in Article 9.

2.8      The guaranteed cabin capacity of the Ship shall be as defined in
         sections G.2.2.1 and G.2.2.2 of the Specification and no change shall
         be made to such cabin capacity without the Buyer's prior written
         consent.

2.9      If the number of completed and fully habitable cabins of any of the
         passenger and crew grades referred to in clause 2.1(iii) and (iv) of
         Article 1 is lower than the number of cabins specified for any such
         grade, the Buyer may, at its option, accept the Ship subject to a to be
         agreed reduction in the Contract Price for the Ship or reject the Ship
         and terminate this Contract pursuant to clause 2 in Article 9.

2.10     In the cabins and in the public rooms and spaces of the Ship, the
         guaranteed maximum vibration levels ("GVL") shall be the single peak
         values defined in section G.5.2.3. of the Specification.

2.11     If, in any cabin or in any area of the public rooms and spaces of the
         Ship, the measured vibration levels ("MVL"), measured as provided for
         in section G.5.2.3 of the Specification, exceeds the GVL, the Builder
         shall make the necessary changes before delivery to reduce such levels
         to the GVL figures.

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                                                                  FIRST ORIGINAL

2.12     If, after the changes made by the Builder pursuant to clause 2.11, the
         final MVL measured as provided for in the Specification exceeds the
         GVL, the Builder shall have no liability to the Buyer for an excess of
         up to [***] [Confidential Treatment] but commencing with an excess of
         more than [***] [Confidential Treatment] over GVL, the Contract Price
         shall be reduced by way of liquidated damages by [***] [Confidential
         Treatment] for each cabin and/or for each area of public rooms or
         spaces of [***] [Confidential Treatment] provided that if in more than
         [***] [Confidential Treatment] of the cabins and/or if in more than
         [***] [Confidential Treatment] of the aggregate area of public rooms or
         spaces the final MVL exceeds the GVL by more than [***] [Confidential
         Treatment], the Buyer may, at its option, accept the Ship at a
         reduction in the Contract Price of:

         (i)      [***] [Confidential Treatment], in respect of the cabins;
                  and/or

         (ii)     [***] [Confidential Treatment], in respect of the public rooms
                  or spaces,

         or the Buyer may reject the Ship and terminate this Contract pursuant
         to clause 2 in Article 9.

2.13     In the cabins and in the public rooms and spaces of the Ship, the
         guaranteed maximum sound levels ("GSL") shall be the upper limits of
         the sound levels defined in section G.5.2.2. of the Specification.

2.14     If, in any cabin or in any area of the public rooms and spaces of the
         Ship, the measured sound levels ("MSL"), measured as provided for in
         section G.5.2.2 of the Specification, exceeds the GSL, the Builder
         shall make the necessary changes before delivery to reduce such levels
         to the GSL figures.

2.15     If, after the changes made by the Builder pursuant to clause 2.14, the
         final MSL measured as provided for in the Specification exceeds the
         GSL, the Builder shall have no liability to the Buyer for an excess of
         up to [***] [Confidential Treatment] but commencing with an excess of
         more than [***] [Confidential Treatment] over GSL, the Contract Price
         shall be reduced by way of liquidated damages as follows:

         (i)      from [***] [Confidential Treatment] above GSL, a total sum of
                  [***] [Confidential Treatment] for each cabin and/or for each
                  area of public rooms or spaces of [***] [Confidential
                  Treatment]; and

         (ii)     from [***] [Confidential Treatment] above GSL, a total sum of
                  [***] [Confidential Treatment] for each cabin and/or for each
                  area of public rooms or spaces of [***] [Confidential
                  Treatment],

         with fractions of a decibel calculated in proportion provided that if
         in more than [***] [Confidential Treatment] of the cabins the final MSL
         exceeds the GSL by more than [***] [Confidential Treatment] and/or if
         the average value of MSL in more than [***] [Confidential Treatment] of
         the aggregate area of public rooms and spaces exceeds the GSL by more
         than [***] [Confidential Treatment], the Buyer may, at its option,
         accept the Ship at a reduction in the Contract Price of:

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                                                                  FIRST ORIGINAL

         (i)      [***] [Confidential Treatment], in respect of the cabins;
                  and/or

         (ii)     [***] [Confidential Treatment], in respect of the public rooms
                  and spaces,

         or the Buyer may reject the Ship and terminate this Contract pursuant
         to clause 2 in Article 9.

2.16     All reductions in the Contract Price provided for under any of clauses
         2.3, 2.5, 2.7, 2.9, 2.12 and/or 2.15 shall be determined on delivery of
         the Ship and made by means of set-off and deduction from the payments
         to be made by the Buyer on delivery of the Ship.

2.17     The Buyer intends to arrange for the Ship's maiden cruise with fare
         paying passengers to be held on the Ship's relocation voyage from the
         port of delivery referred to in Article 1, clause 1.1(i)(c) above. The
         Builder:

         (i)      acknowledges that it is imperative for the Ship to be ready at
                  the time, and in the condition, provided for in this Contract
                  so as to enable the Buyer to fulfil its commitments in
                  relation to the Ship's maiden cruise; and

         (ii)     agrees to do all it can to assist the Buyer to fulfil its
                  commitments in relation to the Ship's maiden cruise.

2.18     If delivery of the Ship is not made on the Compensation Date, the Buyer
         will suffer loss and damage (including reputational damage) in amounts
         which are extremely difficult to quantify in advance but it is agreed
         that the per day sums set out in paragraphs (i) to (iv) below represent
         a genuine and reasonable pre-estimate of the Buyer's loss and damage
         for each day of delay in delivery of the Ship beyond the Compensation
         Date. If delivery of the Vessel is delayed beyond the Compensation
         Date, the Contract Price shall be reduced by the way of liquidated
         damages for each calendar day (or pro-rata for each part of a calendar
         day) by the per day sums set out at paragraphs (i) to (iv) below from
         (and including) the Compensation Date until delivery of the Ship is
         actually made or this Contract is terminated:-

         (i)      if the Builder shall have given to the Buyer less than thirty
                  one (31) days notice of the delay in delivery prior to the
                  Delivery Date: for the first [***] [Confidential Treatment]
                  days the rate of reduction shall be [***] [Confidential
                  Treatment] per day; for the next [***] [Confidential
                  Treatment] the rate of reduction shall be [***] [Confidential
                  Treatment] per day; and thereafter the rate of reduction shall
                  be [***] [Confidential Treatment] per day;

         (ii)     if the Builder shall have given to the Buyer more than thirty
                  (30) days but less than ninety one (91) days notice of the
                  delay in delivery prior to the Delivery Date: for the first
                  [***] [Confidential Treatment] the rate of reduction shall be
                  [***] [Confidential Treatment] per day; for the next [***]
                  [Confidential Treatment] the rate of reduction shall be [***]
                  [Confidential Treatment] per day; and thereafter the rate of
                  reduction shall be [***] [Confidential Treatment] per day;

                                      -29-
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                                                                  FIRST ORIGINAL

         (iii)    if the Builder shall have given to the Buyer more than ninety
                  (90) days but less than one hundred and eighty three (183)
                  days notice of the delay in delivery prior to the Delivery
                  Date: for the [***] [Confidential Treatment] the rate of
                  reduction shall be [***] [Confidential Treatment] per day; for
                  the next [***] [Confidential Treatment] the rate of reduction
                  shall be [***] [Confidential Treatment] per day, and
                  thereafter the rate of reduction shall be [***] [Confidential
                  Treatment] per day; and

         (iv)     if the Builder shall have given to the Buyer more than one
                  hundred and eighty two (182) days notice of the delay in
                  delivery prior to the Delivery Date: for the first [***]
                  [Confidential Treatment] the rate of reduction shall be [***]
                  [Confidential Treatment] per day; for the next [***]
                  [Confidential Treatment] the rate of reduction shall be [***]
                  [Confidential Treatment] per day; and thereafter the rate of
                  reduction shall be [***] [Confidential Treatment] per day.

         If the delay in delivery of the Ship continues for [***] [Confidential
         Treatment] days after the Compensation Date then, in such event, the
         Buyer may at any time thereafter terminate this Contract pursuant to
         Clause 2 in Article 9. If the delay in delivery of the Ship continues
         for [***] [Confidential Treatment] days after the Compensation Date,
         and provided the Buyer has not by then elected to terminate this
         Contract, the Builder may (by written notice) require the Buyer to make
         an election in which case the Buyer shall - within 15 (fifteen) days
         after its receipt of the Builder's notice - notify the Builder in
         writing of its intention either to terminate this Contract or to
         consent to the acceptance of the Ship at an agreed future date on the
         basis that the Buyer shall remain entitled to all liquidated damages
         which would otherwise have been payable or allowable by the Builder; it
         being further understood that, if the Ship is not delivered by such
         agreed future date, the Buyer shall have the same right of termination
         upon the same terms and conditions as set out above. If the Buyer fails
         to make an election as specified above within the relevant 15 (fifteen)
         day period, the Buyer shall be deemed to have consented to the Ship
         being delivered at the future date proposed by the Builder.

2.19     All reductions in the Contract Price provided for in clause 2.18 shall
         be made in the form of payments by the Builder to the Buyer as follows:

         (i)      the Builder's first payment shall be made on the earlier of
                  (a) the thirtieth (30th) day after delivery of the Ship has
                  been delayed beyond the Compensation Date and (b) the date on
                  which actual delivery of the Ship is made; and

         (ii)     thereafter the payments shall be made every ten (10) days
                  commencing on the tenth (10th) day after the end of the thirty
                  (30) day period mentioned in clause 2.19(i)(a),

         and continuing on the last day of each succeeding ten (10) day period
         thereafter until the day on which delivery of the Ship is actually made
         or this Contract is terminated at which time the Builder shall pay the
         entire remaining amount due under clauses 2.18 and 2.19.

2.20     The parties acknowledge and agree that:

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                                                                  FIRST ORIGINAL

         (i)      the Contract Price reductions and payments provided for in
                  this clause 2 are cumulative; and

         (ii)     subject always to the guarantee provisions in Article 7 clause
                  2 and to the termination provisions in Article 9 clause 2, the
                  Contract Price reductions and payments provided for in this
                  clause 2 shall be the only compensation recoverable by the
                  Buyer in respect of the Defects and the delay in delivery to
                  which they relate and, in particular, the Builder shall not be
                  liable for any consequential losses resulting from such
                  Defects or such delay in delivery.

                                                              (END OF ARTICLE 6)

                                      -31-
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                                                                  First Original

ARTICLE 7: DELIVERY AND GUARANTEE

1.       DELIVERY AND ACCEPTANCE

1.1      The date on which the Ship shall be ready for delivery is 5 August 2005
         (the "Delivery Date"). The Ship shall not be delivered before this date
         without the express written approval of the Buyer. When:

         (i)      the Builder has completed the building work in conformity with
                  this Contract, the Plans and the Specification;

         (ii)     all tests have been performed and completed in a manner
                  satisfactory to the Buyer;

         (iii)    the Ship has been freed from all Defects (apart from Defects
                  which qualify as minor and insignificant Defects, as defined
                  in clause 1.6, and Defects for which there will be a reduction
                  in the Contract Price in accordance with Article 6 clause 2);
                  and

         (iv)     the Ship (a) has been cleaned and prepared (in accordance with
                  the Builder's usual practices and to their usual standards for
                  ships of this type) to take on a full complement of
                  passengers, officers, crew and staff, and (b) is in all other
                  respects ready to commence operations as a luxury cruise ship,

         the Builder shall tender the Ship for delivery to the Buyer safely
         afloat alongside a safe and accessible quay at the Delivery Port where
         there must be sufficient water for the Ship always to remain afloat and
         from where there must be direct, free, unimpeded, safe and lawful
         access to international waters provided that (a) the Builder shall have
         given to the Buyer not less than 180 (one hundred and eighty) days and
         ninety (90) days estimated, followed by 15 (fifteen) days definite,
         prior written notice of delivery, and (b) with effect from service of
         the 90 (ninety) day estimated notice referred to above, the Builder
         shall have allowed designated employees of the Star Cruises Group to
         attend the Shipyard and to be present during tests and for
         familiarisation purposes.

1.2      The Builder shall deliver the Ship to the Buyer free and clear of all
         encumbrances whatsoever.

1.3      On delivery of the Ship the Builder shall also deliver the following
         documents (together, the "Delivery Documents"):

         (i)      a protocol of delivery and acceptance in a mutually agreed
                  form confirming delivery of the Ship to, and acceptance and
                  taking possession of the Ship by, the Buyer pursuant to this
                  Contract, executed in duplicate by the Builder and stating the
                  date and (local) time of such delivery and acceptance;

         (ii)     a declaration of warranty by the Builder in a mutually agreed
                  form confirming that the Ship is delivered to the Buyer free
                  and clear of all encumbrances whatsoever (including, without
                  limitation, all liabilities of the Builder to its
                  subcontractors and all liabilities arising from the operation
                  of the Ship for the purposes of the tests) and that the Ship
                  is absolutely free of all burdens in the

                                      -32-
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                                                                  FIRST ORIGINAL

                  nature of taxes imposed by the nation, city, county, state or
                  port of delivery, executed in triplicate and notarised and
                  legalised in accordance with the Buyer's instructions;

         (iii)    a detailed inventory showing the machinery and equipment
                  installed on the Ship and the spares, stores and other
                  consumable items delivered with the Ship;

         (iv)     the makers' certificates, subcontractors' instruction books,
                  and all of the Classification Society, trading and other
                  certificates (each free of conditions, qualifications,
                  recommendations, reservations and restrictions) required to be
                  supplied upon delivery of the Ship pursuant to this Contract
                  and the Specification;

         (v)      a protocol showing the results of the tests;

         (vi)     such documents signed by the Builder as the Buyer may
                  reasonably require to procure the deletion of the Ship from
                  the Registry of Ships under Construction;

         (vii)    a commercial invoice for the Ship and all other amounts
                  payable by the Buyer on delivery;

         (viii)   a builder's certificate and a bill of sale, each in a form
                  acceptable to the Buyer, each executed in quadruplicate and
                  notarised and legalised in accordance with the Buyer's
                  instructions, and such other written instruments (each
                  notarised and legalised in accordance with the Buyer's
                  instructions) as may be necessary or desirable, in the
                  reasonable opinion of the Buyer, to confirm that full and
                  clean title in the Ship has been vested in the Buyer;

         (ix)     a full set of the specified construction documents (each in
                  three (3) white prints, one of each of which will be on board
                  the Ship at delivery);

         (x)      one CD-ROM of the principal delivery drawings and plans
                  relating to the Ship approved by the Classification Society;
                  and

         (xi)     such further certificates and/or other documents as may be
                  necessary or desirable, in the reasonable opinion of the
                  Buyer, in connection with the Buyer's ownership, registration
                  and/or financing of the Ship.

1.4      If, at the time when the Builder tenders delivery of the Ship to the
         Buyer, the Ship is complete (meaning that she has been designed,
         engineered, built, launched, equipped, outfitted, finished and tested
         in accordance with this Contract and the Specification), and if such
         tender is accompanied by a tender of delivery of a complete and proper
         set of the Delivery Documents, the Ship and the Delivery Documents
         shall thereupon be accepted by the Buyer but if, at such time, the Ship
         and/or the Delivery Documents are not complete, the Buyer shall be
         entitled to refuse acceptance of the same by delivering to the Builder,
         within two (2) working days from (and including) the date of such
         tender, a written notice describing those aspects of the Ship and/or
         the Delivery Documents which are not complete.

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                                                                  First Original

1.5      Notwithstanding any provision to the contrary in this clause 1, if the
         Ship is complete but for minor and insignificant Defects, the Buyer
         shall accept delivery subject to:

         (i)      an agreed reduction in the Contract Price; or

         (ii)     in the Buyer's option, the Builder undertaking to correct (at
                  the Builder's entire risk and expense, and with all convenient
                  speed) minor and insignificant Defects described in a list to
                  be prepared by the Buyer and agreed with the Builder at or
                  before delivery.

1.6      The expression "Minor And Insignificant Defects" means those Defects
         which:

         (i)      do not and will not adversely affect the seaworthiness of the
                  Ship; or

         (ii)     do not and will not prevent the unrestricted use of the Ship
                  in its intended service and purpose; or

         (iii)    do not and will not (a) prevent the use of any of the Ship's
                  cabins and public areas, or (b) in any other way adversely
                  affect the comfort and safety of the Ship's passengers; or

         (iv)     do not and will not adversely affect the operational
                  efficiency of the Ship; or

         (v)      do not and will not involve any condition, qualification,
                  recommendation, reservation or restriction in relation to any
                  certificate issued (or to be issued) by the Classification
                  Society or any Regulatory Authority or any other specified
                  person which in the opinion of the Buyer (acting in good
                  faith) is or could be material in a commercial or technical
                  sense.

1.7      Acceptance of the Ship by the Buyer shall be accomplished by:

         (i)      the delivery to the Builder of a counterpart of the protocol
                  of delivery and acceptance duly executed by the Buyer; and

         (ii)     payment by the Buyer to the Builder of that part of the
                  Contract Price which the Buyer is required to pay upon
                  delivery of the Ship pursuant to clause 2.1(vi) in Article 8.

1.8      The Buyer may (but shall not be obliged to) identify in the list
         described in clause 1.5(ii) any Defects which are known by the Buyer to
         exist in the Ship at the time that the Ship is accepted, and all such
         Defects (whether or not identified or otherwise noted), shall
         thereafter be deemed to be, and shall be treated as, Defects arising
         and reported during the Guarantee Period.

1.9      The Buyer shall be afforded five (5) days free of any wharfage or any
         other charge, and up to three (3) further days at the usual wharfage
         fee charged by the relevant port authority, within which to remove the
         Ship from her point of delivery.

1.10     Lubricating oil left in storage tanks, and diesel and fuel oil
         remaining on board, at delivery of the Ship shall be inventoried by the
         Builder and the Buyer shall pay for them

                                      -34-
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                                                                  First Original

         at the Builder's actual cost price provided that the Builder shall
         remove all waste-oil and sludge from the Ship at the Builder's risk and
         expense prior to delivery.

1.11     In every instance in which a right or obligation or the computation of
         any period of time under this Contract is in any manner or to any
         extent dependent upon delivery of the Ship, delivery shall not be
         deemed to have occurred unless and until the Ship and the related
         Delivery Documents have been accepted by the Buyer under this clause 1.

1.12     Acceptance of the Ship and the related Delivery Documents by the Buyer
         under this clause 1:

         (i)      shall signify that the Buyer has taken possession and the risk
                  of loss of the Ship and the related Delivery Documents as of
                  the time and date set out in the protocol of delivery and
                  acceptance and that the Builder may terminate the Insurances;
                  and

         (ii)     shall not be deemed to constitute a waiver of or otherwise
                  prejudice any of the Buyer's rights under clause 2 with
                  respect to any Defect, whether known or unknown, and whether
                  or not noted in any document delivered in connection with
                  delivery and acceptance of the Ship, which may exist in the
                  Ship at the time it is accepted by the Buyer, and any such
                  Defect may be reported to, and shall be corrected at the sole
                  and direct risk and expense of, the Builder as provided in
                  clause 2.

2.       GUARANTEE

2.1      Subject to the provisions of this clause 2, the Builder guarantees:

         (i)      the Ship's main engines and certain components of the azipod
                  system (namely: the pod, the converter, trafo and main
                  switchboard parts) against all Defects for the period of seven
                  hundred and thirty (730) days; and

         (ii)     the Ship and all other Parts against all Defects for the
                  period of three hundred and sixty five (365) days,

         (subject to any extension thereof as provided for in this clause 2)
         from date of the Ship's actual delivery to the Buyer under Article 6
         (the "Guarantee Period").

2.2      In calculating the length of the Guarantee Period there shall be
         excluded any day(s) during which the Ship is prevented from entering or
         is taken out of service solely on account of any Defect in the Ship or
         in any Part for which the Builder is responsible under this clause 2.

2.3      Where any Defect in the Ship or any Part (including the main engines or
         azipod system as defined in subclause 2.1(i) above) is corrected during
         or after the Guarantee Period, the Builder's guarantee under this
         clause 2 shall apply to such correction for the longer of three hundred
         and sixty five (365) days from the date on which the correction was
         completed and the end of the relevant period specified in subclause
         2.1(i) and 2.1(ii) above so that the Guarantee Period for the items
         referred to in subclause 2.1(i) shall not

                                      -35-
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                                                                  FIRST ORIGINAL

         exceed one thousand and ninety five (1095) days and the Guaranteed
         Period for the items referred to in subclause 2.1(ii) shall not exceed
         seven hundred and thirty (730) days.

2.4      If any corrective works made or agreed to be made during or after the
         Guarantee Period (or any extension thereof under clause 2.3) indicate
         any recurring Defect, the Builder shall:

         (i)      investigate the same on the basis of a potential design
                  Defect; and

         (ii)     ascertain the source of such recurring Defect and notify the
                  Buyer thereof; and

         (iii)    correct such recurring Defect, and the source thereof, in
                  order to avoid a continuation or repetition of such recurring
                  Defect.

2.5      The Builder shall not be responsible for the correction of any Defect
         if it is due to:

         (i)      perils of the sea, accident (but excluding any accident caused
                  by any Defect), negligence (but excluding negligence on the
                  part of the Builder), or improper maintenance or handling
                  (including, without limitation, overloading) of the Ship or
                  any Parts; or

         (ii)     use of fuels or lubricants not recommended by the relevant
                  manufacturer; or

         (iii)    ordinary wear and tear; or

         (iv)     any fault in (or caused by) any Buyer's Supplies which were
                  properly (a) received, (b) handled, (c) installed or
                  incorporated in, (d) stowed on, or (e) otherwise delivered
                  with the Ship by the Builder in accordance with all of the
                  requirements of this Contract, the Plans and the
                  Specification.

2.6      The Buyer shall give written notice to the Builder as soon as possible
         and in any event within fourteen (14) days after the discovery of any
         Defect for which a claim is made under this clause 2 and, a copy of
         each such notice shall also be given to the guarantee engineer, who
         shall acknowledge receipt by his signature thereof. The Buyer's notice
         shall give full details (so far as possible) as to the nature of the
         Defect and the extent of any damage caused thereby.

2.7      Within thirty (30) days after the end of the Guarantee Period, the
         Buyer (in consultation with the guarantee engineer) will draw up, and
         send to the Builder, a list identifying every Defect for which a claim
         is to be made under this clause 2 provided that this clause 2.7 will
         not preclude the Buyer from giving notice to the Builder of, and making
         claims in respect of, any Defect which is covered by the Builder's
         guarantee under clause 2.3.

2.8      Each Defect will be corrected by the Builder as soon as reasonably
         practicable (and shall be scheduled so as to minimise disruption to the
         Ship's service and the availability of cabins, public rooms and areas,
         and other passenger facilities) or, at the Buyer's option, under the
         instruction or supervision of the Builder at a suitably qualified
         shipyard or workshop selected by the Buyer and approved by the Builder
         (such approval not to be unreasonably withheld or delayed), and in each
         case the Builder shall bear and pay:

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                                                                  FIRST ORIGINAL

         (i)      the cost of all equipment, parts and materials required to
                  correct the Defect (including, without limitation, the cost of
                  delivering the same to the selected shipyard or workshop by
                  airfreight if the Buyer reasonably so requires, and the cost
                  of returning any defective equipment, parts and materials);

         (ii)     the cost of all labour required to correct the Defect
                  including, without limitation, the expenses of independent
                  contractors in travelling to the Ship;

         (iii)    the cost of any necessary underwater inspection of the Ship by
                  divers; and

         (iv)     where the Ship is drydocked solely on account of the need to
                  investigate or correct any Defect in the Ship's external
                  underwater parts at any time before the Ship's first scheduled
                  drydocking after delivery, the fuel costs of taking the Ship
                  from her berth to the nearest available dry-dock and vice
                  versa, the drydocking costs and the costs of correcting any
                  such Defect.

         For the avoidance of doubt, in view of the intended area of the Ship's
         operation during the Guarantee Period, the Builder will not be entitled
         to require the Ship to be returned to any of the Builder's facilities
         for the correction of any Defects.

2.9      Where the Buyer discovers any Defect which (in the reasonable opinion
         of the Buyer) requires correction on an urgent basis, the Buyer will
         (acting in good faith) give such notice to the Builder as is
         practicable in the circumstances then prevailing (the intention being
         that the Builder shall have a reasonable opportunity to obtain
         necessary remedial instructions from the relevant sub-contractor(s) and
         to relay such instructions to the Buyer) and thereafter the necessary
         corrective works may be carried out by the Ship's crew or, if
         practicable having regard to the degree of urgency, by the nearest
         suitably qualified shipyard or workshop selected by the Buyer, and in
         each such case the Builder shall reimburse the Buyer for the costs
         described in clause 2.8(i), (ii), (iii) and (iv) above.

2.10     With effect from the expiry of the Guarantee Period or (if later) final
         completion of all corrective works to be made by the Builder under this
         clause 2, the Builder will:

         (i)      assign to the Buyer, to the fullest extent possible and
                  without any charge to the Buyer, that part of every warranty
                  or guarantee made or given by any sub-contractor with respect
                  to any design, workmanship or Part which extends beyond the
                  Guarantee Period or which is otherwise more favourable to the
                  Buyer than the guarantee of the Builder under this clause 2;
                  or

         (ii)     if it is not possible fully and effectively to assign the
                  relevant part of any such warranty or guarantee, hold and
                  enforce the relevant warranty and guarantee as trustee and
                  agent for the Buyer and promptly account to the Buyer for all
                  monies received in or pursuant to the holding or enforcement
                  of any such warranty or guarantee.

2.11     The Builder shall, at its sole risk and expense (except for the cost of
         suitable accommodation and food on board the Ship which shall be
         supplied free of charge by the Buyer), employ and place a suitably
         qualified and experienced English-speaking guarantee engineer
         acceptable to the Buyer on board the Ship throughout the Guarantee
         Period and thereafter until the Builder has corrected every Defect to
         which this clause 2

                                      -37-
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                                                                  FIRST ORIGINAL

         applies. If the Builder should so request at delivery, the Buyer will
         also make one double cabin available for a second guarantee engineer
         and/or fitters for up to three (3) months after delivery.

2.12     If:

         (i)      any Defect in the Ship's external underwater parts is
                  discovered during the Guarantee Period or the period of thirty
                  (30) days referred to in clause 2.7; or

         (ii)     any Defect in the Ship's external underwater parts is
                  discovered during the Ship's first scheduled drydocking after
                  delivery (which is to commence not later than thirty six (36)
                  months after delivery provided that if the Ship is not
                  drydocked within twenty four (24) months after delivery, the
                  Buyer and the Builder will jointly make an in-water inspection
                  of the Ship's underwater parts within twenty four (24) months
                  after delivery) and either the Builder accepts that the Defect
                  arose during the Guarantee Period or the Builder is unable to
                  prove that the Defect arose after the end of the Guarantee
                  Period,

         the Builder shall be responsible for such Defect and the correction
         thereof in accordance with this clause 2 provided that the Buyer shall
         bear and pay for the haul day and any drydocking costs incurred in the
         ordinary course of the Ship's normal drydocking maintenance and the
         Builder, in addition to the costs of all necessary corrective works,
         shall bear and pay for such additional drydocking day(s) as may be
         required to correct such Defect.

2.13     Without prejudice to the Builder's obligations and liabilities under
         the other provisions of this clause 2, the Builder shall not be
         responsible for any loss or damage caused by any Defect except:

         (i)      that, in addition to the other guarantee obligations specified
                  in this clause 2, the Builder shall be obliged to correct (or,
                  as provided for in the preceding paragraphs of this clause 2,
                  pay for the correction of) any equipment or part of the Ship
                  that is damaged as a direct result of any Defect covered by
                  the Builder's guarantee under this clause 2;

         (ii)     for any loss or damage directly caused by the Builder's
                  correction of any Defect;

         (iii)    for any loss or damage directly caused by the wrongful refusal
                  or failure of the Builder or its subcontractors to correct (or
                  authorise the correction) of any Defect, and

         (iv)     for any increase in premium or any loss of rebate incurred by
                  the Buyer as a result of any claims being made on the Buyer's
                  insurance policies for the Ship in respect of any loss or
                  damage referred to in this clause 2.13

         provided always that the Builder's maximum liability in respect of any
         claim made against it by the Buyer under this clause 2.13 shall not
         exceed the sum of [***] [Confidential Treatment] per Defect.

                                      -38-
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                                                                  FIRST ORIGINAL

2.14     The Builder further guarantees the Ship against any latent Defects
         which the Buyer can demonstrate existed at the time of the Ship's
         delivery to the Buyer but which were not apparent during the Guarantee
         Period. If the Buyer discovers any latent Defects after the expiry of
         the Guarantee Period, the Guarantee Period shall be deemed to be
         extended in respect of such Defects and the Builder shall be obliged to
         correct (or pay for the correction of) such Defects in accordance with
         the foregoing provisions of this clause 2 provided always that:

         (i)      the Buyer shall give written notice to the Builder as soon as
                  possible (and in any event within fourteen (14) days) after
                  the discovery of any latent Defect for which a claim is made
                  under this clause 2.14, and such notice shall give full
                  details (so far as possible) of the nature of the latent
                  Defect and the extent of any damage cause thereby;

         (ii)     the Buyer shall have the burden of establishing that the
                  Defect is a latent Defect within the meaning set out above,
                  failing which the Builder shall have no liability in respect
                  thereof;

         (iii)    the Builder shall be under no obligation in respect of any
                  latent Defect unless written notice thereof has been received
                  by the Builder by midday (Papenburg time) on the day falling
                  [***] [Confidential Treatment] from the date of the Ship's
                  actual delivery to the Buyer; and

         (iv)     the provisions of this sub clause relating to latent Defects
                  do not apply to paintings or coatings.

2.15     Subject to the other express provisions of this Contract, the Builder
         shall not be responsible for any loss of profit or other consequential
         losses suffered by the Buyer.

                                                              (END OF ARTICLE 7)

                                      -39-
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                                                                  FIRST ORIGINAL

ARTICLE 8: CONTRACT PRICE AND PAYMENT TERMS

1.       CONTRACT PRICE

1.1      The Contract Price for the Ship:

         (i)      shall be $390,000,000 (three hundred and ninety million
                  dollars);

         (ii)     is a fixed price and may be adjusted only in strict accordance
                  with, and subject to, the express provisions of this Contract;
                  and

         (iii)    includes a lump sum allowance in the amount of $25,000,000
                  (twenty five million dollars) in respect of (a) Buyer's
                  Supplies from time to time purchased by or at the direction of
                  the Buyer and (b) other costs from time to time expended by or
                  at the direction of the Buyer in connection with construction
                  of the Ship, which amount shall be paid by the Builder to the
                  Buyer immediately after receipt of the balance of the Contract
                  Price (see clause 2.1(vi) below).

1.2      For the avoidance of doubt, the Contract Price includes:

         (i)      the cost of the Ship, completed in accordance with the
                  requirements of this Contract;

         (ii)     the cost of all building work and the cost of all tests and
                  trials of the Ship to be performed by, or on behalf of, the
                  Builder;

         (iii)    the cost of procuring the classification notation for the
                  Ship, and of obtaining all certificates and other documents
                  which are required to be delivered pursuant to this Contract;
                  and

         (iv)     all other costs and expenses of the Builder as provided for
                  herein or otherwise incurred by the Builder unless expressly
                  provided for in this Contract as being for the Buyer's
                  account.

1.3      No commission of any kind whatsoever is or will be payable (whether
         directly or indirectly) by or to any person in relation to or in
         connection with this Contract or any of the business transactions
         described in or contemplated by this Contract.

2.       PAYMENTS

2.1      Payment of the Contract Price shall be made to the Builder as follows:

         (i)      [***] [Confidential Treatment], within [***] [Confidential
                  Treatment] working days after the Effective Date;

         (ii)     [***] [Confidential Treatment], within [***] [Confidential
                  Treatment] working days after the Effective Date;

         (iii)    [***] [Confidential Treatment] on the date falling [***]
                  [Confidential Treatment] calendar months before delivery of
                  the Ship;

         (iv)     [***] [Confidential Treatment] on the date falling [***]
                  [Confidential Treatment] calendar months before delivery of
                  the Ship;

                                      -40-
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                                                                  FIRST ORIGINAL

         (v)      [***] [Confidential Treatment], on the date falling [***]
                  [Confidential Treatment] calendar months before delivery of
                  the Ship; and

         (vi)     the balance of the Contract Price, on delivery of the Ship and
                  the Delivery Documents to, and their acceptance by, the Buyer
                  in accordance with the provisions of this Contract.

2.2      The Builder shall by not less than fourteen (14) days advance written
         notice advise the Buyer of the date upon which each of the payments
         referred to sub-clauses 2.1(ii) to (vi) shall become due and payable
         and, in addition, the notice given in relation to sub-clause 2.1(vi)
         will show (in reasonable detail and on an open-book basis) the
         Builder's calculation of the balance of the Contract Price payable on
         delivery of the Ship and, in particular, the amounts of any reductions
         in or additions to the Contract Price occasioned by the terms and
         conditions of this Contract.

2.3      The Buyer's obligations to make the payments referred to in sub-clauses
         2.1(i) to (vi) shall, in the case of each such payment, be subject to
         and conditional upon the Buyer's receipt of the Builder's invoice for
         the relevant payment.

2.4      Subject to the terms and conditions of the Account Block Agreement, the
         Builder shall not be entitled to apply or use any payment made by the
         Buyer, or any amount standing to the credit of the Builder's Account,
         for any purpose other than to pay for work done and deliveries made in
         relation to the construction of the Ship. The Builder shall be entitled
         to withdraw amounts from the Builder's Account for such purposes so
         long as the Builder is not in material breach of any of its obligations
         under this Contract. The Builder's Account shall immediately be blocked
         in favour of the Buyer when the Buyer notifies the Builder's Bank that
         the Builder is in material breach of any of its obligations under this
         Contract and that the Builder has failed to remedy such material breach
         within 10 (ten) days after notice from the Buyer. At quarterly
         intervals counting from the Effective Date the Builder will provide the
         Buyer with a status report (verified by the Builder's auditors and in a
         form reasonably acceptable to the Buyer) detailing the payments made
         from the Builder's Account in the preceding quarter and the credit
         balance of the Account on or about the date of each report. The Buyer
         may raise questions and request further information in relation to such
         reports (and the status or operation of the Builder's Account) and the
         Builder will ensure that any such questions and requests for
         information are answered promptly and in reasonable detail in the
         following order - by the Builder or (as the case may be) by the
         Builder's auditors or by the Builder's Bank.

2.5      The other payments from time to time due under this Contract shall be
         made as follows:

         (i)      payment or credits for any modification(s) pursuant to Article
                  3 and/or any other amount(s) accruing prior to delivery (but
                  for which no specific date is stipulated in this Contract)
                  shall be made simultaneously with delivery of the Ship, and
                  the amount(s) thereof shall be shown in the invoice to be
                  issued and delivered by the Builder in respect of the Contract
                  Price payment referred to in clause 2.1(vi);

                                      -41-
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                                                                  FIRST ORIGINAL

         (ii)     any amount for which a specific payment date is stipulated in
                  this Contract shall be paid on such date; and

         (iii)    for any amount accruing after delivery in respect of a defect,
                  payment shall be made as follows:

                  (a)      if the parties agree that the defect in question is a
                           Defect, not later than fifteen (15) days after the
                           Builder's receipt of an invoice for the Defect
                           remedied pursuant to clause 2 in Article 7; or

                  (b)      if the parties are in dispute as to whether the
                           defect is a Defect on the date on which it is finally
                           determined or adjudged to be a Defect under Article
                           13, together with interest thereof at the relevant
                           rate calculated from the date of the Builder's
                           receipt of an invoice for the Defect remedied
                           pursuant to clause 2 in Article 7 up to and including
                           the date of the Buyer's receipt of the relevant
                           amount.

2.6      Every amount from time to time due under this Contract but unpaid for
         longer than seven (7) days from (and excluding) the due date shall bear
         interest at the relevant rate from the due date up to and including the
         date of receipt by the party to which the amount is owed.

2.7      All amounts payable to the Builder under this Contract shall be paid
         direct to the Builder's Account, and the Builder and the Buyer shall
         consult with each other about the mode of payment with a view to
         reducing the amount of any applicable bank transfer charges.

2.8      All payments made by the Buyer to the Builder prior to the delivery of
         the Ship shall be in the nature of advances to the Builder.

2.9      All fees, costs and other charges whatsoever arising in connection with
         any payment made under this Contract shall be borne and paid by the
         paying party provided that any fees, costs or other charges levied by
         the receiving party's bank(s) (including correspondent banks, whether
         in Germany or elsewhere) shall be borne and paid by that party.

2.10     The dollar is the currency of account and payment for each and every
         sum at any time due from either party to the other under or in
         connection with this Contract.

                                                              (END OF ARTICLE 8)

                                      -42-
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                                                                  First Original

ARTICLE 9: TERMINATION

1.       TERMINATION BY BUILDER

1.1      Each of the following events shall be a "Builder Termination Event" for
         the purposes of this Contract:

         (i)      if, without due cause, the Buyer fails to pay any part of the
                  Contract Price under any of clauses 2.1 (i), (ii), (iii), (iv)
                  or (v) in Article 8 on the due date for such payment and such
                  failure is not remedied within fifteen (15) working days after
                  the receipt by the Buyer of a written notice from the Builder
                  notifying the Buyer of such failure and requesting remedial
                  action; or

         (ii)     if, without due cause, the Buyer fails to accept delivery of
                  (and pay the balance of the Contract Price for) the Ship
                  within three (3) working days after the Ship and the related
                  Delivery Documents have been duly tendered for delivery by the
                  Builder in conformity with this Contract; or

         (iii)    if (a) a final order shall be made or an effective resolution
                  shall be passed for the winding up of the Buyer (otherwise
                  than by a members' voluntary winding up for the purpose of an
                  amalgamation or reconstruction on terms previously approved by
                  the Builder, which approval shall not be unreasonably
                  withheld) or (b) a receiver shall be appointed of the whole or
                  any substantial part of the undertaking of the Buyer or (c)
                  the Buyer shall suspend the payment of its debts or (d) the
                  Buyer shall make an arrangement or composition with its
                  creditors generally or (e) the Buyer shall apply to any court
                  for protection from its creditors generally.

1.2      At any time after a Builder Termination Event shall have occurred and
         be continuing, the Builder may, by notice to the Buyer, terminate this
         Contract whereupon:

         (i)      title in the Ship, the Parts, and in the Buyer's Supplies
                  owned by the Buyer which have been installed or incorporated
                  in the Ship before termination, shall pass to the Builder; and

         (ii)     the Builder shall retain and apply (in the manner provided for
                  in clause 1.3) all payments previously made by the Buyer to
                  the Builder under this Contract.

1.3      If the Builder terminates this Contract under clause 1.2, the Builder
         shall endeavour to obtain the best market price reasonably obtainable
         for the Ship, the Parts and the Buyer's Supplies referred to in clause
         1.2 (i) by sale at public auction or tender or private sale, and shall
         apply the proceeds of sale (after deducting the necessary expenses of
         sale including the reasonable costs of completing the Ship for sale)
         and all amounts retained by the Builder under clause 1.2 (ii) plus a
         credit for the value of Buyer's Supplies previously delivered by the
         Buyer and either retained by the Builder or its subcontractors or sold
         by any of them, as follows:

         (i)      firstly, in satisfaction of the balance due to the Builder
                  under this Contract being (a) where the Ship is completed in
                  accordance with this Contract and then sold, the unpaid parts
                  of the Contract Price or (b) where the Ship is sold in an

                                      -43-
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                                                                  First Original

                  uncompleted state, that proportion of the unpaid parts of the
                  Contract Price which is required to reimburse the Builder's
                  costs of the building work up to the cessation of such work,
                  and (c) all other amounts payable by the Buyer to the Builder
                  under the provisions of this Contract; and

         (ii)     secondly, in payment of the Builder's proved loss directly
                  resulting from the Buyer's default; and

         (iii)    thirdly, in payment of any remaining balance to the Buyer,

         provided that if the total of such proceeds of sale, such retained
         amounts and such credit shall be less than the balance due to the
         Builder under paragraphs (i) and (ii) of this clause 1.3, the
         difference shall be paid by the Buyer to the Builder.

2.       TERMINATION BY BUYER

2.1      Each of the following events shall be a "Buyer Termination Event" for
         the purposes of this Contract:

         (i)      if (a) at any time the construction of the Ship is suspended
                  for a period of more than thirty (30) days in circumstances
                  where the Builder would not be entitled to claim an extension
                  of the Delivery Date under clause 1 of Article 5 and the Buyer
                  reasonably believes that the Builder will not be able to
                  recover the lost time or (b) delivery has not been made, or it
                  can with reasonable certainty be anticipated that delivery
                  will not be made, for whatever reason or combination of
                  reasons (excepting only one or more independent defaults by
                  the Buyer), by the date falling [***] [Confidential Treatment]
                  days from [***] [Confidential Treatment];

         (ii)     if the Buyer becomes entitled to terminate this Contract under
                  any of clauses 2.3, 2.7, 2.9, 2.12, 2.15 or 2.18 in Article 6;

         (iii)    if the Builder commits a material breach of any of its
                  obligations under this Contract (including, without
                  limitation, its obligations with respect to the achievement of
                  Milestones) or the Account Block Agreement, and fails to
                  remedy any such breach within 30 (thirty) days after receipt
                  of written notice from the Buyer requesting remedial action;

         (iv)     if the Builder removes the Ship from the Shipyard, or if it
                  assigns or transfers any of its rights or obligations under
                  this Contract, or if it subcontracts the whole or any major
                  part of the building work, except as expressly permitted by
                  this Contract;

         (v)      if the Account Block Agreement is or becomes wholly or
                  partially invalid, ineffective or unenforceable; or

         (vi)     if either (a) the Builder shall fail at any time to effect or
                  maintain the Insurances, or any insurer shall avoid or cancel
                  the Insurances or the Builder shall commit any breach of or
                  make any misrepresentation in respect of the Insurances the
                  result of which is to entitle the insurers to avoid the cover
                  or otherwise to be excused or released from any or all of its
                  liability thereunder, or

                                      -44-
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                                                                  FIRST ORIGINAL

                  (b) any of the Insurances shall cease for any reason
                  whatsoever to be in full force and effect, unless the
                  Insurances are re-instated or reconstituted in a manner
                  meeting the requirements of this Contract within seven (7)
                  days; or

         (vii)    if (a) a final order shall be made or an effective resolution
                  shall be passed for the winding up of the Builder (otherwise
                  than by a members' voluntary winding up for the purposes of
                  amalgamation or reconstruction on terms previously approved by
                  the Buyer, which approval shall not be unreasonably withheld)
                  or (b) a receiver shall appointed of the whole or any
                  substantial part of the undertaking of the Builder or (c) the
                  Builder shall suspend the payment of its debts or (d) the
                  Builder shall make an arrangement or composition with its
                  creditors generally or (e) the Builder shall apply to any
                  court for protection from its creditors generally.

2.2      At any time after a Buyer Termination Event shall have occurred and be
         continuing the Buyer may, by notice to the Builder, terminate this
         Contract and thereafter:

         (i)      the Buyer may retain and/or claim from the Builder (which
                  shall immediately pay to the Buyer) all liquidated damages
                  paid or payable by the Builder to the Buyer under clauses 2.17
                  to 2.19 in Article 6; and

         (ii)     the Buyer may also claim from the Builder (which shall
                  immediately refund to the Buyer) the aggregate of (a) all
                  payments previously made by the Buyer to the Builder under
                  this Contract together with interest thereon at the relevant
                  rate calculated from the date upon which the Builder received
                  each such payment to the date on which the refund is received
                  by the Buyer, (b) the Buyer's Supply Costs, and (c) all other
                  amounts payable by the Builder to the Buyer under the
                  provisions of this Contract; and

         (iii)    if the Buyer's right to terminate this Contract (whether under
                  Articles 4 and/or 9 or otherwise) becomes exercisable as a
                  result of any negligence or wilful misconduct on the part of
                  the Builder the Buyer shall, in addition to the payments
                  referred to in sub-clauses 2.2(i) and (ii), be entitled to the
                  proved loss directly resulting from the Builder's default.

2.3      If the Buyer elects to terminate this Contract under clause 2.2 but the
         payments and refunds referred to in clause 2.2 are not made in full
         immediately upon such cancellation, the Buyer may (at any time
         thereafter) take possession of the Ship in its then state together with
         the Buyer's Supplies and all plans, machinery, equipment and other
         Parts appropriated or allocated to the Ship, and complete the Ship at
         the Shipyard or (in the Buyer's option) at another shipyard.

2.4      If the Buyer elects to take possession of the Ship under clause 2.3 it
         may remove the Ship together with the Buyer's Supplies and all
         equipment and other Parts appropriated or allocated to, or ordered for
         the Ship or, alternatively, it may use the Shipyard facilities, plant,
         machinery, tools and all equipment and other Parts appropriated or
         allocated to, or ordered for, the Ship and in either case the Builder
         shall release the same to the Buyer free from all encumbrances
         whatsoever against payment to the Builder of the unpaid balance of the
         Contract Price less the aggregate of:

                                      -45-
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                                                                  FIRST ORIGINAL

         (i)      the payments, refunds and other amounts referred to in clause
                  2.2 (i), (ii) and (iii); and

         (ii)     the Buyer's good faith estimate of the costs that it will
                  incur in (a) moving the Ship (and the Buyer's Supplies and all
                  related equipment and other Parts) to another shipyard and in
                  having the Ship completed at such other shipyard or (b) in
                  completing the Ship at the Shipyard.

3.       TERMINATION BY EITHER PARTY

3.1      Any event entitling a party to terminate this Contract in accordance
         with its express provisions shall constitute (as the case may be)
         either a repudiatory breach of, or breach of condition by the Builder
         or Buyer under, this Contract or an agreed terminating event the
         occurrence of which will (in any such case) entitle the relevant party
         to terminate this Contract and recover the amounts provided for in this
         Contract either as liquidated damages or as agreed sums deductible or
         payable on the occurrence of such event.

3.2      The Builder's receipt of all payments to be made by the Buyer under
         clause 1.3 or, as the case may be, the Buyer's receipt of all payments
         to be made by the Builder under clause 2.2 and clause 2.3 shall
         discharge all obligations and liabilities of each of the parties to the
         other under this Contract save for any obligations and liabilities of
         either party arising under the other provisions of this Contract.

                                                              (END OF ARTICLE 9)

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                                                                  First Original

ARTICLE 10: BUILDER'S REPRESENTATIONS, COVENANTS AND INDEMNITIES

1.       REPRESENTATIONS, WARRANTIES AND COVENANTS

1.1      The Builder acknowledges that the Buyer has entered into this Contract
         in full reliance on the representations set out in clauses 1.2 and 1.3
         and the Builder warrants that the statements contained in those clauses
         are in all respects true and accurate.

1.2      Each party (in either case, the "Warrantor") represents and warrants to
         the other party that:

         (i)      all acts, conditions and things required to be done, fulfilled
                  and performed in order (a) to enable it lawfully to enter
                  into, exercise its rights under and perform and comply with
                  the obligations expressed to be assumed by it in this Contract
                  and (b) to ensure that the obligations expressed to be assumed
                  by it in this Contract are legal, valid and binding have been
                  done, fulfilled and performed; and

         (ii)     no legal proceedings have been started or (to the best of the
                  warrantor's knowledge and belief) threatened which might have
                  a material adverse effect on the warrantor's ability to
                  perform its obligations under this Contract.

1.3      The Builder further represents and warrants to the Buyer:

         (i)      that neither the execution of this Contract nor the exercise
                  by the Builder of its rights and performance of its
                  obligations under this Contract will result in any breach of
                  any German or European Community law, regulation, rule,
                  directive or treaty; and

         (ii)     neither the Builder nor (to the best of the Builder's
                  knowledge, information or belief) any other person has
                  (whether directly or indirectly) offered or paid or agreed to
                  pay or give commission of any kind whatsoever in relation to
                  or in connection with this Contract or any of the business
                  transactions described in or contemplated by this Contract.

         (iii)    that it shall obtain, comply with the terms of and do all that
                  is necessary to maintain in full force and effect all
                  authorisations, approvals, licences and consents required in
                  or by the laws, regulations, rules, directives and treaties of
                  Germany and the European Community to enable it lawfully to
                  enter into and perform its obligations under this Contract;

2.       INDEMNITIES

2.1      The Builder shall indemnify fully, hold harmless and defend the Buyer
         and the other protected parties from and against all Losses which any
         of them may sustain or incur in respect of any personal injuries or
         other harm to or death of any person(s) or any damage to, or loss or
         destruction of, any property of any person(s), and which arise out of:

         (i)      any acts, omissions or defaults on the part of (a) the Builder
                  and/or (b) any of the Builder's subcontractors and/or (c) any
                  of the respective officers, employees, workmen, agents or
                  other representatives of the Builder or its subcontractors

                                      -47-
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                                                                  First Original

                  provided that this indemnity shall not (aa) extend to any
                  Losses to the extent they are caused by the negligence or
                  wilful misconduct of the Buyer or any other of the protected
                  parties or (bb) apply to any claim arising out of injury,
                  harm, death, damage, loss or destruction sustained after
                  delivery of the Ship unless any such claim arises out of
                  injury, harm, death, damage, loss or destruction sustained
                  before delivery for which the Builder is responsible; and

         (ii)     any representation made by the Builder in clause 1.3 proving
                  (at any time before or after the date hereof) to be untrue,
                  inaccurate or misleading in any material respect.

                                                             (End of article 10)

                                      -48-
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                                                                  FIRST ORIGINAL

ARTICLE 11: INTELLECTUAL PROPERTY RIGHTS

1.       PATENTS, TRADE MARKS AND COPYRIGHTS

1.1      The Builder shall pay all royalties, licence fees or other similar
         charges on or in connection with:

         (i)      the Ship;

         (ii)     any Parts (other than Buyer's Supplies) installed or
                  incorporated in, stowed on or otherwise delivered with the
                  Ship; or

         (iii)    any part of the building work.

1.2      The Builder shall indemnify fully, hold harmless and defend the Buyer
         and the other protected parties from and against all Losses which any
         of them may suffer or incur as a result of any actual or alleged
         infringement of any patents, patent rights, copyrights, trademarks,
         trade secrets or other intellectual property rights of any kind or
         nature on or in connection with the Ship, the Parts (other than Buyer's
         Supplies) or any part of the building work or the ownership or the
         proper use thereof by the Buyer provided that this indemnity shall not
         apply to any such infringement if the management of the Buyer or the
         management of any other protected party knew of the relevant
         infringement (at any time between the Effective Date and the date of
         actual delivery of the Ship) but failed to notify the Builder.

1.3      If:

         (i)      the Ship or any Part (other than Buyer's Supplies) by reason
                  of any claim for which the Builder is responsible under this
                  clause 1 shall be held to constitute an infringement of any
                  patent, patent right, copyright, trademark, trade secret or
                  other intellectual property right; or

         (ii)     the Buyer's use, possession or quiet enjoyment of the Ship or
                  any such Part shall be in any manner or to any extent
                  disturbed, interfered with, limited, restricted or restrained,

         the Builder shall, at its own expense, either procure on behalf of the
         Buyer the full and free right to continue using the Ship or such Part
         or, if the same can be done without material adverse affect on or delay
         to the Ship's schedule, replace any infringing Part with a
         non-infringing Part which is satisfactory to the Buyer and/or the
         Classification Society and/or the Regulatory Authorities.

1.4      The Buyer shall indemnify fully, hold harmless and defend the Builder
         from and against all Losses which it may suffer or incur as a result of
         any actual or alleged infringement of any patents, patent rights,
         copyrights, trademarks, trade secrets or other intellectual property
         rights of any kind or nature on or in connection with any Buyer's
         Supplies, plans, designs and engineering and design data supplied by
         the Buyer to the Builder under or in connection with this Contract
         provided that this indemnity shall not apply to any such infringement
         if the management of the Builder knew of the relevant

                                      -49-
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                                                                  FIRST ORIGINAL

         infringement (at any time between the Effective Date and the date of
         actual delivery of the Ship) but failed to notify the Buyer.

2.       RIGHTS TO ENGINEERING AND DESIGN DATA

2.1      All plans, designs and engineering and design data supplied by the
         Buyer to the Builder which are the property of the Buyer shall remain
         the property of the Buyer and such plans, designs and engineering and
         design data may be used by the Builder only in such manner as is
         permitted by this clause 2.

2.2      All plans, designs and engineering and design data supplied by the
         Builder to the Buyer which are the property of the Builder shall remain
         the property of the Builder and such plans, designs and engineering and
         design data may be used by the Buyer only in such manner as is
         permitted by this clause 2.

2.3      Each party shall take all reasonable precautions to maintain in
         confidence, and will not use or permit the use of (except as may be
         necessary for the purposes of the building work), any of the designs,
         plans and engineering and design data owned by the other party.

2.4      Nothing contained in this Contract shall be construed as transferring
         any patent, patent right, copyright, trademark, trade secret or other
         intellectual property right created or used in the performance of this
         Contract, all of which are hereby expressly reserved to the true and
         lawful owners thereof.

                                                             (END OF ARTICLE 11)

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                                                                  FIRST ORIGINAL

ARTICLE 12: TAXES AND CONTRACT EXPENSES

1.       TAXES

1.1      All taxes of any kind whatsoever and levied by whatsoever taxing
         authority arising out of or in connection with the making and execution
         of this Contract, the building of the Ship, the importation of any
         Parts (other than Buyer's Supplies) into Germany (or the country of any
         subcontractor), the classification and delivery of the Ship, the
         payment of the Contract Price in Germany and the export of the Ship or
         any Parts from Germany (or the country of any subcontractor) which is
         payable in Germany (or in the country of any subcontractor) shall be
         borne and paid by the Builder and the Builder shall indemnify fully,
         hold harmless and defend the Buyer and all other protected parties from
         and against any Losses which any of them may suffer or incur in
         relation to any such tax.

1.2      All taxes of any kind whatsoever and levied by whatsoever taxing
         authority arising out of or in connection with the importation of any
         Buyer's Supplies into Germany (or the country of any subcontractor) or
         the importation of the Ship or any Parts into the country of the Buyer
         shall be borne by the Buyer and the Buyer shall indemnify fully, hold
         harmless and defend the Builder from and against any Losses which the
         Builder may suffer or incur in relation to any such tax.

2.       CONTRACT EXPENSES

2.1      Each party shall bear and pay all costs and expenses incurred by it in
         connection with the negotiation, preparation and execution of this
         Contract.

2.2      Each party shall from time to time reimburse the other on demand for
         all costs and expenses (including fees of legal and other professional
         advisors) reasonably incurred by such other party in connection with
         the enforcement of any of the rights of that party under this
         Agreement.

                                                             (END OF ARTICLE 12)

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                                                                  First Original

ARTICLE 13: DISPUTES

1.       TECHNICAL DISPUTES

1.1      Except where a technical dispute is determined by the Classification
         Society under clause 4.2 in Article 1 or, as appropriate, by a
         Regulatory Authority under clause 4.4 in Article 1, any technical
         dispute giving rise to issues purely of fact (including, without
         limitation, any dispute or difference of opinion relating to questions
         as to the existence, degree or extent of any alleged non-conformity of
         the Ship or any Part to the Contract, the Plans, the Specification, or
         the Rules) shall be referred to the Head Office of the Classification
         Society for its final decision provided that if the Head Office of the
         Classification Society declines to accept any such referral, or if
         either party reasonably considers that it is not appropriate to refer
         the dispute in question to the Head Office of the Classification
         Society, the dispute shall be referred to a mutually acceptable
         technical expert for his final decision.

1.2      The procedure applicable to the resolution of technical disputes
         (whether by the Classification Society or by a mutually agreed
         technical expert) shall be as follows:

         (i)      the person or body to whom the dispute is referred (the
                  "Expert") shall be requested to make a final decision within
                  fourteen (14) working days after it has accepted the
                  appointment;

         (ii)     within seven (7) working days after the Expert has confirmed
                  to both parties that it has accepted the appointment, each
                  party will send to the Expert (and simultaneously to the other
                  party), by telefax or registered courier, its submissions and
                  supporting evidence in relation to the dispute;

         (iii)    if a party fails to submit its submissions and supporting
                  evidence within the time limit laid down in paragraph (ii), it
                  shall be deemed to have admitted the correctness of the other
                  party's submissions;

         (iv)     the Expert shall act as an expert and not as an arbitrator;

         (v)      the decision of the Expert shall be final and binding on both
                  parties; and

         (vi)     the parties shall bear the Expert's costs equally.

1.3      If:

         (i)      the Head Office of the Classification Society declines to
                  accept a referral pursuant to clause 1.1; or

         (ii)     a party reasonably considers that it is not appropriate to
                  refer any such technical dispute to the Head Office of the
                  Classification Society and the parties fail to agree upon the
                  identity of a mutually acceptable technical expert within five
                  (5) days after the date of one party's receipt of a written
                  notice from the other party calling upon it to concur in the
                  appointment of an expert,

         the dispute shall be determined in accordance with clause 2.

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                                                                  FIRST ORIGINAL

2.       ARBITRATION

2.1      Except where a dispute is determined under clause 1.1 and subject to
         the Buyer's rights under clause 3.3, all disputes or differences
         whatsoever which may arise at any time out of or in connection this
         Contract shall be referred to arbitration in London in accordance with
         the Arbitration Act 1996 or any statutory modification or re-enactment
         thereof save to the extent necessary to give effect to the provisions
         of this Contract.

2.2      The reference shall be to two arbitrators, one arbitrator being
         appointed by each party. A party wishing to refer a dispute to
         arbitration shall appoint its arbitrator and send notice of such
         appointment to the other party requiring the other party to appoint its
         own arbitrator with seven (7) running days of its receipt (or deemed
         receipt) of that notice and stating that it will appoint its arbitrator
         as sole arbitrator unless the other party appoints its own arbitrator
         and gives notice that it has done so within the seven (7) days
         specified. If the other party does not appoint its own arbitrator, and
         give notice that it has done so within the seven (7) days specified,
         the party referring the dispute to arbitration may, without the
         requirement of any further prior notice to the other party, appoint its
         arbitrator as sole arbitrator and shall advise the other party
         accordingly. The award of the sole arbitrator shall be binding on both
         parties as if such arbitrator had been appointed by agreement of both
         parties. Nothing in this Contract shall prevent the parties agreeing to
         vary these provisions to provide for the appointment of a sole
         arbitrator. If the two (2) arbitrators properly appointed hereunder by
         the parties shall not agree, they shall appoint an umpire whose
         decision shall be final.

2.3      All arbitration proceedings shall be held and conducted in London, in
         the English language, under English law and in accordance with the
         London Maritime Arbitrators' Association ("LMAA") Terms current at the
         time when the proceedings are commenced (which Terms are deemed to be
         incorporated by reference into this clause 2).

2.4      Any person appointed as an arbitrator under this Contract shall be
         knowledgeable in commercial ship construction and no such person shall
         have had, or shall have any expectation of acquiring, any business or
         financial relationship with either of the parties to this Contract,
         except such relationship as may be acquired by reason of that person
         being appointed as arbitrator pursuant to this clause 2; it is not
         necessary for any person appointed as an arbitrator under this Contract
         to be a member of, or otherwise to be affiliated or connected with, the
         LMAA.

2.5      If any dispute or difference arises prior to delivery of the Ship and
         is referred to arbitration in accordance with this clause 2, the
         parties acknowledge that time will be of the essence in obtaining an
         award from the arbitrators in relation to such dispute or difference
         and, accordingly, the parties agree to establish and utilise a fast
         track arbitration procedure. To this end the arbitration tribunal shall
         be instructed to hear the merits of the dispute as presented by the
         parties as soon as may be practicable and in any event within 200 (two
         hundred) days after the commencement of proceedings. The parties agree
         that the decision of the arbitration tribunal shall be final and
         binding on the parties except that either party may appeal to the
         English High Court in London in respect of any manifest error of law.
         The decision of the tribunal shall be given in writing with reasons,
         and shall include a finding as to whether or not the Delivery Date
         should, as a result or such dispute or difference, be in any way
         altered thereby.

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                                                                  First Original

2.6      The parties will use all reasonable efforts to keep any arbitration
         proceedings concerning this Contract (and any award made in such
         proceedings) confidential.

2.7      Subject to clause 1.4(vi) in Article 5, no dispute or difference under
         or in relation to this Contract shall entitle the Builder to cease or
         suspend any part of the building work or to withhold delivery of the
         Ship, nor shall any such dispute or difference entitle the Buyer to
         withhold the payment of any part of the Contract Price due under any of
         clauses 2.1(i), (ii), (iii), (iv) or (v) in Article 8 beyond the
         relevant due date for payment provided that nothing in this provision
         shall prejudice any right which:

         (i)      the Builder may have to retain possession of the Ship on
                  account of non-payment of the Contract Price; or

         (ii)     the Buyer may have to dispute the due date for payment of any
                  part of the Contract Price under clause 2.1 (vi) in Article 8.

2.8      For the avoidance of doubt, if any dispute or difference arises before
         delivery of the Ship and is referred for determination under any of the
         provisions of clauses 1 or 2 hereof, the Builder shall not be entitled
         to dispose of the Ship pending the final determination of such dispute
         or difference.

3.       GOVERNING LAW

3.1      This Contract is governed by and shall be construed in accordance with
         English law and, without prejudice to the provisions of clauses 1 and
         2, each party hereby irrevocably submits itself to the jurisdiction of
         the English courts for the purposes of any arbitration or other
         proceedings under or in connection with this Contract, and for the
         enforcement of any awards rendered under or in connection with this
         Contract.

3.2      Service of any claims or awards issued out of, or made or granted by,
         the English courts may be served by being delivered to the relevant
         party at the address for such party set out in clause 4.

3.3      The Buyer reserves the right to proceed under this Contract against the
         Builder in the German state courts for interlocutory relief
         (einstweiliger Rechtsschutz).

4.       NOTICES

4.1      Any notice or other communication made under or in connection with this
         Contract shall be in writing in the English language and shall be given
         to the addressee at the address set out below or sent by telefax to the
         telefax number given below, marked for the attention of the relevant
         individual listed in the "Attention" lines set out below provided that
         all notices and communications relating to technical matters
         (including, without limitation, those concerning the approval of Plans
         and tests) shall be given to the Supervisor at the address set out in
         paragraph (ii) below or sent by telefax to the telefax number specified
         in paragraph (ii) below.

         (i)      if to the Buyer, to:       Arrasas Limited
                                             c/o Star Cruise Sdn Bhd
                                             Wisma Genting 22 Floor
                                             28 Jalan Sultan Ismail

                                      -54-
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                                                                  First Original

                                             50250 Kuala Lumpur
                                             Malaysia

                  Telefax:                   + 603 261 3621

                  Attention:                 Mr Gerard Lim
                  with a copy to:            Clifford Chance
                                             200 Aldersgate Street
                                             London EC1A 4JJ
                                             England

                  Telefax:                   +44 71 600 5555

                  Attention:                 Mr Paul Turner

         (ii)     if to the Supervisor, to:  The Supervisor
                                             c/o the Supervisor's designated
                                             office at the Shipyard

                  Telefax:                   + 49-4961-814167

                  Attention:                 Mr Bo Franzen

         (iii)    if to the Builder, to:     Jos. L. Meyer Gmbh
                                             Postfach 1555
                                             D26855 Papenburg
                                             Germany

                  Telefax:                   + 49-4961-814300

                  Attention:                 Mr B. Meyer

         or to such other person, address or telefax number as either party may
         (by not less than five (5) working days' notice in writing) specify to
         the other.

4.2      In the absence of evidence of earlier receipt, any notice or other
         communication shall be deemed to have been duly given:

         (i)      if correctly addressed and marked for the attention of the
                  appropriate individual and delivered personally, when left at
                  the appropriate address of the addressee;

         (ii)     if correctly addressed and marked for the attention of the
                  appropriate individual and sent by pre-paid registered mail
                  (or registered airmail if international) or courier, upon
                  acknowledgement of receipt by return telefax; and

         (iii)    if correctly addressed and marked for the attention of the
                  appropriate individual and sent by telefax to the correct
                  number, upon acknowledgement of receipt by return telefax.

                                                             (End of article 13)

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ARTICLE 14: GENERAL MATTERS

1.       COMPUTATION OF TIME

1.1      Except as otherwise provided in this Contract, all periods of time
         shall be computed by including Saturdays, Sundays and holidays except
         that if any period terminates on:

         (i)      any day which is not a working day in London or Papenburg (in
                  the case of periods applicable to action by the Buyer); or

         (ii)     any day which is not a working day in Papenburg (in the case
                  of periods applicable to action by the Builder),

         such period shall be deemed to be extended to the next following
         working day in such place.

2.       ASSIGNMENTS

2.1      The Buyer may:

         (i)      grant to its financiers of the Ship, or the other financiers
                  of the Star Cruises Group, a first assignment (or other
                  security interest) of this Contract and of all the Buyer's
                  rights, title, interest and benefits in relation to this
                  Contract and the Insurances;

         (ii)     assign, novate or transfer this Contract to any member of the
                  Star Cruises Group or (with the prior approval of the Builder,
                  which is not to be unreasonably withheld) to any other person
                  whatsoever; and

         (iii)    assign its rights under Article 7, Clause 2 to any purchaser,
                  lessee or bareboat charterer of the Ship,

         provided that the guarantee provided for in Clause 13 shall remain in
         full force and effect notwithstanding any such assignment, novation or
         transfer.

2.2      The Buyer shall be entitled to mortgage the Ship, and to charge the
         Buyer's Supplies and other items in which it has title from time to
         time under this Contract, for the purposes of securing the pre and post
         delivery financing arrangements for the Ship entered into at any time
         by the Buyer, its assignees and any other members of the Star Cruises
         Group.

2.3      The Builder shall at its own cost promptly give all such assistance,
         provide all such information, and execute and deliver all such
         documents to the Buyer and/or any other relevant person, body or entity
         (including, but not limited to, the Registry of Ships under
         construction and the Bundesamt fur Seeschiffahrt und Hydrographie) as
         may from time to time be requested by the Buyer in connection with the
         registration and deletion of the Ship in and from the Registry of Ships
         under Construction. In addition to its obligations under Article 4
         Clause 1, the Builder undertakes to identify and/or mark the Ship for
         the purposes of such registration.

2.4      The Builder shall not assign or novate or transfer, or purport to
         assign or novate or transfer, any of its rights or obligations under
         this Contract save that the Builder may

                                      -56-
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                                                                  FIRST ORIGINAL

         assign its rights hereunder to its financiers for the Builder's
         pre-delivery construction financing of the Ship.

3.       PARTIAL ILLEGALITY

3.1      If any provision of this Contract or the application thereof to any
         person or in any circumstances shall to any extent be illegal, invalid
         or unenforceable, such illegality, invalidity or unenforceability shall
         not prejudice the effectiveness of the remainder of this Contract or
         the application of such provision to other persons or in other
         circumstances and each other provision of this Contract shall be legal,
         valid and enforceable to the fullest extent permitted by law.

4.       CONFIDENTIALITY

4.1      After the date of this Contract, the parties will agree the terms and
         publication date(s) of press announcements in relation to the
         construction of the Ship.

4.2      Save as provided in clause 4.1, the parties shall treat as confidential
         and use all reasonable efforts to ensure that their respective agents,
         officers, employees, workmen, subcontractors, and other representatives
         treat as confidential, the provisions of this Contract provided that:

         (i)      each party may, with the prior written consent of the other,
                  disclose to any third party information relating to the
                  matters referred to in this clause 4.2; and

         (ii)     each party shall be entitled to disclose any such information
                  to their shareholders, bankers, auditors and/or legal advisors
                  or to such extent as may from time to time be required by law
                  or the rules or regulations of any applicable stock exchange
                  or similar body.

5.       AMENDMENTS

5.1      No amendment, modification, supplement or other variation of this
         Contract, the Plans or the Specification shall be of any effect unless
         made in writing and signed by the Builder and the Buyer or their
         respective duly authorised representatives.

6.       NO WAIVER

6.1      No failure or delay on the part of either party in exercising any
         right, power or remedy under this Contract shall operate as a waiver
         thereof or a waiver of any other rights, powers or remedies nor shall
         any single or partial exercise of any such right power or remedy
         preclude any other or further exercise of any such right, power or
         remedy or the exercise any other right, power or remedy.

6.2      The respective rights, powers and remedies conferred on the parties by
         this Contract are cumulative and (save where the contrary is expressly
         stated) are in addition to (and not exclusive of) any rights, powers
         and remedies provided by law.

7.       CONSENTS

7.1      Subject to clause 1.6 in Article 2, where any matter:

                                      -57-
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                                                                  First Original

         (i)      requires an instruction from the Buyer, a waiver by the Buyer
                  or the approval, authority or consent of the Buyer any such
                  instruction, waiver, approval, authority or consent shall not
                  be deemed to have been given or to any extent effective unless
                  it is given in writing by a duly authorised representative of
                  the Buyer; and

         (ii)     is required to be acceptable or satisfactory to the Buyer, the
                  Buyer shall not be deemed to have accepted, or to be satisfied
                  with such matter, unless its acceptance or satisfaction is
                  communicated in writing to the Builder by a duly authorised
                  representative of the Buyer.

8.       LANGUAGE

8.1      The official text of this Contract (and all plans, drawings, test and
         work schedules, reports, protocols, certificates, instruction booklets,
         notices, communications and other materials or documents to be drawn
         up, developed or supplied under this Contract) shall be in the English
         language.

9.       MODELS

9.1      The Builder shall build and supply free of charge to the Buyer (and
         place on board the Ship at or before delivery) the models of the Ship
         described in section G6.2 of the Specification.

10.      COUNTERPARTS

10.1     This Contract may be executed in up to four (4) counterparts each of
         which when dated and signed by (or on behalf of ) both parties shall be
         an original, but all counterparts together shall constitute one and the
         same instrument.

11.      EFFECTIVE DATE

11.1     This Contract shall not have any legal effect whatsoever until the time
         on the date (the "Effective Date") when all of the following conditions
         have been satisfied:

         (i)      each party shall have received an original counterpart of this
                  Contract, duly signed by the other party;

         (ii)     the Buyer shall have confirmed in writing to the Builder that
                  is has approved the form and terms of the Insurances;

         (iii)    each of the Account Block Agreement and the Opinion Letter
                  shall have been signed and delivered;

         (iv)     the contract for Hull S.668 shall have been signed and shall
                  have become effective; and

         (v)      the Buyer shall have confirmed by written notice to the
                  Builder that it has obtained binding written commitments (in
                  terms reasonably satisfactory to the Buyer) for the pre and
                  post delivery loan financings (including the "Hermes" cover)
                  that will be required to enable the Buyer to part fund certain
                  of the payments referred to in clause 2 of Article 8.

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                                                                  FIRST ORIGINAL

11.2     If this Contract has not come into effect by 4pm (Papenburg time) on 26
         September 2003 either party may, by written notice given to the other
         within ten (10) days thereafter, cancel this Contract.

11.3     In the event of the exercise by either party of its right to cancel
         this Contract under clause 11.2, this Contract shall, with effect from
         such cancellation, be null and void without any liability whatsoever on
         the part of either party.

11.4     Notwithstanding any provision to the contrary in this Contract, the
         Buyer shall not be obliged to make any payment to the Builder hereunder
         until such time as all of the conditions set out in clause 11.1 have
         been fulfilled or expressly waived in writing by both parties.

12.      PROTECTED PARTIES

12.1     Any of the protected parties may enforce the terms of any provision of
         this Contract which purports to confer any rights on them, subject to
         and in accordance with the Contracts (Rights of Third Parties) Act
         1999.

12.2     The Builder and the Buyer may at any time, by agreement between them,
         rescind this Contract or vary it without the consent of the protected
         parties.

12.3     If any protected party becomes entitled to bring a claim against the
         Builder under or in respect of this Contract, the Buyer shall bring
         such claim against the Builder on behalf of the relevant protected
         party.

12.4     If any claim is made against the Builder by the Buyer on behalf of a
         protected party under clause 12.3, the Builder shall only have
         available to it by way of defence any matter that would have been
         available to it by way of defence if the relevant protected party had
         been a party to this Contract.

12.5     Save as provided above the operation of the Contracts (Rights of Third
         Parties) Act 1999 is hereby excluded.

13.      GUARANTEE

13.1     If, pursuant to clause 2.1, Arrasas assigns, novates or transfers this
         Contract to a substitute buyer, Arrasas guarantees to the Builder the
         due and punctual performance of all the terms, conditions and covenants
         to be performed by such substituted buyer and agree to pay to the
         Builder each sum of many which such substituted buyer is at any time
         liable to pay to the Builder under or pursuant to this Contract and
         which has become due and payable but has not been paid.

13.2     Neither the obligations of Arrasas under the guarantee provided for in
         clause 13.1 nor the rights, powers and remedies confirmed on the
         Builder in respect of such guarantee shall be discharged or impaired by
         any act, circumstance, event or omission which (but for this Clause
         13.2) might operate to discharge or impair any of the obligations,
         rights or remedies referred to above.

                                                             (END OF ARTICLE 14)

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                                    SCHEDULE

1.       DEFINITION OF CERTAIN TERMS

1.1      In this Contract:

         "Account Block Agreement" means an agreement which is to be executed by
         the Buyer, the Builder and the Builder's Bank in order to provide for
         certain rules concerning payments into and from the Builder's Account.

         "Builder's Account" means the dollar account numbered 1116003 and held
         by the Builder's Bank at its office in Bremen;

         "Builder's Bank" means Commerzbank AG;

         "Building Work" means all of the Parts to be provided and all of the
         work to be done by the Builder under and in connection with this
         Contract, as more particularly described in the Specification and the
         Plans, and includes all Parts to be provided and all work to be done by
         the Builder's subcontractors;

         "Buyer's Supplies" has the meaning given in Article 1, clause 1.1(i)(b)
         and, for the avoidance of doubt, any of the US manufactured and
         processed materials referred to in Article 1, clause 3.3 which are used
         in the construction of the Ship shall be regarded as "Parts" rather
         than "Buyer's Supplies";

         "Buyer's Supply Costs" means at any given time the aggregate of (i) the
         costs incurred by the Buyer in relation to the carriage, pre-delivery
         insurance and delivery of all Buyer's Supplies and (ii) the cost to the
         Buyer of obtaining replacements for such Supplies at such time;

         "Class Rules" has the meaning given in Article 1, clause 4.1;

         "Classification Society" has the meaning given in Article 1, clause
         4.1;

         "Commission" means any benefit (whether monetary or not), brokerage,
         commission, consideration, gift, gratuity, inducement, payment, reward
         or success fee of any kind whatsoever payable to any broker, agent,
         intermediary or other person in relation to or in connection with the
         placing and/or performance of this Contract;

         "Compensation Date" means (i) the 5th (fifth) day from (and including)
         the Delivery Date or (ii) the 3rd (third) day from (and including) the
         Delivery Date if the Ship has not been delivered by the intended
         delivery date mentioned in the 15 (fifteen) days definite notice given
         by the Builder under clause 1.1 in Article 7;

         "Contract" means this shipbuilding contract and includes the Plans, the
         Specification and the schedule, each of which forms an integral part of
         this Contract;

         "Contract Price" means the fixed price for the Ship specified in clause
         1.1 of Article 8;

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                                                                  First Original

         "Correct" shall be construed (in Article 8, clause 2) so as to mean and
         include rectify, remedy, repair and replace with the intent that the
         Builder's duty under Article 8, clause 2 shall be to take all necessary
         corrective action by (as may be appropriate) correcting or rectifying
         or remedying or repairing or replacing, or paying for the correction or
         rectification or remedy or repair or replacement of, every Defect to
         which clause 2 applies;

         "Defect" has the meaning given in Article 6, clause 1.8;

         "Delivery Date" means the fixed delivery date for the Ship specified in
         clause 1.1 of Article 7, it being acknowledged and agreed by the
         parties that such date may be reset only in strict accordance with, and
         subject to, the express provisions this Contract;

         "Delivery Port" has the meaning given in Article 1, clause 1.1 (c);

         "Dispute Notice" had the meaning given in Article 2, clause 6.1;

         "Effective Date" has the meaning given in Article 14, clause 11.1;

         "Encumbrance" means (i) any claim (whether in personam or in rem and
         including any arrest or other detention in connection with any claim)
         and any debt, and/or (ii) any mortgage, charge, pledge, maritime or
         possessory or other lien, assignment, hypothecation, trust arrangement,
         encumbrance, or other security interest securing any obligation of any
         person or any other type of preferential arrangement (including,
         without limitation, title transfer and retention arrangements) having a
         similar effect and or (iii) any of the German Law Encumbrance Rights,
         but does not include any permitted encumbrance;

         "Flag State" means the Bahamas;

         "German Law Encumbrance Rights" means any retention of title
         (Eignetumsvorbehalt, auch erweitert, verlangert, weitergeleitet,
         nachgeschaltet, nachtraglich, als Kontokorrentvorbehalt, als
         Konzernvorbehalt u.s.w.), right of retention (Zuruckbehaltungsgrecht),
         pledge, lien (Pfandrecht) and any other encumbrance (sonstige
         Belastung) or other similar rights under German law;

         "Insurances" has the meaning given in Article 4, clause 2.2;

         "Libor" means the percentage rate per annum for dollar deposits for the
         relevant period as displayed on the appropriate page of the Telerate or
         Reuters screen from time to time or, if such display is not available
         at any relevant time, as certified by the main London office of the
         Builder's Bank;

         "List of Suppliers" means the agreed list of approved subcontractors
         dated 22 August 2003 and initialled by the parties for the purposes of
         identification;

         "Losses" means any and all causes of action, charges (including
         interest charges), costs, claims (in contract, tort or otherwise),
         controls, liquidated or unliquidated damages, demands, expenses, fees
         (including legal fees) fines, liabilities (civil, criminal or
         otherwise), losses (other than consequential losses), payments,
         penalties, proceedings, restrictions, suits and any and all other
         sanctions of a monetary nature other than taxes;

                                      -61-
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                                                                  First Original

         "Milestones" has the meaning given in Article 2, clause 4.1;

         "Opinion Letter" means a legal opinion from Ahlers & Vogel to the Buyer
         (in a form reasonably acceptable to the Buyer) regarding retention of
         title and title transfer issues relating to this Contract.

         "Parts" has the meaning given in Article 1, clause 1.1(i)(b);

         "Partial Loss" means any loss of or damage to the Ship (including
         Buyer's Supplies and other Parts) which does not constitute a total
         loss and "partial loss proceeds" means any insurance proceeds paid
         and/or payable in respect of any partial loss;

         "Permitted Encumbrance" means any encumbrance (i) created by the Buyer
         or (ii) arising by operation of law in connection with claims against
         the Buyer for which the Buyer would not be entitled to compensation or
         indemnification from the Builder under this Contract;

         "Plans" means the GA Plan No. P.8573-A18 dated 22 August 2003 and
         initialled by the parties for the purposes of identification, and the
         technical system and other plans and drawings described or referred to
         in the Specification;

         "Protected Parties" means (i) every member of the Star Cruises Group
         from time to time (as certified by the Buyer), and (ii) all of the
         respective agents, officers, employees, workmen, suppliers and other
         representatives of (a) the Buyer and (b) each other protected party;

         "Regulatory Authorities" means those authorities, bodies and entities
         having regulatory responsibility and authority in respect of the Ship
         or specific areas or parts of the Ship, whether before or after
         delivery under this Contract, including (i) the International Maritime
         Organisation, (ii) the World Health Organisation, (iii) the United
         States' Coast Guard and Public Health Services authorities, (iv) the
         maritime authorities of the Flag State, and (v) all other specified
         national or international regulatory authorities;

         "Regulatory Rules" has the meaning given in Article 1, clause 4.3;

         "Relevant Rate" means the aggregate of (i) one per cent (1%) and (ii)
         LIBOR for the relevant period;

         "Ship" means the ship which is the subject of this Contract and all
         Parts (including all delivered Buyer's Supplies);

         "Shipyard" means the Builder's shipyard at Papenburg, Germany;

         "Specification" means Specification No. P.8573-Hull No.S.667 dated 22
         August 2003 and the Appendices marked A, B and C thereto (the
         "Appendices") and, unless the context otherwise requires, "Specified"
         means stipulated in the Specification or in the Appendices;

                                      -62-
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                                                                  First Original

         "Star Cruises Group" means (i) Star Cruises Limited and its
         subsidiaries and (ii) all other associated or affiliated companies;

         "Subcontractor(s)" shall include each of the Builder's makers and
         suppliers, and any other person, company or other entity under contract
         to the Builder or used by the Builder in connection with the design,
         construction, manufacture or supply of any materials, machinery,
         equipment, other parts or services for the Ship;

         "Tests" means (i) the shop, dock, sea and other tests, trials and
         inspections described in the Specification and the Plans and (ii) such
         other tests, trials and inspections (or retests, retrials and
         reinspections) as the Buyer and/or the Classification Society and/or
         the Regulatory Authorities may reasonably require in order to
         demonstrate and confirm the complete correction of any Defects;

         "Total Loss" means any actual, constructive, compromised or arranged or
         agreed total loss of the Ship (including Buyer's Supplies or other
         Parts);

         "Working Day" means any day, other than a Saturday or Sunday, on which
         banks are generally open for business in each of London and Papenburg;
         and

         "$" And "Dollar" denote the lawful currency of the United States of
         America.

2.       INTERPRETATION OF CERTAIN REFERENCES

2.1      Save where the contrary is expressly stated, any reference in this
         Contract to:

         (i)      this Contract, the Specification, the Appendices, the Plans or
                  any other agreements or documents shall be construed as a
                  reference to this Contract, the Specification, the Appendices,
                  the Plans or, as the case may be, such other agreements or
                  documents as the same may have been, or may from time to time
                  be, amended, modified, varied, novated or supplemented;

         (ii)     an Article or the schedule shall be construed as a reference
                  to an Article or the schedule of this Contract;

         (iii)    an award shall be construed as a reference to any award,
                  decision, declaration, injunction, judgement, order or other
                  relief;

         (iv)     a claim shall be construed as a reference to any action,
                  claim, demand, proceeding, process or suit, whether in
                  arbitration or court or otherwise;

         (v)      a clause shall be construed as a reference to a clause of the
                  Article in which the reference appears;

         (vi)     a person shall be construed as a reference to any individual,
                  firm, company, corporation, unincorporated body of persons, or
                  any state or state agency,

         (vii)    a party to this Contract shall include a reference to such
                  party's successors and permitted assigns;

         (viii)   a tax shall be construed as a reference to any tax, levy,
                  impost, duty or other charge of a similar nature (including,
                  without limitation, any penalty or interest

                                      -63-
<PAGE>

                                                                  FIRST ORIGINAL

         payable in connection with any failure to pay or any delay in paying
         any of the same);

         (ix)     a receiver shall be construed so as to include any liquidator,
                  trustee, administrator, receiver, administrative receiver or
                  similar officer; and

         (x)      the winding up of a party to this Contract shall be construed
                  so as to include any equivalent or analogous proceedings under
                  the law of the jurisdiction in which such party is
                  incorporated or any other jurisdiction in which such party
                  carries on business.

2.2      The Index, Article, clause and schedule headings and sub-headings are
         inserted for convenience only and shall not affect the interpretation
         of this Contract.

3.       PRIORITY OF CONTRACT, PLANS AND SPECIFICATION

3.1      This Contract, the Plans, the Specification and the Appendices are
         intended to compliment and supplement one another. All general language
         or requirements embodied in the Specification are intended to amplify,
         explain and implement the requirements of this Contract. The
         Specification and the Plans are also intended to explain each other,
         and anything shown in the Plans but not stipulated in the Specification
         or stipulated in the Specification and not shown in the Plans shall be
         deemed and considered as if embodied in both. The Appendices are
         intended to clarify, amplify and supplement the Specification.

3.2      If any conflict is found to exist between:

         (i)      the provisions of this Contract, on the one hand, and the
                  Specification and/or the Plans on the other hand, then to the
                  extent of such conflict only, the Specification and the Plans
                  shall be ineffectual, and the provisions of this Contract
                  shall prevail, and in all other respects the Specification and
                  the Plans shall be and remain in full force and effect
                  provided that to the extent such conflict arises solely
                  because this Contract, on the one hand, and the Specification
                  and/or the Plans, on the other hand, contain requirements that
                  are in addition to the requirements of the other, then all of
                  such additional requirements shall be fully complied with by
                  the Builder; or

         (ii)     the provisions of the Specification, on the one hand, and the
                  Plans, on the other hand, then to the extent of such conflict
                  only, the Plans shall be ineffectual, and the provisions of
                  the Specification shall prevail, and in all other respects the
                  Plans shall be and remain in full force and effect provided
                  that to the extent such conflict arises solely because the
                  Specification, on the one hand, and the Plans, on the other
                  hand, contain requirements that are in addition to the
                  requirements of the other, then all of such additional
                  requirements shall be fully complied with by the Builder; or

         (iii)    the provisions of the Appendices, on the one hand, and the
                  Specification and/or Plans on the other hand, then to the
                  extent of such conflict only, the Specification and the Plans
                  shall be ineffectual, and the relevant provisions of the
                  Appendices shall prevail, and in all other respects the
                  Specification and the

                                      -64-
<PAGE>

                                                                  First Original

                  Plans shall be and remain in full force and effect provided
                  that to the extent such conflict arises solely because the
                  Appendices, on the one hand, and the Specification and/or
                  Plans on the other hand contain requirements that are in
                  addition to the requirements of the other, then all of such
                  additional requirements shall be fully complied with by the
                  Builder; or

         (iv)     a Plan, on the one hand, and another Plan on the other hand,
                  then to the extent of such conflict only, the Plan with the
                  earlier date shall be ineffectual, and the other Plan shall
                  prevail, and in all other respects the Plans shall be and
                  remain in full force and effect provided that to the extent
                  such conflict arises solely because a Plan, on the one hand,
                  and another Plan on the other hand, contain requirements that
                  are in addition to the requirements of the other, then all of
                  such additional requirements shall be fully complied with by
                  the Builder.

SIGNATURES

SIGNED by                   Tan Sri Kt Lim
for and on behalf of
ARRASAS LIMITED

SIGNED by                   Mr B. Meyer
for and on behalf of
JOS. L. MEYER GMBH

(End of Contract)

                                      -65-
<PAGE>

                                  ADDENDUM NO.1

Addendum No.1 to the shipbuilding contract (as amended and supplemented from
time to time, the "CONTRACT") dated as of 15 September 2003 and made between
Jos. L. Meyer GmbH as builder (the "BUILDER") and Arrasas Limited as buyer
("AL") of Hull No.S.667 (the "SHIP").

WHEREAS:

(A)      AL wishes to assign and transfer the Contract (and all of its rights
         and obligations under and in connection with the Contract and all
         related documents including but not limited to the Plans and
         Specification) to Hull 667 Limited ("HL") as buyer of the Ship.

(B)      HL is willing to take the assignment and transfer referred to in
         recital (A), and the Builder is prepared to consent to their assignment
         and transfer, on and subject to the terms and conditions of this
         Addendum.

IT IS HEREBY AGREED AS FOLLOWS:

1.       Subject always to the proviso to clause 2.1 in Article 14 of the
         Contract, AL, HL and the Builder agree that with effect from 1600 hours
         (Papenburg Time) on 25 March 2004:

         (i)      HL shall be substituted in place of AL as the buyer of the
                  Ship under the Contract; and

         (ii)     Each reference in the Contract to "Buyer" shall be construed
                  as being a reference to HL as buyer of the Ship.

2.       For the benefit of the Builder, it is acknowledged and agreed by AL and
         HL that AL shall remain fully responsible for the performance and
         observance of all transferred obligations.

3.       Each of the Builder and AL hereby agree that they will execute, sign
         and do any and every such further assurance, document, act or thing as
         in the reasonable opinion of HL may be necessary to perfect the
         assignment and transfer arrangements described in and contemplated by
         this Addendum.

4.       Save and except as expressly provided in this Addendum, the terms and
         conditions of the Contract shall remain unamended and in full force and
         effect.

5.       This Addendum shall be deemed an integral part of, and read as one
         with, the Contract.

6.       Expressions defined in the Contract shall bear the same meanings when
         used in this Addendum.

7.       This Addendum will be treated as having been signed at the time and on
         the date when each of the parties have dated and signed a counterpart
         of this Addendum and exchanged the same by fax with the other parties.
         Thereafter, and for record purposes only, three (3) original
         counterparts of this Addendum shall be dated and signed by the Builder,
         AL and HL.

<PAGE>

Signed by:     HANS-ARTUR WILKER
for and on behalf of
the BUILDER on 25 March 2004

Signed by:     PAUL TURNER
for and on behalf of
AL on 24 March 2004

Signed by:     PAUL TURNER
for and on behalf of
HL on 24 March 2004

(End of Addendum No.1)

                                      -2-

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