Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - South Sea Energy Corp. - Exhibit 10.1

EXHIBIT 10.1 
ASSIGNMENT AGREEMENT 

ASSIGNMENT AGREEMENT 

THIS AGREEMENT (the “Assignment Agreement”) is made and
entered into on this day of August, 2007, between: 

  
    
      
        PIN PETROLEUM PARTNERS LTD, a company incorporated
          under the laws of the Province of British Columbia, having an office
          address of Suite 2410, 650 West Georgia Street, Vancouver, British Columbia,
          Canada, V6B 4N7 

        (the “Assignor”) AND: 

        SOUTH SEA ENERGY CORP., a company organized
          under the laws of the State of Nevada, having an office at 3402 Marquart
          Street, Houston, Texas, USA, 77027 

        (the “Assignee”) 

      

    

  

WHEREAS, the Assignor has certain rights and obligations
pursuant to a Letter of Intent dated July 18, 2007 with Muddy Minerals, LLC, a
Wyoming corporation, to a property located in Converse County, Wyoming, known as
the South Glenrock “C” field, (the “LOT”), a copy of which is attached hereto as
Schedule A; and 

WHEREAS, the Assignor wishes to assign all of its rights
and obligations in the LO1 to the Assignee; and 

WHEREAS, the Assignee accepts such assignment and has
agreed to be bound by the LOI. 

NOW THEREFORE in consideration of the mutual covenants
and agreements contained herein, IT IS HEREBY AGREED by the Assignor and
the Assignee as follows: 

1.                    
The Assignor hereby assigns and transfers to the Assignee all of its rights and
obligations in, to, and under the LOI, subject to all the terms and conditions
hereof. 

2.                    
The Assignee hereby agrees to assume all of the Assignor's rights and
obligations under the LOI. 

3.                    
The Assignor reaffirms and represents and warrants that: 

(a) the LOI is valid and in full force
and effect, and that the representations and 

warranties contained in the LO1 are
true and correct on the date hereof; 

(b) it has not entered into any
negotiations, arrangements or agreements (either oral or written) relating to
the I„01 other than as contemplated hereby; 

(c) the LOl and all of Assignor's
right, title and interest therein and thereto are free and clear of any and all
liens, charges, encumbrances and claims of whatsoever nature; 

(d)Assignor has completed any and all
corporate action necessary and/or required under applicable laws, rules and
regulations, including corporate governance law in British Columbia, in order to
transfer its right, title and interest in, to and under the LOI to the Assignee;
and 

(e) Assignor has full right and
authority to enter into this Assignment Agreement and transfer, assign and
convey to Assignee all of Assignor's right, title and interest relating to the
LOI, 

4.                    
As consideration for the assignment of the LOI, the Assignee agrees to pay to
the Assignor the sum of Five Hundred Fifty Thousand Dollars ($550,000) in US
funds within ninety (90) days from the date of this Assignment Agreement_ 

5.                    
In the event the Assignee fails to make payment to the Assignor pursuant to item
4 hereof, after Assignor gives Assignee written notice of such failure, then the
Assignor shall, at its option; 

(a) be entitled, upon written notice of
its intent to do so, have the rights and obligations under the LOT transferred
hereunder revert back to the Assignor; or 

(b)receive from the Assignee a penalty
payment in the amount of One Hundred Twenty percent (120%) of the consideration
set out in item 4 hereof, and at the option of the Assignor, such sum shall be
convertible into securities of the Assignee at a price equal to the lowest
offering price of the Assignees securities to the general public during the
current fiscal period. 

6.                    
By executing this Assignment Agreement, the Assignor and Assignee confirm their
intention to execute and deliver as promptly as practicable any other
documentation which may be required to give effect to this Assignment Agreement,
and to obtain the approval, agreement, and consent of their respective Boards of
Directors or governing bodies with respect to this Assignment Agreement. The
parties shall also cooperate in Assignee's compliance with applicable state and
federal securities laws, rules and regulations. This Assignment Agreement and
the execution hereof shall be strictly confidential between the parties and no
notice or press release relating to this Assignment Agreement shall be given by
either party without the prior written consent of the other party. Each party
shall provide information concerning terms of this Assignment Agreement and the
execution hereof only to its respective management and employees, and then, only
on a “need-to-know” basis. 

7.                    
This Assignment Agreement may not be amended or otherwise modified except by an
instrument in writing signed by both parties. 

8.                    
This Assignment Agreement shall be governed by and interpreted in accordance
with the laws of the State of Nevada and the parties irrevocably attorney to the
jurisdiction of the courts of Reno, Nevada. All disputes which may arise under,
out of, in connection with or in relation to this Agreement shall be submitted
to and finally settled by arbitration, which shall be subject to the provisions
of the Commercial Arbitration Rules of the American Arbitration Association
(“AAA”) in effect from time to time, be conducted in Reno, Nevada, by a
single arbitrator under (and appointed in accordance with) the rules established
for domestic commercial arbitrations under the AAA in effect from time to time,
be administered by the AAA ,and be conducted in the English language. The
prevailing party in any such arbitration shall be entitled, in addition to an
award from the arbitrator, an award of all costs, expenses and attorney fees
incurred in the arbitration. 

9.                    
if any one or more of the provisions contained herein should he invalid, illegal
or unenforceable in any respect in any jurisdiction, the validity, legality and
enforceability of such provisions shall not in any way be affected or impaired
thereby in any other jurisdiction and the validity, legality and enforceability
of the remaining provisions contained herein shall not in any way be affected or
impaired thereby. 

10.                    
This Agreement constitutes and contains the entire agreement and understanding
between the parties and supersedes all prior agreements, memoranda,
correspondence, communications, negotiations and representations, whether oral
or written, express or implied, statutory or otherwise, between the parties or
any of them with respect to the subject matter hereof. 

11.                    
This Agreement may not be assigned without the prior written consent of the
Assignor. 

12.                    
This Agreement may be executed in counterpart, each of which such counterpart,
whether in original or facsimile form, notwithstanding the date or dates upon
which this Agreement is executed and delivered by any of the parties, shall be
deemed to be an original and all of which will constitute one and the same
agreement, effective as of the reference date given above. 

IN WITNESS WHEREOF, the Assignor and the Assignee have
executed this Assignment Agreement on the day and year first written above. 

 

PIN PETROLEUM PARTNERS LTD. 

Per: William Friesen, President 

SOUTH SEA ENERGY CORP. 

Schedule "A"Kelly Space and Technology, Inc. Distributor Agreement

This  agreement made this 22 day of August 2007,  Medina  Marine,  Inc. a wholly
owned subsidiary of Medina International Holdings, Inc. (a Colorado Corporation)
located  at 255 S.  Leland  Norton  Way,  Suite  6,  San  Bernardino,  CA  92408
("company," "MMI") and Kelly Space and Technology Inc., a California corporation
located at 294 S. Leland Norton Way., Suite 3, San Bernardino,  CA 92408 ("KST")
(each a "Party", and, together "Parties").

I. Duties, Scope of Agreement and Relationship of the parties.

         1. MMI warrants that it is authorized by Medina International Holdings,
         Inc. to enter into this agreement per Exhibit A.

         2.  MMI appoints KST as:

                  (a) Exclusive  Distributor  of the  company's  boat/watercraft
         products ("Products") for the United States Department of Defense.

                  (b)   Non-Exclusive   Distributor  for  all  other  customers.
         However,  Non-Exclusive  Distributor  status will  convert to Exclusive
         Distributor  status in accordance with the terms and conditions of this
         agreement,  for a  particular  customer,  upon receipt of a sales order
         from the same.

         3. KST  agrees to  consult  with the  Company  during  the term of this
         agreement.  All  parties  understand  that KST has many other  business
         interest and will devote as much time as in its discretion as necessary
         to  perform  its duties  under this  agreement.  In  addition,  company
         understands that KST's efforts on behalf of its other interests are the
         sole and separate property of KST.

         4.  The  services  rendered  by KST to the  company  pursuant  to  this
         agreement  shall be as an  independent  contractor,  and this agreement
         does not make KST the employee or legal  representative  of the company
         for any purpose whatsoever, including without limitation, participation
         in any benefits or  privileges  given or extended by the Company to its
         employees.  No right or  authority  is  granted  to KST to assume or to
         create any obligation or responsibility,  express or implied, on behalf
         of the Company,  except as may be set forth  herein.  The company shall
         not withhold,  for the KST, any federal or state taxes,  if applicable,
         from the  amounts to be paid to KST here  under and KST agrees  that he
         will pay all taxes, if applicable, due on such amounts.

<PAGE>

II. Sales

1.   Medina  Marine,  Inc. will sell its standard  Products  (12',  15', and 21'
     watercrafts)  and  non-standard  custom-made  Products to KST in accordance
     with this agreement.

2.   KST will inform the company of any sale orders in writing.  KST will inform
     the company of any  requests or other  issues  concerning  the sales of the
     company products in writing. KST will inform the company of any progress of
     the sales,  payment, or any other type of transactions relating to the sale
     of the company products from initiation to delivery in writing.

3.   Medina  Marine,  Inc. will sell its products to KST in accordance  with the
     Pricing Schedule in Exhibit B.

              Following  to be  inserted  in  Exhibit  B--Exhibit  B to  contain
              Product  prices for  standard  Products  and Address ways to price
              non-standard  Products.  Exhibit  B:  The  Parties  shall  come to
              agreement on any escalation,  if any,  provided that a request for
              escalation   is  supported   by   documentation   evidencing   the
              requirement  for a cost increase.  Notwithstanding  this,  Product
              prices shall not escalate beyond 10% per annum.

4.   The  manufacturing  of the boat will not commence until the initial payment
     of the boat is disbursed to the company. (See Section III "Payment")

5.   Firm intent of a sale order refers to the following:

     a.   A written  document from KST to the company for an order of any of the
          company's products.

6.   Company  will  refer   international   military   customers  to  KST  on  a
     case-by-case   basis  and  comply  with  all  necessary   export  licensing
     regulations regarding sale and export.

III. Payment

1.   KST will  disburse the payment for the boat(s)  according to the  following
     schedule:

     a.   30% of the agreed (between KST and company) sale price will be paid to
          the company at the time of the boat order.

     b.   30% of the  agreed  sale  price  will be paid  to the  company  at the
          completion of the hull and deck.

     c.   20% of the  agreed  sale  price  will be paid  to the  company  at the
          completion of the assembly of the boat.

     d.   The remaining 20% of the agreed sale price will be paid to the company
          after final customer acceptance.

<PAGE>

2.   The Parties shall in good faith agree to adjust the payment  schedule above
     to meet customer requirements on a case by case basis if required.

3.   The payment will be transacted by wire transfer only.

4.   The  manufacturing  of the boat will not commence until the initial payment
     of 20% of the agreed sale price is disbursed to the company.

5.   KST and Company shall agree to a production and delivery  schedule prior to
     any specific sales orders and any liquidated  damages  demanded by customer
     for delays shall be borne by Company.

IV. Terms

1.   This  agreement  will be  effective  for a period of five (5) years with an
     option for KST to renew  agreement for an  additional  five (5) year period
     subject to the following:

     a.   KST  purchases  one (1)  boat  from  Company  within  2  years  of the
          effective date of this Agreement and minimum of one (1) boat each year
          thereafter.

V. Communication with the customer

1.   KST will establish  relations with the customer and will deal directly with
     them with respect to sales.

2.   Medina Marine, Inc. will have no direct interference with the customer with
     respect to sales and  marketing  to the  Department  of  Defense  and other
     government entities of the United States of America.

3.   KST will be responsible to arrange all necessary  plans for the customer to
     visit the company's facility at KST's or the
                 customer's expense.

VI. Marketing

1.       Expenditures

     a.   Expenditures  for  advertisement  by KST will be  borne  at the  KST's
          expense.

     b.   Expenditures for KST's website will be borne by KST.

     c.   KST's travel  expenditures,  such as airline  tickets,  accommodation,
          gasoline, and meals will be borne by KST.

     d.   KST's expenditures to attend boat shows will be borne by KST.

2.   The company will provide  assistance to KST with regards to marketing tools
     (such as brochures, animations, etc.) in order to assist KST with sales.

3.   The company will link its website to KST's website and vice versa if agreed
     in writing by both parties.

<PAGE>

4.   The company shall make available a demonstration  boat for an end customer.
     Any  reasonable  costs,  agreed  to by the  Parties,  associated  with  the
     demonstration  such as transportation and operating expenses shall be borne
     by KST.

VII. Termination

1.   This agreement may be terminated if:

     a.   Either  party  fails to fulfill  any  material  obligation  under this
          agreement  and shall not have  cured the  breach  within 20 days after
          having received written notice thereof.

2.   Termination or expiration of this agreement shall not extinguish any rights
     of compensation that shall accrue prior to the termination.

VII. Confidential Information

1.   Confidential   Information   shall  be  treated  in  accordance   with  the
     Non-Disclosure  Agreement  signed  between the parties dated 16 August 2007
     per Exhibit C.

IX Miscellaneous

1.   Expense on Mailing of letters is negligible  and will not be considered for
     reimbursement.

2.   Modification:  This  Agreement  may be modified or amended  only in writing
     signed by both the Company and KST.

3.   Governing   law:  The  laws  of   California   will  govern  the  validity,
     construction,  and  performance  of this  Agreement.  Any legal  proceeding
     related to this  Agreement  will be brought  in an  appropriate  California
     court,  and  both the  Company  and KST  hereby  consent  to the  exclusive
     jurisdiction of that court for this purpose.

4.   Construction:  Wherever possible,  each provision of this Agreement will be
     interpreted so that it is valid under the applicable  law. If any provision
     of this Agreement is to any extent  invalid under the applicable  law; that
     provision  will still be  effective  to the extent it  remains  valid.  The
     remainder of this Agreement also will continue to be valid,  and the entire
     Agreement will continue to be valid in other jurisdictions.

5.   Waivers: No failure or delay by either the company or KST in exercising any
     right or remedy  under  this  Agreement  will  waive any  provision  of the
     Agreement, nor will any single or partial exercise by either the company or
     KST of any right or remedy  under this  Agreement  preclude  either of them
     from otherwise or further exercising these rights or remedies, or any other
     rights or remedies granted by any law or any related document.

6.   Captions:  The headings in this Agreement are for  convenience  only and do
     not affect this Agreement's interpretation.

<PAGE>

7.   Entire   Agreement:    This   Agreement   supersedes   all   previous   and
     contemporaneous    oral   negotiations,    commitments,    writings,    and
     understandings   between  the  parties   concerning  the  matters  in  this
     Agreement.

8.   Notices: All notices,  requests and other communications  hereunder must be
     in  writing  and will be  deemed  to have  been  duly  given  if  delivered
     personally, by facsimile transmission,  by international commercial courier
     or mailed (first class postage prepaid) to the other Party at the following
     addresses or facsimile numbers:

In the case of Company, send to:

                  Danny Medina
                  President
                  Medina Marine, Inc.
                  255 S. Leland Norton Way
                  San Bernardino, CA 92408

                  In the case of KST, send to:

                  Jason Lee
                  Director of Operations
                  Kelly Space & Technology, Inc.
                  294 South Leland Norton Way,
                  San Bernardino, CA 92408
                  Tel: 909.382.2010
                  Fax: 909.382.2012

Nothing else is implied or expressed.

---------------------------       -------     -------------------       --------
Michael J. Gallo                                  Danny Medina
President & CEO                                   President
Kelly Space and Technology, Inc.   Date           Medina Marine, Inc.     Date
                                            (a wholly owned subsidiary of
                                            Medina International Holdings, Inc.)

                                               --------------------     --------
                                                  Madhava Rao Mankal
                                                  CFO
                                                  Medina Marine, Inc.     Date
                                            (a wholly owned subsidiary of
                                            Medina International Holdings, Inc.)

<PAGE>

                                    EXHIBIT A
             (Medina International Holdings, Inc. Board Resolution)

                     Corporate Resolution- For Certificates

I,  Madhava  Rao  Mankal,  do hereby  certify  that at a meeting of the Board of
Directors of Medina International Holdings,  Inc., a corporation organized under
the State laws of Colorado held on the 21st day of August,  2007 by Circulation,
which said  meeting no less than two  officers  or  directors  were  present and
voting throughout,  the following  resolution,  upon motions made,  seconded and
carried, was duly adopted and is now in full force and effect:

Resolved,  "That the  Officers or any two  officers to sign on all  documents of
Medina  Marine,  Inc.  wholly  owned  subsidiary  of  the  Medina  International
Holdings, Inc."

Resolved  that " Medina  Marine has the sole  rights to exercise  the  Licensing
rights of Medina International Holdings, Inc. relating to 12', 15', 21 and Fire
Pump  license.  Also it has  rights to  manufacture,  sell the water  crafts and
assign distribution license to market the products

OFFICERS:                                   OFFICE HELD:
Daniel Frank Medina                         President
Madhava Rao Mankal                          Chief Financial Officer

In  witness  whereof,  I have  hereunto  set my hand and seal  this  21st day of
August, 2007.

SEAL AUTHORIZED SIGNATURES

Secretary: Madhava Rao Mankal   ____________________________

If no seal, certify that there is no seal

<PAGE>

                                    EXHIBIT B

I.   Cost of the Standard boat/watercraft to Kelly Space & Technology,  Inc., as
     of August 22, 2007.

                  a.  12 foot Standard Rescue/Patrol Jet Boat = $50,000.00
                  b.  15 foot Standard Rescue/Patrol Jet Boat = $70,000.00
                  c.  21 foot Standard Rescue/Patrol Jet Boat = $95,000.00

II.  Cost of the Standard boat/watercraft with a Fire Nozzle System installed to
     Kelly Space & Technology, Inc. as of August 22, 2007.

                  a.  15 foot Standard Fire Rescue Jet Boat = $95,000.00
                  b.  21 foot Standard Fire Rescue Jet Boat = $125,000.00

     2.   The  Parties  shall  come  to  agreement  on any  escalation,  if any,
          provided that a request for  escalation is supported by  documentation
          evidencing the requirement for a cost increase.  Notwithstanding this,
          Product prices shall not escalate beyond 10% per annum.

<PAGE>

                                    EXHIBIT C

                         KELLY SPACE & TECHNOLOGY, INC.
                            NON-DISCLOSURE AGREEMENT

                                   NDA No.___

This AGREEMENT,  made and entered into on 16 August 2007,  between Kelly Space &
Technology,  Inc. (and its  subsidiaries)  of San  Bernardino,  California,  and
Medina Marine Inc., a wholly owned subsidiary of Medina International  Holdings,
Inc. of San Bernardino, California.

WITNESS:

         WHEREAS,  it is the purpose of this  Agreement to enable the Parties to
perform the project or program activities hereinafter referred to;

         WHEREAS, both Parties for their mutual benefit, anticipate the possible
need to disclose to and receive  from the other  Party,  information  associated
with the projects or program activities  (hereinafter  "Program" or "Programs"),
which the  furnishing  Party  considers to be  proprietary  and which relates to
technical,  programmatic  or financial  information  originated  by or otherwise
peculiarly  within the knowledge of one Party, and currently  protected  against
unrestricted   disclosure  to  others  regarding  technical,   programmatic  and
financial information (hereinafter "Data");

         WHEREAS, the United States Government (hereinafter "Government") may
request information which is the subject hereof;

         NOW THEREFORE,  in  consideration  of the proprietary and  confidential
nature of the Data being  supplied  by each  Party to the other for the  purpose
expressed  hereinabove,  the  Parties  do  hereby  mutually  agree  to  maintain
confidential and not disclose to third Parties,  any such Data received from the
other; except in accordance with this Agreement as set forth herein below:

1. MARKING OF INFORMATION.Any information exchanged by the Parties and entitled
to protection  hereunder shall be identified as such by an appropriate  stamp or
marking  on  each  document  exchanged   designating  that  the  information  is
"Proprietary" and if oral disclosure of such protectable Data is made, such Data
shall be so identified at time of disclosure. Within thirty (30) days thereafter
a written  notice with complete  summaries of an oral  disclosure  desired to be
protected,  appropriately stamped or marked, shall be delivered to the receiving
Party addressed as noted  hereafter in this Agreement.  Transmittal of documents
exchanged  shall be  evidenced  by written  notice  from the  disclosing  to the
receiving Party.

<PAGE>

2.       PROTECTION AND USE.

2.1 The  receiving  Party  shall hold each item of  proprietary  information  so
received in  confidence  for a period of ten (10) years after the  expiration of
this  Agreement.  During  such  period,  the  receiving  Party  shall  use  such
information only in connection with the purpose of this Agreement and shall make
such  information  available only to its employees  having a "need to know" with
respect to said purposes. In connection therewith, the Parties shall advise each
such employee of the obligations under this Agreement. Except when authorized in
writing by the disclosing  Party, the receiving Party shall not otherwise use or
disclose  such  information  during  the  aforesaid  period.   Said  proprietary
information  may, with the other  Party's  consent be disclosed by the receiving
Party to the  cognizant  U.S.  Government  agency in connection  with  proposals
related to the Program;  provided,  however,  any such disclosure shall bear the
restrictive  legend as  applicable  of FAR 15.609,  Limited Use of Data,  or FAR
52.215-1(e),  Restriction  on  Disclosure  and Use of  Data,  in  effect  on the
effective date of Agreement, or a successor provision substantially the same. No
Data  provided  under this  Agreement  shall be  delivered  under a contract  or
otherwise made subject to a contract "rights in data" clause.

2.2 The standard of care for protecting such  information,  imposed on the Party
receiving such information, will be that degree of care the receiving Party uses
to prevent  disclosure,  publication  or  dissemination  of its own  proprietary
information, providing it uses a reasonable standard of care.

2.3 Neither Party shall be liable for the  inadvertent or accidental  disclosure
of proprietary information if such disclosure occurs despite the exercise of the
same degree of reasonable  care as such Party normally takes to preserve its own
such Data or information.

2.4 Neither Party hereto shall,  without the prior written consent of the other,
use in  whole  or in part  proprietary  information  disclosed  by the  other to
manufacture or enable  manufacture  by third Parties of the  disclosing  Party's
products,   products  similar  thereto,  or  products  derived  therefrom.   The
information  disclosed  and all copies  thereof  shall,  upon the  expiration or
termination of this Agreement, be returned to the respective disclosing Party or
destroyed and a written  certificate of  destruction  provided to the disclosing
Party.

2.5 This  Agreement  will not preclude  either Party from working with others in
any connection so long as the obligations described herein are respected.

3. EXCLUSIONS FROM PROTECTION.  Information shall not be afforded the protection
of this Agreement if, on the effective date hereof,  such  information is; or it
is determined subsequent hereto that such information:

     a.   was developed by the receiving Party  independently  of the disclosing
          Party; or

     b.   was publicly  available  other than through the fault or negligence of
          the receiving Party; or

     c.   was released  without  restriction by the  disclosing  Party to anyone
          including the United States Government; or

     d.   was lawfully known to or obtained by the receiving Party from a source
          other than the disclosing Party, including the Government, and without
          breach of this Agreement by the recipient; or

     e.   was disclosed with the written approval of the other Party.

<PAGE>

4.       LEGAL ACTIONS

4.1 Should the receiving Party be faced with legal action or a requirement under
U.S. Government  regulations to disclose  information  received  hereunder,  the
receiving  Party  shall  forthwith  notify the  disclosing  Party,  and upon the
request of the latter,  the receiving  Party shall  cooperate in contesting such
disclosure.   Except  in   connection   with  a   failure   to   discharge   the
responsibilities  set forth in the  preceding  sentence,  neither Party shall be
liable in any way for any  disclosures  made pursuant to judicial action or U.S.
Government  regulations,  or for inadvertent disclosure or use, if it shall have
notified the disclosing  Party and shall have  endeavored to prevent any further
inadvertent disclosure or use.

4.2 Recognizing the sensitive proprietary nature of the Data exchanged hereunder
and the  inadequacy  of legal  remedies  in the event of  unauthorized  release,
either  Party  may  request a court of  competent  jurisdiction  to enjoin  such
unauthorized release and/or distribution of such proprietary Data.

5. NO RIGHTS  GRANTED.  Nothing in this Agreement shall be construed as granting
or  conferring  any rights on the part of either Party by license or  otherwise,
expressly or implied,  to any invention or discovery,  or to any patent covering
such invention or discovery.

6. WARRANTY.  NEITHER PARTY MAKES ANY WARRANTY,  GUARANTEE,  OR  REPRESENTATION,
EITHER EXPRESS OR IMPLIED,  WITH RESPECT TO ANY OF THE  PROPRIETARY  INFORMATION
DISCLOSED HEREUNDER. NEITHER PARTY SHALL BE LIABLE IN DAMAGES, OF WHATEVER KIND,
AS A RESULT OF THE OTHER PARTY'S RELIANCE ON OR USE OF THE INFORMATION  PROVIDED
HEREUNDER.

7.  INDEPENDENT  CONTRACTOR.  Each  Party in  undertaking  its  responsibilities
hereunder  shall  be  deemed  an  independent  contractor  and  nothing  in this
Agreement  shall  constitute,  create,  or in any way be  interpreted as a joint
venture, partnership, or formal business organization of any kind.

8. TRANSMISSION AND CONTROL POINTS. The exclusive points of contact with respect
to the transmission and control of information  furnished by either Party to the
other hereunder shall be as follows:

Kelly Space & Technology, Inc.        Name Medina Marine, Inc.
294 S. Leland Norton Way, Suite 3     Address: 255 S. Leland Norton Way, Suite 6
San Bernardino, CA 92408              San Bernardino, CA 92408

Attn:  Jason Lee                      Attn:    Daniel F. Medina

       Operations Manager             Title:   President

Tel:  (909) 382-5663                  Tel:     (562) 972-5888

Fax:  (909) 382-2012                  Fax:     (909) 522-4230

Either  Party may  change the above  points of contact at any time by  providing
written notification to the other Party.

<PAGE>

9. EXPIRATION/TERMINATION.  This Agreement shall expire five (5) years after the
effective  date,  except that it may be  terminated  earlier by thirty (30) days
prior written  notification  of either Party to the other, or extended by mutual
written  agreement.  The effective date is defined as the day, month and year of
the last signatory of this  document.  The provisions of paragraph 2 above shall
survive such  expiration or  termination.  In the event the Parties enter into a
definitive contract, the rights and obligations of the Parties shall be governed
by that contract.

10. UNITED STATES GOVERNMENT REGULATIONS. The Parties and each Party will assure
that their  employees  will not use or disclose any  Proprietary  Information or
other  information  furnished  hereunder in any manner  contrary to the laws and
regulations of the United States of America,  or any agency  thereof,  including
but not limited to, the Export Administration Regulations of the U.S. Department
of  Commerce,  the  International  Traffic  in  Arms  Regulations  of  the  U.S.
Department  of State,  the  Economic  Espionage  Act of 1996 and the  Industrial
Security  Manual for  Safeguarding  Classified  Information of the Department of
Defense.

11. APPLICABLE LAW. This Agreement shall be governed, interpreted, and construed
in all respects, including substantive and procedural aspects thereof, according
to the laws of the State of California,  except for those portions of California
law applicable to conflicts of law  provisions,  and that body of law pertaining
to the Federal Acquisition Regulation (FAR) as interpreted by the Armed Services
Board of Contract Appeals (ASBCA) and the U.S. federal courts.

12.  INTEGRATION,  MODIFICATION,  SEVERABILITY,  NON-ASSIGNMENT.  This agreement
contains the entire  understanding  between the Parties  relative to the subject
matter  thereof,  and  supercedes  all  prior  and  collateral   communications,
understandings,  and agreements.  No modification to any provisions hereof shall
be binding  unless in writing and signed by authorized  representatives  of both
Parties.  If any provision of this Agreement  shall be or become  unenforceable,
the Parties shall  endeavor to reform the Agreement  appropriately,  and if not,
then the provision  shall be severed and the  remainder of the  Agreement  shall
remain  in  full  force  and  effect.   This  Agreement  is  not  assignable  or
transferable  without the prior written consent of the other Party, and any such
assignment or transfer without such consent is void.

13. CORPORATE  AUTHORITY.  Each Party hereby represents to the other that it has
full corporate  power and authority to enter into this Agreement and perform the
obligations  hereunder;  and this  Agreement  constitutes  a valid  and  legally
binding obligation of each Party enforceable in accordance with its terms.

<PAGE>

IN WITNESS  WHEREOF,  the Parties  hereto have caused this  Agreement to be duly
executed and in effect on the day and year first written above.

For Kelly Space & Technology, Inc.            Name

Signature:                                    Signature:
          -----------------                              -----------------

Name:     Jason Lee                           Name:  Daniel F. Medina

Title:    Operations Manager                  Title: President

Date:                                         Date: ----------------------
     ---------------------

                                              Name

                                             Signature:

                                             Name:  Madhava Rao Mankal

                                             Title: CFO

                                             Date:
                                                  -----------------------

--------------------------------------------------------------------------------
Kelly Space & Technology, Inc.
294 S. Leland Norton Way
San Bernardino, CA 92408

Tel: (909) 382-2010 - Fax (909) 382-2012

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