Document:

Shipbuilding     Contract

    

    for  the  supply  of

    

    one  A.H.T.S.  Vessel

    

    Fincantieri  no.  6161

    

    between

    

    FINCANTIERI  Cantieri  Navali  Italiani  S.p.A.

    

    
      and

    

    

    ATL  Offshore   GmbH

     

    
      
         

      

      
        page 1/
23

        
          

        

      

      
         

      

    

    

    TABLE    OF   CONTENTS

    

    
      
        
          
            
              
                
                  
                    
                      	
                              article
      1

                            	
                              Object
      of the contract

                            	
                              3

                            
	
                              article
      2

                            	
                              Ship’s
      classification – Rules and regulations - Certificates

                            	
                              3

                            
	
                              article
      3

                            	
                              Ship
      characteristics

                            	
                              4

                            
	
                              article
      4

                            	
                              Exclusions
      from Fincantieri’s supply - ATL’s supply

                            	
                              5

                            
	
                              article
      5

                            	
                              Work
      preparation  – Supplies by third parties

                            	
                              5

                            
	
                              article
      6

                            	
                              Shipyard
      number

                            	
                              5

                            
	
                              article
      7

                            	
                              Inspection
      during construction

                            	
                              6

                            
	
                              article
      8

                            	
                              Delivery
      – Liquidated damages

                            	
                              6

                            
	
                              article
      9

                            	
                              Price

                            	
                              7

                            
	
                              article
      10

                            	
                              Payment
      procedures

                            	
                              7

                            
	
                              article
      11

                            	
                              Defaults

                            	
                              9

                            
	
                              article
      12

                            	
                              Trials

                            	
                              9

                            
	
                              article
      13

                            	
                              Performances
      – Liquidated damages

                            	
                              10

                            
	
                              article
      14

                            	
                              Maximum
      amount of liquidated damages

                            	
                              11

                            
	
                              article
      15

                            	
                              Termination
      of the contract

                            	
                              11

                            
	
                              article
      16

                            	
                              Insurance

                            	
                              11

                            
	
                              article
      17

                            	
                              Modifications
      to plans and Technical specifications

                            	
                              12

                            
	
                              article
      18

                            	
                              Events
      of force majeure

                            	
                              12

                            
	
                              article
      19

                            	
                              Patents

                            	
                              13

                            
	
                              article
      20

                            	
                              Intellectual
      property rights

                            	
                              13

                            
	
                              article
      21

                            	
                              Assignment
      of the contract

                            	
                              13

                            
	
                              article
      22

                            	
                              Property
      rights of the Ship

                            	
                              14

                            
	
                              article
      23

                            	
                              Responsibility
      after delivery

                            	
                              14

                            
	
                              article
      24

                            	
                              Technical
      guarantee

                            	
                              14

                            
	
                              article
      25

                            	
                              Taxes
      – Duties and other charges

                            	
                              15

                            
	
                              article
      26

                            	
                              Confidentiality

                            	
                              15

                            
	
                              article
      27

                            	
                              Contract
      effective date

                            	
                              15

                            
	
                              article
      28

                            	
                              Law
      and disputes

                            	
                              16

                            
	
                              article
      29

                            	
                              Miscellaneous

                            	
                              16

                            
	
                              article
      30

                            	
                              Election
      of domicile

                            	
                              17

                            
	 
      	 
      	 
      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      	
                              Enclosure
      "A"  -

                            	
                              Protocol
      of delivery and acceptance of the Ship (Art. 8)

                            	
                              18

                            
	
                              Enclosure
      “B”  -

                            	
                              Model
      of Bank Guarantee for Advance Payment (Art. 10)

                            	
                              19

                            
	
                              Enclosure
      “C”  -

                            	
                              Model
      of Bank Guarantee for Progress Payment (Art. 10)

                            	
                              21

                            
	
                              Enclosure
      “D”  -

                            	
                              Model
      of Bank Guarantee for Technical Guarantee Period

                            	
                              23

                            

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        page 2/
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    CONTRACT

    between

    

    —  The
ATL Offshore GmbH, located at Garrelsstr. 14, 26789 Leer, Germany, hereinafter
referred to as "ATL" (or “the Customer”), represented by Dr. Niels
Hartmann

    on one
part

    

    and

    

    —  FINCANTIERI
Cantieri Navali Italiani S.p.A., a Company organised and existing under the laws
of the Republic of Italy, with Naval Vessel Business Unit located at Via Cipro,
11, 16129 Genoa, Italy, hereinafter referred to as  "FINC",
represented by Mr.Enrico Bonetti as per proxy dated 20 September
2006,

    on the
other part

     

    hereinafter
defined Party and/or Parties.

     

    WHEREBY
IT IS AGREED AS FOLLOWS:

    

    ARTICLE
1.   OBJECT OF THE CONTRACT

    

    1.1.  FINC’s
obligations shall consist in supplying one “Anchor Handling, Towing and Supply“
Vessel (hereinafter referred to as the "Ship"), to be built at FINC’s Shipyards and delivered to
ATL, which agrees to
accept delivery from FINC, and built in accordance with the conditions and
stipulations stated herein, and as specified in the following technical
documents:

    

    Specification
:

    BS
8000000M rev. 0 dated 20/09/06 – Technical Specifications

    

    Drawings
:

    2000-100
rev. 02 – General Arrangement (Moss Maritime)

    2000-101
rev. 02 – Tankplan (Moss Maritime)

    

    which,
signed by both Parties, are an integral part hereof, although not attached
hereto.

    

    1.2. In the event of conflict
between this Contract and the Specification of Art.1.1 and / or the Plans, the
provisions of this Contract shall prevail. In the event of conflict between the
Specification and the Plans of Art.1.1, the provisions of the Specification
shall prevail.

    

    
      	
              1.3

            	
              The
      main characteristic of the Ship is in moving the anchors of off-shore
      platforms and in rendering services to the
  platforms.

            

    

     

    
      	
              ARTICLE 2.

            	
              SHIP’s
      CLASSIFICATION - RULES AND REGULATIONS -

              CERTIFICATES

            

    

    2.1.   The Ship
shall be built :

    (a) under
the survey of the classification society American Bureau of Shipping (hereafter
“ABS” or the “Classification Society”) in accordance with the rules and
regulations in force at the date of this Contract in order to
obtain  the Class as stated in the Technical Specifications: the
Vessel will be built as if she will fly Italian flag.

     

    
      
        
        

      

      
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    (b) in
compliance with the Main Groups of the Technical Specifications.

    Should it
so happen there be a conflict, the Main Groups of the Technical Specifications
will prevail over the Main Group 1 – General.

    In the
event of conflict between the Technical Specifications and/or the Plans, the provisions of the
Technical Specifications shall
prevail.

    

    2.2    The
Ship will comply with the provisions of the Laws, Rules, Regulations and
Recommendations mentioned in the Technical Specifications, published and in force at
the signature  of this Contract . For provisions of  Laws,
Rules and  Regulations which could enter in force in the period
between the signature of the Contract and the delivery of the Ship, the
disposals contained in Art 17.2. will apply.

    On Ship’s
delivery, FINC shall hand over to ATL the certificates and documents mentioned
in the foregoing Technical Specifications.

    Classification,
testing and survey charges to be paid to the foregoing Classification
Society for the
items supplied by FINC shall be for the
account of FINC.

    The
decisions by the Classification Society as to the Ship’s compliance
or non-compliance with the rules and regulations whose observance is compulsory
shall be binding on both Parties hereto.

    

    ARTICLE
3.    SHIP  CHARACTERISTICS

    

    3.1.   The Ship
shall have the following main dimensions and characteristics:

    
      
        
          	
                  Length,
      overall

                	
                  abt.  76,50
      m

                
	
                  Length
      between perpendiculars

                	
                  67,40
      m

                
	
                  Breadth,
      moulded

                	
                  17,50
      m

                
	
                  Depth,
      moulded

                	
                  8,00
      m

                
	
                  Full
      Load Displacement (890 t of fuel)

                	
                  abt.
      6.320 t

                
	
                  Corresponding
      moulded draught

                	
                  abt.  6,80
      m

                
	
                  Sea
      Trial Draught

                	
                  5,00
      m

                
	
                  Corresponding
      Displacement

                	
                  abt.  4.275
      t

                
	
                  Maximum
      Deadweight

                	
                  not
      less than  3.000 t

                
	
                  Corresponding
      moulded draught

                	
                  abt.
      6,80 m

                
	
                  Maximum
      speed at  5,00 m draught

                	
                  16,3  kt

                
	
                  Bollard
      Pull

                	
                   180
      t

                

        

      

    

    The
foregoing main dimensions may be slightly modified, to the sole judgement of
FINC, should FINC deem such modifications necessary to fulfil the draft,
deadweight and speed contract conditions.

    

    3.2.   Cargo
capacity:

    The
Vessel’s deadweight shall be 2.210 tons (of 1000 kg each) at a mean draft in
saltwater (specific gravity 1.025) of 6,00 metres above base line. The specified
deadweight shall include fuel, provisions, carried chains, cables for AH
activities, stores, freshwater, crew and passengers in addition to spare parts
in excess of the requirements of Class.

    

    In case
some options, with respect to the basic configuration, are agreed, then deriving
reduction in contractual deadweight shall be duly taken into
account.

    
      
         

      

      
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    3.3.   Speed:

    The
Vessel’s average speed at sea trials undertaken as per Technical Specification
shall be at least 16,3 knots at 100% of max. continuous power, with the gear box
driven alternator developing zero output.

    
 

    3.4.   Fuel
consumption:

    The fuel
consumption of each main engine on test
bed, including four driven pumps, shall not exceed 186,2 grams per kW per hour
at 100% of max. continuous power using grade MDO fuel  with an
effective calorific value of at least 42,7 MJ/kg.

    

    3.5.   Propulsion
machinery:

    Type : 4
Diesel Engines (see Technical Specification).

    Max.
continuous power  = 4 x 3.000 kW each.

    

    3.6.   Ship’s
design and building will be in accordance with the rules and regulations
indicated at Para. 112 of the Technical Specification, and with ISO 9001:2000
concerning the Quality Assurance System to be activated for the Contract
duration.

    

    ARTICLE
4.   EXCLUSIONS FROM FINC'S SUPPLY - ATL'S SUPPLY

    FINC's
supply shall exclude any item, piece of equipment and/or machinery not expressly
indicated as included in the Technical Specification.

    The ATL’s
supplies shall reach FINC’s Shipyard, delivered free to FINC’s Shipyard,
according to FINC’s instructions.

    Fuel-oil
and lubricants for the set-up of the on-board plants and for all the trials of
the Ship afloat shall be paid by FINC ; the residue fuel-oil and lubricants
existing on-board on date of delivery will be paid by ATL.

    

    ARTICLE
5. WORK PREPARATION - SUPPLIES BY THIRD PARTIES

    

    5.1.  Transmission
of technical documentation: with reference to plans and drawings listed in Annex
D of the Technical Specifications,
the  procedure  “121.a  Work preparation” of the
Technical Specification, shall apply.

      

    5.2.   The
major sub-contractors / sub-suppliers are listed in the Vendor List attached to
BS 8000000M rev. 0, dated 20/09/06 – Technical Specifications,
and  FINC will be free to choose among the names listed sending
information in writing to ATL in advance before placing the orders. The
sub-contractors / sub-supplier of other items will be designated by FINC during
construction who will take in consideration possible requests of
ATL.

    Any
contact with FINC's Suppliers in connection with the supplies intended for the
Ship object of this Contract shall, in any case, be carried out through
FINC.

    FINC shall guarantee ATL for
all the supplies from third parties as set forth in Article 24.
hereof.

    

    ARTICLE
6.   SHIPYARD  NUMBER

    The Ship
object of this Contract shall be identified with the Shipyard Number
006161.

    
      
         

      

      
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    ARTICLE
7.   INSPECTION  DURING  CONSTRUCTION

    During
the Ship's construction, ATL shall have the right to have the Ship and all
engines, auxiliary machinery, outfit, furnishings, etc. inspected by its
authorised Representatives. To this purpose, ATL’s authorised
Representatives shall be granted by
FINC free access -
during working hours - to the Ship, FINC's premises and plants and, in case that
parts intended for the Ship object of this Contract may have been sub-contracted
by FINC, free access shall be granted also to subcontractors’
plants.

    ATL and/or its authorised
Representatives shall promptly notify in writing FINC of the non-compliance
with the contractual conditions of materials, works, machinery and manufactures.
Failure to serve prompt notification of such defects and/or deviations shall be
considered to all effects as an acceptance of whatever inspected.

    FINC shall take into due
account reasonable remarks, if any, by ATL or by its Representatives, within the
limits of the contractual obligations.

    ATL’s
authorised Representatives shall comply with the work rules prevailing at FINC's
premises as far as they may be concerned. They shall also address their remarks
exclusively to FINC's appointed Representatives.

    Should
ATL elect to entrust the inspection to persons outside its organisation, such
persons shall be subject to FINC's prior approval.

    FINC shall give to ATL
reasonable advance notice about the dates of the tests of the main
machinery.

    On
completion of test operations for major items, Protocols of Acceptance shall be
drawn up and undersigned by ATL’s and FINC's Representatives and, wherever
required, by the Classification Society.

    FINC shall provide within its
Shipyard suitably furnished office spaces for ATL’s Representatives, for the
proper performance of their duties.

    

    ARTICLE
8.   DELIVERY  -  LIQUIDATED  DAMAGES

    

    8.1.   The Ship
will be delivered within 28/02/2009.

    The
delivery of the Ship means the presentation of the Ship afloat at FINC shipyard
in Italy, moored at quay, free from encumbrances or liens, upon satisfactory
trial completion .

    

    A
Protocol of Delivery and Acceptance, according to Enclosure "A", will be signed
by FINC and ATL and the following documents will be handed over to
ATL:

    (A)  Invoice
for the total final price.

    (B)  Declaration
of Warranty of FINC that the Ship is delivered to ATL free and clear of any all
liens, claims or other encumbrances upon the Ship, and in particular that the
Ship is absolutely free from all burdens, in the nature of imposts, taxes or
charges imposed by the city, state or county of the port of delivery, as well as
from all liabilities arising from the construction or operation of the Ship on
trial runs or otherwise, prior to delivery and acceptance.

    (C)  Documents
provided in the Technical Specifications, in the usual form they are issued on
delivery.

    

    8.2. The Ship shall be
delivered to ATL pursuant to the terms of this Contract and provided the
payments hereinafter specified are made within the terms set forth, upon
completion of trials, in the Italian harbour where the Ship is moored at that
time, at the date established in previous 8.1., subject to the extension due to
events of Force Majeure as set forth in Article 18. hereof, to modifications set
forth in Article 17. hereof and to delay in payment as below.

    
      
         

      

      
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    FINC shall be entitled to one
(1) day extension in delivery time for each day of delay in the payment of any
instalment.

    

    8.3.   Should
the Ship not be delivered within the contract term for causes for which
FINC is liable,
FINC shall pay to
ATL, as final liquidated damages, an amount of EURO for each calendar day of
delay as follows :

    
      
        	
                  1st  -  15th
      day

              	
                No  liquidated
      damages

              
	
                16th
      -  30th  day

              	
                Euro    5.000,00  (fivethousand)

              
	
                31st
      -  60th day

              	
                Euro  10.000,00  (tenthousand)

              
	
                61st –
      120th
      day

              	
                Euro  15.000,00  (fifteenthousand)

              

      

    

    

    Should
the delay in the delivery of the Ship, for causes for which FINC is liable, exceeds by
120 (onehundredtwenty) calendar days the foregoing delivery date - as extended
according to this Article and Articles 17. and 18. hereof – ATL, as an
alternative to continue in receiving the foregoing liquidated damages, shall
have the right to resolve this Contract with the consequences set forth in
Article 15. hereof.

    

    8.4.  In the event
that defects and/or deviations, which could be easily eliminated, should emerge
on Ship delivery, FINC undertakes to eliminate
them at its own expense.

    However,
should such an elimination entail costs and work time disproportionate to the
benefit ensuing for ATL, ATL shall be entitled to a price reduction, if any, but
shall not have the right to refuse to take delivery of the Ship.

    However,
should the Ship present defects and deviations such as to make same unsuited to
the service for which she has been ordered, ATL shall have the right to resolve
this Contract with the consequences provided for in Article 15.
hereof.

    

    ARTICLE
9.   PRICE

    ATL shall pay to FINC the price, fixed and not
subject to adjustment, of:

    Euro  35.664.000  (thirtyfivemillionsixhundredsixtyfourthousand
Euro).

    

    ARTICLE
10.   PAYMENT PROCEDURES

    

    10.1.  ATL  will   proceed
as follows :

    —  the
first  (10.2.a ) and second (10.2.b) instalment will be paid directly
by ATL;

    —  the
third  (10.2.c ) and  fourth (10.2.d) instalment will be
paid directly by ATL but supported by a Comfort Letter issued by the Bank of
ATL, which will be  delivered to FINC within three months from
Contract Effective Date;

    —  the
fifth (10.2.e) instalment will be paid through a Letter of Credit
opened  by ATL through its bank and confirmed by ATL in a bank
indicated by FINC , which will be opened and confirmed one year before the
Contract Delivery  Date indicate in Art. 8.1.; or as an alternative
this instalment shall be granted by a Guarantee Letter issued by the Mother
Company of ATL.

    

    10.2.   The
price referred to in Article 9 hereof shall be paid by ATL to FINC as below :

    

    a) The sum of Euro
1.783.200.==

    (onemillionsevenhundredeightythreethousandtwohundred
Euro) representing five per cent (5 %) of the contract price stated under
foregoing Article 9., to be paid upon signature of the Contract and as a
condition for the Contract Effective Date, upon presentation by FINC to ATL
of:

    
      
         

      

      
        page 7/
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              ·

            	
              the
      relevant invoice;

            

    

    
      	
              ·

            	
              a
      guarantee issued as per model in Enclosure
    B.

            

    

    

    b) The sum of Euro Euro
1.783.200.==

    (onemillionsevenhundredeightythreethousandtwohundred
Euro) representing five per cent (5%) of the contract price stated under
foregoing Article 9., to be paid upon presentation by FINC to ATL
of:

    
      	
              ·

            	
              the
      relevant invoice;

            

    

    
      	
              ·

            	
              a
      certificate issued by the Classification Society stating the beginning of
      steel cutting;

            

    

    
      	
              ·

            	
              the  guarantee
      issued as per model in Enclosure
    C.

            

    

    

    c) The sum of Euro
3.566.400==

    (tremillionfivehundredsixtysixthousandfourhundred
Euro) representing ten per cent (10 %) of the contract price stated under
foregoing Article 9., to be paid upon presentation by FINC to ATL
of:

    
      	
              ·

            	
              the
      relevant invoice;

            

    

    
      	
              ·

            	
              a
      certificate issued by the Classification Society stating the installation
      of the Main
      Engines;

            

    

    
      	
              ·

            	
              the
      guarantee issued as per model in Enclosure
    C.

            

    

    

    d) The sum of Euro
3.566.400==

    (tremillionfivehundredsixtysixthousandfourhundred
Euro) representing 10 per cent (10%) of the contract price stated under
foregoing Article 9., to be paid upon presentation by FINC to ATL
of:

    
      	
              ·

            	
              the
      relevant invoice;

            

    

    
      	
              ·

            	
              a
      certificate issued by the Classification Society stating that the Ship has
      been launched;

            

    

    
      	
              ·

            	
              the  guarantee
      issued as per model in Enclosure
    C.

            

    

    

    e) The sum of Euro
24.964.800.==

    (twentyfourmillionninehundredsixtyfourthousandeighthundred
Euro) representing seventy per cent (70%) of the contract price stated under
foregoing Article 9., to be paid on presentation by FINC to the bank in which
the Letter of Credit has been confirmed or, in the case of payment granted by
Guarantee Letter from the mother company, by presentation to ATL,
of:

    
      	
              ·

            	
              an
      original of the relevant invoice;

            

    

    
      	
              ·

            	
              an
      original of the Protocol of Delivery and Acceptance of the Ship as
      per  Enclosure
      A;

            

    

    
      	
              ·

            	
              the  guarantee
      issued as per model in Enclosure
    D.

            

    

    

    10.2.  All payments
to FINC are to be made in Italy in EURO at a bank to be designated by FINC,
without any deduction whatsoever, on the dates the payments are
due.

    Any
possible expenses  connected with payments, opening and confirming of
the Letter of Credit, will be at ATL’s account, except those incurred by FINC's
Bank for the account of FINC.

    
      
         

      

      
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    The
amounts due by ATL or by FINC for the modifications,
if any, to the Technical Specification and to the Plans shall be paid up to
fifty per cent (50%) on ordering of such modifications, and the balance upon
Ship delivery.

    

    Liquidated
damages, if any, for delivery and minor performances shall be determined on Ship
delivery and the relevant amount shall be paid to the Party entitled thereto on
same date.

    

    ATL shall
not delay or discontinue any payment foreseen in this Contract for any reason
whatsoever. Exceptions and/or claims, if any, by ATL against FINC, shall be
asserted separately according to the provisions set forth in Article 28.
hereof.

    

    ARTICLE
11.   DEFAULTS

    Should
ATL be in default in the payment of any contractual instalment and/or other
amounts due whatsoever, then ATL shall pay to FINC - as from the due date -
an interest at the rate of two per cent (2%) per annum over EURIBOR at 6
months.

    

    Should
the aforesaid delay exceed thirty (30) days from the due date, then FINC shall be entitled to
discontinue any further work on the Ship until payment of the outstanding amount
and interest thereon has been made, serving relevant notice to ATL.

    Should
the aforesaid delay exceed three (3) months from the due date, then FINC shall be free to act
according to its rights, including the resolution of the present Contract or, in
case of payments granted by the Guarantee Letter issued by the Mother Company of
ATL, claiming the due payments from the “mother company”. Should ATL fail to
take delivery of the completed Ship in accordance with the conditions of this
Contract, and this not even within the term notified by registered letter sent
to its address, as set forth in Article 8.1. hereof, then the delivery of the
Ship shall be regarded as occurred both to the effects of the expiration of
payments contractually due on Ship delivery, and to the effects of the guarantee
period running.

    

    ARTICLE
12.   TRIALS

    The
Ship  shall run the following test and trials:

    (1)  Harbour
Acceptance Tests, including setting to work of the various
equipment;

    (2)  Sea
Acceptance Trials.

    The sea
trial schedule shall be timely agreed upon between ATL, FINC and the Classification
society.

    The sea
trial under para. (2) above shall be conducted as indicated in the Technical
Specification.

    Should
the weather conditions (no wind, no waves or swell) not occur on the days
scheduled for trials, FINC shall have the right to
postpone it. In such a case, FINC shall be entitled to an
extension of Ship delivery term equal to the whole postponement time
period.

    FINC shall have the option to
carry out preliminary sea-trials for the adjustment of the propulsion machinery
starting and operation as FINC may deem
fit.

    FINC shall have the right to
repeat any trial whatsoever.

    Should
any breakdowns occur during sea-trials, entailing their interruption or
irregular performance, the trial so affected shall be cancelled and shall be
repeated by and at the expense of FINC.  The time period required for
repairs shall produce an extension in the delivery term to be agreed upon
between ATL and FINC.
 

    
      
         

      

      
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      However,
if such breakdowns could be repaired by the normal means available on board, the
trial, by previous agreement between ATL and Builder, shall be continued and
considered as valid in all respects.

       

    

    ARTICLE
13.   PERFORMANCES  -  LIQUIDATED  DAMAGES

    13.1.   Speed

    Should
the Ship's speed at trial displacement and under the conditions stated in the
Technical Specification be lower than the value stated in  Art 3.3.,
FINC shall pay to
ATL, as final liquidated damages, the following amounts:

    —  for
the first 0.5.knot of less speed:  nothing;

    —  for
further 0.5 knot of
less speed up to 1 knot: Euro 15.000,00 (fifteenthousand) per tenth of
knot;

    —  for
further 0.5 knot of less speed up to 1.5 knots: Euro 25.000,00
(twentyfivethousand) per tenth of knot;

    Should
the Ship's speed be lower than 1,5 knots of the speed
as per Art. 3.3 above, then ATL, as an alternative to receiving the above
liquidated damages, shall have the option to resolve this Contract with the
consequences provided for in Art. 15. hereof.

    

    13.2.   Deficiency
in Fuel Consumption

    (a)           If
the fuel consumption on the test bed trials exceeds the figure
stipulated in Article 3.4. by more than 5% but below 8%, FINC will pay as
liquidated damages  Euro  50.000,00 (fiftythousand) for each
full percentage between the two figures per gram per kW per hour.

    (b)           If
the fuel consumption on the test bed exceeds the figure stipulated in Article
3.4. by more than 8%, ATL may, at its option, (1) reject the main engine or (2)
accept the main engine by cashing the maximum amount referred to above. If ATL
rejects the main engine and FINC as a consequence is unable to deliver the Ship
within the contractual delivery time, ATL may resolve  the Contract.

    

    13.3.   Deficiency
in Bollard Pull

    If the
Vessel Bollard Pull  as per Art 3.1., to be obtained in correspondence
to 100% of max. continuous power on each propeller contemporarily, is not achieved, FINC will
pay as liquidated damages to ATL as follows:

    —  for
each full ton reduction up to 176 tons:  no damages;

    —  for
each full ton reduction in the bollard pull from 176 to 172 achieved tons, a
liquidated damages of Euro 30.000,00 (thirtythousand).

    

    If the
deficiency in bollard pull is more than 8 tons, ATL may resolve  the
Contract.

    

    13.4.
Deficiency in Deadweight

    If the
deadweight as per Art 3.1 is not attained and the reduction exceeds 5% of the
stipulated deadweight, FINC will pay as liquidated damages to ATL Euro 3.000,00
(threethousand) per ton of reduction.

    

    If the
reduction in deadweight is more than 10 % of the stipulated deadweight, ATL may
resolve  the Contract.

    
      
         

      

      
        page 10/
23

        
          

        

      

      
         

      

    

    

    ARTICLE
14.   MAXIMUM  AMOUNT  OF  LIQUIDATED  DAMAGES

    

    The
maximum amount of liquidated damages referred to in Articles 8. (Delivery) and
13. (Performances) hereof, shall in no case whatsoever exceed ten per cent (10%)
of the Ship price set forth in Articles 9., but should said amount exceed it,
then ATL waives as from now its entitlement to any higher amount: ATL, as an
alternative to receiving the above liquidated damages, shall have the option to
resolve this Contract with the consequences provided for in Article 15.
hereof.

    

    ARTICLE
15.   RESOLUTION  OF  THE  CONTRACT

    15.1.   In the
event of resolution of this Contract by default of FINC, to which ATL has to
send a warning notice to fulfil the Contract within three (3) months, ATL shall
be entitled to:

    
      
        	
              	
                (a)

              	
                the
      refund of all the sums paid to FINC for the Ship,
      increased by the an interest at the rate of  two per cent ( 2%)
      per annum over EURIBOR at 6
months;

              

      

    

    
      	
            	
              (b)

            	
              the
      payment, as compensation of final liquidated damages of any kind
      whatsoever, of the amount of Euro 300.000,00
      (threehundredthousand).

            

    

    The
foregoing warning to fulfil the Contract shall conversely not be necessary in
the events set forth in Articles 8.3 and 13.

    

    15.2.   In the
event that the cause of resolution of this Contract shall be a default of ATL,
FINC will be
entitled to be paid in proportion to the work done, the materials bought and the
engagements undertaken, plus 10 % conventional profit on the value
of  the  works which will not be done and will put at disposal of
ATL the materials and/or parts of the Ship which ATL will be obliged to remove
from FINC's Shipyard within six months from resolution, failing which removal
FINC will have the
right to consider all parts / materials abandoned and will have the right to
fully dispose of them.

    

    ARTICLE
16.   INSURANCE

    The Ship
under construction must be insured with leading Insurance Companies up to the
time of delivery by and at the expenses of FINC against:

    a)         all
risks covered by "Institute Clauses for Builders' Risks" and usual supplementary
conditions;

    b)         all
risks covered by "Institute War Clauses / Builders' Risks" and "Institute Strikes Clauses /
Builders' Risks".

    The
insurance shall cover the contract value of the Ship.

    The
insured amounts shall be allocated to the repair of damages and/or to the
reconstruction of the Ship.

    

    In the
event of a total constructive loss, arranged or compromised, and/or abandonment,
FINC shall be
entitled to withdraw from this Contract or to fulfil it but with the right to an
adequate extension in the delivery term. Should FINC exercise its withdrawal
right, ATL shall only be entitled to the reimbursement of the amounts already
paid to FINC .

    To
guarantee such reimbursements, the insurance policies stipulated by FINC shall be bound in favour
of ATL to the extent of payments made by ATL.

    

    The
covering of the aforementioned insurance and the due fulfilment by FINC of its obligations set
forth herein, exempt FINC from any other whatsoever responsibility, both legal
and contractual, in connection with the risk and damages of the Ship under
construction.

    
      
         

      

      
        page 11/
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    ARTICLE
17.    MODIFICATIONS  TO  PLANS  AND  SPECIFICATION

    17.1.  FINC shall make the
modifications, if any, to the Specification and Plans referred to in Article 1.
hereof as may be requested by ATL provided that, in the unobjectionable opinion
of FINC, such modifications or accumulation of modifications do not adversely
affect the Ship's building programme and the production programmes of FINC and its
Sub-contractors.

    Both the
requests by ATL and the relevant acceptance by FINC, shall be made in
writing.

    FINC shall notify in writing
ATL of the variations in price and other contract conditions which the accepted
modifications may entail and shall execute such modifications only upon written
acceptance of the foregoing variations by ATL.

    ATL’s written acceptance shall
have to reach FINC within ten (10) days
from the date of receipt of FINC's notice or within fifteen (15) days from the
notice despatch by FINC, whichever is the shorter term.

    Should
such an acceptance not be received within the term set forth, FINC shall have the right to
continue the Ship's construction as if no request for modification were made by
ATL.

    In case
of disagreement on the price and/or consequent variations of the contract
conditions concerning modifications accepted by FINC, ATL shall have the right
to have such modifications performed, but it shall undertake, by written notice
to FINC, to pay the price requested by FINC according to the terms
of Article 10. hereof: ATL keep on its title to exercise its rights deriving
from Art 28.

    

    17.2.  In the event
that, subsequent to the date of signature of this Contract, variations should be
made to the provisions whose fulfilment is compulsory, FINC shall notify in
writing ATL of the consequent modifications and price thereof.

    ATL’s
written acceptance shall have to reach FINC within ten (10) days
from the date of receipt of FINC's notice or within fifteen (15) days from the
notice despatch by FINC, whichever is the shorter term. Failing such acceptance,
FINC shall carry
out the notified modifications, which shall be considered to all effects as
though they had been confirmed by ATL.

    ATL shall
pay the price requested by FINC according to the terms
of Article 10. hereof, while keeps on  its title to exercise its
rights deriving from art 28.

    

    ARTICLE
18.   EVENTS  OF  FORCE  MAJEURE

    Any event
not caused by FINC and preventing FINC from the fulfilment of
its obligations, shall be regarded as an event of force majeure.

    Among the
foregoing events are in any case included strikes, lockouts, plants occupation,
non-co-operation and, in general, any work disturbance, delays in delivery of
ferrous/light-alloy materials or of important finished or semi-finished items
ordered to sub-suppliers (except late delivery due to late order by FINC),
casting and machinery rejects and similar, as well as the effects that the
foregoing facts may directly or indirectly have on the whole of FINC's
engagements.

    Should
such events occur, the Ship's delivery term shall be extended by the period of
time lost by FINC as a consequence of such
events, provided that FINC timely notifies in
writing ATL of that occurrence.

    
      
         

      

      
        page 12/
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    ARTICLE
19.   PATENTS

    FINC, for
the items of its own supply, shall hold ATL harmless against any claim made by
third parties for patent rights and for any other relevant reason, and FINC undertakes for its
account every liability or indemnity whatsoever.

    

    ARTICLE
20.   INTELLECTUAL  PROPERTY  RIGHTS

    The Ship
will be built based on the Design property of MOSS a.s. (Norway) under License
for use of FINC for the Ship object of this Contract.

    The
technical information related to the Ship and furnished to ATL under this
Contract, including reports, drawings and other data, are to be
protected.

    A
dedicated “Non Disclosure Agreement” between FINC and ATL has been signed on
15.08.2006 and the Parties make reference to the disposal here contained for all
effects.

    None of
the said information may be reproduced by ATL, unless with written consent of
FINC which shall
not be unreasonably withheld.

    Notwithstanding
the above, ATL shall have the right to use the information only for maintenance
and repairs, and for commercial purposes .

    FINC guarantees that the Ship
shall not infringe any patent, copyright, registered design, trademark or trade
name.

    In the
event of any action, claim or demand for the infringement of an Intellectual
Property right by the use of the Ship, ATL shall inform FINC of such claim without
delay.

    FINC shall indemnify ATL in
respect of any liability arising thereof and bear all
expenses relating to the said action, claim or demand , provided FINC has been given the
opportunity to conduct the action and / or proceedings at its own
convenience.

    

    ARTICLE
21.   ASSIGNMENT  OF  THE  CONTRACT

    

    Neither
of the Parties hereto shall assign this Contract to a third party unless prior
consent of the other Party is given in writing, such consent not to be
unreasonably withheld.

    

    One,
among others, conditions for consent is that the Assignee will maintain all
guarantees received by FINC (Comfort Letter, Letter of Credit,
etc.),  or in case of renewal by the Assignee such guarantees will be
renewed in a manner not decreasing the level of guarantee of FINC.

    In case
of payments granted by Guarantee Letter issued by the mother company of ATL,
then the mother company will in any case remain liable toward FINC of all
obligations of the Assignee  deriving from the Contract , and these
engagements will be contained in a separate documents to be agreed and delivered
to FINC before the signature of the assignment.

    The deed
of assignment will be subject to the same legal formalities of this
Contract.

    

    For
financing purposes ATL  can assign some rights hereof (agreed with
FINC but in any case excluding mortgage or any lien on the ship  under
progress) in order to obtain means  for the payment of  the
third  (10.2.c ) and  fourth
(10.2.d)  instalment.

    
      
         

      

      
        page 13/
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    ARTICLE
22.   PROPERTY  RIGHTS  OF  THE
VESSEL

    During
the construction, FINC and ATL undertake not to dispose of the hull and / or
parts thereof, the engine and / or parts thereof, the machinery, equipment and /
or outfitting materials and in general anything else intended for the
construction of the Ship, and not to allow any mortgage or lien being registered
on the Ship or part of the same .

    The
property of the Ship will pass on to ATL upon Ship delivery.

    

    ARTICLE
23.   RESPONSIBILITY  AFTER  DELIVERY

    On
delivery of the Ship to ATL, every responsibility for the safety and for the use
of the Ship is transferred to ATL, remaining on FINC only the guarantee
obligations set forth in Article 24. hereof.

    

    ARTICLE
24.   TECHNICAL  GUARANTEE

    

    24.1.  The technical
guarantee of the Ship shall have the not extendable validity of twelve (12)
calendar months (except for those equipments for which the supplier grants a
longer period ) commencing on the date of the Ship's delivery to
ATL.

    On ATL’s
request, FINC shall, at its own expense, repair and/or replace at one of its
Shipyards any part of its own supply (including the supply of its
Sub-contractors and suppliers) for which ATL notifies on delivery defects or
deviations or which, during the foregoing guarantee period, show defects and
deviations not remarkable on delivery, chargeable either to design, materials or
workmanship, provided that such defects and deviations are notified in writing
to  FINC on delivery or, at the latest, within one (1) month from the
date of their discovery and provided that ATL can prove that such defects and
deviations are attributable to  FINC.

    

    Repairs
and replacements carried out by FINC in accordance with this Article shall
be

    covered
by a prolongation of guarantee governed by all the provisions of this Article
but the extent of the guarantee shall in no case exceed the time period of
twentyfour  (24) months from the date of Ship's delivery.

    

    In the
event that the Ship should need to be dry-docked, solely for repairs or for
replacements made necessary by defects or deviations attributable to FINC,
pursuant to the provisions of this Article, the relevant expenses shall be borne
by FINC exclusively.

    

    24.2.  Should it be
necessary, owing to the conditions and location of the Ship or to avoid delays
in carrying out urgent repairs or replacements, ATL may have the repair and/or
replacement work covered by FINC's guarantee carried out elsewhere from FINC's
Shipyards, provided that ATL previously notifies FINC, by letter or facsimile,
about the type and extent of the defects or deviations to be remedied, stating
the reason for necessity to have the work carried out elsewhere and provided the
relevant approval from FINC is received by ATL.

    In such a
case, FINC shall reimburse to ATL the documented expenses incurred by ATL for
such repairs and/or replacements.

    Such a
reimbursement, however, shall not exceed the cost which FINC would have borne by
carrying out the repairs and/or replacements at its Shipyards.

    

    If
requested by FINC, ATL shall return, at its care and expense, the parts
replaced.

    
      
         

      

      
        page 14/
23

        
          

        

      

      
         

      

    

    FINC
shall not have to make any reimbursement for works, repairs and/or replacements
carried out by ATL without the prior approval of  FINC.

    In any
case, any guarantee and/or liability by FINC for repairs and/or replacement work
carried out outside FINC's Shipyards is excluded.

    

    24.3.  End-guarantee
works, if any, will be done at Muggiano Shipyard, where ATL will
make the Ship available at the end of the 12 months period at its care and
cost.

    If, in
accordance with ATL, repairs and/or replacements will be done due to use and/or
maintenance activities, ATL shall be charged with the relevant
expenses.

    

    24.4.  FINC's
liability shall be limited to the foregoing obligation, and FINC and its
sub-contractors and suppliers shall have no liability whatsoever for damages in
any way deriving from or consequential to the foregoing defects or connected
with deviations or with the repair and replacement processes; likewise is
excluded any other liability deriving from or in any way connected with any
other cause not included in the foregoing guarantee obligation, which covers
solely repair and/or replacement.

    FINC
shall not be liable for defects or deviations due to normal wear and tear of the
materials and for any damage whatsoever due to use of the Ship, to accidents
occurred with the Ship moored and/or at sea, or to fires, mismanagement or
negligence in the use of the Ship by ATL or by persons which, at the time of the
damage, were in possession of or governing the Ship, and FINC will not bear any
responsibility for repair and/or replacement consequent to the above
..

     

    24.5.  FINC shall
have the right during the first six months of the guarantee period to put on
board of the Ship, at its costs, an engineer to follow the operations of the
Ship. ATL will recognise to the engineer a treatment on  board of the
same level of the chief engineer: during the stay on board of the guarantee
engineer, all communications related to guarantee problems will be presented to
him.

    

    ARTICLE  25.   TAXES  –  DUTIES  AND  OTHER  CHARGES

    

    All
taxes, including income taxes , duties, dues and fees or similar charges levied
by the Republic of Italy for the implementation of this Contract shall be borne
by FINC.

    All
taxes, including income taxes, whether for persons and/or Companies, duties dues
and fees or similar charges levied by Germany in connection with the
implementation of this Contract shall be borne by ATL.

    

    ARTICLE  26.   CONFIDENTIALITY

    

    No
advertisement or statement in respect of the terms and conditions of this
Contract shall be
published or made by FINC or by ATL in
any newspaper, magazine or in any other form of media without the prior written
agreement of both parties.

    

    ARTICLE
27.   CONTRACT EFFECTIVE DATE

    

    This
Contract shall
become effective when the first payment instalment as per Art 10.2 letter
a)  has been cashed by FINC.

    
      
         

      

      
        page 15/
23

        
          

        

      

      
         

      

    

    

    In the
event that the first payment will not be made for whatever reason, within 30
calendar days from the signature of this Contract, FINC will have the right to
update Terms and Conditions of this Contract.

    

    ARTICLE  28.   LAW  AND  DISPUTES

    

    The
present Contract is ruled by the laws of Switzerland.

    Any
disputes, conflicts or differences of any kind, which shall arise between the
Parties with regard to the interpretation of this Contract, or relating to the
performance of any of the agreed obligations, under this Contract shall, if
possible, be amicably settled.

    Failing
such amicable settlement the Parties have elected to have the dispute referred
to an arbitration tribunal of three arbitrators, who will judge in Geneva
(Switzerland) in accordance with the provisions of the Rules of Conciliation and
Arbitration of the International Chamber of Commerce, to which the Parties
declare to adhere.

    The two
Parties shall pay fees and expenses of the arbitration proceeding in accordance
with the award passed by the Arbitration Tribunal.

    The award
passed by the Arbitration Tribunal shall be final and binding on both Parties
and shall be enforceable before any court of competent
jurisdiction.

    The
commencement of any arbitration proceeding under this Clause shall in no way
affect the continual performance of the obligations of the Parties under this
Contract, except insofar as such obligation relate to the subject matter of such
proceedings.

    

    ARTICLE  29.   MISCELLANEOUS

    

    This
Contract constitutes the entire agreement between ATL and FINC and supersedes
and cancels all prior representations, negotiations, letters, acceptances,
agreements and understandings, whether verbal or written, between ATL and FINC,
with respect to or in connection with any of the matters or things to which this
Contract applies or refers.

    
 

    Any
amendment to this Contract shall be made in the form of a written amendment,
fully agreed and signed by ATL and FINC.

    
      
         

      

      
        page 16/
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    ARTICLE  30.   ELECTION
OF DOMICILE

    

    For all
the purposes of this Contract, ATL elects its domicile in Garrelsstraße 14,
26789 Leer, Germany , and FINC in Via Cipro 11, 16129
Genoa, Italy.

    

    SIGNATURE

    

    This
Contract is signed in three (3) identical originals, one for FINC, one for ATL
and the third copy (with signatures authenticated by a Notary Public in the
place of signature) for the registration in the Italian Coast Guard of the
territory in which the Ship is built.

    

    SIGNED
by  Dr. Niels Hartmann and Capt. Bernhard Wichers

    who
hereby declare to act on behalf of

    and be
duly authorised by ATL

    

    
      
        
          
            
              	
                           
      /S/                                                              
         /S/

                    	
                       

                    

            

          

        

      

    

    

    SIGNED by
Mr. Enrico Bonetti

    who
hereby declares to act  on behalf of

    and be
duly authorised by  FINC

    

    
      
        
          
            
              	
                          
      /S/

                    

            

          

        

      

    

    

    
      
        
          
            
              
                
                  
                    
                      	
                              DATE

                            	
                                 
      22/09/06

                            	 	
                              PLACE

                            	
                                 
      Leer

                            	 

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        page 17/
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    ENCLOSURE
“A”

    PROTOCOL

    of

    DELIVERY
AND ACCEPTANCE OF THE SHIP

    

    SHIP      ________________________

     

    Date and place
:____________________________________

    

    With
reference to Art. 8 of the Contract signed in _______________ on _______________
between  ATL Offshore GmbH &
Co  and  FINCANTIERI Cantieri Navali Italiani S.p.A.,

    Today
between Mr. _______________ on behalf of and duly
authorised by ATL Offshore GmbH& Co, and Mr. _______________ on behalf of and
duly authorised by
FINCANTIERI Cantieri Navali Italiani S.p.A., it is hereby certified on
_______________ in _______________the acceptance of and delivery of the said
Ship .

    

    
      
        
          
            
              	
                      Authorised
      Representative of

                    	 	
                      Authorised
      Representatives of

                    
	
                      FINCANTIERI
      Cantieri Navali Italiani S.p.A.

                    	 	
                      ATL
      Offshore GmbH

                    
	 
      	 	 
      
	
                       

                    	 	
                       

                    
	
                      Name:

                    	 	
                      Name:

                    
	
                      Title:

                    	 	
                      Title:

                    

            

          

        

      

    

    

    *
Issued in three originals, of which:

        -  two
for  FINCANTIERI

        -  one
for  the OWNER

    
      
         

      

      
        page 18/
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    ENCLOSURE  “B”

    Model  of  Bank  Guarantee  for  Advance  Payment

    

    In
accordance with the conditions of Contract dated _______________ (hereinafter
called the “Contract”) for the construction of one Ship for ATL Offshore GmbH
(hereinafter called “the OWNER”), FINCANTIERI Cantieri Navali Italiani S.p.A. -
Naval Vessel Business Unit, (hereinafter called “FINC”), shall deliver a
guarantee issued by a bank in favour of the OWNER to guarantee the advance
payment  as per Art 10.2.a) under the said Contract for an amount of
EURO _______________==
(_______________ thousand Euro).

    

    We (name
of the Bank) have agreed to give to OWNER  such
guarantee.

    

    NOW
THEREFORE, we ___(bank)____having office at_______________, agree
unconditionally and irrevocably to guarantee the re-payment to the OWNER, on its
first written demand without whatsoever right of objection on our part and
without his first claim to FINC, in the amount not exceeding EURO
_______________.== (_______________ thousand )
until delivery of the Ship

    

    Above
written demand shall indicate the violations of FINC under the terms of the said
Contract.

    

    We,
_____________, further agree that no change or addition to or other modification
of the terms of the Contract or of Works to be performed thereunder, shall in
any way release us from any liability under this guarantee, and we hereby waive
notice of any such change, addition or modification.

    

    This
guarantee shall be a continuing guarantee from the date of the payment to FINC
of said advance payment and shall remain into force and effect or until all sums
of money guaranteed hereby have been paid, or if earlier until the date of
signature (which event is expected to happen  on_____________) of the
“Protocol of delivery and acceptance“ of the Ship, as per model attached hereto,
upon presentation to us of an original of the same, and in any case this
guarantee will automatically expire on ____date _____save for any claim
made on or prior to such date or prior to above event, such expiration taking
place even if the present guarantee is not returned to us

    

    The
present guarantee is governed by the “I.C.C. Uniform rules for demand
guarantees“ – Publication 458 of International Chamber of Commerce - and for
matters not governed by such Uniform Rules, the provisions of the Contract shall
apply.

    
      
         

      

      
        page 19/
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    Attachment to the Bank
Guarantee for Advance Payment

    

    PROTOCOL

    of

    DELIVERY  AND  ACCEPTANCE  OF  THE  SHIP

     

    SHIP      ______________________

     

    Date and place :
____________________________

    

    With
reference to Art. 8 of the Contract signed in _______________ on _______________
between    ATL Offshore GmbH & Co and FINCANTIERI – Cantieri Navali
Italiani S.p.A.,

    Today
between Mr. _______________ on behalf of and
duly  authorised
by ATL Offshore GmbH, and  Mr. _______________ on behalf of and
duly  authorised
by FINCANTIERI, it is  hereby certified on  _______________
in _______________the acceptance of and delivery of the said  Ship
..

    

    
      
        
          
            
              	
                      Authorised
      Representative of

                    	 	
                      Authorised
      Representatives of

                    
	
                      FINCANTIERI
      Cantieri Navali Italiani S.p.A.

                    	 	
                      ATL
      Offshore GmbH

                    
	 
      	 	 
      
	
                       

                    	  	
                       

                    
	
                      Name:

                    	 	
                      Name:

                    
	
                      Title:

                    	 	
                      Title:

                    

            

          

        

      

    

    
      
         

      

      
        page 20/
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    ENCLOSURE  “C”

    Model  of  Bank  Guarantee  for  Progress  Payment

    

    In
accordance with the conditions of Contract dated _______________ (hereinafter
called the Contract ) for the  construction of one Ship for ATL
Offshore GmbH (hereinafter called the OWNER), FINCANTIERI Cantieri Navali
Italiani S.p.A. - Naval Vessel Business Unit (hereinafter called FINC ) shall
deliver a guarantee issued by a bank in favour of the OWNER to guarantee the
advance payment  as per Art 10.2) under the said Contract for an
amount of EURO _______________.== (_________________ thousand
Euro)

    

    We (name
of the Bank)___ have agreed to give to the OWNER such guarantee

    

    NOW
THEREFORE, we ____ (bank)_____having office at______ , agree unconditionally and
irrevocably to guarantee the re-payment to the OWNER, on its first written
demand without whatsoever right of objection on our part and without his first
claim to FINC in the amount not exceeding EURO _______________== (_______________ thousand )
until delivery of the Ship.

    

    Above
written demand shall indicate the violations of FINC under the terms of the said
Contract.

    

    We,
_______________, further agree that no change or addition to or other
modification of the terms of the Contract or of Works to be performed
thereunder, shall in any way release us from any liability under this guarantee,
and we hereby waive notice of any such change, addition or
modification.

    

    This
guarantee shall be a continuing guarantee from the date of the payment to FINC
of said progress  payment and shall remain into force and effect, or
untill all sums of money guaranteed hereby have been paid , or if earlier until
the date of signature (which event is expected to happen  on
_______________), of the “Protocol of delivery and acceptance“ of the Ship, as
per model attached hereto, upon presentation to us of an original of the same,
and in any case this guarantee will automatically expire on ____date ______except for any
claim made on or prior to such date or prior to above event, such expiration
taking place even if the present guarantee is not returned to us.

    

    The
present guarantee is governed  by the “I.C.C. Uniform rules for demand
guarantees“ – Publication 458 of International Chamber of Commerce - and for
matters not governed by such Uniform Rules, the provisions of the Contract shall
apply.

    
      
         

      

      
        page 21/
23

        
          

        

      

      
         

      

    

    

    Attachment to the Bank
Guarantee for Progress Payment

    

    PROTOCOL

    of

    DELIVERY
AND ACCEPTANCE OF THE SHIP

    

    SHIP
    ____________________

     

    Date and place
:______________________________

    

    With
reference to Art. 8 of the Contract signed in _____________ on _____________
between  ATL Offshore GmbH& Co and FINCANTIERI Cantieri Navali
Italiani S.p.A., today between Mr. _____________ on behalf of and
duly  authorised
by ATL Offshore GmbH, and Mr. _____________ on behalf of and duly
authorised by FINCANTIERI, it is hereby certified on  __________ in
___________the acceptance of and delivery of the
said  Ship.

    

    
      
        
          
            
              	
                      Authorised
      Representative of

                    	 	
                      Authorised
      Representatives of

                    
	
                      FINCANTIERI
      Cantieri Navali Italiani S.p.A.

                    	 	
                      ATL
      Offshore GmbH

                    
	 
      	 	 
      
	
                          

                    	 	
                       

                    
	
                      Name:

                    	 	
                      Name:

                    
	
                      Title:

                    	 	
                      Title:

                    

            

          

        

      

    

    

    *
Issued in three originals, of which:

        -  two
for  FINC

        -  one
for the OWNER

    
      
         

      

      
        page 22/
23

        
          

        

      

      
         

      

    

     

    ENCLOSURE
“D”

    Model
of Bank Guarantee for Technical Guarantee Period

    

    In
accordance with the conditions of Contract dated ___________ (hereinafter called
the Contract) for the construction of one Ship for ATL Offshore GmbH
(hereinafter called the OWNER), FINCANTIERI Cantieri Navali Italiani S.p.A. -
Naval Vessel Business Unit (hereinafter called FINC ) shall deliver a guarantee
issued by a bank in favour of the OWNER to guarantee the obligations during the
technical guarantee period as per Art. 24 under the said Contract, for an amount
equal to ten per cent (10%), that is EURO _________________.== (______________________
thousand Euro) for twelve (12) months starting from the delivery date of the
Ship.

    

    We   (name
of the Bank)___have agreed to give to OWNER such guarantee.

    

    NOW
THEREFORE, we ____ (bank)____having office at_____, agree unconditionally and
irrevocably to guarantee the re-payment to OWNER, on its first written demand
without whatsoever right of objection on our part and without his first claim to
FINC in the amount not exceeding EURO  _________________.== (_______________
thousand).

    

    Above
written demand shall indicate the violations of FINC under the terms of the said
Contract.

    

    We,
_____________, further agree that no change or addition to or other modification
of the terms of the Contract or of Works to be performed thereunder, shall in
any way release us from any liability under this guarantee, and we hereby waive
notice of any such change, addition or modification.

    

    This
guarantee shall be a continuing guarantee from the date of the “Protocol of
delivery and acceptance“ of the Ship and shall remain into force and effect, or
until all sums of money guaranteed hereby have been paid , or  until
the end of the guarantee period, and in any case this guarantee will
automatically expire  on ____date _____save for any claim
made during the guarantee period, such expiration taking place even if the
present guarantee is not returned to us.

    

    The
present guarantee is governed by the “I.C.C. Uniform rules for demand
guarantees“ – Publication 458 of International Chamber of Commerce - and for
matters not governed by such Uniform Rules, the provisions of the Contract shall
apply.

    
      
         

      

      
        page 23/
23

        
          

        

      

      
         

      

    

    DEED
OF ASSIGNMENT NB no. 6161

    

    Between

    

    —       ATL
Offshore GmbH, located at Garrelsstr. 14, 26789 Leer, Germany, hereinafter
referred to as "ATL" or the Assignor, represented by Dr. Niels
Hartmann

    

    and

    

    —       ATL
Offhore GmbH & Co. MS “NORDERNEY" KG, located at Garrelsstr. 14, 26789 Leer,
registered at the Amtsgericht Aurich , HRA 200138 Germany, hereinafter referred
to as "ATL-NORDER" or the Assignee, represented by Mr. Bernhard
Wichers

    

    and

    

    —       FINCANTIERI
- Cantieri Navali ltaliani, S.p.A., a Company organised and existing under the
laws of the Republic of Italy, with Naval Vessel Business Unit located at Via
Cipro, 11, 16129 Genoa, Italy, hereinafter referred to as "FINC", represented by
Mr. Alberto Maestrini.

    

    hereinafter
defined Party and/or Parties.

    

    PREMISES

    

    A) Between ATL and
FINC:

    — a
Shipbuilding Contract for the supply of one "Anchor Handling, Towing and Supply"
Vessel (hereinafter referred to as the "Ship"), Fincantieri no. 6161, was
stipulated in Leer on 23 september 2006;

    — an
Addendum to said Shipbuilding Contract was signed in Genoa on 3rd
November 2006;

    

    B) ATL wants now to assign the
Shipbuilding Contract and the Addendum to another Company named ATL Offshore
GmbH & Co. MS "NORDERNEY" KG;

    

    C) Said Contract provides at
Art. 21:

    

    I I I I I
I I I I I I I I

    Neither
of the Parties hereto shall assign this Contract to a third party unless prior
consent of the other Party is given in writing, such consent not to be
unreasonably withheld.

    One,
among others, conditions for consent is that the Assignee will maintain all
guarantees received by FINC (Comfort Letter, Letter of Credit, etc. ) or in case
of renewal by the Assignee such guarantees will be renewed in a manner not
decreasing the level of guarantee of FINC.

    In case
of payments granted by Guarantee Letter issued by the mother company of ATL,
then the mother company will in any case remain liable towards FINC of all
obligations of the Assignee deriving from this Contract , and these engagements
will be contained in a separate document to be agreed and delivered to FINC
before the signature of the assignment.

    The deed
of assignment will be subject to the same legal formalities of this
Contract.

    I I I I I
I I I I I I I I

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    D) FINC is ready to accept
such assignment;

    

    Therefore
the Parties have agreed what follows:

    

    Art
1

    The
Premises are integral part of this Deed.

    

    Art
2

    ATL
Offshore GmbH by the present Deed assigns to ATL Offshore GmbH & Co. MS
“NORDERNEY" KG the Shipbuilding Contract dated 22nd september 2006 and the
Addendum dated 3rd november 2006.

    

    The first
payment of five percent equal to Euro 1.783.200,00 as per Art 10.2.a of the
Contract remains in the handy of FINC .

    As far as
the bank guarantee n.6507352 for the same amount issued by Banca Popolare di
Vicenza on 4th october 2006 , ATL Offshore GmbH & Co. MS “NORDERNEY" KG will
ask said bank to endorse the same in its favour , and ATL as present beneficiary
will give to said bank its consent to the endorsement .

    

    Art
3

    ATL
Offshore GmbH & Co. MS "NORDERNEY” KG accepts from the signature of present
Deed, title, rights and liabilities in the Shipbuilding Contract dated 22nd
september 2006 and in the Addendum dated 3rd
november 2006.

    

    Art
4

    FINC
herewith acknowledges and agrees to the assignment to ATL offshore GmbH &
Co. MS "NORDERNEY" KG of the Shipbuilding Contract dated 22nd
september 2006 and in the Addendum dated 3rd
november 2006.

    FINC
preserves its right to receive from ATL or from its mother company the
guarantees foreseen in article 21 of the Contract , and mother company will in
any case remain liable towards FINC of all obligations of the Assignee deriving
from said Contract.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Signatures

    

    This Deed
of Assignment is signed in three (3) identical originals, one for ATL, one for
ATL-NORDER and one for FINC, and the third copy (with signatures authenticated
by a Notary Public) for the registration in the Italian Coast Guard of the
territory in which the Ship is built.

     

    SIGNED by
Dr. Niels Hartmann

    who
hereby declare to act on behalf of

    and be
duly authorised by ATL

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                /s/

                              	 	
                                Date:

                              	
                                27.11.06

                              	 
	 
      	 	 
      	 
      	 
	
                                SIGNED
      by Capt. Bernhard Wichers

                              	 	 
      	 
      	 
	
                                who
      hereby declare to act on behalf of

                              	 	 
      	 
      	 
	
                                and
      be duly authorised by ATL-NORDER

                              	 	 
      	 
      	 
	 
      	 	 
      	 
      	 
	
                                /s/

                              	 	
                                Date:

                              	
                                27.11.06

                              	 
	 
      	 	 
      	 
      	 
	
                                SIGNED
      by Alberto Maestrini

                              	 	 
      	 
      	 
	
                                who
      hereby declare to act on behalf of

                              	 	 
      	 
      	 
	
                                and
      be duly authorised by FINC

                              	 	 
      	 
      	 
	 
      	 	 
      	 
      	 
	
                                /s/

                              	 	
                                Date:

                              	
                                28.3.07Shipbuilding     Contract

    

    for  the  supply  of

    

    one  A.H.T.S.  Vessel

    

    Fincantieri  no.  6162

    

    between

    

    FINCANTIERI  Cantieri  Navali  Italiani  S.p.A.

    

    
      	
              and

            

    

    

    ATL  Offshore   GmbH
& Co

    ISLE
OF BALTRUM KG

    
      
         

      

      
        Page 1 /
24

        
          

        

      

      
         

      

    

    

    TABLE    OF   CONTENTS

    

    
      
        
          	
                  article
      1

                	
                  Object
      of the contract

                	
                   
      3

                
	
                  article
      2

                	
                  Ship’s
      classification – Rules and regulations - Certificates

                	
                   
      3

                
	
                  article
      3

                	
                  Ship
      characteristics

                	
                   
      4

                
	
                  article
      4

                	
                  Exclusions
      from Fincantieri’s supply - ATL-BALT’s supply

                	
                   
      5

                
	
                  article
      5

                	
                  Work
      preparation  – Supplies by third parties

                	
                   
      5

                
	
                  article
      6

                	
                  Shipyard
      number

                	
                   
      5

                
	
                  article
      7

                	
                  Inspection
      during construction

                	
                   
      6

                
	
                  article
      8

                	
                  Delivery
      – Liquidated damages

                	
                   
      6

                
	
                  article
      9

                	
                  Price

                	
                   
      7

                
	
                  article
      10

                	
                  Payment
      procedures

                	
                   
      7

                
	
                  article
      11

                	
                  Defaults

                	
                   
      9

                
	
                  article
      12

                	
                  Trials

                	
                   
      10

                
	
                  article
      13

                	
                  Performances
      – Liquidated damages

                	
                   
      10

                
	
                  article
      14

                	
                  Maximum
      amount of liquidated damages

                	
                   
      11

                
	
                  article
      15

                	
                  Termination
      of the contract

                	
                   
      11

                
	
                  article
      16

                	
                  Insurance

                	
                   
      12

                
	
                  article
      17

                	
                  Modifications
      to plans and Technical specifications

                	
                   
      12

                
	
                  article
      18

                	
                  Events
      of force majeure

                	
                   
      13

                
	
                  article
      19

                	
                  Patents

                	
                   
      13

                
	
                  article
      20

                	
                  Intellectual
      property rights

                	
                   
      13

                
	
                  article
      21

                	
                  Assignment
      of the contract

                	
                   
      14

                
	
                  article
      22

                	
                  Property
      rights of the Ship

                	
                   
      14

                
	
                  article
      23

                	
                  Responsibility
      after delivery

                	
                   
      14

                
	
                  article
      24

                	
                  Technical
      guarantee

                	
                   
      14

                
	
                  article
      25

                	
                  Taxes
      – Duties and other charges

                	
                   
      16

                
	
                  article
      26

                	
                  Confidentiality

                	
                   
      16

                
	
                  article
      27

                	
                  Contract
      effective date

                	
                   
      16

                
	
                  article
      28

                	
                  Law
      and disputes

                	
                   
      16

                
	
                  article
      29

                	
                  Miscellaneous

                	
                   
      17

                
	
                  article
      30

                	
                  Election
      of domicile

                	
                   
      18

                
	 
      	 
      	
                   
      

                
	
                  Enclosure
      "A"  -  Protocol of delivery and acceptance of the
      Ship (Art. 8)

                	
                   
      19

                
	
                  Enclosure
      “B”  -   Model of Bank Guarantee for Advance
      Payment (Art. 10)

                	
                   
      20

                
	
                  Enclosure
      “C”  -   Model of Bank Guarantee for Progress
      Payment (Art. 10)

                	
                   
      22

                
	
                  Enclosure
      “D”  -   Model of Bank Guarantee for Technical
      Guarantee Period

                	
                   
      24

                

        

      

    

     

    
      
         

      

      
        Page 2 /
24

        
          

        

      

      
         

      

    

    

    CONTRACT

    between

    

    —  The
ATL Offshore GmbH & “ISLE OF BALTRUM”, located at Garrelsstr. 14, 26789
Leer, Germany, hereinafter referred to as "ATL- BALT" (or “the Customer”),
represented by Dr. Niels Hartmann

    on one
part

    

    and

    

    —  FINCANTIERI
Cantieri Navali Italiani S.p.A., a Company organised and existing under the laws
of the Republic of Italy, with Naval Vessel Business Unit located at Via Cipro,
11, 16129 Genoa, Italy, hereinafter referred to as  "FINC",
represented by Mr. Albeto Maestrini,

    on the
other part

    

    hereinafter
defined Party and/or Parties.

    

    WHEREBY
IT IS AGREED AS FOLLOWS:

    

    ARTICLE
1.   OBJECT OF THE CONTRACT

    

    1.1.  FINC’s
obligations shall consist in supplying one “Anchor Handling, Towing and Supply“
Vessel (hereinafter referred to as the "Ship"), to be built at FINC’s Shipyards and delivered to
ATL-BALT, which agrees
to accept delivery from FINC, and built in accordance with the conditions and
stipulations stated herein, and as specified in the following technical
documents:

    

    Specification
:

    BS
8000000M rev. 0 dated 20/09/06 – Technical Specifications

    

    Drawings
:

    2000-100
rev. 02 – General Arrangement (Moss Maritime)

    2000-101
rev. 02 – Tankplan (Moss Maritime)

    

    which,
signed by both Parties, are an integral part hereof, although not attached
hereto.

    

    1.2.    In
the event of conflict between this Contract and the Specification of Art.1.1 and
/ or the Plans, the provisions of this Contract shall prevail. In the event of
conflict between the Specification and the Plans of Art.1.1, the provisions of
the Specification shall prevail.

    

    
      	
              1.3

            	
               
      The main characteristic of the Ship is in moving the anchors of off-shore
      platforms and in rendering services to the
  platforms.

            

    

    

    ARTICLE
2.   SHIP’s CLASSIFICATION - RULES AND REGULATIONS -

                         CERTIFICATES

    2.1.   The Ship
shall be built :

    (a) under
the survey of the classification society American Bureau of Shipping (hereafter
“ABS” or the “Classification Society”) in accordance with the rules and
regulations in force at the date of this Contract in order to
obtain  the Class as stated in the Technical Specifications: the
Vessel will be built as if she will fly Italian flag.

    
      
         

      

      
        Page 3 /
24

        
          

        

      

      
         

      

    

    

    (b) in
compliance with the Main Groups of the Technical Specifications.

    Should it
so happen there be a conflict, the Main Groups of the Technical Specifications
will prevail over the Main Group 1 – General.

    In the
event of conflict between the Technical Specifications and/or the Plans, the provisions of the
Technical Specifications shall
prevail.

    

    2.2    The
Ship will comply with the provisions of the Laws, Rules, Regulations and
Recommendations mentioned in the Technical Specifications, published and in force at
the signature  of this Contract . For provisions of  Laws,
Rules and  Regulations which could enter in force in the period
between the signature of the Contract and the delivery of the Ship, the
disposals contained in Art 17.2. will apply.

    On Ship’s
delivery, FINC shall hand over to ATL-BALT the certificates and documents
mentioned in the foregoing Technical Specifications.

    Classification,
testing and survey charges to be paid to the foregoing Classification
Society for the
items supplied by FINC shall be for the
account of FINC.

    The
decisions by the Classification Society as to the Ship’s compliance
or non-compliance with the rules and regulations whose observance is compulsory
shall be binding on both Parties hereto.

    

    ARTICLE
3.    SHIP  CHARACTERISTICS

    

    3.1.   The Ship
shall have the following main dimensions and characteristics:

    
      
        	
                Length,
      overall

              	
                abt.  76,50
      m

              
	
                Length
      between perpendiculars

              	
                67,40
      m

              
	
                Breadth,
      moulded

              	
                17,50
      m

              
	
                Depth,
      moulded

              	
                8,00
      m

              
	
                Full
      Load Displacement (890 t of fuel)

              	
                abt.
      6.320 t

              
	
                Corresponding
      moulded draught

              	
                abt.  6,80
      m

              
	
                Sea
      Trial Draught

              	
                5,00
      m

              
	
                Corresponding
      Displacement

              	
                abt.  4.275
      t

              
	
                Maximum
      Deadweight

              	
                not
      less than  3.000 t

              
	
                Corresponding
      moulded draught

              	
                abt.
      6,80 m

              
	
                Maximum
      speed at  5,00 m draught

              	
                16,3  kt

              
	
                Bollard
      Pull

              	
                188
      t

              

      

    

    The
foregoing main dimensions may be slightly modified, to the sole judgement of
FINC, should FINC deem such modifications necessary to fulfil the draft,
deadweight and speed contract conditions.

    

    3.2.   Cargo
capacity:

    The
Vessel’s deadweight shall be 2.210 tons (of 1000 kg each) at a mean draft in
saltwater (specific gravity 1.025) of 6,00 metres above base line. The specified
deadweight shall include fuel, provisions, carried chains, cables for AH
activities, stores, freshwater, crew and passengers in addition to spare parts
in excess of the requirements of Class.

    

    In case
some options, with respect to the basic configuration, are agreed, then deriving
reduction in contractual deadweight shall be duly taken into
account.

    
      
         

      

      
        Page 4 /
24

        
          

        

      

      
         

      

    

    

    3.3.   Speed:

    The
Vessel’s average speed at sea trials undertaken as per Technical Specification
shall be at least 16,3 knots at 100% of max. continuous power, with the gear box
driven alternator developing zero output.

    

    3.4.   Fuel
consumption:

    The fuel
consumption of each main engine on test
bed, including four driven pumps, shall not exceed 186,2 grams per kW per hour
at 100% of max. continuous power using grade MDO fuel  with an
effective calorific value of at least 42,7 MJ/kg.

    

    3.5.   Propulsion
machinery:

    Type : 4
Diesel Engines (see Technical Specification).

    Max.
continuous power  = 4 x 3.000 kW each.

    

    3.6.   Ship’s
design and building will be in accordance with the rules and regulations
indicated at Para. 112 of the Technical Specification, and with ISO 9001:2000
concerning the Quality Assurance System to be activated for the Contract
duration.

    

    ARTICLE
4.   EXCLUSIONS FROM FINC'S SUPPLY - ATL-BALT'S
SUPPLY

    FINC's
supply shall exclude any item, piece of equipment and/or machinery not expressly
indicated as included in the Technical Specification.

    The
ATL-BALT’s supplies shall reach FINC’s Shipyard, delivered free to FINC’s
Shipyard, according to FINC’s instructions.

    Fuel-oil
and lubricants for the set-up of the on-board plants and for all the trials of
the Ship afloat shall be paid by FINC ; the residue fuel-oil and lubricants
existing on-board on date of delivery will be paid by ATL-BALT.

    

    ARTICLE
5. WORK PREPARATION - SUPPLIES BY THIRD PARTIES

    

    5.1.  Transmission
of technical documentation: with reference to plans and drawings listed in Annex
D of the Technical Specifications,
the  procedure  “121.a  Work preparation” of the
Technical Specification, shall apply.

      

    5.2.   The
major sub-contractors / sub-suppliers are listed in the Vendor List attached to
BS 8000000M rev. 0, dated 20/09/06 – Technical Specifications,
and  FINC will be free to choose among the names listed sending
information in writing to ATL-BALT in advance before placing the orders. The
sub-contractors / sub-supplier of other items will be designated by FINC during
construction who will take in consideration possible requests of
ATL-BALT.

    Any
contact with FINC's Suppliers in connection with the supplies intended for the
Ship object of this Contract shall, in any case, be carried out through
FINC.

    FINC shall guarantee ATL-BALT
for all the supplies from third parties as set forth in Article 24.
hereof.

    

    ARTICLE
6.   SHIPYARD  NUMBER

    The Ship
object of this Contract shall be identified with the Shipyard Number
6162.

    
      
         

      

      
        Page 5 /
24

        
          

        

      

      
         

      

    

    

    ARTICLE
7.   INSPECTION  DURING  CONSTRUCTION

    During
the Ship's construction, ATL-BALT shall have the right to have the Ship and all
engines, auxiliary machinery, outfit, furnishings, etc. inspected by its
authorised Representatives. To this purpose, ATL-BALT’s authorised
Representatives shall be granted by
FINC free access -
during working hours - to the Ship, FINC's premises and plants and, in case that
parts intended for the Ship object of this Contract may have been sub-contracted
by FINC, free access shall be granted also to subcontractors’
plants.

    ATL-BALT and/or its authorised
Representatives shall promptly notify in writing FINC of the non-compliance
with the contractual conditions of materials, works, machinery and manufactures.
Failure to serve prompt notification of such defects and/or deviations shall be
considered to all effects as an acceptance of whatever inspected.

    FINC shall take into due
account reasonable remarks, if any, by ATL-BALT or by its Representatives,
within the limits of the contractual obligations.

    ATL-BALT’s
authorised Representatives shall comply with the work rules prevailing at FINC's
premises as far as they may be concerned. They shall also address their remarks
exclusively to FINC's appointed Representatives.

    Should
ATL-BALT elect to entrust the inspection to persons outside its organisation,
such persons shall be subject to FINC's prior approval.

    FINC shall give to ATL-BALT
reasonable advance notice about the dates of the tests of the main
machinery.

    On
completion of test operations for major items, Protocols of Acceptance shall be
drawn up and undersigned by ATL-BALT’s and FINC's Representatives and, wherever
required, by the Classification Society.

    FINC shall provide within its
Shipyard suitably furnished office spaces for ATL-BALT’s Representatives, for
the proper performance of their duties.

    

    ARTICLE
8.   DELIVERY  -  LIQUIDATED  DAMAGES

    

    8.1.   The Ship
will be delivered within 30th September 2009.

    The
delivery of the Ship means the presentation of the Ship afloat at FINC shipyard
in Italy, moored at quay, free from encumbrances or liens, upon satisfactory
trial completion .

    

    A
Protocol of Delivery and Acceptance, according to Enclosure "A", will be signed
by FINC and ATL-BALT and the following documents will be handed over to
ATL-BALT:

    (A)  Invoice
for the total final price.

    (B)  Declaration
of Warranty of FINC that the Ship is delivered to ATL-BALT free and clear of any
all liens, claims or other encumbrances upon the Ship, and in particular that
the Ship is absolutely free from all burdens, in the nature of imposts, taxes or
charges imposed by the city, state or county of the port of delivery, as well as
from all liabilities arising from the construction or operation of the Ship on
trial runs or otherwise, prior to delivery and acceptance.

    (C)  Documents
provided in the Technical Specifications, in the usual form they are issued on
delivery.

    

    8.2. The Ship shall be
delivered to ATL-BALT pursuant to the terms of this Contract and provided the
payments hereinafter specified are made within the terms set forth, upon
completion of trials, in the Italian harbour where the Ship is moored at that
time, at the date established in previous 8.1., subject to the extension due to
events of Force Majeure as set forth in Article 18. hereof, to modifications set
forth in Article 17. hereof and to delay in payment as below.

    
      
         

      

      
        Page 6 /
24

        
          

        

      

      
         

      

    

    

    FINC shall be entitled to one
(1) day extension in delivery time for each day of delay in the payment of any
instalment.

    

    8.3.   Should
the Ship not be delivered within the contract term for causes for which
FINC is liable,
FINC shall pay to
ATL-BALT, as final liquidated damages, an amount of EURO for each calendar day
of delay as follows :

    
      
        
          
            
              	
                      1st  -  15th day

                    	 	
                      No  liquidated damages

                    
	
                      16th -30th  day

                    	 	
                      Euro 5.000,00  (fivethousand)

                    
	
                      31st -60th day

                    	 	
                      Euro  10.000,00  (tenthousand)

                    
	
                      61st – 120th day

                    	 	
                      Euro  15.000,00  (fifteenthousand)

                    

            

          

        

      

    

    

    Should
the delay in the delivery of the Ship, for causes for which FINC is liable, exceeds by
120 (onehundredtwenty) calendar days the foregoing delivery date - as extended
according to this Article and Articles 17. and 18. hereof – ATL-BALT, as an
alternative to continue in receiving the foregoing liquidated damages, shall
have the right to resolve this Contract with the consequences set forth in
Article 15. hereof.

    

    8.4.  In the event
that defects and/or deviations, which could be easily eliminated, should emerge
on Ship delivery, FINC undertakes to eliminate
them at its own expense.

    However,
should such an elimination entail costs and work time disproportionate to the
benefit ensuing for ATL-BALT, ATL-BALT shall be entitled to a price reduction,
if any, but shall not have the right to refuse to take delivery of the
Ship.

    However,
should the Ship present defects and deviations such as to make same unsuited to
the service for which she has been ordered, ATL-BALT shall have the right to
resolve this Contract with the consequences provided for in Article 15.
hereof.

    

    ARTICLE
9.   PRICE

    ATL-BALT shall pay to FINC the price, fixed and not
subject to adjustment, of:

    Euro  36.573.000,00  (thirtysixmillionfivehundredseventythreethousand
Euro).

    

    ARTICLE
10.   PAYMENT PROCEDURES

    

    10.1.  ATL-BALT  will   proceed
as follows :

    —  the
first  (10.2.a ) and second (10.2.b) instalment will be paid directly
by ATL-BALT;

    —  the
third  (10.2.c ) and  fourth (10.2.d) instalment will be
paid directly by ATL-BALT but supported by a Comfort Letter issued by the Bank
of ATL-BALT, which will be  delivered to FINC within three months from
Contract Effective Date;

    —  the
fifth (10.2.e) instalment will be paid through a Letter of Credit
opened  by ATL-BALT through its bank and confirmed by ATL-BALT in a
bank indicated by FINC , which will be opened and confirmed one year before the
Contract Delivery  Date indicate in Art. 8.1.; or as an alternative
this instalment shall be granted by a Guarantee Letter issued by the Mother
Company of ATL-BALT.

    
      
         

      

      
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    10.2.   The
price referred to in Article 9 hereof shall be paid by ATL-BALT to FINC as below :

    

    a) The sum of Euro
1.828.650,00  (onemillionheighthundred twentyeightthous
sixhundredfifty Euro) representing five per cent (5 %) of the contract price
stated under foregoing Article 9., to be paid upon signature of the Contract and
as a condition for the Contract Effective Date, upon presentation by FINC to
ATL-BALT of:

    
      	
              ·

            	
              the
      relevant invoice;

            

    

    
      	
              ·

            	
              a
      guarantee issued as per model in Enclosure
    B.

            

    

    

    b) The sum of Euro
1.828.650,00  (onemillion heighthundred twentyeightthous
sixhundredfifty hundred Euro) representing five per cent (5%) of the contract
price stated under foregoing Article 9., to be paid upon presentation by FINC to
ATL-BALT of:

    
      	
              ·

            	
              the
      relevant invoice;

            

    

    
      	
              ·

            	
              a
      certificate issued by the Classification Society stating the beginning of
      steel cutting;

            

    

    
      	
              ·

            	
              the  guarantee
      issued as per model in Enclosure
    C.

            

    

    

    c) The sum of Euro
3.657.300,00 (threemillion sixhundredfiftyseventhousand threehundred Euro)
representing ten per cent (10 %) of the contract price stated under foregoing
Article 9., to be paid upon presentation by FINC to ATL-BALT of:

    
      	
              ·

            	
              the
      relevant invoice;

            

    

    
      	
              ·

            	
              a
      certificate issued by the Classification Society stating the installation
      of the Main
      Engines;

            

    

    
      	
              ·

            	
              the
      guarantee issued as per model in Enclosure
    C.

            

    

    

    d) The sum of Euro
3.657.300,00 (threemillion sixhundredfiftyseventhousand threehundred
Euro)  representing 10 per cent (10%) of the contract price stated
under foregoing Article 9., to be paid upon presentation by FINC to ATL-BALT
of:

    
      	
              ·

            	
              the
      relevant invoice;

            

    

    
      	
              ·

            	
              a
      certificate issued by the Classification Society stating that the Ship has
      been launched;

            

    

    
      	
              ·

            	
              the  guarantee
      issued as per model in Enclosure
    C.

            

    

    

    e) The sum of Euro
25.601.100,00 (twentyfivemillion sixhundredonefourthousand onethundred Euro)
representing seventy per cent (70%) of the contract price stated under foregoing
Article 9., to be paid as follows:

    

       e1) On
presentation by FINC to the bank in which the Letter of Credit has been
confirmed of:

    
      	
              ·

            	
              an
      original of the relevant invoice;

            

    

    
      	
              ·

            	
              an
      original of the Protocol of Delivery and Acceptance of the Ship as per
      Enclosure
    A;

            

    

    
      	
              ·

            	
              the  guarantee
      issued as per model in Enclosure
    D.

            

    

    
      
         

      

      
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       e2) or, in
case of payment guaranted by Guarantee Letter from the Mother Company, upon
signature of the Protocol of Delivery and Acceptance of the Ship as per Enclosure A and
contemporaneous presentation to ATL-BALT, of:

    
      	
              ·

            	
              an
      original of the relevant invoice;

            

    

    
      	
              ·

            	
              the  guarantee
      issued as per model in Enclosure
    D.

            

    

    

      e3)
   or, in case of payment guaranted by Engagement Letter
from ATL-BALT’s Bank, upon signature of the Protocol of Delivery and Acceptance
of the Ship as per Enclosure
A and contemporaneous presentation to ATL-BALT, of:

    
      	
              ·

            	
              an
      original of the relevant invoice;

            

    

    
      	
              ·

            	
              the  guarantee
      issued as per model in Enclosure
    D.

            

    

    

    10.3.  All payments
to FINC are to be made in Italy in EURO at a bank to be designated by FINC,
without any deduction whatsoever, on the dates the payments are
due.

    Any
possible expenses  connected with payments, opening and confirming of
the Letter of Credit, will be at ATL-BALT’s account, except those incurred by
FINC's Bank for the account of FINC.

    

    The
amounts due by ATL-BALT or by FINC for the modifications,
if any, to the Technical Specification and to the Plans shall be paid up to
fifty per cent (50%) on ordering of such modifications, and the balance upon
Ship delivery.

    

    Liquidated
damages, if any, for delivery and minor performances shall be determined on Ship
delivery and the relevant amount shall be paid to the Party entitled thereto on
same date.

    

    ATL-BALT
shall not delay or discontinue any payment foreseen in this Contract for any
reason whatsoever. Exceptions and/or claims, if any, by ATL-BALT against FINC,
shall be asserted separately according to the provisions set forth in Article
28. hereof.

    

    10.4  The above
mentioned Bank Guarantees will be issued by one of the following Italian primary
banks, chosen by FINC : Deutsche Bank, Banca Intesa, Banca di Roma, B.N.L. Banca
Nazionale del Lavoro, Unicredit Banca.

    

    ARTICLE
11.   DEFAULTS

    Should
ATL-BALT be in default in the payment of any contractual instalment and/or other
amounts due whatsoever, then ATL-BALT shall pay to FINC - as from the due date -
an interest at the rate of two per cent (2%) per annum over EURIBOR at 6
months.

    

    Should
the aforesaid delay exceed thirty (30) days from the due date, then FINC shall be entitled to
discontinue any further work on the Ship until payment of the outstanding amount
and interest thereon has been made, serving relevant notice to
ATL-BALT.

    Should
the aforesaid delay exceed three (3) months from the due date, then FINC shall be free to act
according to its rights, including the resolution of the present Contract or, in
case of payments granted by the Guarantee Letter issued by the Mother Company of
ATL-BALT, claiming the due payments from the “mother company”. Should ATL-BALT
fail to take delivery of the completed Ship in accordance with the conditions of
this Contract, and this not even within the term notified by registered letter
sent to its address, as set forth in Article 8.1. hereof, then the delivery of
the Ship shall be regarded as occurred both to the effects of the expiration of
payments contractually due on Ship delivery, and to the effects of the guarantee
period running.

    
      
         

      

      
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    ARTICLE
12.   TRIALS

    The
Ship  shall run the following test and trials:

    (1)  Harbour
Acceptance Tests, including setting to work of the various
equipment;

    (2)  Sea
Acceptance Trials.

    The sea
trial schedule shall be timely agreed upon between ATL-BALT, FINC and the Classification
society.

    The sea
trial under para. (2) above shall be conducted as indicated in the Technical
Specification.

    Should
the weather conditions (no wind, no waves or swell) not occur on the days
scheduled for trials, FINC shall have the right to
postpone it. In such a case, FINC shall be entitled to an
extension of Ship delivery term equal to the whole postponement time
period.

    FINC shall have the option to
carry out preliminary sea-trials for the adjustment of the propulsion machinery
starting and operation as FINC may deem
fit.

    FINC shall have the right to
repeat any trial whatsoever.

    Should
any breakdowns occur during sea-trials, entailing their interruption or
irregular performance, the trial so affected shall be cancelled and shall be
repeated by and at the expense of FINC.  The time period required for
repairs shall produce an extension in the delivery term to be agreed upon
between ATL-BALT and FINC.

    However,
if such breakdowns could be repaired by the normal means available on board, the
trial, by previous agreement between ATL-BALT and Builder, shall be continued
and considered as valid in all respects.

    

    ARTICLE
13.   PERFORMANCES  -  LIQUIDATED  DAMAGES

    13.1.   Speed

    Should
the Ship's speed at trial displacement and under the conditions stated in the
Technical Specification be lower than the value stated in  Art 3.3.,
FINC shall pay to
ATL-BALT, as final liquidated damages, the following amounts:

    —  for
the first 0.5.knot of less speed:  nothing;

    —  for
further 0.5 knot of
less speed up to 1 knot: Euro 15.000,00 (fifteenthousand) per

    tenth of knot;

    —  for
further 0.5 knot of less speed up to 1.5 knots: Euro 25.000,00

    (twentyfivethousand) per tenth of
knot;

    Should
the Ship's speed be lower than 1,5 knots of the speed
as per Art. 3.3 above, then ATL-BALT, as an alternative to receiving the above
liquidated damages, shall have the option to resolve this Contract with the
consequences provided for in Art. 15. hereof.

    

    13.2.   Deficiency
in Fuel Consumption

    (a)        If
the fuel consumption on the test bed trials exceeds the figure
stipulated in Article 3.4. by more than 5% but below 8%, FINC will pay as
liquidated damages  Euro  50.000,00 (fiftythousand) for each
full percentage between the two figures per gram per kW per hour.

    (b)        If
the fuel consumption on the test bed exceeds the figure stipulated in Article
3.4. by more than 8%, ATL-BALT may, at its option, (1) reject the main engine or
(2) accept the main engine by cashing the maximum amount referred to above. If
ATL-BALT rejects the main engine and FINC as a consequence is unable to deliver
the Ship within the contractual delivery time, ATL-BALT may
resolve  the Contract.

    
      
         

      

      
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    13.3.   Deficiency
in Bollard Pull

    If the
Vessel Bollard Pull  as per Art 3.1., to be obtained in correspondence
to 100% of max. continuous power on each propeller contemporarily, is not achieved, FINC will
pay as liquidated damages to ATL-BALT as follows:

    —  for
each full ton reduction up to 184 tons:  no damages;

    —  for
each full ton reduction in the bollard pull from 184 to 180 achieved tons, a
liquidated damages of Euro 30.000,00 (thirtythousand).

    

    If the
deficiency in bollard pull is more than 8 tons, ATL-BALT may
resolve  the Contract.

    

    13.4.
Deficiency in Deadweight

    If the
deadweight as per Art 3.1 is not attained and the reduction exceeds 5% of the
stipulated deadweight, FINC will pay as liquidated damages to ATL-BALT Euro
3.000,00 (threethousand) per ton of reduction.

    

    If the
reduction in deadweight is more than 10 % of the stipulated deadweight, ATL-BALT
may resolve  the Contract.

    

    ARTICLE
14.   MAXIMUM  AMOUNT  OF  LIQUIDATED  DAMAGES

    The
maximum amount of liquidated damages referred to in Articles 8. (Delivery) and
13. (Performances) hereof, shall in no case whatsoever exceed ten per cent (10%)
of the Ship price set forth in Articles 9., but should said amount exceed it,
then ATL-BALT waives as from now its entitlement to any higher amount: ATL-BALT,
as an alternative to receiving the above liquidated damages, shall have the
option to resolve this Contract with the consequences provided for in Article
15. hereof.

    

    ARTICLE
15.   RESOLUTION  OF  THE  CONTRACT

    15.1.   In the
event of resolution of this Contract by default of FINC, to which ATL-BALT has
to send a warning notice to fulfil the Contract within three (3) months,
ATL-BALT shall be entitled to:

    
      
        	
              	
                (a)

              	
                the
      refund of all the sums paid to FINC for the Ship,
      increased by the an interest at the rate of  two per cent ( 2%)
      per annum over EURIBOR at 6
months;

              

      

    

    
      	
            	
              (b) 

            	
              the
      payment, as compensation of final liquidated damages of any
      kindwhatsoever,
      of the amount of Euro 300.000,00
  (threehundredthousand).

            

    

    The
foregoing warning to fulfil the Contract shall conversely not be necessary in
the events set forth in Articles 8.3 and 13.

    

    15.2.   In the
event that the cause of resolution of this Contract shall be a default of
ATL-BALT, FINC will
be entitled to be paid in proportion to the work done, the materials bought and
the engagements undertaken, plus 10 % conventional profit on the value
of  the  works which will not be done and will put at disposal of
ATL-BALT the materials and/or parts of the Ship which ATL-BALT will be obliged
to remove from FINC's Shipyard within six months from resolution, failing which
removal FINC will
have the right to consider all parts / materials abandoned and will have the
right to fully dispose of them.

    
      
         

      

      
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    ARTICLE
16.   INSURANCE

    The Ship
under construction must be insured with leading Insurance Companies up to the
time of delivery by and at the expenses of FINC against:

    a)         all
risks covered by "Institute Clauses for Builders' Risks" and usual supplementary
conditions;

    b)         all
risks covered by "Institute War Clauses / Builders' Risks" and "Institute Strikes Clauses /
Builders' Risks".

    The
insurance shall cover the contract value of the Ship.

    The
insured amounts shall be allocated to the repair of damages and/or to the
reconstruction of the Ship.

    

    In the
event of a total constructive loss, arranged or compromised, and/or abandonment,
FINC shall be
entitled to withdraw from this Contract or to fulfil it but with the right to an
adequate extension in the delivery term. Should FINC exercise its withdrawal
right, ATL-BALT shall only be entitled to the reimbursement of the amounts
already paid to FINC .

    To
guarantee such reimbursements, the insurance policies stipulated by FINC shall be bound in favour
of ATL-BALT to the extent of payments made by ATL-BALT.

    

    The
covering of the aforementioned insurance and the due fulfilment by FINC of its obligations set
forth herein, exempt FINC from any other whatsoever responsibility, both legal
and contractual, in connection with the risk and damages of the Ship under
construction.

    

    ARTICLE
17.    MODIFICATIONS  TO  PLANS  AND  SPECIFICATION

    17.1.   FINC shall make the
modifications, if any, to the Specification and Plans referred to in Article 1.
hereof as may be requested by ATL-BALT provided that, in the unobjectionable
opinion of FINC, such modifications or accumulation of modifications do not
adversely affect the Ship's building programme and the production programmes of
FINC and its
Sub-contractors.

    Both the
requests by ATL-BALT and the relevant acceptance by FINC, shall be made in
writing.

    FINC shall notify in writing
ATL-BALT of the variations in price and other contract conditions which the
accepted modifications may entail and shall execute such modifications only upon
written acceptance of the foregoing variations by ATL-BALT.

    ATL-BALT’s written acceptance shall
have to reach FINC within ten (10) days
from the date of receipt of FINC's notice or within fifteen (15) days from the
notice despatch by FINC, whichever is the shorter term.

    Should
such an acceptance not be received within the term set forth, FINC shall have the right to
continue the Ship's construction as if no request for modification were made by
ATL-BALT.

    In case
of disagreement on the price and/or consequent variations of the contract
conditions concerning modifications accepted by FINC, ATL-BALT shall have the
right to have such modifications performed, but it shall undertake, by written
notice to FINC, to pay the price requested by FINC according to the terms
of Article 10. hereof: ATL-BALT keep on its title to exercise its rights
deriving from Art 28.

    

    17.2.  In the event
that, subsequent to the date of signature of this Contract, variations should be
made to the provisions whose fulfilment is compulsory, FINC shall notify in
writing ATL-BALT of the consequent modifications and price
thereof.

    
      
         

      

      
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    ATL-BALT’s
written acceptance shall have to reach FINC within ten (10) days
from the date of receipt of FINC's notice or within fifteen (15) days from the
notice despatch by FINC, whichever is the shorter term. Failing such acceptance,
FINC shall carry
out the notified modifications, which shall be considered to all effects as
though they had been confirmed by ATL-BALT.

    ATL-BALT
shall pay the price requested by FINC according to the terms
of Article 10. hereof, while keeps on  its title to exercise its
rights deriving from art 28.

    

    ARTICLE
18.   EVENTS  OF  FORCE  MAJEURE

    Any event
not caused by FINC and preventing FINC from the fulfilment of
its obligations, shall be regarded as an event of force majeure.

    Among the
foregoing events are in any case included strikes, lockouts, plants occupation,
non-co-operation and, in general, any work disturbance, delays in delivery of
ferrous/light-alloy materials or of important finished or semi-finished items
ordered to sub-suppliers (except late delivery due to late order by FINC),
casting and machinery rejects and similar, as well as the effects that the
foregoing facts may directly or indirectly have on the whole of FINC's
engagements.

    Should
such events occur, the Ship's delivery term shall be extended by the period of
time lost by FINC as a consequence of such
events, provided that FINC timely notifies in
writing ATL-BALT of that occurrence.

    

    ARTICLE
19.   PATENTS

    FINC, for
the items of its own supply, shall hold ATL-BALT harmless against any claim made
by third parties for patent rights and for any other relevant reason, and
FINC undertakes for
its account every liability or indemnity whatsoever.

    

    ARTICLE
20.   INTELLECTUAL  PROPERTY  RIGHTS

    The Ship
will be built based on the Design property of MOSS a.s. (Norway) under License
for use of FINC for the Ship object of this Contract.

    The
technical information related to the Ship and furnished to ATL-BALT under this
Contract, including reports, drawings and other data, are to be
protected.

    A
dedicated “Non Disclosure Agreement” between FINC and ATL-BALT has been signed
on 15.08.2006 and the Parties make reference to the disposal here contained for
all effects.

    None of
the said information may be reproduced by ATL-BALT, unless with written consent
of FINC which shall
not be unreasonably withheld.

    Notwithstanding
the above, ATL-BALT shall have the right to use the information only for
maintenance and repairs, and for commercial purposes .

    FINC guarantees that the Ship
shall not infringe any patent, copyright, registered design, trademark or trade
name.

    In the
event of any action, claim or demand for the infringement of an Intellectual
Property right by the use of the Ship, ATL-BALT shall inform FINC of such claim without
delay.

    FINC shall indemnify ATL-BALT
in respect of any liability arising thereof and bear all
expenses relating to the said action, claim or demand , provided FINC has been given the
opportunity to conduct the action and / or proceedings at its own
convenience.

    
      
         

      

      
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    ARTICLE
21.   ASSIGNMENT  OF  THE  CONTRACT

    Neither
of the Parties hereto shall assign this Contract to a third party unless prior
consent of the other Party is given in writing, such consent not to be
unreasonably withheld.

    

    One,
among others, conditions for consent is that the Assignee will maintain all
guarantees received by FINC (Comfort Letter, Letter of Credit,
etc.),  or in case of renewal by the Assignee such guarantees will be
renewed in a manner not decreasing the level of guarantee of FINC.

    In case
of payments granted by Guarantee Letter issued by the mother company of
ATL-BALT, then the mother company will in any case remain liable toward FINC of
all obligations of the Assignee  deriving from the Contract , and
these engagements will be contained in a separate documents to be agreed and
delivered to FINC before the signature of the assignment.

    The deed
of assignment will be subject to the same legal formalities of this
Contract.

    

    For
financing purposes ATL-BALT  can assign some rights hereof (agreed
with FINC but in any case excluding mortgage or any lien on the
ship  under progress) in order to obtain means  for the
payment of  the third  (10.2.c ) and  fourth
(10.2.d)  instalment.

    

    ARTICLE
22.   PROPERTY  RIGHTS  OF  THE
VESSEL

    During
the construction, FINC and ATL-BALT undertake not to dispose of the hull and /
or parts thereof, the engine and / or parts thereof, the machinery, equipment
and / or outfitting materials and in general anything else intended for the
construction of the Ship, and not to allow any mortgage or lien being registered
on the Ship or part of the same .

    The
property of the Ship will pass on to ATL-BALT upon Ship delivery.

    

    ARTICLE
23.   RESPONSIBILITY  AFTER  DELIVERY

    On
delivery of the Ship to ATL-BALT, every responsibility for the safety and for
the use of the Ship is transferred to ATL-BALT, remaining on FINC only the guarantee
obligations set forth in Article 24. hereof.

    

    ARTICLE
24.   TECHNICAL  GUARANTEE

    

    24.1.  The technical
guarantee of the Ship shall have the not extendable validity of twelve (12)
calendar months (except for those equipments for which the supplier grants a
longer period ) commencing on the date of the Ship's delivery to
ATL-BALT.

    On
ATL-BALT’s request, FINC shall, at its own expense, repair and/or replace at one
of its Shipyards any part of its own supply (including the supply of its
Sub-contractors and suppliers) for which ATL-BALT notifies on delivery defects
or deviations or which, during the foregoing guarantee period, show defects and
deviations not remarkable on delivery, chargeable either to design, materials or
workmanship, provided that such defects and deviations are notified in writing
to  FINC on delivery or, at the latest, within one (1) month from the
date of their discovery and provided that ATL-BALT can prove that such defects
and deviations are attributable to  FINC.

    
      
         

      

      
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    Repairs
and replacements carried out by FINC in accordance with this Article shall be
covered
by a prolongation of guarantee governed by all the provisions of this Article
but the extent of the guarantee shall in no case exceed the time period of
twentyfour  (24) months from the date of Ship's delivery.

    

    In the
event that the Ship should need to be dry-docked, solely for repairs or for
replacements made necessary by defects or deviations attributable to FINC,
pursuant to the provisions of this Article, the relevant expenses shall be borne
by FINC exclusively.

    

    24.2.  Should it be
necessary, owing to the conditions and location of the Ship or to avoid delays
in carrying out urgent repairs or replacements, ATL-BALT may have the repair
and/or replacement work covered by FINC's guarantee carried out elsewhere from
FINC's Shipyards, provided that ATL-BALT previously notifies FINC, by letter or
facsimile, about the type and extent of the defects or deviations to be
remedied, stating the reason for necessity to have the work carried out
elsewhere and provided the relevant approval from FINC is received by
ATL-BALT.

    In such a
case, FINC shall reimburse to ATL-BALT the documented expenses incurred by
ATL-BALT for such repairs and/or replacements.

    Such a
reimbursement, however, shall not exceed the cost which FINC would have borne by
carrying out the repairs and/or replacements at its Shipyards.

    

    If
requested by FINC, ATL-BALT shall return, at its care and expense, the parts
replaced.

    FINC
shall not have to make any reimbursement for works, repairs and/or replacements
carried out by ATL-BALT without the prior approval
of  FINC.

    In any
case, any guarantee and/or liability by FINC for repairs and/or replacement work
carried out outside FINC's Shipyards is excluded.

    

    24.3.  End-guarantee
works , if any, will be done at Muggiano Shipyard, where ATL-BALT will
make the Ship available at the end of the 12 months period at its care and
cost.

    If, in
accordance with ATL-BALT, repairs and/or replacements will be done due to use
and/or maintenance activities, ATL-BALT shall be charged with the relevant
expenses.

    

    24.4.  FINC's
liability shall be limited to the foregoing obligation, and FINC and its
sub-contractors and suppliers shall have no liability whatsoever for damages in
any way deriving from or consequential to the foregoing defects or connected
with deviations or with the repair and replacement processes; likewise is
excluded any other liability deriving from or in any way connected with any
other cause not included in the foregoing guarantee obligation, which covers
solely repair and/or replacement.

    FINC
shall not be liable for defects or deviations due to normal wear and tear of the
materials and for any damage whatsoever due to use of the Ship, to accidents
occurred with the Ship moored and/or at sea, or to fires, mismanagement or
negligence in the use of the Ship by ATL-BALT or by persons which, at the time
of the damage, were in possession of or governing the Ship, and FINC will not
bear any responsibility for repair and/or replacement consequent to the above
..

     

    24.5.  FINC shall
have the right during the first six months of the guarantee period to put on
board of the Ship, at its costs, an engineer to follow the operations of the
Ship. ATL-BALT will recognise to the engineer a treatment on  board of
the same level of the chief engineer: during the stay on board of the guarantee
engineer, all communications related to guarantee problems will be presented to
him.

    
      
         

      

      
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    ARTICLE  25.   TAXES  –  DUTIES  AND  OTHER  CHARGES

    

    All
taxes, including income taxes , duties, dues and fees or similar charges levied
by the Republic of Italy for the implementation of this Contract shall be borne
by FINC.

    All
taxes, including income taxes, whether for persons and/or Companies, duties dues
and fees or similar charges levied by Germany in connection with the
implementation of this Contract shall be borne by ATL-BALT.

    

    ARTICLE  26.   CONFIDENTIALITY

    

    No
advertisement or statement in respect of the terms and conditions of this
Contract shall be
published or made by FINC or by ATL-BALT in
any newspaper, magazine or in any other form of media without the prior written
agreement of both parties.

    

    ARTICLE
27.   CONTRACT EFFECTIVE DATE

    

    This
Contract shall
become effective when the first payment instalment as per Art 10.2 letter
a)  has been cashed by FINC.

    

    In the
event that the first payment will not be made for whatever reason, within 30
calendar days from the signature of this Contract, FINC will have the right to
update Terms and Conditions of this Contract.

    

    ARTICLE  28.   LAW  AND  DISPUTES

    

    The
present Contract is ruled by the laws of Switzerland.

    Any
disputes, conflicts or differences of any kind, which shall arise between the
Parties with regard to the interpretation of this Contract, or relating to the
performance of any of the agreed obligations, under this Contract shall, if
possible, be amicably settled.

    Failing
such amicable settlement the Parties have elected to have the dispute referred
to an arbitration tribunal of three arbitrators, who will judge in Geneva
(Switzerland) in accordance with the provisions of the Rules of Conciliation and
Arbitration of the International Chamber of Commerce, to which the Parties
declare to adhere.

    The two
Parties shall pay fees and expenses of the arbitration proceeding in accordance
with the award passed by the Arbitration Tribunal.

    The award
passed by the Arbitration Tribunal shall be final and binding on both Parties
and shall be enforceable before any court of competent
jurisdiction.

    The
commencement of any arbitration proceeding under this Clause shall in no way
affect the continual performance of the obligations of the Parties under this
Contract, except insofar as such obligation relate to the subject matter of such
proceedings.

    
      
         

      

      
        Page 16 /
24

        
          

        

      

      
         

      

    

    ARTICLE  29.   MISCELLANEOUS

    

    This
Contract constitutes the entire agreement between ATL-BALT and FINC and
supersedes and cancels all prior representations, negotiations, letters,
acceptances, agreements and understandings, whether verbal or written, between
ATL-BALT and FINC, with respect to or in connection with any of the matters or
things to which this Contract applies or refers.

    Any
amendment to this Contract shall be made in the form of a written amendment,
fully agreed and signed by ATL-BALT and FINC.

    
      
         

      

      
        Page 17 /
24

        
          

        

      

      
         

      

    

    ARTICLE  30.   ELECTION
OF DOMICILE

    

    For all
the purposes of this Contract, ATL-BALT elects its domicile in Garrelsstraße 14,
26789 Leer, Germany , and FINC in Via Cipro 11, 16129
Genoa, Italy.

    

    SIGNATURE

    

    This
Contract is signed in three (3) identical originals, one for FINC, one for
ATL-BALT and the third copy (with signatures authenticated by a Notary Public in
the place of signature) for the registration in the Italian Coast Guard of the
territory in which the Ship is built.

    

    SIGNED
by  Dr. Niels Hartmann      & Capt.
Bernhard Wichers

    who
hereby declare to act on behalf of

    and be
duly authorised by ATL-BALT

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  /S/

                                	 
      	 
      	
                                  /S/

                                	 

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    SIGNED by
Mr. Alberto Maestrini

    who
hereby declares to act  on behalf of

    and be
duly authorised by  FINC

    

    
      
        
          	
                  /S/

                	 
      

        

      

    

    

    
      
        
          
            
              	
                      DATE

                    	
                                    
      3.11.2006

                    	 	
                      PLACE

                    	
                                    
      Genove

                    

            

          

        

      

    

    
      
         

      

      
        Page 18 /
24

        
          

        

      

      
         

      

    

    ENCLOSURE
“A”

    PROTOCOL

    of

    DELIVERY
AND ACCEPTANCE OF THE SHIP

    

    SHIP      ________________________

     

    Date and place
:_________________________

    

    With
reference to Art. 8 of the Contract signed in ___________
on ___________ between  ATL Offshore GmbH &
Co  and  FINCANTIERI Cantieri Navali Italiani S.p.A.,

    Today
between Mr. _________ on behalf of and duly
authorised by ATL Offshore GmbH& Co, and Mr. ________ on behalf of and
duly authorised by
FINCANTIERI Cantieri Navali Italiani S.p.A., it is hereby certified
on ________ in _________ the acceptance of and delivery of the said
Ship .

    

    
      
        
          
            	
                    Authorised
      Representative of

                  	 
      	
                    Authorised
      Representatives of

                  
	
                    FINCANTIERI
      Cantieri Navali Italiani S.p.A.

                  	 
      	
                    ATL
      Offshore GmbH

                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                    Name:

                  	 
      	
                    Name:

                  
	
                    Title:

                  	 
      	
                    Title:

                  

          

        

      

    

    

    *
Issued in three originals, of which:

        -  two
for  FINCANTIERI

        -  one
for  the OWNER

    
      
         

      

      
        Page 19 /
24

        
          

        

      

      
         

      

    

    

    ENCLOSURE  “B”

    Model  of  Bank  Guarantee  for  Advance  Payment

    

    In
accordance with the conditions of Contract dated ___________ (hereinafter
called the “Contract”) for the construction of one Ship for ATL Offshore GmbH
(hereinafter called “the OWNER”), FINCANTIERI Cantieri Navali Italiani S.p.A. -
Naval Vessel Business Unit, (hereinafter called “FINC”), shall deliver a
guarantee issued by a bank in favour of the OWNER to guarantee the advance
payment  as per Art 10.2.a) under the said Contract for an amount of
EURO __________________ == (______________ thousand
Euro).

    

    We (name
of the Bank) have agreed to give to OWNER  such
guarantee.

    

    NOW
THEREFORE, we ___(bank)___having office at___________, agree unconditionally and
irrevocably to guarantee the re-payment to the OWNER, on its first written
demand without whatsoever right of objection on our part and without his first
claim to FINC, in the amount not exceeding EURO ______________.== (__________________
thousand ) until delivery of the Ship

    

    Above
written demand shall indicate the violations of FINC under the terms of the said
Contract.

    

    We,
_________, further agree that no change or addition to or other modification of
the terms of the Contract or of Works to be performed thereunder, shall in any
way release us from any liability under this guarantee, and we hereby waive
notice of any such change, addition or modification.

    

    This
guarantee shall be a continuing guarantee from the date of the payment to FINC
of said advance payment and shall remain into force and effect or until all sums
of money guaranteed hereby have been paid, or if earlier until the date of
signature (which event is expected to happen  on ___________) of the
“Protocol of delivery and acceptance“ of the Ship, as per model attached hereto,
upon presentation to us of an original of the same, and in any case this
guarantee will automatically expire on ___date ______save for any claim
made on or prior to such date or prior to above event, such expiration taking
place even if the present guarantee is not returned to us

    

    The
present guarantee is governed by the “I.C.C. Uniform rules for demand
guarantees“ – Publication 458 of International Chamber of Commerce - and for
matters not governed by such Uniform Rules, the provisions of the Contract shall
apply.

    
      
         

      

      
        Page 20 /
24

        
          

        

      

      
         

      

    

    

    Attachment to the Bank
Guarantee for Advance Payment

     

    PROTOCOL

    of

    DELIVERY  AND  ACCEPTANCE  OF  THE  SHIP

     

    SHIP      ______________________

     

    Date and place
:_________________________

    

    With
reference to Art. 8 of the Contract signed in __________
on ___________ between    ATL Offshore GmbH &
Co and FINCANTIERI
– Cantieri Navali
Italiani S.p.A.,

    Today
between Mr. _________ on behalf of and
duly  authorised
by ATL Offshore GmbH, and  Mr. _________ on behalf of and
duly  authorised
by FINCANTIERI, it is  hereby certified on  __________
in _________ the acceptance of and delivery of the said  Ship
..

    

    
      
        
          
            	
                    Authorised
      Representative of

                  	 
      	
                    Authorised
      Representatives of

                  
	
                    FINCANTIERI
      Cantieri Navali Italiani S.p.A.

                  	 
      	
                    ATL
      Offshore GmbH

                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                    Name:

                  	 
      	
                    Name:

                  
	
                    Title:

                  	 
      	
                    Title:

                  

          

        

      

    

    
      
         

      

      
        Page 21 /
24

        
          

        

      

      
         

      

    

     

    ENCLOSURE  “C”

    Model  of  Bank  Guarantee  for  Progress  Payment

    

    In
accordance with the conditions of Contract dated __________ (hereinafter
called the Contract ) for the  construction of one Ship for ATL
Offshore GmbH (hereinafter called the OWNER), FINCANTIERI Cantieri Navali
Italiani S.p.A. - Naval Vessel Business Unit (hereinafter called FINC ) shall
deliver a guarantee issued by a bank in favour of the OWNER to guarantee the
advance payment  as per Art 10.2___) under the said Contract for an
amount of EURO _______________.==
(______________________ thousand Euro)

    

    We (name
of the Bank)... have agreed to give to the OWNER such guarantee

    

    NOW
THEREFORE, we ____ (bank)___having office at_____ , agree unconditionally
and irrevocably to guarantee the re-payment to the OWNER, on its first written
demand without whatsoever right of objection on our part and without his first
claim to FINC in the amount not exceeding EURO ____________________== (____________________
thousand ) until delivery of the Ship.

    

    Above
written demand shall indicate the violations of FINC under the terms of the said
Contract.

    

    We,
___________, further agree that no change or addition to or other modification
of the terms of the Contract or of Works to be performed thereunder, shall in
any way release us from any liability under this guarantee, and we hereby waive
notice of any such change, addition or modification.

    

    This
guarantee shall be a continuing guarantee from the date of the payment to FINC
of said progress  payment and shall remain into force and effect, or
untill all sums of money guaranteed hereby have been paid , or if earlier until
the date of signature (which event is expected to happen  on
__________), of the “Protocol of delivery and acceptance“ of the Ship, as per
model attached hereto, upon presentation to us of an original of the same, and
in any case this guarantee will automatically expire on ___date _____except for any
claim made on or prior to such date or prior to above event, such expiration
taking place even if the present guarantee is not returned to us.

    

    The
present guarantee is governed  by the “I.C.C. Uniform rules for demand
guarantees“ – Publication 458 of International Chamber of Commerce - and for
matters not governed by such Uniform Rules, the provisions of the Contract shall
apply.

    
      
         

      

      
        Page 22 /
24

        
          

        

      

      
         

      

    

    

    Attachment to the Bank
Guarantee for Progress Payment

    

    PROTOCOL

    of

    DELIVERY
AND ACCEPTANCE OF THE SHIP

    

    SHIP     _____________________

     

    Date and place
:_________________________

    

    With
reference to Art. 8 of the Contract signed in ___________
on ___________ between  ATL Offshore GmbH& Co and FINCANTIERI
Cantieri Navali Italiani S.p.A., today between Mr. _________ on behalf of and
duly  authorised
by ATL Offshore GmbH, and Mr. _______ on behalf of and duly
authorised by FINCANTIERI, it is hereby certified on  _________
in _________ the acceptance of and delivery of the
said  Ship.

    

    
      
        
          
            	
                    Authorised
      Representative of

                  	 
      	
                    Authorised
      Representatives of

                  
	
                    FINCANTIERI
      Cantieri Navali Italiani S.p.A.

                  	 
      	
                    ATL
      Offshore GmbH

                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                    Name:

                  	 
      	
                    Name:

                  
	
                    Title:

                  	 
      	
                    Title:

                  

          

        

      

    

    

    *
Issued in three originals, of which:

        -  two
for  FINC

        -  one
for the OWNER

    
      
         

      

      
        Page 23 /
24

        
          

        

      

      
         

      

    

     

    ENCLOSURE
“D”

    Model
of Bank Guarantee for Technical Guarantee Period

    

    In
accordance with the conditions of Contract dated ___________ (hereinafter
called the Contract) for the construction of one Ship for ATL Offshore GmbH
(hereinafter called the OWNER), FINCANTIERI Cantieri Navali Italiani S.p.A. -
Naval Vessel Business Unit (hereinafter called FINC ) shall deliver a guarantee
issued by a bank in favour of the OWNER to guarantee the obligations during the
technical guarantee period as per Art. 24 under the said Contract, for an amount
equal to ten per cent (10%), that is EURO ____________________.== (______________________
thousand Euro) for twelve (12) months starting from the delivery date of the
Ship.

    

    We   (name
of the Bank)...have agreed to give to OWNER such guarantee.

    

    NOW
THEREFORE, we ___ (bank)___having office at____, agree unconditionally and
irrevocably to guarantee the re-payment to OWNER, on its first written demand
without whatsoever right of objection on our part and without his first claim to
FINC in the amount not exceeding EURO  _____________.== (_________________
thousand).

    Above
written demand shall indicate the violations of FINC under the terms of the said
Contract.

    

    We,
__________, further agree that no change or addition to or other modification of
the terms of the Contract or of Works to be performed thereunder, shall in any
way release us from any liability under this guarantee, and we hereby waive
notice of any such change, addition or modification.

    

    This
guarantee shall be a continuing guarantee from the date of the “Protocol of
delivery and acceptance“ of the Ship and shall remain into force and effect, or
until all sums of money guaranteed hereby have been paid , or  until
the end of the guarantee period, and in any case this guarantee will
automatically expire  on ____date ______save for any claim
made during the guarantee period, such expiration taking place even if the
present guarantee is not returned to us.

    

    The
present guarantee is governed by the “I.C.C. Uniform rules for demand
guarantees“ – Publication 458 of International Chamber of Commerce - and for
matters not governed by such Uniform Rules, the provisions of the Contract shall
apply.

     

    
      
         

      

      
        Page 24 /
24

        
          

        

      

      
         

      

    

     

    Addendum
to the Shipbuilding Contract for the construction of one

    AHTS
Vessel Fincantieri Hull No
6162

     

    This
Addendum is made and entered into on this 18th of June 2009
between:

     

    
      	
               
      

            	
              1.

            	
              FINCANTIERI - Cantieri
      Navali Italiani, S.p.A,

            

    

    a company
organized and existing under the laws of the Republic of Italy, with Naval
Vessel Business Unit located at Via Cipro 11, 16129 Genoa, Italy,

    

    hereinafter
referred to as “FINC”

     

    and

     

    
      	
               
      

            	
              2.

            	
              ATL
      Offshore GmbH & Co. “ISLE OF BALTRUM”
KG,

            

    

    a company
organized and existing under the laws of the Federal Republic of Germany and
having their principal place of business at Neue Strasse 24, Leer,
Germany,

    

    hereinafter
called “the Buyer”

     

    and

     

    together
referred as “the Parties”

     

    WHEREAS

     

    
      	
               
      

            	
              A)

            	
              the
      Parties have entered into a Shipbuilding Contract dated 3/11/06 regarding
      the construction of ANTS Vessel bearing FINC Hull Nos. 6162 (hereinafter
      called the Vessel”)

            

    

    

    
      	
               
      

            	
              B)

            	
              Due
      to several reasons, inter alia force majeure, the delivery dates according
      to the Shipbuilding Contract shall be
  re-scheduled.

            

    

    

    
      	
               
      

            	
              C)

            	
              FINC
      proposed re-scheduled delivery dates in a letter dd. 25th March 2009
      (MM-PMA MNZ 137).

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              D)

            	
              In
      the spirit of cooperation the Buyer is prepared to accept the delivery
      date proposed by FINC, while FINC is prepared to bear the respective risk
      for non-compliance of the Vessel to the IMO
  regulations.

            

    

    

    
      	
               
      

            	
              E)

            	
              At
      the same time the Parties wish to settle various outstanding items in
      respect of the Shipbuilding Contract specified
  herein.

            

    

    

    
      	
               
      

            	
              F)

            	
              The
      above has been subject to an Agreement on an Addendum to 10 Shipbuilding
      Contracts for the construction of (one) AHTS-Vessel each FINCANTIERI Hull
      No’s.: 6174, 6162, 6163, 6168, 6171, 6172, 6169, 6173, 6175 and 6176 dd.
      3June 2009 (in the following: the Agreement”).  For good order’s
      sake the Parties agreed to enter into separate addenda with identical
      wording (safe for logical alterations) for each Shipbuilding Contract
      between FINC and each respective Buyer.  The Agreement shall
      prevail in case of any inconsistencies and deviations of any
      Addendum.

            

    

    

    The
Parties therefore now agree as follows:

     

    
      	
               
      

            	
              1.

            	
              The
      warranty period in respect of FINC’s own works, i.e. hull material and
      relevant workmanship but excluding third party supplies and/or
      subcontractor’s works/supplies, shall be extended to 24 months always
      subject to Article 24 of the Shipbuilding
  Contract.

            

    

    

    The Buyer
undertake to pay to FINC the amount of EUR 40.000 if the bollard pull test for
such Vessel reaches a peak bollard pull above 200 tons and continuous bollard
pull above 195 tons.

    

    
      	
               
      

            	
              2.

            	
              The
      Parties acknowledge that additional costs have arisen/will arise in
      respect of the assistance to the spooling of the wires and the
      installation of the DP-II which are to be borne by Buyer.  In
      consideration of clause (1) and the above the Buyer will pay to FINC a
      total amount of EUR 600.000,00 for the Vessel if the bollard pull test is
      successful.  Otherwise the Buyer will pay to FINC the amount of
      € 560.000,00 for the extension of warranty, the implementation of the
      DP-II according to the letter MM-GCO 214/BC dd. 17th
      March 2009 and the assistance to spooling of the wires.  All
      amounts shall be payable latest 6 months after delivery of the
      Vessel.  For the avoidance of any doubt payment under this
      Addendum shall also qualify as payment under the Agreement dd. 3rd
      June 2009.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              3.

            	
              With
      the payment of this amount any claims FINC may have against the Buyer
      shall be fully and finally settled.  FINC has no further claim
      against the Buyer under the Shipbuilding Contract, unless explicitly
      agreed between the Parties in
writing.

            

    

    

    In any
case, the above is without prejudice to the Hartmann AG letter dated May 28,
2009, and relevant attachments.

    

    
      	
               
      

            	
              4.

            	
              The
      Hull No. 6162 shall be delivered to ATL Offshore GmbH & Co. “ISLE OF
      BALTRUM” KG within the new contractual delivery date of 30/09/2009 +1-7
      business days and the Refundment Guarantees for the vessel shall be
      extended for at least 10 months after the new delivery date, as set out in
      accordance with the Side Letter dd. 3rd
      June, 2009.

            

    

    

    
      	
               
      

            	
              5.

            	
              The
      Shipbuilding Contract is amended as
follows:

            

    

    

    Art. 8.3.
to be deleted and replaced as follows:

    

    Should the Ship not be delivered on
or before the contractual delivery date (30/09/2009) for causes for which F/NC
is liable, FINC shall pay to the Buyers, as final liquidated damages, an amount
of EURO for each calendar day of delay as follows:

    
      
        	
                1st –
      15th
      day

              	
                No
      liquidated damages

              
	 
      	 
      
	
                16th –
      30th
      day

              	
                EURO
      5.000,00 (five thousand)

              
	 
      	 
      
	
                31st –
      60th
      day

              	
                EURO
      10.000,00 (ten thousand)

              
	 
      	 
      
	
                61st –
      120th
      day

              	
                EURO
      15.000,00 (fifteen thousand

              

      

    

    

    Should the delay in the delivery of
the Ship, for causes for which FINC is liable, exceed by 120 (one hundred
twenty) calendar days the foregoing delivery date as extended — according to the Agreement dd.
03.06.2009 and Articles 17. and 18. hereof - the Buyer, as an alternative to
continue in receiving the foregoing liquidated damages, shall have the right to
resolve this Contract with the consequences set forth in Article 15
hereof.

    

    Art
8.3.bis

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
Buyer and FINC will use their best effort to cooperate in order to solve any
problem arising during the construction of the Vessel to speed-up the delivery
before the date written below, and /or to find an alternative agreement which
resolve the matter of the Deadline (i.e.31/07/2010), granting the suitability of
the Ship under the MARPOL/IMO rules.

    Should
the Vessel not be delivered on or before 29/07/2010 latest, Buyer will
have the right to reject the vessel and resolve the contract
unless:

    
      	
               
      

            	
              a.

            	
              it
      is either fitted to comply with IMO-Resolution MEPC 141 (54) at no further
      costs to the Buyer

            

    

    
      	
               
      

            	
              b.

            	
              or
      alternatively classification society and flag state grant an exemption
      from the new applicable MARPOUIMO regulations in this respect, or an
      extension of the Deadline.

            

    

    This
date shall be absolute and not be affected and for extended for any reason
whatsoever, including but not limited to force majeure, unless for reason under
letter a. and b. above.

    Should
the Buyers not exercise their option to resolve the contract the liquidated
damages as per art 8.3 shall apply.

    

    
      	
               
      

            	
              6.

            	
              All
      force majeure notices served by FINC until 3rd
      June 2009 in respect of the original delivery date shall be ineffective
      between FINC and the Buyer being incorporated in the new delivery dates as
      per art 4.

            

    

    

    
      	
               
      

            	
              7.

            	
              The
      Buyer acknowledges that he will have no claim under Article 8.3 of the
      Shipbuilding Contract for any delay having occurred prior to the date of
      3rd
      June 2009 in respect of the previous delivery
  date.

            

    

    

    
      	
               
      

            	
              8.

            	
              All
      other provisions of the Shipbuilding Contract remain
      unchanged.  Save as explicitly provided for herein this Addendum
      is not to be construed to be any extension waiver or otherwise on part of
      each party and shall not preclude the Parties from any other or further
      exercise of any rights under the Shipbuilding Contract as from time to
      time amended.  In case of any inconsistencies or deviations the
      Agreement dd. 3rd
      June 2009 shall prevail.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                	
                        on
      behalf of the Buyer:

                      	 
	 
      	 
	
                        /s/

                      	 
	
                        Dr.
      Niels Hartmann

                      	 
	 
      	 
	
                        /s/

                      	 
	
                        Niels
      Roggemann

                      	 
	 
      	 
	
                        on
      behalf of FINCANTIERI Cantieri Navali S.p.A.

                      
	 
      	 
	
                        /s/

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