Document:

Unassociated Document

    "Hongtaihai"
Engineering Boat Purchase and Sale Contract

    

    (Unofficial
Translation)

    

    
      	
              Seller 
      : 

            	
              Taizhou
      Hongtaihai Port Engineering Co., Ltd. (Party
A)

            

    

    
      	
              Address: 

            	
              Suite
      1205, Building A, Yiding Plaza, Shujiang District, Taizhou
      City

            

    

    Legal
Representative: LI Guoyou

    

    
      	
              Buyer: 

            	
              Fujian
      Xing Gang Shipping Service Co., Ltd. (Party
B)

            

    

    
      	
              Address: 

            	
              Zhongshan
      Plaza, Building A, 17th
      Fl.

            

    

    154
Hudong Road, Fuzhou

    Legal
Representative: LIN Qing

    

    In the
spirit of equality and mutual benefits, Party A and Party B have, after a series
of friendly consultations, reached consensus in Taizhou City, Zhejiang Province
on the matter regarding the purchase and the sale of the engineering boat
"Hongtaihai" (with
capacity of 3500m3/hour, cutter suction
style) pursuant to the PRC Contract Law and the provisions of other
applicable laws and statutes.  Party A agrees to sell to Party B the
aforesaid boat of
which it has the ownership and which is not under any pledge or mortgage,
and the two parties have reached the agreement as follows.

    

    I.
Name, Type and Specifications of the Boat

    1.           The
Name of the Boat:        "Hongtaihai"
(cutter suction type
dredging boat with capacity of 3500m3/hour, the building of which
completed in March, 2008; herein after the "Boat")

    

    2.           Model
Number and Specification of the Boat:    See boat inspection
certificate for actual specification of the Boat.

    

    II.
Sales Price, Delivery Time and Place of the Boat

    1.           The
total sales price of the Boat is RMB ¥190,696,800.00, which includes the cost
of  the Boat's equipped pipes and ownership transfer
fees.

    

    2.           The
Boat is to be delivered at the dock of Shenzhen
Port.

    

    3.           The
time of delivery shall be no later than the end of March, 2008.  If,
due to factors of irresistible force, Party A requests the postponement of the
delivery, Party A must notify Party B in writing and obtain Party B's written
consent.

    

    4.           At
the time of delivering the Boat, the Boat's equipped pipes shall be based on the
list specified in Section IV.9 below.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    III.
Payment Method and Schedule

    1.           Within
7 days after Party A delivers the Boat to Party B, Party B must make the first
installment payment for the Boat in the amount of ¥30,000,000.00.

    

    2.           Within
two months after Party A delivers the Boat to Party B, Party B must make the
second installment payment for the Boat in the amount of ¥27,816,800.00.

    

    3.           Within
6 months after Party A delivers the Boat to Party B, Party B must make the third
installment payment for the Boat in the amount of ¥50,000,000.00.

    

    4.           By
December 31, 2008, Party B must make the fourth installment payment for the Boat
in the amount of ¥46,800,000.00.

    

    5.           By
March 31, 2009, Party B must make the payment for the remaining balance
of   ¥36,080,000.00.

    

    IV.
Rights and Obligations of Party A and Party B

    1.           Party
B may dispatch its representatives to the Boat one month before its delivery and
acceptance and its representatives can be on board until the date of delivery,
so as to familiarize themselves with the equipment on board.  Party B
shall be responsible for all the expenses arising from dispatching its
representatives on board.

    

    2.           At
the time of the delivery, Party B has the right to conduct comprehensive
inspection on the condition of the Boat.  At the time of the delivery,
Party A must transfer completely and without compensation all the spare items,
spare parts and materials currently on board to Party B.  On the day
of delivering the Boat, Party A must provide to Party B the list of the spare
items, spare parts and materials included in the delivery of the Boat as one of
the documents of evidence of the delivery and acceptance.

    

    3.           The
Boat delivered by Party A must meet the technical indices specified by Domestic
CCS Certificate and Introduction of the Boat provided by Party A (see attachment
hereto).  Party A guarantees that all the equipment on board has been
tuned and passed test and is in good condition at the time of delivery and that
it will transfer record of relevant specifications and indices to Party
B.

    

    4.           Party
A must complete the Boat's ownership change registration and have the Boat
registered under Party B's name within 3 months after the date of delivering the
Boat.

    

    5.           Party
A must provide formal receipt to Party B within 10 days after receiving all the
payments for the full price (¥190,696,800.00) of the Boat from Party
B.

    

    6.           Party
B must make payments for the Boat purchasing price on time and in the amount
specified herein.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    7.         
  Party B must dispatch its representatives to board the Boat at the
time of delivery agreed upon by both parties to take the delivery and sign the
delivery documents.

    

    8.            Delivery
of the Boat certificates and documents

    At the time of delivery, Party A must
provide the following documents without compensation:

    1).           Valid
Tilt Testing Report;

    2).           Certificates
and relevant reports issued by China Ship Inspection (CCS)

    3).           Technical
documents that come with the equipment purchased from outside sources and the
related quality certificates and manuals.

    4).           All
the diagrams and other technical records for the Boat;

    

    9.           The
Boat is equipped with the following tubes

    1).           Name:
Rubber floating tubes produced by Jiangsu Danyang Yonghong Ship Rubber Products
Co., Ltd.

    2).           Types
and Specifications:

     750x1200,                               46
pieces

     750x1200,                               150
pieces

     600x11.8
meters,                    78
pieces

     650x11.8
meters,                   
78 pieces

    The fixed items of the above
specifications

    3).           Quality
criteria: Same as criteria of 13201181 DY102-1999 and JIBF 3995-1991 listed in
Rubber Tubes Quality Warranty of November 8, 2005 with one-year
warranty.

    

    10.          Responsibility
for and scope of defects

    The whole Boat has a warranty period of
one year starting from the date of delivery of the Boat.  Warranty
service during the warranty period will be performed in accordance with the
technical agreements between Party A and its equipment and parts
suppliers.  Party A is responsible to provide free repairs and
replacements to resolve all quality issues caused by Party A or by its
suppliers; Party B is responsible for all quality issues caused by Party B but
Party A will provide assistance with their resolution.  Party A must
dispatch personnel work on site within 10 days after receiving Party B's
notice.

    

    11.          Party
A must ensure that the amount of fuel stored on board the Boat is above 80% of
the Boat's maximum fuel storage capacity.

    

    V.
Provisions on fees

    Before the delivery of the Boat, Party
A is responsible for all the fees and expenses in connection with the Boat;
after the delivery of the Boat, Party B is responsible for all the fees and
expenses in connection with the Boat.  Party A is responsible for the
Boat's ownership change registration procedures and for the fees associated with
the said procedures.

     

    
      
         

      

      
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    VI.
Liability for breach

    1.           If
Party A violates the provision of II.3 herein and fails to deliver the Boat on
time, or violates any of the provisions of IV.3, IV.5, IV.8 and IV.9, Party B
has the right to demand that Party A pay a breach penalty of RMB 30,000,000.00
even and compensate Party B for all the resulting loss.

    

    2.           If
Party A reneges on selling the Boat or sells the Boat to a third party or fails,
3 months after the delivery of the Boat, to complete the Boat's ownership change
registration procedures or attach any mortgage or pledge on the Boat, Party B
has the right to unilaterally terminate the contract and demand that Party A
return to Party B all the payments already made unconditionally and, at the same
time, pay to Party B a breach penalty of RMB 30,000,000.00.

    

    3.           If
Party B fails to make payments on time or in the amount specified in Article III
herein, Party A has the right to confiscate the amount of payments already
received.

    

    4.           If
Party B fails to be present on the location of delivery at the time of
delivering the Boat agreed upon by both parties to handle the delivery
procedures, the Boat shall be considered to have been inspected and accepted by
Party B.

    

    5.           If
Party B reneges on the purchasing of the Boat and refuses to pay for the
purchasing price, Party A shall have the right to unilaterally terminate the
contract and confiscate the amount of payments already received.

    

    VII.
Resolution of Disputes

    All disputes arising from this contract
must be settled through consultation between the two parties; if such
consultation fails, the disputes must be submitted to legal proceedings at the
court of maritime affairs at the location where the contract is
signed.

    

    VIII. Other matters not
covered herein must be provided in supplemental agreements between the two
parties through consultation, and all supplemental agreements shall have the
same legal effect as this contract.

    

    IX. "The Introduction of the
Boat" is the attachment hereto and has the same legal effect as this
contract.

    

    X. This contract is in
quintuplets, in two to Party A and Party B each and one to ship and vessel
Registration authority.

    

    XI. This contract will become
effective on the day it is signed and imprinted with seals by both
parties.

    
      
         

      

      
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    Party
A:       Taizhou Hongtaihai Port Engineering
Co., Ltd. (seal)

    Legal
Representative:  LI Guoyou (signature)

    

    Party
B:        Fujian Xing Gang Shipping
Service Co., Ltd. (seal)

    Legal
Representative:  LIN Qing (signature)

    

    Date:             March
23, 2008

     

     

    
      
         

      

      
        5Unassociated Document

    Engineering
Boat Purchase and Sale Contract

       

         (Unofficial
Translation)

    

    
      
        
          
            	
                    Party
      A:

                  	
                    Yiyang
      Zhonghai Boats and Ships Limited Liability Company

                  
	
                    Address:

                  	
                    128
      Zhixi Road, Yiyang City, Hunan Province

                  
	
                    Legal
      Representative:

                  	
                    HE
      Junqiang

                  

          

        

      

    

    

    
      
        
          
            	
                    Party
      B:

                  	
                    Fujian
      Xing Gang Shipping Service Co., Ltd.

                  
	
                    Address:

                  	
                    Zhongshan
      Plaza, Building A, 17th
      Fl.

                  
	 
      	
                    154
      Hudong Road, Fuzhou

                  
	
                    Legal
      Representative:

                  	
                    LIN
      Qing

                  

          

        

      

    

    

    In the
spirit of equality and mutual benefits, Party A and Party B have, after friendly
consultation, reached consensus on the matter regarding the purchase and the
sale of an engineering boat.  Party A agrees to sell one suction dredging
boat with capacity of 2500m3/hour to
Party B and the two parties have reached the agreement as follows.

     

    I.
Specifications of the Boat, Quantity and Reference

    1. 
         Specification of the boat: suction dredging boat with
capacity of 2500m3/hour

    

    2. 
         Quantity:       
 One

     

    3. 
         Party A warrants that the boat is to
be newly built and Party A’s own equipment, technology and labor will be used in
completing the building of the boat.

       

    4.           Party
B bears the obligation of confidentiality regarding the technology-related
information revealed by Party A.

     

    II.
Contract Price and Payment Method

    1.           Contract
price

    1.1           The
contract price for the boat is calculated, settled and paid in
Renminbi.

    1.2           The
contract price for the boat is RMB
¥96,945,300.00.

    1.3           The
aforesaid contract price includes fees and expenses for design and construction,
boat inspection review chart, boat acceptance fee, technology assessment fee and
all other fees associated with the application for various certificates, boat
inspection and boat classification.

    1.4           The
above price is the unconditional and final closed price.

    

    2.           Payment
Method

    2.1           Within
2 months after the delivery of the boat to Party B, Party B shall make a payment
to Party A in the amount of ¥23,795,000.00.

    2.2           Within
3 months after the delivery of the boat to Party B, Party B shall make a payment
to Party A in the amount of ¥28,445,300.00.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2.3           Before
December 31, 2008, Party B shall make a payment to Party A in the amount of
¥34,250,000.00.

    2.4           Before
March 31, 2009, Party B shall make a payment to Party A in the amount of ¥10,275,000.00.

     

    3.          
 Past Due Penalty

    If Party B fails to make payments
according to the schedule as stipulated herein, Party B must pay the penalty
interest for the period from the date when payment is due to the date when
payment is actually made in addition to payment for the past-due
amount.  The penalty interest is assessed on the outstanding amount or
past-due amount at the rate of liquid capital loan rate of the People’s Bank of
China for the same period.

    Party A must not change the boat
delivery date because of this.

     

    III.
Boat Delivery

    1.           Date
and Place of Boat Delivery

    1.1           The
date of the boat delivery shall be no later than May 31, 2008, with a 30-day
postponement allowed.

    1.2           Place:
Zhuhai Port, Guangdong Province, PRC.

    

    2.           Boat
Acceptance

    2.1           Party
A must notify Party B in writing the actual date of boat delivery 15 days in
advance and confirm with Party B 5 days in advance.

    2.2           At
the time of delivery, Party A promises that:

     A). All the defects of the boat
found during the test sail and test operation (actual engineering operation)
have been eliminated, items of winding up the project have been completed and
all equipment can be operated normally;

     B). All spare items, spare parts,
tools and required certificates, diagrams, technical documents have been
assembled and put in place.  See Attachment 1 of this contract,
“2500m3/hour
Capacity Suction Dredging Boat Project Item List” for all spare items, spare
parts and tools;

     C). The technical specification
of the boat meet the criteria specified in this contract and those in the
"Comprehensive Boat Manual."  See Attachment 2 of this contract for
details of the Comprehensive Boat Manual.

    2.3           After
the boat has passed the quality inspection by a boat inspector and after Party B
receives notice from Party A about the delivery of the boat, Party B must accept
the delivery on time.  At the acceptance of the delivery, the
representatives authorized by Party A and Party B will sign “Boat Delivery and
Acceptance Letter”.  The date of signing the letter is the official
date of the delivery of the boat.

    2.4           Party
A must ensure that the fuel stored on the boat at the time of delivery is above
80% of its maximum storage capacity.

    

    3.        
   Ownership and Transfer of Risk

    Before the delivery of the boat, Party
A has its ownership and is responsible for the associated risk and
interests.  After Party A and Party B sign “Boat Delivery and
Acceptance Letter”, the ownership is transferred to Party B along with all the
associated risk and interests.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    4.           Removing
the Boat

      
Party B must remove the boat from the port of delivery within 15 days after the
signing of “Boat Delivery and Acceptance Letter”; otherwise, Party B must pay to
Party A the port fee for the boat.

    

    5.         
  Party B can dispatch its authorized representative(s) to be on board
the boat one month prior to the boat delivery until the date of the boat
delivery so that the representative(s) can examine and become familiar with the
equipment on the boat.  Party B shall be responsible for the expenses
of the accompanying boat and its crew.

    

    .6         
  If Party A is unable to delivery the boat within the time period
stipulated herein, Party A shall pay to Party B a default penalty based on the
amount of payments already made by Party B at the daily rate of 0.05% and
compensate Party B for all the resulting loss.

     

    IV.
Force Majeure

    1.           If,
during the fulfillment period (i.e., boat delivery period) stipulated herein,
the process of building the boat is delayed by irresistible, objective events
such as earthquake, tsunami, typhoon, hurricane, severe storm, flood and plaque
or by the suppliers of material and equipment similarly impacted by such events,
such delay must be considered to be allowed postponement.

    

    2.           Party
A must notify Party B in writing within 15 days of the occurrence of such Force
Majeure events and provide valid documents of evidence issued by the competent
local government agencies.  After the events of Force Majeure are
cleared, Party A must notify Party B immediately.

     

    V.
Quality Guarantee

    1.           Responsibility
for Defects and Its Scope

    The 12-month period starting from the
date of the signing of “Boat Delivery and Acceptance Letter” is the warranty
period for the boat; during this warranty period, Party A is responsible to
provide free repairs and replacements for the defects, break-downs and damages
resulting from the boat construction, technical process and material or due to
equipment quality issues.

    Party A is responsible to provide
repairs, at Party B’s cost, for the damages, break-downs and defects caused by
improper operation or improper maintenance by Party B and for the vulnerable
parts damaged due to normal wear and tear.

    

    2.           Notification
of Defects

    During the warranty period, Party B
must promptly notify Party A, by fax or in other written form, of any found
defect within the scope of warranty and provide explanation of the nature and
degree of the damage and the defect.  The last valid period of such
notification is 7 days after the expiration of the warranty period for the boat
(based on the post mark if the notification is sent by mail)

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    3.           Treatment
of Defects

    3.1           In
principle, the warranty repairs on the boat must be performed at the shipyard
arranged by Party A.

    3.2           If
the boat experiences quality issues that are within the scope of warranty at a
port away from Party A’s location or during the course of sail so that the boat
is not able to return to Party A for repairs, Party B must notify Party A
promptly and Party A must dispatch someone within 7 days upon receiving the
notification to the boat to confirm and resolve the issues.  If Party
A is unable to dispatch someone, Party A must notify Party B by telegram within
5 days after receiving Party B’s telegram notification, and Party B may have the
boat repaired or its parts replaced at a nearby shipyard or repair
facility.  If the repairs or the parts replaced are indeed within the
scope of warranty provided by Party A, Party B must provide inspection documents
issued by relevant ship inspection agencies and the invoices from the facility
that has performed repairs, and Party A must be responsible for all the expenses
and fees.  The replaced parts belong to Party A and Party B must bring
them to Party A on the boat.

    3.3           After
the expiration of the warranty period, warranty repairs requested by Party B
must be arranged by Party A according to the rules.  If Party B
requests warranty repairs to be performed below the load line, the boat must be
examined and inspected after it enters the shipyard; if any defect or damage
below the load line is actually found, and such defect or damage is caused by
the quality issues arising from the construction of the boat by Party A, then
Party A is responsible for all the shipyard fees and repair expenses; otherwise,
Party B is responsible for all the shipyard fees if no such defect or damage is
found below the load line.

     

    VI.
Disputes and Arbitration

    Any disputes and conflicts between
Party A and Party B arising from the course of performance of this contract
should be settled in a timely manner through consultation; if such consultation
fails, the two parties must have the disputes submitted to China Maritime
Affairs Arbitration Commission for arbitration pursuant to the Commission's
arbitration rules.  The Commission's determination is final and
binding to both parties. 

     

    VII.
Execution and Effectuation of this Contract

    1.           This
contract becomes effective immediately after it is signed by the legal
representatives, or by their authorized agents, of both parties and imprinted
with the company seals.

    

    2.           The
attachments hereto are the component parts hereof and have the same legal effect
as this contract.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    3.           This
contract, upon its execution, shall not be modified or dissolved due to the
change of legal representatives or their authorized agents; if either Party A or
Party B undergoes merger or spin-off, the party after undergoing such change
shall assume all or assume respective obligations of this contract and be
entitled to the corresponding rights.

    

    4.           This
contract proper is in duplicates, with one to each party; Party A and Party B
each will have two copies of this contract; the copies of and the attachments to
this contract have the same effect.

     

    Party
A:           Yiyang
Zhonghai Boats and Ships Limited Liability Company (seal)

    Signature
of Legal Representative:     HE Junqiang
(signature)

    Date:                 January
18, 2008

    

    Party
B:            Fujian
Xing Gang Shipping Service Co., Ltd. (seal)

    Signature
of Legal Representative:     LIN Qing
(signature)

    Date:                 January
18, 2008

     

     

    
      
         

      

      
        5

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