Document:

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                                                                    EXHIBIT 10.7

                                                               EXECUTION VERSION

                          VESSEL CONSTRUCTION AGREEMENT

                                     Between

                            BOLLINGER GRETNA, L.L.C.,
                                   as Builder

                                       and

                          K-SEA TRANSPORTATION L.L.C.,
                                    as Buyer

                                    Hull 416

                                    Hull 417

                                    Hull 421

                                    Hull 422

                                 March 23, 2001

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                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                             PAGE
<S>                                                                             <C>
ARTICLE 1. SCOPE OF WORK .......................................................1
ARTICLE 2. PRICE AND PAYMENT; PERFORMANCE BOND .................................3
ARTICLE 3. DELIVERY AND ACCEPTANCE .............................................9
ARTICLE 4. CHANGES AND EXTRAS ..................................................11
ARTICLE 5. BUYER'S RIGHT OF CANCELLATION .......................................12
ARTICLE 6. RISK OF LOSS AND INSURANCE ..........................................12
ARTICLE 7. INDEMNIFICATION .....................................................17
ARTICLE 8. PATENT, COPYRIGHT AND TRADE SECRET INDEMNITY ........................18
ARTICLE 9. PLAN APPROVAL, INSPECTION, ACCESS AND TEST ..........................21
ARTICLE 10. FORCE MAJEURE ......................................................22
ARTICLE 11. DAMAGES FOR DELAY; EARLY DELIVERY BONUS ............................23
ARTICLE 12. CONSEQUENTIAL DAMAGES ..............................................23
ARTICLE 13. WARRANTY ...........................................................24
ARTICLE 14. LIENS AND ENCUMBRANCES .............................................26
ARTICLE 15. BUYER-FURNISHED EQUIPMENT AND INFORMATION ..........................27
ARTICLE 16. TAXES AND UNEMPLOYMENT CONTRIBUTIONS ...............................29
ARTICLE 17. USE OF PLANS AND SPECIFICATIONS ....................................29
ARTICLE 18. DEFAULT ............................................................30
ARTICLE 19. ASSIGNMENT .........................................................31
ARTICLE 20. SUBCONTRACTORS .....................................................32
ARTICLE 21. NOTICES ............................................................32
ARTICLE 22. GENERAL CONDITIONS .................................................33
ARTICLE 23. REPRESENTATIONS AND WARRANTIES .....................................35
EXHIBIT A   FORM OF PROTOCOL OF DELIVERY AND ACCEPTANCE
EXHIBIT 1   SPECIFICATIONS
</Table>

                                        i
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                          VESSEL CONSTRUCTION AGREEMENT

          THIS AGREEMENT entered into this 23rd day of March, 2001, by and
between Bollinger Gretna, L.L.C., a Louisiana Limited Liability Company with the
current mailing address of 4640 Peters Road, Harvey, 1A 70058 (hereinafter
referred to as "Bollinger"), and K-Sea Transportation L.L.C., a Delaware Limited
Liability Company, with the current mailing address of 3245 Richmond Terrace,
Staten Island, N.Y. 10303 (hereinafter referred to as "Buyer").

                               W I T N E S S E T H

          That Bollinger and Buyer, for the consideration hereinafter set out,
agree as follows:

                            ARTICLE I. SCOPE OF WORK

          A.   For and in consideration of the amounts to be paid to Bollinger
by Buyer as hereinafter set forth, and subject to the terms and conditions
contained herein, Bollinger agrees to design, build, outfit, install
Buyer-furnished equipment as stated in the Specifications and deliver to Buyer
afloat at Bollinger's yard in Harvey, Louisiana or at any mutually agreeable
location (hereinafter referred to as "Shipyard"), one 100,000 barrel tank barge,
being Bollinger's Hull No. 416, one 80,000 barrel tank barge, being Bollinger's
Hull No. 417, one 80,000 barrel tank barge, being Bollinger's Hull No. 421, and
one 100,000 barrel tank barge, being Bollinger's Hull No. 422 (hereinafter
referred to collectively as a "Vessel", whether one or more, provided that the
term "Vessel" shall mean any and all vessels provided for in this Agreement),
and in accordance with the following documents which have been concurrently
identified by the parties hereto and attached hereto as Exhibit 1 and made a
part hereof as if fully set forth herein:

          1)   Specifications dated March 23, 2001 ("Specifications");

          2)   Drawings as referred to in (1);

          Provided that Bollinger's total undertaking hereunder, being (i) the
engineering design of each Vessel, the (ii) construction of each Vessel
according to detail design plans and technical documents prepared by Bollinger
and approved by Buyer in accordance with Article 9, (iii) the installation of
any Buyer-furnished equipment as stated in the Specifications, and including
(iv) any changes in the design or construction of each Vessel, shall be
hereinafter referred to and is hereby defined as the "work".

          Bollinger shall prepare soundly conceived and engineered detail design
plans and documents, developed under the supervision of experienced naval
architects

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and marine engineers, and incorporating good shipbuilding practice, to develop
the design of each Vessel for guidance of Bollinger's material procurement,
fabrication and installation, and for prior review by the Buyer. Detail design
plan means a drawing showing sufficient detail that: i) parts, except fasteners,
gaskets and related hardware ("Parts"), are shown either individually or in
typical configuration or referenced to another drawing; ii) Parts are located,
oriented and sized by dimensions, shape offsets, intersection into or
dimensioned offset from, or alignment with another located Part, as necessary
for construction. Double line cargo and vapor piping drawings will be provided.
All other piping will be field routed using schematics; iii) details are shown
or identified by reference to another submitted document, such as shipyard
standard structural or piping details; iv) background arrangement, adjacent
structure or equipment are shown to illustrate design rationale, connections,
support, clearances as necessary for construction; v) all material is
identified, either on the drawing or by a submitted bill of material, and
specifies industry specification for common material, or manufacturer and part
number for equipment or special material, and critical additional requirements
or specifications are given or referenced, as necessary for procurement and
construction; vi) all welding, assembly or other joining arrangements for
structure, steel outfitting, piping and machinery are indicated or referenced;
and vii) special production processes such as coatings, galvanizing or machining
are identified. Section (ii) of this paragraph does not apply to Parts inside
cabinets or equipment, or to individual cables or piping in a wireway or
pipeway, or to field-routed piping or tubing below a specified size. Bollinger
shall prepare the technical documents specifying the hydrostatic, capacity and
stability characteristics of the Vessel, in accordance with good shipbuilding
technical documents practices.

          All equipment, structure, and/or piping of each Vessel is to be
fabricated/installed in accordance with the Specifications, Buyer-approved
detail design plans and documents and drawings to be supplied by Buyer
respecting Buyer-furnished equipment. Buyer-requested changes in dimensions,
locations, construction or materials made following the execution of this
Agreement and not in accordance with the Specifications, will be for Buyer's
account in accordance with Article 4 of this Agreement. Changes agreed upon by
Buyer and Bollinger which do not require changes to existing work, will be
accepted at no additional charge if the scope of the changes does not result in
additional costs to Bollinger.

          The construction by Bollinger shall be in conformity with applicable
requirements of United States laws, rules and regulations applicable to
coastwise and foreign trade vessels of the United States which pertain to the
Vessel, and of the American Bureau of Shipping ("ABS") and the other regulatory
bodies as listed in the Specifications; provided, however, that Bollinger makes
no representation concerning the suitability of Buyer-furnished equipment for
and Buyer's right to engage in coastwise trade. Subject to the provisions of
Article 4 hereof, if any enforced changes in United States laws, rules, and
regulations or in the regulatory

                                        2
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bodies' rules are published subsequent to the date of this Agreement, and become
effective prior to the Delivery Date of each Vessel, whereby the cost of
outfitting the Vessel is increased and/or the time required for completion is
extended, Buyer shall authorize and pay for, as a change under this Agreement,
such alterations, additional work items, outfit and/or equipment or additional
time as may be required to meet the enforced changes.

          B.   All general language or requirements contained in the
Specifications and all other requirements inconsistent or in conflict with the
provisions of this Agreement are superseded by this Agreement, it being the
intent of the parties that provisions of this Agreement shall prevail. If there
is a conflict or inconsistency between the Drawings and Specifications, the
Specifications shall control.

          C.   In any and all events, Bollinger shall exercise reasonable
efforts to cooperate with Buyer, at Buyer's expense, to facilitate the mating of
the Vessel and its companion tug by means of the JAK-Coupling System and the
testing of such System if and only if, any work which is to be performed on the
companion tugs with respect to the JAK-Coupling System is performed by a
contractor other than Bollinger.

          D.   On or before September 30, 2001, by written notice to Bollinger,
Buyer may cancel its obligation to purchase either Bollinger Hull No. 421, or
Bollinger Hull No. 422, or both, without penalty of any kind. This right of
Buyer to cancel is separate and distinct from Buyer's right to cancel contained
in Article 5, INFRA.

                 ARTICLE 2. PRICE AND PAYMENT; PERFORMANCE BOND

          A.   In consideration of Bollinger's obligations hereunder, Buyer
agrees to pay to Bollinger the sums of (w) Ten Million Three Hundred Seventy-two
Thousand Nine Hundred Twelve and no/100 ($10,372,912.00) U.S. Dollars for Hull
No. 416, (x) Eight Million Nine Hundred One Thousand Four Hundred Sixty-three
and no/100 ($8,901,463.00) U.S. Dollars for Hull No. 417, (y) Eight Million Six
Hundred Ninety-six Thousand Seven Hundred Twelve and no/100 ($8,696,712.00) U.S.
Dollars for Hull No. 421, and (z) Ten Million One Hundred Sixty-eight Thousand
One Hundred Sixty-one and 00/100 ($10,168,161.00) U.S. Dollars for Hull No. 422,
at par without discount or exchange (hereinafter each such sum severally
referred to as the "Agreement Price" for each Vessel), for full and complete
performance of the work covered by this Agreement, subject to the provisions of
this Agreement, as follows:

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<Table>
<Caption>
     ------------------------------------------------------------------------------------------
                 PROGRESS PAYMENT SCHEDULE                                  AMOUNT DUE FOR HULL
                                                                                  NO. 416
     ------------------------------------------------------------------------------------------
     <S>                                                                        <C>
     5% upon execution of this Agreement                                        $    518,600.00
     ------------------------------------------------------------------------------------------
     13% upon start of fabrication                                              $  1,348,500.00
     ------------------------------------------------------------------------------------------
     13.5% upon keel laying (adjoining of first two bottom modules)             $  1,400,300.00
     ------------------------------------------------------------------------------------------
     12% upon erection of midship bottom & bulkhead modules                     $  1,244,700.00
     ------------------------------------------------------------------------------------------
     10% upon erection of midship side modules                                  $  1,037,300.00
     ------------------------------------------------------------------------------------------
     15% upon erection of midship decks                                         $  1,555,900.00
     ------------------------------------------------------------------------------------------
     10% upon erection of forward and aft rake                                  $  1,037,300.00
     ------------------------------------------------------------------------------------------
     10% upon launching of hull                                                 $  1,037,300.00
     ------------------------------------------------------------------------------------------
     10% upon delivery and acceptance                                           $  1,037,300.00
     ------------------------------------------------------------------------------------------
     1.5% on the 60th day after delivery and acceptance(1)                      $    155,712.00
     ------------------------------------------------------------------------------------------
     TOTAL AGREEMENT PRICE                                                      $ 10,372,912.00
     ------------------------------------------------------------------------------------------
</Table>

----------
(1)  Subject to and in accordance with the terms of this Article 2.

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<Table>
<Caption>
     ------------------------------------------------------------------------------------------
     PROGRESS PAYMENT SCHEDULE                                              AMOUNT DUE FOR HULL
                                                                                  NO. 417
     ------------------------------------------------------------------------------------------
     <S>                                                                        <C>
     5% upon start of fabrication                                               $    445,100.00
     ------------------------------------------------------------------------------------------
     13% upon keel laying (adjoining of first two bottom modules)               $  1,157,200.00
     ------------------------------------------------------------------------------------------
     13.5% upon erection of midship bottom and bulkhead modules                 $  1,201,700.00
     ------------------------------------------------------------------------------------------
     15% upon erection of midship side modules                                  $  1,335,200.00
     ------------------------------------------------------------------------------------------
     15% upon erection of midship decks                                         $  1,335,200.00
     ------------------------------------------------------------------------------------------
     15% upon erection of forward and aft rake                                  $  1,335,200.00
     ------------------------------------------------------------------------------------------
     12% upon launching of hull                                                 $  1,068,200.00
     ------------------------------------------------------------------------------------------
     10% upon delivery and acceptance                                           $    890,100.00
     ------------------------------------------------------------------------------------------
     1.5% on the 60th day after delivery and acceptance(2)                      $    133,563.00
     ------------------------------------------------------------------------------------------
     TOTAL AGREEMENT PRICE                                                      $  8,901,463.00
     ------------------------------------------------------------------------------------------
</Table>

----------
(2)  Subject to and in accordance with the terms of this Article 2.

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<Table>
<Caption>
     ------------------------------------------------------------------------------------------
     PROGRESS PAYMENT SCHEDULE                                              AMOUNT DUE FOR HULL
                                                                                  NO. 421
     ------------------------------------------------------------------------------------------
     <S>                                                                        <C>
     5% upon start of fabrication                                               $    434,800.00
     ------------------------------------------------------------------------------------------
     13% upon keel laying (adjoining of first two bottom modules)               $  1,130,600.00
     ------------------------------------------------------------------------------------------
     13.5% upon erection of midship bottom and bulkhead modules                 $  1,174,100.00
     ------------------------------------------------------------------------------------------
     15% upon erection of midship side modules                                  $  1,304,500.00
     ------------------------------------------------------------------------------------------
     15% upon erection of midship decks                                         $  1,304,500.00
     ------------------------------------------------------------------------------------------
     15% upon erection of forward and aft rake                                  $  1,304,500.00
     ------------------------------------------------------------------------------------------
     12% upon launching of hull                                                 $  1,043,600.00
     ------------------------------------------------------------------------------------------
     10% upon delivery and acceptance                                           $    869,700.00
     ------------------------------------------------------------------------------------------
     1.5% on the 60th day after delivery and acceptance(3)                      $    130,412.00
     ------------------------------------------------------------------------------------------
     TOTAL AGREEMENT PRICE                                                      $  8,696,712.00
     ------------------------------------------------------------------------------------------
</Table>

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(3)  Subject to and in accordance with the terms of this Article 2.

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<Table>
<Caption>
     ------------------------------------------------------------------------------------------
     PROGRESS PAYMENT SCHEDULE                                              AMOUNT DUE FOR HULL
                                                                                  NO. 422
     ------------------------------------------------------------------------------------------
     <S>                                                                        <C>
     5% upon start of fabrication                                               $    508,400.00
     ------------------------------------------------------------------------------------------
     13% upon keel laying (adjoining of first two bottom modules)               $  1,321,900.00
     ------------------------------------------------------------------------------------------
     13.5% upon erection of midship bottom and bulkhead modules                 $  1,372,700.00
     ------------------------------------------------------------------------------------------
     15% upon erection of midship side modules                                  $  1,525,200.00
     ------------------------------------------------------------------------------------------
     15% upon erection of midship decks                                         $  1,525,200.00
     ------------------------------------------------------------------------------------------
     15% upon erection of forward and aft rake                                  $  1,525,200.00
     ------------------------------------------------------------------------------------------
     12% upon launching of hull                                                 $  1,220,200.00
     ------------------------------------------------------------------------------------------
     10% upon delivery and acceptance                                           $  1,016,800.00
     ------------------------------------------------------------------------------------------
     1.5% on the 60th day after delivery and acceptance(4)                      $    152,561.00
     ------------------------------------------------------------------------------------------
     TOTAL AGREEMENT PRICE                                                      $ 10,168,161.00
     ------------------------------------------------------------------------------------------
</Table>

          B.   Upon delivery and acceptance of each Vessel, as evidenced by a
Protocol of Delivery and Acceptance as described in Article 3B hereof, Buyer
shall pay to Bollinger a sum equal to (x) the balance of 98.5% the Agreement
Price of the delivered Vessel which remains due after crediting the payments
theretofore made on said Vessel, together with (y) any increase or decrease in
the Agreement Price for such Vessel that may be due for changes and extras to
the appropriate Vessel as defined in Article 4 hereunder. The remainder of the
Agreement Price of each Vessel, equal to 1.5% (the "Hold-back") of the Agreement
Price for such Vessel, shall be paid by Buyer (without interest) to Bollinger on
the 60th day (the "Hold-back Period") after the day on which such Vessel is
delivered to and accepted by Buyer.

----------
(4)  Subject to and in accordance with the terms of this Article 2.

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Notwithstanding the foregoing, and notwithstanding the terms of Article 13E, in
the event during the Hold-back Period the Vessel needs repairs that are covered
by Bollinger's Warranties as set forth in Article 13 hereof, or a claim is
asserted against the Vessel for which Buyer is not responsible in accordance
with Article 14 hereof, all or part of the Hold-back amount may be used by Buyer
to pay for such repairs or to pay such claim. Buyer is entitled to cause such
repairs to be made in a facility other than that owned by Bollinger.

          C.   Except for increases due to changes, extra work, change orders or
as otherwise provided hereunder, at no time shall the total billing for each
Vessel exceed the Agreement Price stated above.

          D.   Bollinger shall deliver statements to Buyer for all payments due
Bollinger hereunder. Such statements shall specify the work completed, and shall
state that all work for which payment is requested has been completed in
accordance with the terms of this Agreement. Any payments which are not paid to
Bollinger within thirty (30) days after the same shall become due shall bear
interest at the rate of 1 1/2% per month from date of invoice until paid.,
except those payments for amounts due upon delivery and acceptance and upon
expiration of the Hold-back Period shall become due upon such delivery and
acceptance or expiration, as the case may be, and interest at the rate of 1 1/2%
shall accrue from such dates until paid.

          E.   In the event that Buyer disputes the amount of an invoice or
statement or any portion thereof, Buyer shall notify Bollinger in writing of the
dispute within ten (10) calendar days following receipt of the invoice or
statement, such notice to set out the specific reasons why the invoice or any
portion thereof is being disputed. Buyer shall pay the disputed invoice or
statement or the disputed portion so long as the amount of the Agreement Price
for such Vessel, including any adjustments, that would remain unpaid after
payment of the disputed amount exceeds the sum of all amounts in dispute. In any
event, notwithstanding any such dispute, Buyer shall pay when due the undisputed
portion of each and every invoice or statement.

          If any payment of any undisputed amount shall not be made within
thirty (30) days after the due date as herein provided, Bollinger may, in its
sole discretion, suspend or reschedule progress of the work (such right being in
addition to any other right granted hereunder by operation of law). In the event
of delay in payment of any undisputed amount when due as herein provided,
Bollinger shall not be obligated to reschedule progress of the work, but may
pursue any and all other remedies granted hereunder or by operation of law,
provided that Buyer be given fifteen (15) days prior written notice by Bollinger
before Buyer is considered to be in default.

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          F.   Bollinger agrees to obtain and deliver to Buyer, in exchange for
the first payment made by Buyer hereunder and upon receipt of a construction
financing commitment letter, a performance bond (collectively, the "Performance
Bond") in favor of Buyer or its assignee or financier, as the case may be, in a
form satisfactory to Buyer and its financier. Buyer shall promptly reimburse
Bollinger for all costs incurred in obtaining the Performance Bond under this
Agreement. The Performance Bond shall at no time be less than an amount to
provide for completion of the work in accordance with the terms of this
Agreement, as modified by any changes and by delivery. The Performance Bond
shall be issued by a first class bank, insurance company, or other financial
institution satisfactory to the Buyer. Together with such Performance Bond,
Bollinger shall cause to be delivered to Buyer evidence of the due authorization
thereof by the issuing entity and the authority of the person executing the
same.

                       ARTICLE 3. DELIVERY AND ACCEPTANCE

          A.   Upon completion, the Vessel shall be given dock trials as per the
Specifications, the said trials to be of sufficient duration to assure Buyer of
the satisfactory performance of such Vessel and of all of the various systems
and operations installed therein, including satisfactory workmanship, proper
working order, alignment of moving parts, suitability for intended purpose and
compliance with applicable laws, rules and regulations of the United States
respecting the Vessels engaged in the coastwise trade, Specifications and other
requirements of this Agreement. Adequate crew, properly qualified and
credentialed, and sufficient amounts of fuel, water, and lube oil will be
supplied by Bollinger, at its expense, in order to properly complete the testing
of the Vessel and all equipment on board during dock trials.

          B.   Hull No. 416, after required trials and contemporaneously with
payment in full (except for the Hold-back as stated in Article 2 above), shall
be delivered to Buyer afloat at Shipyard free and clear of all liens and
encumbrances, except those created by Buyer, sixteen (16) months after the
execution of this Agreement, or on such later date or dates as may be required
by reason of agreed or enforced changes in the Vessel or by reason of specified
delays resulting from force majeure, as that term is defined herein.

          Hull No. 417, after required trials and contemporaneously with payment
in full (except for the Hold-back as stated in Article 2 above), shall be
delivered to Buyer afloat at Shipyard free and clear of all liens and
encumbrances, except those created by Buyer, twenty-two (22) months after the
execution of this Agreement, or on such later date or dates as may be required
by reason of agreed or enforced changes in the Vessel or by reason of specified
delays resulting from force majeure, as that term is defined herein.

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          Subject to Article 1D hereof, Hull No. 421, after required trials and
contemporaneously with payment in full (except for the Hold-back as stated in
Article 2 above), shall be delivered to Buyer afloat at Shipyard free and clear
of all liens and encumbrances, except those created by Buyer, thirty (30) months
after the execution of this Agreement, or on such later date or dates as may be
required by reason of agreed or enforced changes in the Vessel or by reason of
specified delays resulting from force majeure, as that term is defined herein.

          Subject to Article 1D hereof, Hull No. 422, after required trials and
contemporaneously with payment in full (except for the Hold-back as stated in
Article 2 above), shall be delivered to Buyer afloat at Shipyard free and clear
of an liens and encumbrances, except those created by Buyer, thirty-eight (38)
months after the execution of this Agreement, or on such later date or dates as
may be required by reason of agreed or enforced changes in the Vessel or by
reason of specified delays resulting from force majeure, as that term is defined
herein.

          Each date for such delivery of each Hull described in the foregoing
four paragraphs is herein called the "Delivery Date" for such Vessel. Delivery
shall be evidenced by the execution and delivery by Bollinger and Buyer of a
Protocol of Delivery and Acceptance substantially in the form attached hereto as
Exhibit A. Upon execution and delivery of such Protocol, subject to the terms of
Article 6A, risk of damage to or loss of the Vessel shall pass to Buyer. Until
delivery is effected by the execution and delivery of such Protocol, risk of
damage or loss of the Vessel and its equipment are entirely with Bollinger.

          C.   Such Vessel shall be presented by Bollinger in a manner
consistent with the reputation of Bollinger, with good housekeeping in evidence
and ready for Buyer to provision, outfit, crew and depart.

          D.   Upon delivery and acceptance, the following documents shall be
furnished by Bollinger at the Shipyard or at the National Vessel Documentation
Center in Falling Waters, West Virginia, as appropriate:

          (a)  ABS Class Certificate +A1 Oil Tank Barge;

          (b)  Letter of Stability;

          (c)  International Loadline Certificate, issued by ABS for Unmanned
               Ocean Service;

          (d)  ABS or U.S.C.G. Approved Loading Manual;

          (e)  U.S.C.G. Certificate of Documentation for such Vessel, evidencing
               that the Vessel was built in the United States and is eligible
               for coastwise trade and registry trade under U.S. law;

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          (f)  Full Warranty Bill of Sale sufficient to transfer title (free and
               clear of all liens and encumbrances other than those created by
               Buyer) from Bollinger to Buyer, duly acknowledged;

          (g)  U.S.C.G. Certificate of Inspection for such Vessel;

          (h)  U.S. and International Tonnage Certificate;

          (i)  Three (3) copies of as-built detail design plans and technical
               documents, to be provided within ninety (90) days following final
               delivery and acceptance of the Vessel;

          (j)  Three (3) copies of manufacturer-supplied documentation for all
               Bollinger-supplied systems, components, and appliances;

          (k)  U.S.C.G. International Oil Pollution Prevention Certificate.

          Bollinger shall pay all costs relating to the completion and
recordation of these documents.

                          ARTICLE 4. CHANGES AND EXTRAS

          A.   Buyer shall have the privilege during construction of the Vessel
to request, in writing, reasonable changes in or addition to the Work hereunder;
provided that where such changes or additions involve increases or decreases in
the cost to Bollinger, Bollinger and Buyer shall make the necessary price
adjustments and/or modifications of Delivery Date as provided below.

          Bollinger shall not depart from the design shown by the Buyer-approved
detail design plans and documents or from the Specifications, or make any other
changes in the work described in the Specifications, without prior written
authorization by Buyer, to be done at a price or credit mutually agreed upon
between Buyer and Bollinger, which amount will be in addition to or credited
against the Agreement Price, as the case may be. The payment (or credit) for
each change will be made by (or credited to) Buyer on the Delivery Date of the
relevant Vessel.

          Any proposed changes in the Specifications shall include the cost
thereof and shall include an agreement as to the number of days by which the
Delivery Date and any milestones would thereby be extended or reduced, as the
case may be. Bollinger and Buyer shall then mutually agree as to the cost of the
proposed changes and as to the precise computation of the said number of days.
Bollinger shall not be obligated to furnish any spare parts or supplies other
than those specifically set forth in the specifications, and any additional
spare parts requested

                                       11
<Page>

by Buyer shall be considered extra equipment for which Bollinger shall receive
additional compensation as stated herein.

          In the event that the parties cannot agree upon the cost for such
changes, then Bollinger will charge for such services at a labor rate of $38.00
per hour, together with a material mark-up of 10%.

          B.   If any change is mandated by a regulatory body or required due to
a change in law that is published following the effective date of this
Agreement, and effective before the Delivery Date of each Vessel, the cost of
such change shall be for Buyer's account and Buyer and Bollinger shall agree on
the price thereof and any change in Delivery Date. Absent agreement on the cost,
scope and time required for the mandated change, (a) Bollinger may proceed with
such change and any adjustments will be charged and paid at a labor rate of
$38.00 per hour, together with a material mark-up of 10%, or (b) if such
change(s) increases the total payments due Bollinger by Buyer for the Vessel in
question by more than 25%, Buyer may, at Buyer's option, terminate this
Agreement, in which case Buyer's sole liability to Bollinger shall be limited to
all costs incurred for labor and materials, including Bollinger's pro rata
profit, net of progress payments paid as of the date of notice of cancellation.

                    ARTICLE 5. BUYER'S RIGHT OF CANCELLATION

          In addition to Buyer's right to cancel the Agreement under the
specific circumstances in Article 4 (B), supra, it is expressly understood and
agreed by and between Bollinger and Buyer that this Agreement shall be subject
to cancellation at the option of Buyer and within thirty (30) days of execution
of this Agreement if, in Buyer's sole discretion, acceptable financing for all
construction contemplated under this Agreement cannot be obtained. In the event
Buyer exercises its right of cancellation pursuant to this Article, then this
Agreement shall be deemed null and void, except that Buyer and Bollinger further
agree that Buyer's sole liability under this Agreement shall be to reimburse
Bollinger for all reasonable out of pocket costs and expenses incurred by
Bollinger from the date of execution of this Agreement up to and including the
date notice of cancellation is received by Bollinger. Payment of such
reasonable costs and expenses shall be deducted from the 5% paid to Bollinger by
Buyer upon execution of this Agreement, with remainder to be refunded to Buyer
within 30 days of receipt of notice of cancellation.

                      ARTICLE 6. RISK OF LOSS AND INSURANCE

          A.   Title to the Work, Materials, and Components (as the term "Work",
"Materials", and "Components" are defined in Louisiana law per La. R.S. 9:5522)
shall, as to Work, vest in Buyer as and when performed, as to Materials (other
than those that are furnished by Buyer), vest in Buyer as and when delivered to
Bollinger, and as to Components, vest in Buyer as and when fabricated; and in

                                       12
<Page>

addition to the foregoing, title to each completed Vessel hereunder shall vest
in Buyer upon execution and delivery of a Protocol of Delivery and Acceptance.
Notwithstanding the foregoing, Bollinger shall have during construction and
until execution and delivery of a Protocol of Delivery and Acceptance, risk of
loss or damage to the Vessel and the Work, Materials and Components hereunder,
including all material, machinery, and equipment, whether or not already
attached to or installed in the Vessel. With respect to items (including
Buyer-furnished equipment) furnished by parties other than Bollinger, Bollinger
shall have risk of loss or damage commencing at the time such items have been
received by Bollinger at the Shipyard. Buyer shall report, or cause to be
reported as promptly as possible, to Bollinger the dates of arrival at
Bollinger's facility, of all materials and equipment being furnished by any
party other than Bollinger and the value thereof for insurance purposes. Title
to all Buyer-furnished materials, and equipment is at all times recognized by
Bollinger to be vested in Buyer free and clear of any interest or claim of
Bollinger or of any other person through Bollinger.

          Delivery to and acceptance of the Vessel by execution and delivery of
a Protocol of Delivery and Acceptance by Bollinger and Buyer shall transfer,
risk of loss or damage of the Vessel, and all work, material, machinery, and
equipment respecting such Vessel, to Buyer.

          In the event there is a total loss or constructive total loss of the
Vessel prior to delivery and acceptance, REGARDLESS OF FORCE MAJEURE, Buyer will
have the option to (i) cancel this Agreement, in which event Bollinger shall not
later than five (5) business days after reimbursement by insurers or sixty days
after Buyer shall notify Bollinger that Buyer is exercising its option under
this Subclause, whichever action comes first, (ii) reimburse Buyer the sum of
(a) the amount, if any, paid to Bollinger toward the Agreement Price of the
Vessel, and (b) an amount equivalent to the agreed insured value for
Buyer-furnished equipment which are damaged or are a total loss or a
constructive total loss, or (ii) request Bollinger to advise a new Delivery Date
and Agreement Price for the replacement Vessel and if such date and price are
acceptable to Buyer, maintain this Agreement, and Bollinger shall thereafter
deliver to Buyer a Vessel in accordance with the terms of this Agreement with
the Delivery Date and Agreement Price adjusted as advised by Bollinger and
agreed by Buyer. In adjusting the Agreement Price for the replacement Vessel,
adjustments either upward or downward will be based only on increases or
decreases in the cost of materials and labor and on changes mandated by
regulatory agencies of the U.S. Government and ABS.

          B.   Bollinger agrees, during the entire time of its performance of
work hereunder, to carry at its sole cost and expense, with an insurance company
reasonably satisfactory to Buyer, the following insurance with terms and
conditions acceptable to Buyer:

                                       13
<Page>

     1)   Statutory Worker's Compensation insurance covering all of Bollinger's
          employees engaged in the work to be performed hereunder, in accordance
          with the laws of the State of Louisiana, the United States
          Longshoremen's and Harbor Worker's Compensation Act, and any other
          applicable workers' compensation law. The policy will also include
          Employer's Liability (other than Maritime) for a limit not less than
          $1,000,000 each accident (or $1,000,000 each employee for disease),
          and shall contain the "Alternate Employer Endorsement" stipulating
          that any claim made against Buyer by any employee of Bollinger or its
          subcontractors shall be covered under this policy and that Buyer shall
          have the benefit of this insurance with respect to any such claim.

     2)   Maritime Employer's Liability insurance (including transportation,
          wages, maintenance and cure) for limits not less than $1,000,000 each
          person and $1,000,000 each occurrence.

     3)   Commercial General Liability (CGL) insurance with a combined bodily
          injury and property damage limit of not less than $1,000,000 each
          occurrence, including products and completed operations coverage,
          non-owned watercraft coverage, and contractual coverage for all
          liability assumed by Bollinger under the terms of this Agreement with
          limits of liability not less than those set out herein.

     4)   Business Auto Liability insurance with a combined bodily injury and
          property damage limit of not less than $1,000,000 each occurrence.

     5)   Excess Liability insurance with a combined bodily injury and property
          damage limit of not less than $5,000,000 each occurrence.

     6)   Builder's Risk insurance (including protection and indemnity clauses
          and covering all periods up to delivery and acceptance of each Vessel
          after tests and trials) for loss of or damage to each Vessel and work
          hereunder, including Buyer-furnished equipment. The amount of
          Builder's Risk insurance shall not be less than the aggregate from
          time to time of (x) all payments respecting the Agreement Price for
          such Vessel made by Buyer, (y) the value of any changes (as agreed
          between Bollinger and Buyer), and (z) the value (as advised by Buyer
          to Bollinger) of Buyer-furnished equipment for such Vessel received at
          the Shipyard.

          With respect to Workers' Compensation, Employer's Liability, and
Maritime Employer's Liability insurance, Bollinger agrees that all of the
policies shall contain waivers of underwriters' rights of subrogation against
Buyer. With respect to CGL, Business Auto Liability, and Excess Liability
insurance, Bollinger agrees that all of

                                       14
<Page>

the policies shall contain waivers of underwriters' rights of subrogation
against Buyer, and that Buyer shall be named an additional assured on such
policies, without any liability for premium, it being understood and agreed that
such naming and waiving shall apply only with respect to the obligations and
risks assumed by Bollinger in this Agreement. It is further understood and
agreed that any indemnity obligations hereunder of Buyer to Bollinger shall be
considered primary to any obligation of Bollinger's CGL insurer, Business Auto
Liability insurer, and Excess Liability insurer, to afford coverage to Buyer.
With respect to Builder's Risk insurance, Bollinger agrees that such policy
shall contain waivers of underwriters' rights of subrogation against Buyer, that
Buyer shall be named an additional assured, without any liability for premium,
and that Buyer (and Buyer's lender, if any) shall be named as a loss payee as
its interests may appear.

          Bollinger agrees to furnish Buyer with certificates of insurance (and
copies of policies if requested by Buyer) evidencing the above coverage within
thirty (30) days of the effective date of this Agreement. Such certificates (and
policies) shall stipulate that thirty (30) days advance written notice of
non-renewal, cancellation or material changes shall be given to Buyer (and
Buyer's lender, if any). It is understood that should at any time the Buyer
require insurance coverage in addition to that mentioned in this Article, such
insurance shall be procured by Buyer and be at Buyer's expense.

          The full premium cost of each policy of insurance hereinabove referred
to shall be borne by Bollinger. Bollinger agrees to allow Buyer to inspect all
such policies or copies thereof at all reasonable times, and Bollinger shall
notify Buyer as soon as practicable in the event of any policy non-renewal,
cancellation, material alteration, or notice of any of the foregoing that may be
received by Bollinger relating to the Vessel.

          Bollinger's compliance, or its failure to comply, with the insurance
provisions of this Agreement shall not relieve or limit its obligation to
indemnify or hold Buyer harmless where and to the extent so required by the
provisions of this Agreement.

          C.   Buyer agrees during the entire time of its performance or work
hereunder to carry at its sole cost and expense with an insurance company
reasonably satisfactory to Bollinger, the following insurance with terms and
conditions acceptable to Bollinger:

          1)   Statutory Worker's Compensation insurance covering all of Buyer's
               employees engaged in the work to be performed hereunder, in
               accordance with the laws of the State of Louisiana, the United
               States Longshoremen's and Harbor Worker's Compensation Act, and
               any other applicable workers compensation law. The policy will
               also include Employer's Liability (other than Maritime) for a
               limit not less

                                       15
<Page>

               than $1,000,000 each accident, and shall contain the "Alternate
               Employer Endorsement" stipulating that any claim made against
               Bollinger by any employee of Buyer or its subcontractors shall be
               covered under this policy and that Bollinger shall have the
               benefit of this insurance with respect to any such claim.

          2)   Maritime Employer's Liability insurance (including
               transportation, wages, maintenance and cure) for limits not less
               than $1,000,000 each person and $1,000,000 each occurrence.

          3)   Commercial General Liability (CGL) insurance with a combined
               bodily injury and property damage limit of not less than
               $1,000,000 each occurrence, including products and completed
               operations coverage, watercraft exclusion deleted, and
               contractual coverage for all liability assumed by Buyer under the
               terms of this Agreement with limits of liability not less than
               those set out herein.

          4)   Business Auto Liability insurance with a combined bodily injury
               and property damage limit of not less than $1,000,000) each
               occurrence.

          5)   Excess Liability insurance with a combined bodily injury and
               property damage limit of not less than $5,000,000 each
               occurrence.

          With respect to Workers' Compensation, Employer's Liability, and
Maritime Employer's Liability insurance, Buyer agrees that all of the policies
shall contain waivers of underwriters' rights of subrogation against Bollinger.
With respect to CGL, Business Auto Liability, and Excess Liability insurance,
Buyer agrees that all of the policies shall contain waivers of underwriters'
rights of subrogation against Bollinger, and that Bollinger shall be named an
additional assured (without any liability for premium) on such policies, it
being understood and agreed that such naming and waiving shall apply only with
respect to the obligations and risks assumed by Buyer in this Agreement. It is
further understood and agreed that the indemnity obligations of Bollinger to
Buyer shall be considered primary to any obligation of Buyer's CGL insurer,
Business Auto Liability insurer, and Excess Liability insurer, to afford
coverage to Bollinger.

          Buyer agrees to furnish Bollinger with certificates of insurance (and
copies of policies if requested by Bollinger,) evidencing the above coverage
within thirty (30) days of the effective date of this Agreement. Such
certificates (and policies) shall stipulate that thirty (30) days advance
written notice of non-renewal, cancellation or material change shall be given to
Bollinger. It is understood that should at any time Bollinger require insurance
coverage in addition to that mentioned in this Article, such insurance will be
procured by Bollinger and be at Bollinger's expense.

                                       16
<Page>

          The full premium cost of each policy of insurance hereinabove referred
to shall be home by Buyer. Buyer agrees to allow Bollinger to inspect all such
policies or copies thereof at all reasonable times, and Buyer shall notify
Bollinger immediately in the event of any policy non-renewal, cancellation,
material alteration, or notice of any of the foregoing that may be received by
Buyer relating to the Vessel.

          Buyer's compliance, or its failure to comply, with the insurance
provisions of this Agreement shall not relieve or limit its obligation to
indemnify or hold Bollinger harmless where and to the extent so required by the
provisions of this Agreement.

          To the extent that Buyer acquires and maintains Hull and Machinery
insurance and Protection and Indemnity insurance on the Vessel following
delivery and acceptance of the Vessel, Buyer agrees during the Warranty period
as defined in Article 13 to cause its insurers to waive subrogation against
Bollinger in any Hull and Machinery policy and Protection and Indemnity policy
in force after delivery and acceptance of the Vessel. Nothing contained in this
agreement requires Buyer to obtain Hull and Machinery or Protection and
Indemnity insurance, it being understood that Buyer may elect to be self-insured
and this paragraph will only be applicable if Buyer acquires Hull and Machinery
or Protection and Indemnity insurance in the commercial insurance market.

                           ARTICLE 7. INDEMNIFICATION

          A.   Bollinger expressly agrees to defend, indemnify and hold harmless
Buyer (including any assignees of Buyer made in accordance with the terms of
this Agreement), its officers, directors, members, representatives, agents,
employees, the Vessel itself, and Buyer-furnished equipment, from and against
all occurrences, claims, demands, suits, or causes of action arising prior to
the delivery to and acceptance of the Vessel by the Buyer, and out of or
resulting from the performance of this Agreement, including but not limited to
occurrences, claims, demands, suits and causes of action for bodily injury,
illness, disease, death, loss of services, maintenance, cure, property damage,
and all reasonable attorney's fees in connection therewith, in favor of
Bollinger's employees, hired personnel, Bollinger's subcontractors and their
employees, invitees of both Bollinger and Bollinger's subcontractors and
trespassers, whether or not said occurrence, claim, demand, suit or cause of
action is alleged to be caused by the sole or concurrent negligence, act,
omission, fault or strict liability of Buyer, (including any assignees of Buyer
made in accordance with the terms of this Agreement) its officers, directors,
members, representatives, agents, hired personnel, or employees, or Buyer's
subcontractors or such subcontractors' employees or as a result of claims of
unseaworthiness of any Vessel, defect in premises, or any other act or omission
by any employees or agents

                                       17
<Page>

of Buyer, and regardless of whether such negligence, act, or omission is active
or passive, primary or secondary.

          B.   Buyer expressly agrees to defend, indemnify and hold harmless
Bollinger, its officers, directors, agents and employees from and against all
occurrences, claims, demands, suits and causes of action arising prior to the
final delivery to and acceptance of the Vessel by the Buyer, and out of or
resulting from the performance of this Agreement, including but not limited to
occurrences, claims, demands, suits and causes of action for bodily injury,
illness, disease, death, loss of services, maintenance, cure, property damage
(excluding, however, the Vessel itself and any Buyer-furnished equipment), and
all reasonable attorney's fees in connection therewith, in favor of Buyer's
employees, Buyer's subcontractors and invitees of both Buyer and Buyer's
subcontractors, whether or not said occurrence, claim, demand, suit or cause of
action is alleged to be caused by the sole or concurrent negligence, act,
omission, fault or strict liability of Bollinger, its officers, directors,
agents or employees or Bollinger's subcontractors or such subcontractor's
employees or as a result of claims of unseaworthiness of any Vessel, defect in
premises or any other act or omission by any employees or agents of Bollinger,
and regardless of whether such negligence, act, or omission is active or
passive, primary or secondary.

             ARTICLE 8. PATENT, COPYRIGHT AND TRADE SECRET INDEMNITY

          A.   Bollinger agrees to protect and hold harmless Buyer against
claims of third persons for damage sustained by reason of infringement of patent
rights, plans, proprietary information, copyrights, and trade secrets with
respect to designs, materials, processes, plans, proprietary information,
machinery, and equipment selected and furnished by Bollinger in such works.
Except with respect to violations by Bollinger of the provisions contained in
Article 8.B., Buyer agrees to protect and hold harmless Bollinger against claims
of third persons for damages sustained by reason of infringement of patent
rights, plans, proprietary information, copyrights, and trade secrets with
respect to designs, materials, processes, plans, proprietary information,
machinery and equipment supplied or specifically acquired by Buyer or by any
other party on behalf of Buyer, or required by any plans and specifications
furnished by Buyer. The indemnitee shall notify the indemnitor of the filing of
any suit so as to permit the timely filing of an answer thereto, and upon such
notice the indemnitor shall have the obligation to assume full defense of such
suit and the right to control the defense of such suit with attorneys of
indemnitor's selection and shall have the right to settle such suit in
indemnitee's name, and further provided that the indemnitee shall fully
cooperate with the indemnitor, in the defense of such suit. The indemnitee may,
at indemnitee's election, participate in the defense of a claim at indemnitee's
expense, provided that the indemnitor's decisions as to settlement and defense
shall be final.

                                       18
<Page>

          In the event any third party obtains injunctive relief prohibiting use
or practice of any patent, copyright, trademark, service mark, trade secret,
design or other intellectual property incorporated into a Vessel by Bollinger,
other than Buyer-furnished designs, plans specifications, or equipment, or in
the event that upon assertion of such a claim, the parties consent to refrain
from any such infringing use with respect to any Vessel, Bollinger, at its cost
and expense, shall procure a license for such intellectual property or a
substitute technology reasonably acceptable to Buyer.

          B.1. The push-pin socket assembly portion of the JAK-Coupling
System (hereinafter "Push Pin Sockets") will be installed by Bollinger in
accordance with the plans and specifications prepared by the manufacturer of
such system (the "JAK Manufacturer") and supplied by the Buyer to Bollinger in a
timely manner. Buyer shall also supply to Bollinger evidence that ABS has
approved the manufacture of the Push Pin Sockets and its installation design in
accordance with plans and specifications supplied by the JAK Manufacturer. The
Push Pin Sockets shall constitute part of Buyer-furnished equipment under this
Agreement.

          2.   Bollinger recognizes that all information respecting the Push
Pin Sockets and all plans and specifications relating thereto constitutes a
trade secret of the JAK Manufacturer and the Buyer and proprietary and
confidential information of the JAK Manufacturer and the Buyer. Bollinger agrees
that "trade secrets and confidential information" consists of trade secrets and
confidential business lists, records, and information, including but not limited
to the following: , contacts, addresses, lists, contracts, transactions, plans,
designs, specifications, engineering calculations and graphics, policies,
reports, histories, information reports, and information; methods of generating
customer leads; techniques, policies, methods and procedures for sales, pricing
and marketing; prices and price lists; inventory and inventory lists; supplies,
suppliers names and addresses, and supplier and supply lists; manufacturer,
distributor and supplier company names, contacts, addresses, lists,
transactions, contracts, policies, reports, histories, products, rate books,
comparisons, and information; advertising, advertising copy and programs;
endorser names and addresses; sales reports, business reports, financial
statements and reports, and operating statements; employees, agents, subagents,
and independent contractor names, addresses, lists, commissions, productivity
and information; computer programs, computer software, databases, and data; and
know-how, discoveries, inventions, writings, conceptions, knowledge,
information, plans, programs, and ideas and tangible expressions of ideas. These
lists of trade secrets and confidential information are not exclusive; there may
not and in the future be other types of information that constitute trade
secrets and confidential information respecting the JAK-Coupling System and
which are included within the scope of this paragraph.

                                       19
<Page>

          3.   Bollinger further agrees that all plans, drawings,
specifications, engineering calculations, graphics, drawings, books, papers,
records, lists, files, forms, reports, accounts, documents, supplies, equipment,
photographs, cassettes, compact disks, video tapes, databases, disks, data,
computers, peripherals, hardware, programs, software, floppy disks, hard drives,
magnetic media, storage media, cd-roms, accessories, parts, components, manuals,
documentation, research papers and information relating in any manner to the JAK
Manufacturer or the JAK-Coupling System, and whether or not containing a trade
secret or confidential information, are the exclusive property of the JAK
Manufacturer and the Buyer. Bollinger shall immediately return the foregoing to
Buyer on the date of termination of this Agreement or earlier at the Buyer's
request at any time.

          4.   Bollinger agrees to keep secret and treat confidentially all of
the JAK Manufacturer's or Buyer's trade secrets and confidential information
(whether or not copyrightable or patentable). Bollinger agrees not to do any of
the following, directly or indirectly: use, publish, disclose or communicate any
of the JAK Manufacturer's or Buyer's trade secrets or confidential information
to anyone, except as specifically allowed by this Agreement or after the Buyer's
prior written approval; print, copy, publish, display, reproduce or allow anyone
else to print, copy, publish, or display or reproduce any information in
tangible form containing a trade secret or confidential information; aid others
in learning of or using or planning the use of any of the JAK Manufacturer's or
Buyer's trade secrets or confidential information, except in pursuance of the
objects of this Agreement; use the JAK Manufacturer's or Buyer's trade secrets
or confidential information for Bollinger's own account or benefit; or aid,
assist or plan for other persons or entities to use the JAK Manufacturer's or
Buyer's trade secrets or confidential information for their own account or
benefit. This obligation of confidentiality shall exist during the term of this
Agreement, and it shall continue after the date of termination of this Agreement
for the longer of (i) five years, or (ii) the date that all elements of the
trade secrets and confidential information described in this paragraph subclause
B. are public knowledge and no longer proprietary to the JAK Manufacturer or the
Buyer. Notwithstanding the foregoing, Bollinger shall not be restricted from
disclosure or use of confidential information or a trade secret, as contemplated
and defined herein, that:

     (1)  was in the public domain at the time of disclosure or thereafter
          enters the public domain through no breach of this Agreement by
          Bollinger; or

     (2)  was, at the time of receipt, otherwise known to Bollinger without
          restriction as to use or disclosure; or

                                       20
<Page>

     (3)  becomes known to Bollinger from a source other than Buyer or the JAK
          Manufacturer without breach of this Agreement by Bollinger; or

     (4)  is developed independently by Bollinger and without reliance upon
          confidential information or trade secrets disclosed hereunder.

          5.   Bollinger agrees that each of the above matters is important,
material, confidential, and gravely affects the effective and successful conduct
of the business of the JAK Manufacturer and Buyer and affects their value,
reputation and good will. If Bollinger breaches any provision of this Agreement
respecting the JAK-Coupling System as set forth in subclauses B. 1. through B.4.
hereof, the JAK Manufacturer and the Buyer, either individually or together, is
entitled to obtain temporary and permanent injunctions, specific performance,
damages (to the extent, if at all, that they are ascertainable; including but
not limited to the compensatory, incidental, consequential, punitive, exemplary,
and lost profits damages), costs and reasonable attorney's fees at all levels,
including but not limited to appeals. Bollinger agrees that if Bollinger
breaches any provision of this Agreement respecting the JAK-Coupling System as
set forth in subclauses B. 1. through B.4. hereof, it shall be conclusively
presumed that a irreparable injury would result to the JAK Manufacturer and the
Buyer and there would be no adequate remedy at law. Bollinger agrees that this
covenant is not contrary to public health, safety or welfare. Bollinger also
agrees that this covenant is reasonable and protects the legitimate business
interests of the JAK Manufacturer and the Buyer. This Agreement respecting the
JAK-Coupling System as set forth in subclauses B.1. through B.4. hereof does not
limit the rights and remedies that the JAK Manufacturer or the Buyer otherwise
has with respect to the JAK-Coupling System by law, equity or statute.

              ARTICLE 9. PLAN APPROVAL, INSPECTION, ACCESS AND TEST

          A.   Bollinger shall submit three (3) copies of each detail design
plan and technical document to the Buyer for Buyer's review for compliance with
the Specifications and this Agreement. The Buyer shall return one copy of each
drawing with comments and changes to the drawing required for Bollinger to
comply with the Specifications and this Agreement within 7 calendar days of
receipt, or Bollinger may consider the drawing approved by Buyer. Revisions made
to such drawings by Bollinger shall be resubmitted in the same procedure.
Bollinger shall respond to comments, and make required changes in reasonably
prompt order to avoid delay in the work. Bollinger may not purchase, fabricate
or install items for each Vessel, unless shown on detail design plans approved
by the Buyer, however Bollinger may do so at its sole risk of rejection by
Buyer. Within 45 days of the date of this Agreement Bollinger shall submit to
Buyer a plan schedule

                                       21
<Page>

identifying each detail design plan and technical document, the scheduled date
for submission to Buyer and whether the document is intended to be submitted to
any regulatory body.

          B.   During construction, outfitting tests and trials, Buyer or its
accredited representatives shall have access to inspect the Vessel and the work
at all reasonable times. Buyer shall bear the cost for Buyer's representative in
such access and inspection but shall not be required to compensate Bollinger for
the reasonable use of Bollinger's facilities in connection therewith. Bollinger
will perform dock tests and trials of the Vessel and its component systems
(including the Push Pin Sockets) of sufficient nature and duration so as to
assure that the Vessel is delivered to Buyer in an operating, fit and seaworthy
condition and in accordance with the terms of this Agreement; provided however,
that Bollinger shall be responsible solely for the installation of the Push Pin
Sockets and shall have no responsibility to ensure their functionality and
successful operation. Bollinger will give Buyer at least forty-eight (48) hours
written or telephoned notice of the date of said tests and trials. All the
workmanship and material required under this Agreement, while the same is in
fabrication, erection, construction, installation and performance, shall be
inspected promptly by the representative and agents of Buyer and shall be
accepted promptly in accordance with this Agreement, the Specifications or a
Buyer-approved detail design plan and rejected promptly if not in accordance
therewith.

                            ARTICLE 10. FORCE MAJEURE

          A.   All work performed by Bollinger under this Agreement, with
respect to any stipulated completion date of such Work or the stipulated
Delivery Date of the Vessel, shall be subject to extension by reason of force
majeure. The parties agree that such causes shall include, but not be limited
to, the following: all strikes, or any other industrial disturbance,
unavailability or inadequacy of fuel supplies or electricity, act of God, war,
preparation for war, the intervention of the Military or other agencies of
government, blockade, sabotage, vandalism, riots, insurrection, rain,
landslides, floods, named tropical storms, tornadoes, earthquakes, collisions,
fire, epidemics, lightning, any delay or non-delivery of Buyer-furnished
material and/or equipment, delays caused by changes authorized by Buyer, and
delays of material which Bollinger cannot avoid with the exercise of due
diligence and planning. No such extension, however, shall suspend, alter or
affect Bollinger's right to receive compensation for, or Buyer's duty, if any,
to compensate for, all work completed through the date of suspension.

          B.   Within fifteen (15) days of knowledge that the stipulated
Delivery Date will be affected by any force majeure event, Bollinger shall
notify Buyer in writing, and shall furnish an estimate, if possible, of the
extent of the delay. Upon receipt of any such notice, Buyer shall, within seven
(7) days, acknowledge the same in

                                       22
<Page>

writing and indicate agreement if such development is to be treated as a force
majeure event or state any objections, and the reasons therefor, to acceptance
of this development as a force majeure event. If Buyer shall fail to respond
within seven (7) days, the extension of time shall be considered approved. If
and when the completion of the Vessel is delayed by force majeure, the
stipulated Delivery Date shall be extended by a period equal to the period of
the delay. An extension of a Delivery Date shall only be allowed if any of the
events above designated adversely affects the normal work of Bollinger and in so
doing demonstrably, directly and adversely affects a Delivery Date.

          Except as specifically above provided, acts of commission or omission
(irrespective as to negligence and whether voluntary or compulsory) of
employees, independent contractors, subcontractors representatives, agents or
others engaged by Bollinger, including their officers, employees, crew, and
inspectors shall not excuse Bollinger from delay hereunder.

               ARTICLE 11. DAMAGES FOR DELAY; EARLY DELIVERY BONUS

          A.   Bollinger and Buyer agree and fully understand that time is of
the essence in this Agreement and stipulate that after required trials and
completion in accordance with this Agreement and Specifications relating
thereto, the Vessel shall be delivered to Buyer in accordance with the date and
terms set forth in Article 3 of this Agreement. In the event that Bollinger
fails to deliver a Vessel on or before the contractual Delivery Date, as
adjusted for changes made hereunder and delays resulting from force majeure as
defined herein, Buyer will suffer damages which are difficult to ascertain and
therefore Buyer accepts, in lieu of actual damages, damages (and not penalty) in
the amount of $2,500.00 per day of delay for such Vessel, with no maximum
aggregate sum in the event of delayed delivery of such Vessel.

          B.   In the event that a Vessel is delivered before the contractual
Delivery Date, as adjusted for any and all changes made hereunder, then Buyer
agrees to pay Bollinger an early delivery bonus in the amount of $1,250.00 per
day of early delivery of such Vessel, with no maximum aggregate sum in the event
of early delivery of a Vessel.

                        ARTICLE 12. CONSEQUENTIAL DAMAGES

          Except as otherwise specifically provided for in this Agreement, this
Article applies to and takes precedence over any other Articles, Sections, or
provisions of this Agreement. Under no circumstances and under no theory of law,
whether contract, quasi-contract, strict liability, warranty, tort (including
the sole or concurrent negligence) fault, or any other theory of law or cause of
action, shall Bollinger have any liability to Buyer, or Buyer have any liability
to Bollinger, for (i) loss of revenue, loss of profit, loss of use of capital or
production delays, loss of any

                                       23
<Page>

portion of or all of a Vessel or any aspect of the work, delays in delivery of
the Vessel, losses resulting from failure to meet other contractual commitments
or deadlines, downtime of facilities or vessels, in each case, regardless of
whether such claim, or the basis thereof, is considered as a consequential
damage or not, or (ii) indirect or consequential loss or damage, however and
whenever arising under this Agreement or as a result of or in connection with
the Vessel, and whether based on negligence, whether sole or concurrent or
active or passive, or unseaworthiness, breach of warranty, breach of contract,
or otherwise; i) and ii) above are defined as Consequential Damages.

                              ARTICLE 13. WARRANTY

          A.   WORKMANSHIP. Bollinger warrants that all work will be done in a
good and workmanlike manner and that all labor and installations made shall meet
the requirements and standards described in any United States law, rule or
regulation or regulation of ABS applicable to a United States vessel to be used
in the coastwise trade and in the Specifications which pertain to the Vessel,
except in the event that Buyer or the vendor of Buyer-furnished or
Buyer-specified material or equipment requires a specific installation that does
not meet such requirements and standards described hereinabove. Bollinger
further warrants that all materials and equipment used by Bollinger and
incorporated into the Vessel, except Buyer-furnished equipment, shall be new and
should be as provided for in the Specifications.

          B.   MATERIALS AND EQUIPMENT. Bollinger does not warrant that any
material or equipment purchased by it for use or installation in the Vessel is
free from manufacturer's defects, and specifically disclaims any warranties
expressed or implied, with respect to such material or equipment, but does
hereby assign each manufacturer's warranty to Buyer, and will use reasonable
efforts in order to enforce any claims against manufacturers which may occur;
the manufacturer's warranties assigned by Bollinger shall be in effect for a
term of not less than 180 days, and begin with the Delivery Date of each Vessel.
Bollinger warrants the installation of systems or equipment or engines shall be
in accordance with manufacturer's recommendations and requirements, and that in
the absence of manufacturer's recommendations and requirements, that material
and equipment will be installed in accordance with good shipyard practice.
Bollinger shall not be liable for the performance or suitability of any
Buyer-furnished equipment nor the impact of said Buyer-furnished equipment upon
the performance characteristics of the Vessel.

          C.   PAINT. Bollinger warrants only that it will i) purchase paint of
good marine quality as designated in the specifications, ii) apply the paint in
accordance with the Manufacturer's specifications and recommendations, and iii)
hereby assigns to Buyer a manufacturer's warranty which provides for repair and

                                       24
<Page>

replacement due to defective material for a period of time which is at least as
long as Bollinger's warranty provided for herein.

          D.   TERM. Bollinger's warranty shall extend only to the original
Buyer and its assigns in accordance with the terms of this Agreement and only to
such claims related to undertakings, representations, warranties, design,
defects, workmanlike performance, installation of material or equipment or
unseaworthiness ("Claims") reported in writing to Bollinger within three hundred
sixty five (365) days of the delivery and acceptance of each respective Vessel
(the "Warranty Term") or, with respect to a repair made by Bollinger during the
Warranty Term, within three hundred sixty five (365) days of the completion of
such repair made by Bollinger at the Shipyard. Upon receipt of due notice of any
defect covered under this warranty, Bollinger will make repairs or replacements,
at its option, at its Shipyard without expense to it for transporting the Vessel
or any component thereof to or from its Shipyard. Subject to the terms of
Article 2 respecting the Hold-back, in the event repairs must be made other than
at the Shipyard because it is impractical to transport the Vessel to a Bollinger
facility, and if Buyer has such repairs made under the terms of this warranty,
it is expressly understood by Buyer that Bollinger will be responsible only for
the retail costs (without overtime) which Bollinger would have charged, had
Bollinger done the work. In the event of any Claim the nature or extent of which
does not require placement of the Vessel in a shipyard, Bollinger shall, at its
sole cost and expense, make repairs or replacements at a mutually agreed upon
location which is practical and reasonable under the circumstances.

          E.   SOLE REMEDY.  Subject to the terms of Article 2 respecting the
Hold-back, the sole and exclusive remedy of Buyer for Claims shall be limited to
the obligation of Bollinger to repair and/or replace, or cause to be repaired or
replaced, at its option, or to pay for or reimburse Buyer for the cost thereof
in accordance with the terms of Article 13D hereof, any such defective
workmanship or installation of materials or equipment, provided such defects or
breakdowns have not been caused by the negligent operations of the Vessel or its
equipment, after delivery and acceptance, by those in charge of the Vessel's
operation, or other persons not in the employ of Bollinger, or the manufactured
supplied items.

          In no event shall Bollinger be responsible for any sum in excess of
the cost of the repairs and replacement of materials as specified herein, it
being specifically understood that Bollinger shall under no circumstances have
any liability for any Consequential Damages.

          F.   REPORTING  OF CLAIMS.  Bollinger shall have no responsibility
whatsoever with respect to any Claims not reported in writing within said three
hundred sixty five (365) days, regardless of any negligence on the part of
Bollinger or its employees or subcontractors or their employees or of any
furnisher of materials in connection therewith, and Buyer waives and releases
Bollinger, its employees,

                                       25
<Page>

subcontractors and their employees and all furnishers of materials and supplies
from all such liability and all damages resulting therefrom, whether same be
based on contract or tort, for any damages or loss to the Vessel resulting from
Claims.

          G.   DISCLAIMERS. BOLLINGER MAKES NO WARRANTIES OR REPRESENTATIONS
WHATSOEVER OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT, AND ANY OTHER
WARRANTIES, WHICH MIGHT OTHERWISE BE IMPLIED, INCLUDING BUT NOT LIMITED TO, ANY
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND/OR FREEDOM
FROM ANY LATENT VICES OR DEFECTS, ARE EXPRESSLY EXCLUDED AND NEGATED. FURTHER,
BOLLINGER DOES NOT WARRANT THAT THE WORK IS FREE FROM REDHIBITORY LATENT DEFECTS
OR VICES. BUYER HEREBY (I) EXPRESSLY WAIVES ALL RIGHTS IN REDHIBITION AND
REDUCTION OF PURCHASE PRICE PURSUANT TO LOUISIANA CIVIL CODE ARTICLES 2520 ET
SEQ. AND THE WARRANTY IMPOSED BY LOUISIANA CIVIL CODE ARTICLE 2476 AND (II)
RELEASES SELLERS FROM ANY LIABILITY FOR REDHIBITORY OR LATENT DEFECTS OR VICES
UNDER LOUISIANA CIVIL CODE ARTICLES 2520 THROUGH 2548; PROVIDED, HOWEVER, THAT
THE FOREGOING SHALL NOT BE DEEMED TO BE A WAIVER OF ANY CLAIM FOR WILLFUL
CONCEALMENT OR FRAUD. ALL CLAIMS REGARDING THE WORK WHETHER OR NOT DUE TO
BOLLINGER'S NEGLIGENCE AND ALL CLAIMS RELATING TO THE WORK WHETHER ARISING IN
CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCT LIABILITY OR
OTHERWISE, SHALL BE SUBJECT TO THE AGREEMENTS AND LIMITATIONS OF THIS SECTION.
THE ABOVE OBLIGATIONS OF BOLLINGER AND REMEDIES PROVIDED TO BUYER ARE THE SOLE
AND EXCLUSIVE OBLIGATIONS OF BOLLINGER AND REMEDIES OF BUYER RESPECTING A CLAIM.

                       ARTICLE 14. LIENS AND ENCUMBRANCES

          A.   Following payment of the sums (other than the Hold-back in
accordance with Article 2 hereof) due to Bollinger by Buyer hereunder respecting
a Vessel, Bollinger agrees to deliver the Vessel to Buyer free and clear of any
and all liens, mortgages, claims, encumbrances and rights in rem, excluding only
those liens, mortgages, claims, or encumbrances created by Buyer.

          In the event of the filing or attaching of any lien, claim, mortgage,
or encumbrance or rights in rem (excluding those created by Buyer) against the
Vessel before delivery to and acceptance by Buyer, Buyer may, but shall not be
required to, satisfy the same out of any amount (including, but not limited to
the Hold-back) remaining to be paid to Bollinger hereunder, or Buyer may, at its
option, withhold

                                       26
<Page>

the amount thereof from any payment to become due hereunder. When final payment
is to be made under this Agreement, as condition precedent thereto, Buyer may,
in its discretion, require that Bollinger provide to Buyer a statement
certifying that there exist no claims, lien, encumbrances or rights in rem of
any kind against the Vessel or its respective machinery, fittings, or equipment
excluding any liens or encumbrances created by Buyer.

          In addition to and notwithstanding the foregoing, Bollinger agrees to
indemnify Buyer and hold it harmless from and against all claims, liens,
encumbrances and rights in rem and claims for labor, material, taxes, privileges
and licenses arising out of, in connection with, or resulting from the
construction of the Vessel, the delivery and acceptance of the Vessel, or the
operations or activities of Bollinger, its employees or agents or subcontractors
and the employees or agents of their subcontractors, except for liens,
mortgages, claims, or encumbrances created by Buyer, and Bollinger agrees to
defend any such claim asserted or suit brought against Buyer and to pay any
judgment rendered in any such action, provided, however, that Buyer shall have
the right, if it so elects, to participate at its own expense in the defense of
any such claims or suits, but such participation shall not operate to affect
Bollinger's liability and obligation hereunder.

          B.   Buyer agrees to indemnify Bollinger and hold it harmless from and
against all claims, liens, encumbrances and rights in rem for labor, materials,
taxes, privileges and licenses arising out of, in connection with, or resulting
from the operations or activities of Buyer, its employees or agents or
subcontractors and the employees or agents of their subcontractors, and agrees
to defend any such claim asserted or suit brought against Bollinger and to pay
any judgment rendered in any such action, provided, however, that Bollinger
shall have the rights, if it so elects, to participate at its own expense in the
defense of any such claims or suits, but such participation shall not operate to
affect Buyer's liability and obligation hereunder.

              ARTICLE 15. BUYER-FURNISHED EQUIPMENT AND INFORMATION

          A.   Bollinger shall, at its own expense and risk, receive, inspect,
check as to agreement with Bills of Lading, store, protect, insure and install
aboard the Vessel all of the Buyer-furnished equipment required by the
Specifications to be furnished by Buyer. Bollinger shall not be deemed to have
extended any warranty as to materials or equipment furnished by Buyer. Bollinger
shall be liable to, and does hereby indemnify, Buyer for any damage to or loss
of Buyer-furnished equipment by Buyer occurring during Bollinger's custody
thereof which may arise from any event. The cost of technical support required
to commission Buyer-furnished equipment after installation by Bollinger shall be
the responsibility of Buyer.

                                       27
<Page>

          B.   Buyer shall cause to be delivered to Bollinger Push Pin Sockets
for each Vessel ready for installation. Buyer shall also deliver to Bollinger
plans and specification for the installation of the Push Pin Sockets on each
Vessel. Buyer shall cause the delivery of such Push Pin Sockets in a timely
manner and, in any event, not later than the need date identified therefor with
respect to the Vessel by Bollinger in Bollinger's construction schedule as
described below.

          For each Vessel hereunder, at least eight weeks prior to the need date
identified by Bollinger for the Push Pin Sockets, Bollinger shall provide the
JAK Manufacturer such detailed specifications, diagrams or other documents as
may be required by the JAK Manufacturer to allow it to manufacture and timely
deliver to Bollinger the Push Pin Sockets and any other Components of the JAK
Coupling System as may be required.

          Notwithstanding any provision in this Agreement to the contrary,
Bollinger shall install the Push Pin Sockets in accordance with Buyer-furnished
drawings, and Bollinger shall not provide engineering or design services with
respect to the Push Pin Sockets and shall have no liability with regard to the
suitability, effectiveness, merchantability, or performance of the Push Pin
Sockets.

          C.   No later than 14 days after the submission by Bollinger to Buyer
of Bollinger's construction schedule for the Vessel, including dates upon which
Buyer-furnished equipment and Buyer-furnished information must be received at
Bollinger's facility ("need dates"), Buyer shall provide a schedule of
Buyer-furnished equipment and Buyer-furnished information detailing the value
(which shall be the amount of insurance therefor required to be carried by
Bollinger in accordance with Article 6 hereof) of each specific unit, if any,
and confirming Buyer's acceptance of Bollinger's need dates, the delivery date
of each unit, accessories and information. If Buyer fails to provide the value
of any Buyer-furnished equipment to Bollinger, then Bollinger's liability to
Buyer for any damage to or loss of such item occurring during Bollinger's
custody thereof shall not exceed the sum of $150,000.00 per Vessel.

          Buyer acknowledges that the components and information being supplied
have critical importance to the maintenance and achievement of the construction
schedule. Buyer also acknowledges that the failure to deliver said components
and/or information in accordance with the required dates established in the
construction schedule as the need dates, may cause a delay in the completion of
the Vessel. In the event that completion of the Vessel is delayed as a result of
Buyer's failure to timely provide Buyer-furnished equipment and/or
Buyer-furnished information under this Agreement, the stipulated Delivery Date
shall be extended by a period equal to the period of the delay.

                                       28
<Page>

          D.   Any Buyer-furnished equipment relating to a Vessel remaining in
or on Bollinger's facilities 90 days following delivery and acceptance of such
Vessel shall become the property of Bollinger without further compensation due
by Bollinger to Buyer, or Bollinger may, at Bollinger's sole discretion, dispose
of such Buyer-furnished equipment at Buyer's sole cost and expense.

                ARTICLE 16. TAXES AND UNEMPLOYMENT CONTRIBUTIONS

          Bollinger does hereby acknowledge and accept full liability for the
payment of all work-in-progress property or personal taxes, franchise taxes,
payroll taxes and unemployment contributions or other taxes or contributions now
or hereafter imposed by any government or taxing authority having jurisdiction
in the premises, and which are measured or computed in accordance with salaries
or other compensation, and which have become due or payable by virtue of the
performance of Bollinger's obligations hereunder, and Bollinger hereby agrees to
indemnify Buyer therefor.

          Notwithstanding the foregoing, Buyer does hereby acknowledge and
accept exclusive liability for the payment of all sales or use taxes or other
taxes (other than franchise taxes or income taxes or payroll taxes), which may
become due by virtue of the work performed hereunder, including without
limitation, sales taxes arising from the sale of the Vessel or the components of
said Vessel to Buyer and Buyer does hereby agree to indemnify therefor. Sales
taxes for material, equipment, and services to be provided by Bollinger, as
provided in this Agreement and accompanying contract documents, are included in
the price of the Vessel provided in Article 2 hereof.

          If sales and use taxes are assessed and found to be due on the
transfer of any and all of Buyer's rights under this Agreement or on any
transfer of the Vessel that may occur, then those sales or use taxes will be for
the account of Buyer.

                   ARTICLE 17. USE OF PLANS AND SPECIFICATIONS

          Except with respect to the Push Pin Sockets and the JAK-Coupling
System, the Specifications, Contract Plans, Bollinger's numeric control tapes,
design, engineering calculations, modeling studies (if any), and Bollinger's
working and as built drawings of the Vessel (hereinafter "Plans and
Specifications") are and shall remain the property of Bollinger. Buyer shall
have the right to use the "as built" drawings furnished under this Agreement for
the purposes of causing the Push Pin Sockets to be constructed for each Vessel
and repairing, maintaining, operating and refurbishing each Vessel built under
this Agreement. Buyer shall have no right to use any of the Plans and
Specifications to construct any additional vessel(s).

                                       29
<Page>

                               ARTICLE 18. DEFAULT

          A.   Each of the following  events  described in subclauses (x), (y)
and (z) next following shall constitute a default hereunder of the party subject
to such event:

          (x)  either party hereto shall become adjudicated bankrupt or an order
appointing receiver of it or the major part of its property shall be made, an
order shall be made approving a petition or answer seeking its reorganization
under the Federal Bankruptcy Act, as amended, or either party shall institute
proceedings for voluntary bankruptcy or apply for or consent to the appointment
of a receiver of itself or of its property, shall make an assignment for the
benefit of creditors or shall admit in writing, its inability to pay its debts
generally as they become due, for the purpose of seeking a reorganization under
the Federal Bankruptcy laws; or

          (y)  either party otherwise commits a material violation of any
material provision of this Agreement and such violation is not cured within
thirty (30) days of receipt of notice thereof by the non-defaulting party; or

          (z)  Bollinger shall fail to maintain in full force and effect a
Performance Bond satisfying the terms of this Agreement respecting a Vessel from
and including the dates specified in Article 2(F) hereto to and including the
Delivery Date of such Vessel.

          In any one or more of such events the other party shall have the
option forthwith to terminate this Agreement (with respect to one Vessel or all
Vessels at the option of such other party) to all intents and for all purposes
by giving written notice of its intention to do so, provided, no notice of
termination shall be required if an event shall have occurred under Subc1ause
(x) hereof. Any termination of this Agreement made pursuant to the provisions of
this Article shall not relieve either party from any accrued obligations
hereunder due and owing at the date of such termination.

          B.   In the event of default by Bollinger, Buyer, without prejudice to
any other right or remedy that may exist under this Agreement or under
applicable law:

          (i)  may terminate the employment of Bollinger and take possession of
all materials, equipment, tools, and machinery thereon owned or furnished by
Buyer and stored by Bollinger, and may enter the premises of Bollinger and, at
Buyer's option, remove one Vessel or all Vessels and all components thereof,
Buyer-furnished equipment and material relating thereto, and may finish the work
by whatever method Buyer may deem appropriate at the facilities of Bollinger or
at another location or facility. If the unpaid balance of the Agreement Price
for any Vessel exceeds the costs of finishing the work, including compensation
for additional

                                       30
<Page>

services made necessary thereby, and damages sustained by Buyer, such excess
shall be paid to Bollinger. If such costs exceed the unpaid balance, Bollinger
shall pay the difference to Buyer; or

          (ii) may recover all amounts paid toward the Agreement Price of, at
Buyer's option, any Vessel or all Vessels, and Bollinger hereby agrees to repay
all such amounts to Buyer forthwith and Buyer may enter the premises of
Bollinger and take possession of any Buyer-furnished equipment and remove the
same from the Shipyard.

          C.   In the event of default by Buyer, Bollinger may, without
prejudice to any right or remedy that may exist under this Agreement or under
applicable law, and at its sole option and discretion, suspend all work upon one
Vessel or all Vessels at Bollinger's option until the default has been cured,
reserving the right to thereafter terminate this Agreement by giving written
notice to do so, or may sell one Vessel in its then present condition and
location, or all Vessels at Bollinger's option or may complete such Vessel(s)
for sale to a third party and apply the proceeds of sale, net of all expenses,
to any unpaid balance due and owing to Bollinger and shall pay the remainder to
Buyer. Buyer represents and certifies that, in the event Bollinger exercises its
option to sell a Vessel as a result of Buyer's uncured default, Bollinger and
any party to whom Bollinger sells such Vessel shall have the right to use, own,
and convey the Vessel, without the Push Pin Sockets and without any further
fees.

                             ARTICLE 19. ASSIGNMENT

          A.   This Agreement and the benefit and the payment of any benefits
made hereunder may be assigned by Buyer, in one or more assignments, outright or
by way of security, to any individual, firm or corporation which it may
designate, provided that:

     (a)  no such assignment may violate any law of the United States or rule or
          regulation issued or promulgated by any department or agency or
          instrumentality of the United States government;

     (b)  regardless of such assignment, Buyer shall remain fully liable and
          responsible to Bollinger for the performance of all obligations of
          Buyer hereunder, as if said assignment had not been executed;

     (c)  regardless of any such assignment, Bollinger shall not be required to
          perform any of its obligations hereunder if at the time such
          performance is demanded, Buyer is in default (and such default shall
          not have been cured) with respect to any of its obligations to
          Bollinger hereunder, and without limiting the generality of the
          foregoing, Bollinger shall not be required to deliver the Vessel
          hereunder until

                                       31
<Page>

          and unless full payment (other than the Hold-back) and conditions for
          same have been made to Bollinger as provided herein.

          Bollinger agrees to consent to any such assignment by Buyer, but
subject to the limitations set forth above.

          B.   Buyer agrees that Bollinger may assign Bollinger's rights to
receive payment hereunder to any firm, individual, or corporation which it may
designate. Bollinger may not make any assignment of its obligations hereunder,
without the express written consent of Buyer, which consent shall not be
unreasonably withheld.

                           ARTICLE 20. SUBCONTRACTORS

          Bollinger reserves the right to subcontract any part or all the work
under this Agreement, and in such event, Bollinger shall remain primarily
responsible to Buyer for the performance of any and all work subcontracted by
Bollinger as if such subcontract had not been made. Bollinger agrees that it is
completely responsible to Buyer to assure that the subcontracted work meets the
requirements of this Agreement.

                               ARTICLE 21. NOTICES

          All notices or communications hereunder shall be in writing and shall
be either delivered in person or mailed by certified mail, return receipt
requested, or can be faxed with confirmation to follow by letter, as follows:

A.        If to Bollinger:

--------------------------------------------------------------------------------
Bollinger Gretna, L.L.C.                Bollinger Shipyards Lockport, L.L.C.
Attention: Kenny Boothe                 Attention: Scott Theriot
4640 Peters Rd.                         P. O. Box 250
Harvey, LA 70058                        Lockport, LA 70374
--------------------------------------------------------------------------------

B.        If to Buyer:

--------------------------------------------------------------------------------
c/o K-Sea Transportation Corp.          Holland & Knight LLP
Attention: Tim Casey                    Attention: Christopher G. Kelly
3245 Richmond Terrace                   195 Broadway
Staten Island, NY 10303                 New York, NY 10007
--------------------------------------------------------------------------------

          If such notice is mailed, then it shall be deemed received either on
the date of receipt or on the third business day following the date of mailing,
whichever is

                                       32
<Page>

earlier. Any of the above addresses may be changed upon proper notice of the
other party, in which event the new address shall thereafter be used.

                         ARTICLE 22. GENERAL CONDITIONS

          A.   This Agreement represents the entire agreement between the
parties and supersedes all prior negotiations and agreements. Any amendments
hereto shall be in writing and signed by the party against whom it is sought to
be enforced; a purported amendment, not in writing and not so signed, shall be
void.

          B.   This Agreement shall be construed in accordance with the laws of
the State of Louisiana.

          C.   DISPUTES

          (i)  CLASSIFICATION DISPUTES. In the event that a difference of
opinion between the parties arises in respect of the materials or workmanship
directly affecting classification of the Vessel, such difference of opinion
shall be referred to the classification society for resolution, whose opinion
thereon shall be final and binding upon the Buyer and Bollinger. In case the
opinion of the classification society is not available to resolve such disputes
or in the event that a difference of opinion should arise as to other matters,
then such matters shall be resolved in the manner set forth below.

          (ii) NON-CLASSIFICATION DISPUTES. Any and all differences and disputes
of whatsoever nature, except for disputes concerning compliance with
classification society rules resolved pursuant to paragraph (a) above, shall be
resolved promptly and in good faith by negotiations between senior executives of
the Buyer and Bollinger who have authority to settle the controversy. The
disputing party shall promptly give written notice of a dispute and appoint a
senior executive as its representative during the negotiations. The receiving
party will respond in writing within five (5) days of such notice by identifying
the senior executive who will act as its representative during the negotiations.
The executives shall meet at a mutually acceptable time and place within ten
(10) days of the disputing party's notice to exchange relevant information and
to attempt to resolve the dispute. If the matter has not been resolved within
fifteen (15) days of the disputing party's notice, either party may initiate
arbitration pursuant to Article 22D. All deadlines specified in this paragraph
may be extended or shortened by mutual agreement of the parties, provided
however that in no event shall the failure or alleged failure of a party to
comply with the provisions of this Article 22C operate to preclude or delay the
commencement of arbitration proceedings pursuant to Article 22D below.

          D.   ARBITRATION.

          Except as provided in Article 22C hereto any and all differences and
disputes

                                       33
<Page>

of whatsoever nature arising out of this Agreement shall be arbitrated in New
York, New York, in accordance with the rules of the Society of Maritime
Arbitrators, Inc. before three persons, consisting of an arbitrator appointed by
each of the parties, and the third arbitrator chosen by the other two. Except as
provided in Article 22C, arbitration shall be the exclusive method of resolving
differences and disputes between the parties. Any award made by a majority of
the three (3) arbitrators shall be final and binding upon the Buyer and
Bollinger hereto, and any relief deemed just and equitable may be granted by a
majority of the arbitrators including without limitation attorneys' fees,
injunctive relief, and specific performance. Judgment may be entered upon an
award in any court of competent jurisdiction.

          In the event of reference to arbitration of any dispute arising out of
matters occurring prior to delivery of the Vessel, the award may include any
postponement of the Delivery Date which the arbitration panel may deem
appropriate.

          E.   Unless exempt, Bollinger shall comply with Executive Order 11246,
effective October 4, 1965, together with all amendments thereto.

          F.   The provisions of this Agreement are separate and severable. If
any provision, item or application of this Agreement shall be deemed invalid, in
whole or in part, such invalidity shall not affect other provisions, items or
applications of this Agreement that can be given effect without the invalid
provision, item or application; provided, however, that in the event a party
would be substantially deprived of its original bargain by enforcement of the
remaining provisions of the Agreement, the parties agree to an equitable
reformation.

          G.   The article  headings are for quick reference and convenience
only, and do not alter, amend, explain or otherwise affect the terms and
conditions of this Agreement.

          H.   Forbearance or failure of either party to promptly enforce its
rights hereunder, one or more times, shall not operate as a waiver of either
party's rights or the right of either party to enforce this Agreement as to any
provision that a party has not enforced, one or more times.

          I.   Buyer and Bollinger agree to execute such further documentation,
consents and/or amendment to this Agreement as may be reasonably required by the
Maritime Administration of the United States and/or Buyer's construction
financier.

          J.   This Agreement may be executed in counterparts, each of which
shall constitute one and the same instrument.

                                       34
<Page>

                   ARTICLE 23. REPRESENTATIONS AND WARRANTIES

          A.   Bollinger hereby represents and warrants to Buyer and its
assignees in accordance with the terms of this Agreement as follows:

          1.   This Agreement has been duly authorized, executed, and delivered
by it and constitutes its legal, valid and binding obligation enforceable
against it in accordance with the terms hereof;

          2.   Under present applicable law in effect as of the date of
execution of this Agreement, no sales, use or other taxes are payable to any
governmental entity, whether national, state or local or otherwise in connection
with the transfer of title of a Vessel to Buyer or the removal of a Vessel from
the Shipyard by the Buyer or, only with respect to the State of Louisiana and
any subdivisions thereof, the use of a Vessel by the Buyer, so long as the Buyer
removes the Vessel from the State of Louisiana on or immediately after delivery
to Buyer;

          3.   All permits, consents and approvals in connection with the
construction of the Vessel and the work required by any United States or other
governmental authority, ABS or any other entity or person in order for the
Vessel to be documented in the United States coastwise trade have been or will
be timely obtained by Bollinger;

          4.   Bollinger will not document any Vessel in its name or in the name
of any affiliate with the United States Coast Guard or any Louisiana titling
authority;

          5.   Bollinger will not grant any security interest, chattel mortgage
or similar lien or encumbrance against any Vessel not arising as a matter of
law.

          B.   Buyer hereby represents and warrants to Bollinger as follows:

          1.   This Agreement has been duly authorized, executed and delivered
by it and constitutes its legal, valid and binding obligation enforceable
against it in accordance with the terms hereof;

          2.   Buyer is qualified under the laws of the United States to engage
in coastwise trade with each Vessel.

                                       35
<Page>

          IN WITNESS WHEREOF, Bollinger Gretna, L.L.C. has executed this
Agreement on this 23rd day of March, 2001 before the undersigned competent
witness, but this Agreement shall be effective as of the day, month, and year
first above written.

WITNESS:                                     Bollinger Gretna, L.L.C.

     /s/ Anne G. Poir                        By    /s/ Scott Theriot
-----------------------------                   ------------------------------

                                             its   Executive Vice President
                                                ------------------------------

          IN WITNESS WHEREOF, K-Sea Transportation L.L.C. has executed this
Agreement on this 23rd day of March, 2001 before the undersigned competent
witness, but this Agreement shall be effective as of the day, month and year
first above written.

WITNESS:                                     K-Sea Transportation L.L.C.

     /s/ Patricia Hardy                      By    /s/ John J. Nicola
-----------------------------                   ------------------------------

                                             its   Chief Financial Officer
                                                ------------------------------
                                                   March 23, 2001

                                       36<Page>

                                                                    EXHIBIT 10.8

                                      LEASE

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

                               EGRET REALTY CORP.

                                                                        Landlord

                                       to

                               EKLOF MARINE CORP.

                                                                          Tenant

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

<Page>

THIS LEASE, dated the 30th day of April 1999
Between EGRET REALTY CORP., a New York corporation,
     191 Crystal Avenue, Staten Island, New York 10302,

                     hereinafter referred to as the Landlord, and

     EKLOF MARINE CORP., a New York corporation,
     3245 Richmond Terrace, Staten Island, New York 10303,

                     hereinafter referred to as the Tenant,

PREMISES

WITNESSETH: That the Landlord hereby demises and leases unto the Tenant, and the
Tenant hereby hires and takes from the Landlord for the term and upon the
rentals hereinafter specified, the premises described as follows, situated in
the Borough of Staten Island, County of Richmond and State of New York, as more
particularly described in Paragraph 31 of the Rider annexed hereto, including
office facilities, all piers and docks, lands under water and upland adjacent to
the piers and docks.

TERM

     The term of this demise shall be as set forth in Paragraph 30D of the Rider
annexed hereto.

RENT

     The rent for the demised term shall be as set forth in Paragraph 30A of the
Rider annexed hereto.

PAYMENT OF RENT

     The said rent is to be payable monthly in advance on the first day of each
calendar month for the term hereof, in installments as set forth in Paragraph
30C of the Rider attached hereto.

At the office of the Landlord.
Or as may be otherwise directed by the Landlord in writing.

                                      - 2 -
<Page>

     THE ABOVE LETTING IS UPON THE FOLLOWING CONDITIONS:

PEACEFUL POSSESSION

     FIRST.--The Landlord covenants that the Tenant, on paying the said rental
and performing the covenants and conditions in this Lease contained, shall and
may peaceably and quietly have, hold and enjoy the demised premises for the term
aforesaid.

PURPOSE

     SECOND.--The Tenant covenants and agrees to use the demised premises as a
general office, marine terminal and marine repair facility and for any other
lawful purpose,

and agrees not to use or permit the premises to be used for any other purpose
without the prior written consent of the Landlord endorsed hereon.

DEFAULT

     THIRD.--The Tenant shall, without any previous demand therefor, pay to the
Landlord, or its agent, the said rent at the times and in the manner above
provided. In the event of the non-payment of said rent, or any installment
thereof, at the times and in the manner above provided, and if the same shall
remain in default for thirty days after written notice from Landlord that the
same is due and unpaid or if the Tenant shall be dispossessed for non-payment of
rent, or if the leased premises shall be deserted or vacated, and the rent has
not been paid, the Landlord or its agents shall have the right to and may enter
the said premises as the agent of the Tenant, and may relet the premises as the
agent of the Tenant, and receive the rent therefor, upon such terms as shall be
satisfactory to the Landlord, and all rights of the Tenant to repossess the
premises under this lease shall be forfeited. Such re-entry by the Landlord
shall not operate to release the Tenant from any rent to be paid or covenants to
be performed hereunder during the full term of this lease. For the purpose of
reletting, the Landlord shall be authorized to make such repairs or alterations
in or to the leased premises as may be necessary to place the same in good order
and condition. The Tenant shall be liable to the Landlord for the cost of such
repairs or alterations, and all reasonable expenses of such reletting. If the
sum realized or to be realized from the reletting is insufficient to satisfy the
monthly or term rent provided in this lease, the Landlord, at its option, may
require the Tenant to pay such deficiency month by month, or may hold the Tenant
in advance for the entire deficiency to be realized during the term of the
reletting (in which case such sum shall be discounted to present value at a rate
of 10%). The Tenant shall not be entitled to any surplus accruing as a result of
the reletting. The Landlord is hereby granted, a lien, in addition to any
statutory lien or right to distrain that may exist, on all personal property of
the Tenant in or upon the demised premises excluding only vessels and maritime
equipment, to secure payment of the rent and performance of the covenants and
conditions of this lease. The

                                      - 3 -
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Landlord shall have the right, as agent of the Tenant, to take possession of any
furniture, fixtures or other personal property of the Tenant found in or about
the premises, and sell the same at public or private sale and to apply the
proceeds thereof to the payment of any monies becoming due under this lease. The
Tenant agrees to pay, as additional rent, all reasonable attorney's fees and
other expenses incurred by the Landlord in enforcing any of the obligations
under this lease. Notwithstanding anything in this section "Third" to the
contrary, for purposes of calculating Landlord's damages hereunder, Tenant shall
be deemed to have exercised its termination date as of the earliest possible
date following its default.

SUB-LETTING AND ASSIGNMENT

     FOURTH.--The Tenant shall not sub-let the demised premises nor any portion
thereof, nor shall this lease be assigned by the Tenant without the prior
written consent of the Landlord endorsed hereon which consent shall not be
unreasonably withheld or delayed; provided that Landlord's consent shall not be
required in connection with a sublet or assignment (i) to any affiliate of
Tenant, (ii) to any entity purchasing all or substantially all of the stock or
assets of Tenant or (iii) to any entity that succeeds to Tenant's interest by
merger or reorganization.

CONDITION OF PREMISES, REPAIRS

     FIFTH.--The Tenant has examined the demised premises, and accepts them in
their present condition (except as otherwise expressly provided herein) and
without any representations on the part of the Landlord or its agents as to the
present or future condition of the said premises except as provided herein. All
erections, alterations, additions and improvements, whether temporary or
permanent in character, which may be made upon the premises either by the
Landlord or the Tenant, except furniture or movable trade fixtures installed at
the expense of the Tenant, shall be the property of the Landlord and shall
remain upon and be surrendered with the premises as a part thereof at the
termination of this Lease, without compensation to the Tenant. The Tenant
further agrees to keep said premises and all parts thereof in a clean and
sanitary condition and free from trash, inflammable material and other
objectionable matter. If this lease covers premises, all or a part of which are
on the ground floor, the Tenant further agrees to keep the sidewalks in front of
such ground floor portion of the demised premises clean and free of
obstructions, snow and ice.

MECHANICS' LIENS

     SIXTH.--In the event that any mechanics' lien is filed against the premises
as a result of alterations, additions or improvements made by the Tenant, the
Landlord, at its option, after thirty days' notice to the Tenant, may terminate
this lease and may pay the said lien, without inquiring into the validity
thereof, and the Tenant shall forthwith reimburse the Landlord the total expense
incurred by the Landlord in discharging the said lien, as additional rent
hereunder.

GLASS

     SEVENTH.--The Tenant agrees to replace at the Tenant's expense any and all
glass which may become broken in and on the demised premises after the date
hereof.

                                      - 4 -
<Page>

LIABILITY OF LANDLORD

     EIGHTH.--The Landlord shall not be responsible for the loss of or damage to
property, or injury to persons, occurring in or about the demised premises, by
reason of any existing or future condition, defect, matter or thing in said
demised premises or the property of which the premises are a part, or for the
acts, omissions or negligence of other persons or tenants in and about the said
property. The Tenant agrees to indemnify and save the Landlord harmless from all
claims and liability for losses of or damage to property, or injuries to
persons, first occurring in or about the demised premises after the date hereof
except if due to Landlord's gross negligence or willful misconduct. Landlord
shall indemnify, defend and hold Tenant harmless from all claims and liability
for losses of or damage to property or injuries to persons arising out of
Landlord's gross negligence or willful misconduct.

SERVICES AND UTILITIES

     NINTH.--Utilities and services furnished to the demised premises for the
benefit of the Tenant shall be provided and paid for as follows: water by the
Tenant; gas by the Tenant; electricity by the Tenant; heat by the Tenant;
refrigeration by the Tenant; hot water by the Tenant; sewer by the Tenant.

RIGHT TO INSPECT AND EXHIBIT

     TENTH.--The Landlord, or its agents, shall have the right upon prior
written notice to Tenant, to enter the demised premises at reasonable hours in
the day or night to examine the same, or to make such repairs, additions or
alterations or run telephone wires as it shall deem necessary for the safety,
preservation or restoration of the improvements, or for the safety or
convenience of the occupants or users thereof (there being no obligation,
however, on the part of the Landlord to make any such repairs, additions or
alterations), or during regular business hours to exhibit the same to
prospective purchasers and put upon the premises a suitable "For Sale" sign. For
three months prior to the expiration of the demised term, the Landlord, or its
agents, may similarly exhibit the previous prospective tenants, and may place
the usual "To Let" signs thereon.

DAMAGE BY FIRE, EXPLOSION, THE ELEMENTS OR OTHERWISE

     ELEVENTH.--In the event of the destruction of the demised premises or the
building containing the said premises by fire, explosion, the elements or
otherwise during the term hereby created or such partial destruction thereof so
as to render the premises wholly untenantable or unfit for occupancy or should
the demised premises be so badly damaged that the same cannot be repaired within
180 days from the happening of such damage, then and in that event the term
hereby created shall at the option of either the Landlord or Tenant be
terminated. If the damage to the property can be repaired in less than 180 days,
Landlord shall be required to make such repairs and the rent will be equitably
adjusted until any and all such repairs are completed; if the building is
damaged but the piers are intact and can be repaired within 180 days, Landlord
shall be required to repair such piers and the rent shall be equitably adjusted
until any and all such repairs are completed.

                                      - 5 -
<Page>

OBSERVATION OF LAWS, ORDINANCES, RULES AND REGULATIONS

     TWELFTH.--The Tenant agrees to observe and comply with all laws,
ordinances, rules and regulations of the Federal, State, County and Municipal
authorities applicable to the business to be conducted by the Tenant in the
demised premises.

SUBORDINATION TO MORTGAGES AND DEEDS OF TRUST

     FOURTEENTH.--This lease shall be subject and is hereby subordinated to all
present and future mortgages or deeds of trust affecting the demised premises or
the property of which said premises are a part provided that Landlord shall
obtain from such mortgagees or other lienholders an acceptable nondisturbance
agreement in favor of Tenant as a condition thereof. Landlord shall obtain a
nondisturbance agreement from any existing leader as of the date hereof. The
Tenant agrees to execute, at no expense to the Landlord, any instrument which
may be deemed necessary or desirable by the Landlord to further effect the
subordination of this lease to any such mortgage, deed of trust or encumbrance.

VIOLATION OF COVENANTS, FORFEITURE OF LEASE, RE-ENTRY BY LANDLORD

     SEVENTEENTH.--In case of violation by the Tenant of any of the covenants,
agreements and conditions of this lease, and upon failure to discontinue such
violation within fifteen days after notice thereof given to the Tenant (or such
longer period of time as shall be reasonably necessary to cure such default
provided Tenant is using good faith efforts to cure the same), this lease shall
thenceforth, at the option of the Landlord, become null and void, and the
Landlord may re-enter without further notice or demand. The rent in such case
shall become due, be apportioned and paid on and up to the day of such re-entry,
and the Tenant shall be liable for all loss or damage resulting from such
violation as aforesaid. No waiver by the Landlord of any violation or breach of
condition by the Tenant shall constitute or be construed as a waiver of any
other violation or breach of condition, nor shall lapse of time after breach of
condition by the Tenant before the Landlord shall exercise its option under this
paragraph operate to defeat the right of the Landlord to declare this lease null
and void and to re-enter upon the demised premises after the said breach or
violation.

NOTICES

     EIGHTEENTH.--All notices and demands, legal or otherwise, incidental to
this lease, or the occupation of the demised premises, shall be in writing. If
the Landlord or its agent desires to give or serve upon the Tenant any notice or
demand, it shall be sufficient to send a copy thereof by registered mail,
addressed to the Tenant at the demised premises. Notices from the Tenant to
Landlord shall be sent by registered mail or delivered to the Landlord at the
place hereinbefore designated for the payment of rent, or to such party or place
as the Landlord may from time to time designate in writing.

                                      - 6 -
<Page>

BANKRUPTCY, INSOLVENCY, ASSIGNMENT FOR BENEFIT OF CREDITORS

     NINETEENTH.--It is further agreed that if at any time during the term of
this lease the Tenant shall make any assignment for the benefit of creditors, or
be decreed insolvent or bankrupt according to law, or if a receiver shall be
appointed for the Tenant and the same is not dismissed or removed by Tenant
within 60 days, then the Landlord may, at its option, terminate this lease,
exercise of such option to be evidenced by notice to that effect served upon the
assignee, receiver, trustee or other person in charge of the liquidation of the
property of the Tenant or the Tenant's estate, but such termination shall not
release or discharge any payment of rent payable hereunder and then accrued, or
any liability then accrued by reason of any agreement or covenant herein
contained on the part of the Tenant, or the Tenant's legal representatives.

HOLDING OVER BY TENANT

     TWENTIETH.--In the event the Tenant shall remain in the demised premises
after the expiration of the term of this lease without having executed a new
written lease with the Landlord, such holding over shall not constitute a
renewal or extension of this lease. The Landlord may, at its option, elect to
treat the Tenant as one who has not removed at the end of his term, and
thereupon be entitled to all the remedies against the Tenant provided by law in
that situation, or the Landlord may elect, at its option, to construe such
holding over as a tenancy from month to month, subject to all the terms and
conditions of this lease, except as to duration thereof, and in that event the
Tenant shall pay monthly rent in advance at the rate provided herein as
effective during the last month of the demised term.

EMINENT DOMAIN, CONDEMNATION

     TWENTY-FIRST.--If the entire property or any material part thereof shall be
taken by public or quasi-public authority under any power of eminent domain or
condemnation, this lease, at the option of the Landlord or Tenant shall
forthwith terminate and the Tenant shall have no claim or interest in or to any
award of damages for such taking. Other than for the value of its trade fixtures
and moving expenses and the unamortized cost of the leasehold alterations from
the time such alterations were made over the remaining term of the Lease,
including any renewal terms. In the event of any partial taking not involving
termination, the rent payable hereunder shall be equitably reduced to reflect
the diminished premises.

ARBITRATION

     TWENTY-THIRD.--Any dispute arising under this lease shall be settled by
arbitration. The Landlord and Tenant shall each choose an arbitrator, and the
two arbitrators thus chosen shall select a third arbitrator. The findings and
award of the three arbitrators thus chosen shall be final and binding on the
parties hereto.

                                      - 7 -
<Page>

DELIVERY OF LEASE

     TWENTY-FOURTH.--No rights are to be conferred upon the tenant until this
lease has been signed by the Landlord, and an executed copy of the lease has
been delivered to the Tenant.

LEASE PROVISIONS NOT EXCLUSIVE

     TWENTY-FIFTH.--The foregoing rights and remedies are not intended to be
exclusive but as additional to all rights and remedies the Landlord would
otherwise have by law.

LEASE BINDING ON HEIRS, SUCCESSORS, ETC.

     TWENTY-SIXTH.--All of the terms, covenants and conditions of this lease
shall inure to the benefit of and be binding upon the respective heirs,
executors, administrators, successors and assigns of the parties hereto.

     TWENTY-SEVENTH.--This lease and the obligation of Tenant to pay rent
hereunder and perform all of the other covenants and agreements hereunder on
part of Tenant to be performed shall in nowise be affected, impaired or excused
because Landlord is unable to supply or is delayed in supplying any service
expressly or impliedly to be supplied or is unable to make, or is delayed in
making any repairs, additions, alterations or decorations or is unable to supply
or is delayed in supplying any equipment or fixtures if Landlord is prevented or
delayed from so doing by reason of governmental preemption in connection with a
National Emergency declared by the President of the United States or in
connection with any rule, order or regulation of any department or subdivision
thereof of any governmental agency or by reason of the conditions of supply and
demand which have been or are affected by the war.

     TWENTY-EIGHTH.--This instrument may not be changed orally.

     TWENTY-NINTH.--Annexed hereto and made a part hereof is a Rider containing
Paragraph 30 through 41.

     IN WITNESS WHEREOF, the said Parties have hereunto set their hands and
seals the day and year first above written

                                           EGRET REALTY CORP.

                                           By: /s/ Douglas Eklof          (SEAL)
                                              ----------------------------
                                                      President
Witness:

/s/ Rick Falcinelli                        EKLOF MARINE CORP.
----------------------------------

/s/ [ILLEGIBLE]                            By: /s/ Timothy J. Casey       (SEAL)
----------------------------------            ----------------------------
                                                      President

                                      - 8 -
<Page>

                           Rider to Lease Dated as of

                                 April 30, 1999

                                   - Between -

                               EGRET REALTY CORP,

                                     - and -

                               EKLOF MARINE CORP.

30.  A.   It is the intention of the Landlord and the Tenant that the rent
herein specified shall be net to the Landlord in each year during the term of
this lease. Accordingly, all costs, expenses and obligations of every kind
relating to the operation of the leased property (except as otherwise
specifically provided in this lease) which may arise or become due during the
term of this lease shall be paid by the Tenant, and the Landlord shall be
indemnified by the Tenant against such costs, expenses and obligations. The net
rent shall be paid to the Landlord without notice or demand and without
abatement, deduction or setoff (except as otherwise specifically provided in
this Lease). The net rent shall be paid in equal monthly installments in advance
on the first day of each calendar month during the term of this lease. The rent
shall be at the rate of $399,996.00 per annum provided, however, that for the
first five years of the term the rent shall be at the rate of $351,996 per
annum.

     B.   The Tenant shall pay when due all real estate taxes and sewer and
water taxes covering the demised premises during the term of the Lease. Landlord
shall furnish to the Tenant copies of the bills and Tenant shall pay to Landlord
all tax sums due within fifteen (15) days of receipt of the tax bills. Such
taxes shall be prorated in the event the Lease begins or ends within any fiscal
year of the taxing authority. Tenant shall only be responsible for that portion
of any assessments, payable in installments, which become due during the term of
the Lease.

     C.   The rent shall be paid in equal monthly installments of $33,333.00 per
month ($29,333 per month for the first five years) in advance on the first day
of each calendar month for the term hereof. The rent shall be set off by monthly
payments, due to Eklof from Egret of $12,946.35 pursuant to a note from Egret to
Eklof as holder dated April 30, 1999, until the note is paid.

     D.   The term of this net Lease shall commence on April 30, 1999 and
continue for a period of ten (10) years terminating on April 29, 2009. Tenant
may, however, cancel the lease effective any time after five (5) years upon 30
days prior notice. In addition, Tenant shall have an option upon 30 days prior
notice to extend the lease for two periods of ten (10) years each. In the event
Tenant makes late payment of rent for a month then

                                      - 1 -
<Page>

Tenant shall pay a late payment penalty equal to 0.5% of the payment in
question. In the event Eklof Marine Corp. makes early cancellation of the lease
then Tenant shall be penalized by forfeiture of the balance due on the 3245 Note
due from Landlord at the time of cancellation but otherwise shall have no
further liability to Landlord hereunder.

     E.   Tenant agrees to indemnify and hold harmless the Landlord from and
against any loss, cost, liability and expense of any nature whatsoever,
including reasonable attorneys' fees and disbursements, which may arise in
connection with the Tenant's failure to surrender the Premises upon the
expiration of the Term, including any claims by any succeeding tenant unless
otherwise agreed by Landlord under Paragraph 32C or otherwise.

31.  The premises demised consist of the following parcels:

          PARCEL A (Block 1208, Lot 24) is described as follows: All that
certain piece or parcel of land situate, lying and being in the Borough of
Staten Island, City and State of New York, bounded and described as follows:

          Beginning at a point on the Northerly record line of
          Richmond Terrace, distant 1615.25 feet Westerly of the
          intersection of the Southerly line of Harbor Road Extension
          and the Northerly record line of Richmond Terrace. Said
          point of beginning being further described as having the
          coordinates of South 6587.184 and West 33874.887.

          Running thence N 63 DEG. 28'59"W and along the Northerly
          record line of Richmond Terrace, 211.53 feet; thence N
          64 DEG. 58'50"W and still along said Northerly record line
          of Richmond Terrace, 52.51 feet; thence the following
          bearings and distances:

          N 24 DEG. 29'5" E                          50.11 feet

          N 71 DEG. 19'44" E                         72.72 feet

          N 43 DEG. 04'23" E                         61.69 feet

          N 03 DEG. 36'16" W                         41.95 feet

          N 86 DEG. 23'44" E                         68.00 feet

          N 07 DEG. 06"11" E                         530.93 feet to the

                                 - 2 -
<Page>

          Pier and Bulkhead Line as approved by the Secretary of War
          January 4, 1890; thence S 55 DEG. 44' 32" E and along
          said Pier and Bulkhead Line, 94.70 feet; thence the
          following bearings and distances:

          S 06 DEG. 24'34" W                         627.28 feet

          S 00 DEG. 43'26" E                         72.29 feet

          S 33 DEG. 06'27" W                         64.06 feet to the

          Northerly record line of Richmond Terrace and the point or place of
beginning.

          Subject to the widening of Richmond Terrace as adopted by the City of
New York, January 10, 1974.

          Containing 92,362 sq. ft. or 2.1203 acres.

          Together with a 2 story building on the premises known as 3245
Richmond Terrace.

          Coordinates and bearings are in the system as established by the
United States Coast and Geodetic Survey for the Borough of Staten Island.

          PARCEL B (Block 1208, Lot 26) is described as follows: All that
certain piece or parcel of land situate, lying and being in the Borough of
Staten Island, City and State of New York, bounded and described as follows:

          Beginning at a point on the Northerly record line of Richmond Terrace,
          distant 1879.29 feet Westerly of the intersection of the Southerly
          line of Harbor Road Extension and the Northerly record line of
          Richmond Terrace. Said point of beginning being further described as
          having the coordinates of South 6424.936 and West 34090.966.

          Running thence N 64 DEG. 58'50"W and along the Northerly
          record line of Richmond Terrace, 120.55 feet; thence
          N 69 DEG. 29'05"W and still along said Northerly record line
          of Richmond Terrace, 11.85 feet; thence the following
          bearings and distances:

                                 - 3 -
<Page>

          N 29 DEG. 45'23" E                         308.41 feet

          N 40 DEG. 24'55" E                         25.00 feet

          N 07 DEG. 06'11" E                         455.72 feet to the

          Pier and Bulkhead Line as approved by the Secretary of War
          January 4, 1890; thence S 55 DEG. 44' 32" E and along
          said Pier and Bulkhead Line, 190.43 feet, thence the
          following bearings and distances:

          S 07 DEG. 06'11" W                         530.93 feet

          S 86 DEG. 23'44" E                         68.00 feet

          S 03 DEG. 36'16" W                         41.95 feet

          S 43 DEG. 04'23" W                         61.69 feet

          S 71 DEG. 19'44" W                         72.72 feet

          S 24 DEG. 29'50" W                         50.11 feet to the

          Northerly record line of Richmond Terrace and the point or place of
beginning.

          Subject to the widening of Richmond Terrace as adopted by the City of
New York, January 10, 1974.

          Containing 131,073 sq. ft. or 3.0549 acres.

          Coordinates and bearings are in the system as established by the
United States Coast and Geodetic Survey for the Borough of Staten Island.

32.  A.   Tenant's obligation to pay rent shall begin on the 29th day of May
1999. Landlord may apply any payment by Tenant of rent hereunder against any
item(s) or portion(s) thereof of rent then remaining unpaid and any designation
by Tenant as to the application of amounts paid by Tenant under this Lease shall
not bind Landlord in any manner whatsoever.

     B.   If the Tenant shall fail to pay rent, in whole or in part, on or
before the seventh day of any month during which the same shall become due
(including insurance, taxes or other charges), Tenant shall pay Landlord late
charges computed in accordance with paragraph 30D above. All late charges shall
be deemed rent and be payable by Tenant as they accrue, and Landlord shall have
all rights with respect to the non-payment of late charges as Landlord has with
respect to the non-payment of all other rent due hereunder. The Landlord's
demand for and collection of late charges shall not be deemed a waiver of any
remedies that Landlord may have

                                      - 4 -
<Page>

under this Lease by summary proceedings or otherwise. Rent shall be deemed
received (a) when delivered to the Landlord, if the Tenant's representative
shall personally deliver the same to Landlord's office, (b) on the date of the
official U.S. Postal Service postmark stamped on the envelope in which the rent
is enclosed, if Tenant shall mail the same to the Landlord, or (c) on the date
delivered if by recognized overnight delivery service.

     C.   If the Tenant shall fail to vacate and surrender the premises on the
last day of the term without Landlord's permission, Tenant shall pay Landlord
monthly rent at a rate equal to 150% of the rent payable during the last month
of the term, subject to all of the other terms of this Lease insofar as they
apply to a month-to-month tenancy. The application of this section shall under
no circumstances be deemed to establish a month-to-month or other form of
tenancy in favor of Tenant.

     D.   If Landlord shall institute summary proceedings for the non-payment of
rent and is successful, Tenant shall pay Landlord's reasonable attorneys' fees.
Such fee shall be deemed rent and Landlord, at its option, may include such
amount in said proceedings as an unpaid item.

     E.   Landlord's acceptance of rent from any person or entity other than
Tenant shall not be deemed to establish a tenancy of any nature with such party
unless Landlord shall so elect in writing, nor shall the same relieve Tenant
from any of its obligations under this Lease except to the extent of any sums so
retained by Landlord.

     F.   If Tenant shall fail to pay rent when due and such failure shall
continue for 30 days after notice from Landlord, then Landlord shall be entitled
to terminate this Lease and Landlord shall be entitled to recover the amount by
which the present value of the rent due for the remainder of the then current
term (assuming that Tenant has exercised any right of early termination of the
earliest possible time) exceeds the greater of the amount of rent or other
earnings Landlord receives in respect of the demised premises and the present
value of the fair market rental value of the premises for such period of time.

33.  A.   At its own cost, Tenant shall obtain insurance against claims for
personal injuries and property damage under a policy of Commercial General
Liability (and Bumbershoot Liability or other Excess policy forms), with limits
of not less than $10,000,000 per occurrence in respect of personal injuries, and
$50,000 per occurrence in respect of personal injuries, and $50,000 per
occurrence for fire damage.

     B.   At its own cost, Tenant shall obtain all-risk casualty insurance on
the leased premises described herein. Such policy coverage shall include but not
be limited to losses from: fire, vandalism, malicious mischief, flood,
earthquake, backup of sewers and drains, sprinkler, leakage, and other extended
coverage type perils. Tenant's policy shall have blanket limits of not less than
$4,750,000 and shall name both Tenant and Landlord as Loss Payees, as their
interests appear.

                                      - 5 -
<Page>

     C.   At its own cost Tenant shall maintain Workers Compensation coverage
for its employees in accordance with New York State and/or U.S. Longshore &
Harborworkers Act statutes, as applicable.

     D.   At its own cost Tenant shall obtain Business Automobile Liability
insurance with limits of not less than $1,000,000 per occurrence.

     E.   Tenant shall obtain the insurance policies described in A through D
above at its sole cost, and shall maintain such policies in full force and
effect throughout the term of this lease and any extensions thereto. All such
insurance shall be issued by insurance companies having an A.M. Best's "A"
rating or equivalent, and licensed to do business in the State of New York. If
Tenant shall fail to procure, place and/or maintain any such insurance policy
and/or pay any and all premiums and charges therefor, Landlord may (but shall
not be obligated to) do so, and in such event Tenant shall pay the amount
thereof, plus an administrative charge equal to ten (10%) percent of such
amount, as rent to Landlord on demand.

     F.   Each policy of insurance which Tenant is required to maintain under
this Lease shall clearly specify by endorsement that (a) such policy may not be
cancelled or materially charged in any manner which affects the Landlord's
interests thereunder without thirty (30) days prior written notice to Landlord
by certified or registered mail, return receipt requested, and (b) the policy is
taken out at the request of Tenant, which is responsible for all premiums on
said policy.

     G.   Tenant acknowledges and agrees that if any loss or damage to the
premises covered by the aforementioned policies shall occur, Tenant shall pay
the deductible and/or coinsurance, if any.

     H.   Each of the aforementioned policies shall name Landlord as a party
insured, subject to agreement by the insurer. If such agreement cannot be
obtained, then Landlord shall be named an additional assured, and the policy or
policies shall be endorsed to provide a waiver of the insurer's rights of
subrogation against Landlord.

     I.   No later than twenty (20) days following the commencement of this
Lease, Tenant shall furnish Landlord with certificates confirming the foregoing
insurance contracts, each of which shall provide for thirty (30) days' written
notice to Landlord of cancellation or material modification thereof.

34.  Anything to the contrary notwithstanding, Tenant, at its own cost and
expense, shall take good care of the demised premises, the equipment thereof,
and keep the same in good and substantial repair and condition, and shall make
and do all repairs of any and every kind and nature that may be necessary or
required to the exterior, interior, sidewalks, doors, plumbing and electrical
systems, heating and cooling units, piers, wharves, pilings and bulkheads, roof,
windows and window guards of the demised premises, regardless of the extent
thereof and

                                      - 6 -
<Page>

whether the same be structural, ordinary, extraordinary or of any other nature,
and regardless of how the same may be necessitated; and shall, in the event
anything required to be repaired becomes too worn to be repaired, replace and
renew the same with like kind and quality so that at all times the demised
premises shall be in substantially the same order, condition and repair as
exists as of the date hereof, reasonable wear and tear and damage by casualty
excepted; provided, however, that Landlord shall be solely responsible for
making any repairs or replacements necessitated by Landlord's gross negligence
or willful misconduct at its sole cost and expense and provided further that
with respect to any structural or capital repairs or replacements as a result of
any condition which impairs the use of the premises, Landlord shall be
responsible for 100% of such repairs during the first year of the initial term
of the Lease, decreasing by 10% during each subsequent year to zero at the end
of the initial term. Nothing contained in this Lease shall be deemed or
construed to impose on the Landlord any obligation, responsibility or liability
whatsoever for the care, supervision or repair of the demised premises or any
part thereof, and at the expiration or sooner termination of this Lease, the
Tenant will surrender and deliver up to Landlord possession of the leased
premises in as good order and condition as at the commencement of the term
hereof, reasonable wear and tear expected.

          Subject as aforesaid, the Tenant shall also put, keep and maintain the
piers, wharves, pilings and bulkheads of the premises in the same condition as
received at the commencement of this lease, reasonable wear and tear and damage
by casualty excepted.

35.  A.   Tenant, at its own cost and expense, shall have the right to make
alterations and additions to the demised premises, provided the same are made in
good, workmanlike manner, in full compliance with all applicable municipal,
state, federal and departmental ordinances, statutes, regulations, codes and
orders, and Tenant does not suffer any lien, mechanical or otherwise, to be
filed against the demised premises or the premises of which the demised premises
are a part, and if any are filed, cause the same to be removed by bond within
thirty (30) days after filing, to wit:

          (i)  If the alterations are structural, the specifications and plans
for such alterations are to be approved by the Landlord prior to construction,
which consent shall not be unreasonably withheld.

          (ii) All of said alterations, additions and systems (other than trade
fixtures of Tenant or personalty) shall become the property of the Landlord
without payment or offset, and be surrendered with the premises at the
expiration of this Lease. However, if the Landlord elects otherwise by serving
on Tenant a written notice at the time it approves Tenant's plans and
specifications, such alterations, additions and systems as the Landlord shall
elect shall be removed by the Tenant, and Tenant, at its own cost and expense,
shall restore the premises to a good, safe condition prior to the expiration or
other termination of the term of this Lease.

     B.   No approval of alterations by Tenant shall in any way be deemed to be
an agreement by Landlord that such alterations comply with applicable legal or
insurance carrier

                                      - 7 -
<Page>

requirements. Notice is hereby given that Landlord shall not be liable for any
labor or materials furnished to Tenant, and that no mechanic's or other lien for
such labor or materials shall attach to or affect any interest of Landlord.

36.  Tenant shall maintain the heating and air conditioning system in good
working order, normal wear and tear expected, and deliver them in such condition
at the expiration or other termination of this Lease. Benefit of warranties will
be provided to both Tenant and Landlord. Landlord hereby represents and warrants
to Tenant that, as of the date hereof, the premises including all buildings and
improvements constructed thereon (i) are in good operating condition, and free
of any defects and (2) are in compliance with all applicable laws, codes,
ordinances and governmental regulations.

37.  If the Tenant shall default (a) in the timely payment of rent and such
default shall continue or be repeated for two (2) consecutive months or for a
total for four (4) months in any period of twelve (12) months, or (b) in the
performance of any particular term, condition or covenant of this Lease more
than six times in any period of six (6) months, then, notwithstanding that such
defaults shall have each been cured within the applicable grace periods under
this Lease, if any, any further similar default shall be deemed to be deliberate
and Landlord thereafter may terminate this Lease on ten (10) days' written
notice to Tenant, without affording Tenant an opportunity to cure such further
default.

38.  If any term or provision of this Lease or the application thereof to any
person or circumstances shall, to any extent, be invalid or unenforceable, the
remainder of this Lease, or the application of such term or provision to persons
or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby and each term and provision of this
Lease shall be valid and enforced to the fullest extent permitted by law.

39.  This agreement shall be governed by and construed in accordance with the
laws of the State of New York.

40.  No interruption or malfunction of any utility services for any cause
whatsoever shall constitute an eviction or disturbance of Tenant's use and
possession of the premises, or a breach by Landlord of any of its obligations
hereunder or render Landlord liable for any damages (including, without
limitation, consequential and special damages), or entitle Tenant to be relieved
from any of its obligations hereunder (including, without limitation, the
obligation to pay rent), or grant Tenant any right of setoff or recoupment
unless such interruption or malfunction is due to Landlord's gross negligence or
willful misconduct. In the event of any such interruption of any such services,
Landlord shall use reasonable diligence to restore such service in any
circumstances in which such interruption is caused by Landlord's fault.

41.  In the event the Landlord desires to sell the subject premises, the
Landlord, upon receipt of a bona fide offer from a third party shall give notice
to the Tenant at the address set forth above of such third party offer and the
Tenant may within fifteen (15) days of receipt of said

                                      - 8 -
<Page>

notice submit to Landlord a bona fide counteroffer for the acquisition of the
subject premises. If the Tenant fails to exercise its right of first refusal
within the fifteen (15) days provided for, then Landlord may sell to a third
party without further notice to the Tenant.

                                        EGRET REALTY CORP.

                                        By: /s/ Douglas Eklof
                                           -------------------------------------
                                                    President

                                        EKLOF MARINE CORP.

                                        By: /s/ Timothy J. Casey
                                           -------------------------------------
                                                    President

                                      - 9 -

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