Document:

SHIP CONTRIBUTION AGREEMENT

        This Ship Contribution Agreement (this "AGREEMENT"), dated March 31,
2008, is by and among Huisheng International Shipping Limited, a Hong Kong
company ("SELLER"), Hengzhou International Shipping Limited, a Hong Kong company
("BUYER"), and Dalkeith Investments, Inc., a Delaware corporation (the
"COMPANY").

                                   WITNESSETH:
                                   ----------

        WHEREAS, the vessel Rong Sheng (as further described in EXHIBIT A, the
"VESSEL") currently is being constructed by Ningbo Hengfu Shipping Group Co.,
Ltd. for Seller pursuant to a construction contract (the "CONSTRUCTION
CONTRACT");

        WHEREAS, Seller is a wholly-owned subsidiary of Yongzheng International
Marine Holdings Co., Ltd., a British Virgin Islands company (the "PARENT
COMPANY");

        WHEREAS, the Parent Company, Buyer, the Company, and certain other
parties are entering into a Share Exchange Agreement pursuant to which the
Company is acquiring all of the shares of Buyer's capital stock from the Parent
Company and Buyer's other shareholders in exchange for shares of the Company's
common stock (the "SHARE EXCHANGE AGREEMENT");

        WHEREAS, it is a condition to the Company's obligations under the Share
Exchange Agreement that Seller and Buyer enter into this Agreement; and

        WHEREAS, capitalized terms used but not defined herein shall have the
meaning ascribed to them in the Share Exchange Agreement.

        NOW, THEREFORE, in consideration of the foregoing and the respective
representations, warranties, covenants and agreements set forth in this
Agreement, the parties hereto agree as follows:

        1. PURCHASE AND SALE. On the terms and subject to the conditions set
forth in this Agreement, at the Contribution Closing Seller shall sell, assign,
convey, transfer and deliver to Buyer the Vessel, free and clear of all Liens,
and Buyer shall purchase and acquire the Vessel, for an aggregate purchase price
(the "PURCHASE PRICE") equal to the lower of the Vessel's net realizable value
as of the Acceptance Date (as defined in Section 7(c) below), as determined by
an independent appraiser chosen by the Independent Directors (or as otherwise
agreed after the Closing by the Company and FHCP), or its total build cost.

        2. CONSIDERATION. The Purchase Price shall be payable by delivery to
Seller of that number of shares of Common Stock (the "SHARES") with a Fair
Market Value equal to the Purchase Price. As used herein, the "FAIR MARKET
VALUE" per Share shall be deemed to be (a) the average of the last sale prices
of the Common Stock for the 30 trading days prior to the Contribution Closing,
as defined in Section 3, (or, if the Contribution Closing is less than 30
trading days after the Closing, such lesser number of trading days) on the OTC
Bulletin Board or

<PAGE>

on the principal national securities exchange on which the Common Stock is
admitted to trading or listed (provided that if no reported sale takes place
on a trading day, the last reported bid price on such date shall be used), or
(b) if not listed or admitted to trading on the OTC Bulletin Board or a national
securities exchange, the average of the closing bid prices of the Common Stock
for such 30-day period (or, if applicable, such shorter period) as quoted by the
Pink Sheets, LLC or a recognized dealer in the Common Stock. If on any trading
day during such 30-day period (or, if applicable, such shorter period) the
Common Stock is not listed or admitted to trading on any national securities
exchange or the OTC Bulletin Board and is not quoted by Pink Sheets, LLC or any
similar organization, the Fair Market Value of a share of Common Stock on such
trading day shall be the fair market value thereof as determined in good faith
by the Independent Directors. The foregoing notwithstanding, in no event shall
the Fair Market Value per Share be less than the price that is equivalent to a
$30 million market capitalization for the Company.

        3. CLOSING. Unless this Agreement is terminated pursuant to Section 8
hereof, the closing of the sale and purchase of the Vessel (the "CONTRIBUTION
CLOSING") will occur as soon as practicable (but not more than five business
days) after the date on which all of the closing conditions set forth in Section
7 have been satisfied or waived (other than conditions with respect to actions
the respective parties will take at the Contribution Closing itself), or on such
other date as the parties may agree. The date on which the Contribution Closing
actually occurs is referred to as the "CONTRIBUTION CLOSING DATE."

        4. CLOSING DELIVERIES:

                (a) At the Contribution Closing, Buyer shall deliver, or cause
to be delivered, to Seller a Protocol of Delivery and Acceptance, duly executed
by Buyer, confirming the date and time of delivery of the Vessel from Seller to
Buyer.

                (b) At the Contribution Closing, the Company shall deliver, or
cause to be delivered, to Seller or its designee(s) a certificate or
certificates evidencing the Shares, duly executed and registered in the name of
Seller or its designee(s).

                (c) At the Contribution Closing, Seller shall deliver, or cause
to be delivered, to Buyer the following:

                        (i)     a current Certificate of Ownership issued by the
                competent authorities of the flag state of the Vessel;

                        (ii)    a Confirmation of Class issued within 72 hours
                prior to delivery of the Vessel;

                        (iii)   any such additional documents as may reasonably
                be required by the applicable authorities for the purpose of
                registering the Vessel, provided that Buyer notifies Seller of
                any such documents as soon as practicable after the date of this
                Agreement;

                        (iv)    a Protocol of Delivery and Acceptance, duly
                executed by Seller,

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                confirming the date and time of delivery of the Vessel from
                Seller to Buyer; and

                        (v)     all classification and other certificates that
                are on board the Vessel at the time of delivery to Buyer,
                provided that if Seller is required to retain any of such other
                certificates, it may deliver copies of the same to Buyer.

        5. REPRESENTATIONS AND WARRANTIES.

                (a) As of the date hereof and the Contribution Closing Date,
Seller represents and warrants to Buyer that:

                        (i)     Seller has delivered a true and correct copy of
                the Construction Contract, including any and all amendments and
                supplements thereto.

                        (ii)    The Vessel will be free from all charters and
                Liens as of the Contribution Closing.

                        (iii)   Seller is duly organized, validly existing, and
                in good standing under the laws of Hong Kong.

                        (iv)    Seller has all requisite corporate power and
                authority to execute and deliver this Agreement and to perform
                its obligations hereunder. The execution and delivery by Seller
                of this Agreement, and the performance of its obligations
                hereunder, have been duly authorized by all necessary corporate
                action of Seller. Seller has duly executed and delivered this
                Agreement. This Agreement is the legal, valid, and binding
                obligation of Seller, enforceable against Seller in accordance
                with its terms.

                        (v)     Seller's execution, delivery and performance of
                this Agreement does not, and the consummation of the
                transactions contemplated hereby will not (A) conflict with or
                violate the organizational documents of Seller, (B) conflict
                with or violate any Law applicable to Seller or by which any of
                Seller's properties or assets are bound or subject, (C) result
                in any breach of or constitute a default (or an event that with
                notice or lapse of time or both would become a default) under,
                or give to others any rights of termination, amendment,
                acceleration or cancellation of, or require payment under, or
                result in the creation of any Lien on any of the properties or
                assets of Seller pursuant to, any note, bond, mortgage,
                indenture, contract, agreement, lease, license, permit,
                franchise or other instrument or obligation to which Seller is a
                party or by or to which Seller or any of its properties or
                assets are bound or subject, or (D) require Seller to obtain any
                consent, approval, authorization, waiver, permit, license,
                exemption, order, registration, certificate, or declaration
                from, or make any filing with, or give any report or notice to,
                any Person, including, but not limited to, any Governmental
                Authority.

                (b) As of the date hereof and the Contribution Closing Date, the
Company

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<PAGE>

represents and warrants to Buyer that:

                        (i)     At the time of the Contribution Closing, the
                Shares will have been duly authorized and, when issued in
                accordance with the terms of this Agreement will be validly
                issued, fully paid, and non-assessable, will not be subject to
                any preemptive rights.

                        (ii)    The Company has all requisite corporate power
                and authority to execute and deliver this Agreement and to
                perform its obligations hereunder. The execution and delivery by
                the Company of this Agreement, and the performance of its
                obligations hereunder, have been duly authorized by all
                necessary corporate action of the Company. The Company has duly
                executed and delivered this Agreement. This Agreement is the
                legal, valid, and binding obligation of the Company, enforceable
                against the Company in accordance with its terms.

                        (iii)   The Company's execution, delivery and
                performance of this Agreement does not, and the consummation of
                the transactions contemplated hereby will not (A) conflict with
                or violate the organizational documents of the Company, (B)
                conflict with or violate any Law applicable to the Company or by
                which any of the Company's properties or assets are bound or
                subject, (C) result in any breach of or constitute a default (or
                an event that with notice or lapse of time or both would become
                a default) under, or give to others any rights of termination,
                amendment, acceleration or cancellation of, or require payment
                under, or result in the creation of any Lien on any of the
                properties or assets of the Company pursuant to, any note, bond,
                mortgage, indenture, contract, agreement, lease, license,
                permit, franchise or other instrument or obligation to which the
                Company is a party or by or to which the Company or any of its
                properties or assets are bound or subject, or (D) require the
                Company to obtain any consent, approval, authorization, waiver,
                permit, license, exemption, order, registration, certificate, or
                declaration from, or make any filing with, or give any report or
                notice to, any Person, including, but not limited to, any
                Governmental Authority.

                (c) As of the date hereof and the Contribution Closing Date,
Buyer represents and warrants to Seller that:

                        (i)     Buyer has all requisite corporate power and
                authority to execute and deliver this Agreement and to perform
                its obligations hereunder. The execution and delivery by Buyer
                of this Agreement, and the performance of its obligations
                hereunder, have been duly authorized by all necessary corporate
                action of Buyer. Buyer has duly executed and delivered this
                Agreement. This Agreement is the legal, valid, and binding
                obligation of Buyer, enforceable against Buyer in accordance
                with its terms.

                        (ii)    Buyer's execution, delivery and performance of
                this Agreement does not, and the consummation of the
                transactions contemplated hereby will not (A) conflict with or
                violate the organizational documents of Buyer, (B) conflict

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<PAGE>

                with or violate any Law applicable to Buyer or by which any of
                Buyer's properties or assets are bound or subject, (C) result in
                any breach of or constitute a default (or an event that with
                notice or lapse of time or both would become a default) under,
                or give to others any rights of termination, amendment,
                acceleration or cancellation of, or require payment under, or
                result in the creation of any Lien on any of the properties or
                assets of Buyer pursuant to, any note, bond, mortgage,
                indenture, contract, agreement, lease, license, permit,
                franchise or other instrument or obligation to which Buyer is a
                party or by or to which Buyer or any of its properties or assets
                are bound or subject, or (D) require Buyer to obtain any
                consent, approval, authorization, waiver, permit, license,
                exemption, order, registration, certificate, or declaration
                from, or make any filing with, or give any report or notice to,
                any Person, including, but not limited to, any Governmental
                Authority.

        6. COVENANTS.

                (a) Promptly following the completion of the construction of the
Vessel, Seller shall place the Vessel in drydock at the Baifeng dock, Ningbo,
Zhejiang, China (the "DELIVERY PORT") for inspection by Nippon Kaiji Kyokai (the
"CLASSIFICATION SOCIETY") of the Vessel's underwater parts below the deepest
load line, the extent of the inspection being in accordance with the
Classification Society's rules before the first launch. If the rudder,
propeller, bottom or other underwater parts below the deepest load line are
found broken, damaged or defective so as to affect the Vessel's class, Seller
shall cause such defects to be repaired at Seller's expense to the satisfaction
of the Classification Society without condition or recommendation.

                (b) Following the completion of the inspection by the
Classification Society and any repairs required pursuant to Section 6(a), Seller
shall deliver the Vessel to either a safe and accessible berth or anchorage at
the Delivery Port, and shall notify Buyer in writing that the Vessel is ready
for delivery (the "NOTICE OF READINESS").

                (c) Seller shall deliver the Vessel to Buyer with everything
belonging to the Vessel on board and on shore. All spare parts and spare
equipment (other than spares on order) including spare tail-end shafts, spare
propellers, and spare propeller blades, if any, belonging to the Vessel at the
time of inspection, whether used or unused and whether on board or not, shall
become Buyer's property at the Contribution Closing. Forwarding charges, if any,
shall be paid for by Buyer. Seller is not required to replace spare parts which
are taken out of spare and used as replacement prior to delivery of the Vessel,
but the replaced items shall be the property of Buyer as of the Contribution
Closing. If the Vessel's radio and navigational equipment are the property of
Seller, they shall be included in the sale without extra payment. Unused stores
and provisions are included in the sale without extra payment. Seller has the
right to take ashore crockery, plates, cutlery, linen and other articles bearing
Seller's flag or name, provided Seller replaces them with similar unmarked
items. Library, forms, etc., exclusively for use in Seller's vessels shall be
excluded without compensation. Buyer shall take over remaining bunkers and
unused lubricating oils in storage tanks and sealed drums and pay the current
net market price (excluding barging expenses) at the Delivery Port on the
Contribution Closing Date.

                                       5
<PAGE>

                (d) The Vessel shall be delivered to Buyer with her class
maintained without condition or recommendation, free of damage affecting the
Vessel's class, and with the Vessel's classification certificates and national
certificates, as well as all other certificates the Vessel had at the time of
inspection, valid and unextended without condition or recommendation by the
Classification Society or the relevant authorities as the time of delivery.

                (e) Seller shall use its commercially reasonable best efforts to
take, or cause to be taken, all appropriate action, and do, or cause to be done,
all things necessary, proper or advisable under applicable Law or otherwise to
consummate and make effective the transactions contemplated by this Agreement on
or before the Termination Date.

                (f) At or following the Contribution Closing, Seller shall
deliver to Buyer, upon Buyer's request and at Buyer's expense, all Vessel
technical documentation not otherwise required to be delivered to Buyer
hereunder that is then in Seller's possession or obtainable by Seller.

        7. BUYER'S CONDITIONS TO CLOSE. Buyer's obligations hereunder are
subject to the satisfaction, at or prior to the Contribution Closing Date, of
each of the following conditions (any of which may be waived by Buyer, in whole
or in part):

                (a) Buyer shall have received the Notice of Readiness from
Seller;

                (b) Buyer will have inspected and accepted the Vessel's
classification records;

                (c) Buyer will have inspected the Vessel at the Delivery Port,
and will have accepted the Vessel for delivery (the date of such acceptance,
the "ACCEPTANCE DATE");

                (d) The Purchase Price shall have been determined as provided in
Section 1.

                (e) The representations and warranties of Seller contained in
this Agreement shall be true and correct as of the Contribution Closing Date as
though made on and as of the Contribution Closing Date; and

                (f) Seller shall have performed or complied with all agreements,
conditions, and covenants required by this Agreement to be performed or
complied with by Seller on or prior to the Contribution Closing Date.

        8. TERMINATION.

                (a) This Agreement may be terminated at any time prior to the
Contribution Closing Date as follows:

                        (i)     by written consent of Buyer and Seller;

                        (ii)    by Buyer, (A) if Seller has breached any
                representation, warranty, covenant or agreement set forth in
                this Agreement, Buyer has notified Seller of

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<PAGE>

                the breach, and, if of a type which can be cured, the breach has
                continued without cure for a period of ten (10) days after the
                notice of breach, or (B) if any of the conditions set forth in
                Section 7 have not been, or if it becomes apparent that any of
                such conditions will not be, fulfilled by 5:00 p.m. EST time on
                the six-month anniversary of the Closing Date (the "TERMINATION
                DATE"), unless such failure shall be due to the failure of Buyer
                to perform or comply with any of the covenants, agreements or
                conditions hereof to be performed or complied with by it prior
                to the Contribution Closing; or

                        (iii)   by Seller, if Buyer has breached any
                representation, warranty, covenant or agreement set forth in
                this Agreement, Seller has notified Buyer of the breach, and, if
                of a type which can be cured, the breach has continued without
                cure for a period of ten (10) days after the notice of breach.

                (b) If this Agreement is terminated pursuant to the provisions
of Section 8(a), this Agreement shall become void and have no effect, without
any liability to any party hereto, except for any liability resulting from such
party's breach of this Agreement and except as provided in Section 11 (which
Section, together with Sections 12 and 13, shall survive any such termination).

        9. TAXES, ETC. All taxes, fees and expenses in connection with the
purchase and registration under Buyer's flag shall be at Buyer's expense, and
all taxes, fees and expenses in connection with the closing of Seller's register
shall be at Seller's expense.

        10. NAME/MARKINGS. Seller has no obligation hereunder to change the name
of the Vessel or alter its funnel markings, whether before or after the
Contribution Closing.

        11. INDEMNITY. Seller will indemnify and hold Buyer harmless from and
against, for and in respect of, any and all liabilities, obligations, claims,
contingencies, taxes, fines, deficiencies, demands, assessments, losses,
damages, costs and expenses, including, without limitation, all court costs and
reasonable attorneys' fees, and all reasonable amounts paid in investigation,
defense, or settlement of the foregoing, that Buyer may suffer or incur as a
result of or relating to:

                (a) the breach of any representation or warranty made by Seller
herein, or any allegation by a third party that, if true, would constitute such
a breach;

                (b) the breach of any covenant or agreement of Seller under this
Agreement, or any allegation by a third party that, if true, would constitute
such a breach; or

                (c) Seller's failure to deliver the Notice of Readiness prior to
the Termination Date.

        12. GOVERNING LAW; ARBITRATION. This Agreement shall be governed by and
construed in accordance with English Law, and any dispute arising out of this
Agreement shall be referred to arbitration in Hong Kong in accordance with the
Arbitration Acts 1950 and 1979 or any statutory

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<PAGE>

modification or reenactment thereof for the time being in force, one arbitrator
being appointed by each other. On the receipt by one party of the nomination in
writing of the other party's arbitrator, that party shall appoint their
arbitrator within fourteen days, failing which the decision of the single
arbitrator appointed shall apply. If two arbitrators properly appointed shall
not agree they shall appoint an umpire whose decision shall be final.

        13. MISCELLANEOUS.

                (a) Any notice or other communication required or permitted
under this Agreement shall be in writing and shall be considered given when
delivered personally, one business day after being sent by facsimile (provided a
confirmation of delivery is emitted by such machine upon transmission), one
business day after being sent by a major overnight courier, or three business
days after being mailed by certified mail, return receipt requested, postage
prepaid, to Buyer and the Company at their respective addresses for notice set
forth in the Share Exchange Agreement, and to Seller at the notice address of
the Parent Company set forth in the Share Exchange Agreement, or at such other
address as may be indicated in writing by any party to the other parties in the
manner provided herein for giving notice.

                (b Neither the failure nor any delay by any party in exercising
any right, power, or privilege under this Agreement will operate as a waiver of
such right, power, or privilege, and no single or partial exercise of any such
right, power, or privilege will preclude any other or further exercise of such
right, power, or privilege or the exercise of any other right, power, or
privilege. To the maximum extent permitted by applicable Law, (i) no waiver that
may be given by a party will be applicable except in the specific instance for
which it is given, and (ii) no notice to or demand on one party will be deemed
to be a waiver of any obligation of such party or of the right of the party
giving such notice or demand to take further action without notice or demand as
provided in this Agreement.

                (c) This Agreement supersedes all prior agreements between the
parties with respect to its subject matter and constitutes a complete and
exclusive statement of the terms of the agreement between the parties with
respect to its subject matter. This Agreement may not be amended except by a
written agreement executed by the party against whom the enforcement of such
amendment is sought.

                (d) No party may assign any of such party's rights under this
Agreement without the prior consent of the other parties. This Agreement shall
not confer any rights or remedies upon any Person other than the parties and
their respective successors, heirs, executors, personal representatives, and
permitted assigns.

                (e) If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of
this Agreement will remain in full force and effect. Any provision of this
Agreement held invalid or unenforceable only in part or degree will remain in
full force and effect to the extent not held invalid or unenforceable.

                (f) The section headings in this Agreement are provided for
convenience only and will not affect its construction or interpretation. All
words used in this Agreement will be

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<PAGE>

construed to be of such gender or number as the circumstances require. Unless
otherwise expressly provided, the word "including" does not limit the preceding
words or terms.

                (g) This Agreement may be executed in one or more counterparts,
each of which will be deemed to be an original copy of this Agreement and all of
which, when taken together, will be deemed to constitute one and the same
agreement.

                        [SIGNATURES FOLLOW ON NEXT PAGE]

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<PAGE>

        IN WITNESS WHEREOF, the parties have executed and delivered this Ship
Contribution Agreement as of the date first written above.

                                     Dalkeith Investments, Inc.

                                        By:
                                        ---------------------------------------
                                        Name:
                                        ---------------------------------------
                                        Title:
                                        ---------------------------------------

                                        Huisheng International Shipping Limited

                                        By:
                                        ---------------------------------------
                                        Name:
                                        ---------------------------------------
                                        Title:
                                        ---------------------------------------

                                        Hengzhou International Shipping Limited

                                        By:
                                        ---------------------------------------
                                        Name:
                                        ---------------------------------------
                                        Title:
                                        ---------------------------------------

                                       10
<PAGE>

                               VESSEL DESCRIPTION
                               -------------------

Classification Society/Class: Nippon Kaiji Kyokai (NKK)

Flag:  Marshall Islands

Grt/Nrt:  8714T/4678T

Hull Number:  HB2002

                                       11Exhibit 10.4

                         DATED THE 10TH DAY OF JULY 2006

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

                                     BETWEEN

                            XIAMEN INTERNATIONAL BANK

                                 SHANGHAI BRANCH

                                    as Lender

                                       AND

                     YONGCHEN INTERNATIONAL SHIPPING LIMITED

                                   as Borrower

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

                                 LOAN AGREEMENT

                               up to US$1,200,000

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

                             HOLMAN FENWICK & WILLAN

                                   15th Floor,

                                   Tower One,

                                  Lippo Centre,

                                  89 Queensway,

                                    Hong Kong

                                Tel. 852 25223006

                                Fax. 852 28778110

                                Ref. CMF/2629673

<PAGE>

                                      INDEX

                                      -----

CLAUSE

1. PURPOSE, DEFINITIONS AND INTERPRETATION

2. REPRESENTATIONS AND WARRANTIES

3. THE LOAN

4. DRAWDOWN AND ACCOUNTS

5. REPAYMENT AND PREPAYMENT

6. INTEREST

7. PAYMENTS AND APPLICATION OF FUNDS

8. SECURITY

9. RETENTIONS 10. VALUATIONS

11. FEES

12. CONDITIONS PRECEDENT

13. REVIEW OF INSURANCES

14. UNDERTAKINGS OF THE BORROWER

15. EVENTS OF DEFAULT

16. INDEMNITIES AND EXPENSES

17. ASSIGNMENTS AND TRANSFERS

18. CHANGES IN CIRCUMSTANCES

19. SET-OFF AND LIEN

20. MISCELLANEOUS

21. FURTHER ASSURANCE

22. NOTICES

23. APPLICABLE LAW AND JURISDICTION

24. AGENTS AND REPRESENTATIVES

<PAGE>

THIS AGREEMENT is made the   10th    day of July 2006

BETWEEN:

(1)      XIAMEN INTERNATIONAL BANK, acting through its SHANGHAI BRANCH with its
         place of business at 1A, Majesty Building, 138 Pu Dong Road, Shanghai,
         PRC ("the Lender")

AND:

(2)      YONGCHEN INTERNATIONAL SHIPPING LIMITED, a company incorporated in Hong
         Kong with its registered office at 16B, EIB Centre, 40 Bonham Strand,
         Hong Kong ("the Borrower").

NOW IT IS HEREBY AGREED AS FOLLOWS:

1.       PURPOSE, DEFINITIONS AND INTERPRETATION

1.1      This Agreement sets out the terms and conditions upon which the Lender
         will make available to the Borrower a loan of up to United States
         Dollars One Million Two Hundred Thousand only (US$1,200,000) to
         re-finance the acquisition costs of M.V. "QIAO YIN" currently flying
         the Panamanian flag and provisionally registered under the name of the
         Borrower with registration no.31755-PEXT-2.

1.2      In this Agreement the following expressions shall have the following
         meanings:

         "Banking Day" means a day (excluding Saturdays and Sundays) on which
         dealings in deposits in Dollars may be carried out in the London
         Interbank Market and on which banks and foreign exchange markets are
         open for business in London and (if payment is required to be made on
         such day) in New York City and the place to which such payment is
         required to be made;

         "Default Rate" means the annual rate of interest determined in
         accordance with Clause 6.4;

         "Dollars" (and the signs "$" or "US$") means the lawful currency for
         the time being of the United States of America;

         "Drawdown Date" means the Banking Day on which the Borrower specifies
         that it requires funds to be made available pursuant to Clause 4;

         "Earnings" means all moneys whatsoever (and all claims for such moneys)
         due or to become due to or for the account of the Borrower at any time
         during the Security Period arising out of

<PAGE>

         the use of or operation of the Vessel, including (but not limited to)
         all freight, hire and passage moneys, compensation payable to the
         Borrower in the event of requisition of the Vessel for hire,
         remuneration for salvage and towage services, demurrage and detention
         moneys, contributions in general average, damages for breach (or
         payments for variation or termination) of any charterparty or other
         contract for employment of the Vessel, together with the benefit of any
         guarantee, indemnity or other security which may at any time be given
         to the Borrower as security for the payment of such moneys;

         "Event of Default" means any of the events listed in Clause 15 or
         described as such in any other of the Security Documents;

         "Guarantors" means a) HUI MING INTERNATIONAL SHIPPING COMPANY LIMITED,
         a company incorporated in the British Virgin Islands with its
         registered office at [ ]; AND b) HUISHENG INTERNATIONAL SHIPPING
         LIMITED, a company incorporated in Hong Kong with its registered office
         at [ ]; AND c) Mr. ZHANG XIN YU, holder of PRC Identity Card No.
         330106196712050119 and PRC Passport No.G05852055 of 5F, Loft 8,
         Hi-Shanghai, 950 Dalian Road, Shanghai, PRC;

         "Insurances" means all policies and contracts of insurance (including
         all entries of the Vessel in a protection and indemnity association and
         a war risks association) which are from time to time taken out or
         entered into in respect of the Vessel or her Earnings or otherwise
         howsoever (as specified in greater detail in the Security Documents)
         and all benefits of such policies and contracts, including all claims
         of whatsoever nature and return of premiums;

         "Interest Date" means a date upon which interest is due and payable on
         the Outstanding Principal or, as the context requires, any part
         thereof, subject as provided in Clauses 6.1 and 18, the last day of
         each Interest Period;]

         "Interest Period" means, in relation to the Loan or the Outstanding
         Principal or, as the context requires, any part thereof, each period
         selected by the Borrower or otherwise determined under Clause 6.2 or
         determined in accordance with Clause 18 as the period for the
         calculation of the Interest Rate applicable thereto;

         "Interest Rate" means, in relation to the Loan or the Outstanding
         Principal or, as the context requires, any part thereof, the rate of
         interest which is either (a) determined by the Lender as provided by
         Clause 6.3 or (b) where the Lender is unable so to determine a rate in
         accordance with Clause 6.3, determined in accordance with Clause 18;

         "Loan" means the sum of up to US$1,200,000 to be advanced by the Lender
         to the Borrower hereunder;

<PAGE>

         "Outstanding Indebtedness" means the aggregate of the Outstanding
         Principal, all interest accrued on the Outstanding Principal, and all
         other sums of money whatsoever from time to time due or owing to the
         Lender under or pursuant to the Security Documents;

         "Outstanding Principal" means the principal amount of the Loan advanced
         and for the time being outstanding;

         "PRC" means The People's Republic of China;

         "Repayment Date" means each of the Banking Days upon which a Repayment
         Instalment is due and payable in accordance with Clause 5.1;

         "Repayment Instalment" means each of the instalments of the Outstanding
         Principal becoming due on a Repayment Date in accordance with Clause
         5.1;

         "Requisition Compensation" means all moneys or other compensation
         payable during the Security Period by reason of requisition for title
         or other compulsory acquisition of the Vessel otherwise than by
         requisition for hire;

         "Security Documents" means this Agreement, the documents specified in
         Clause 8 and any and every other document from time to time executed to
         secure all or any of the obligations of the Borrower to the Lender
         under this Agreement;

         "Security Period" means the period from the date of this Agreement
         until full and final discharge of the security created by the Security
         Documents by payment of the Outstanding Indebtedness;

         "Total Loss" means (a) actual, constructive, compromised, agreed or
         arranged total loss of the Vessel; or (b) requisition for title or
         other compulsory acquisition of the Vessel, otherwise than by
         requisition for hire; or (c) capture, seizure, arrest, detention or
         confiscation of the Vessel, by any government or by any persons acting
         or purporting to act on behalf of any government, unless the Vessel be
         released and restored to the Borrower within one (1) month thereafter;
         and

         "US$ PRIME" means such US$ lending rate as may form time to time be
         determined / published by the Lender;

         "Vessel" means the 1,907 GRT, 871 NRT Panamanian flagged "QIAO YIN"
         currently registered under the ownership of the Borrower with
         registration no.31755-PEXT-2.

                                      - 3 -

<PAGE>

1.3      The following expressions shall be construed in the following manner:

         "Lender" includes the successors and assigns of the Lender;

         "Borrower" includes the successors and permitted assigns of the
         Borrower;

         "Guarantor" includes the successors and permitted assigns of the
         Guarantor;

         "person" includes a corporate entity and any body of persons, corporate
         or unincorporate;

         "subsidiary" and "holding company" have the meanings given to them by
         the PRC Companies Law;

         "taxes" includes all present and future income, corporation and
         value-added taxes and all stamp and other taxes, duties, levies,
         imposts, deductions, charges and withholdings whatsoever, together with
         interest thereon and penalties with respect thereto, if any, and any
         payments of principal, interest, charges, fees or other amounts made on
         or in respect thereof, and references to "tax" and "taxation" shall be
         construed accordingly.

1.4      Unless the context otherwise requires, words in the singular include
         the plural and vice versa.

1.5      References to any document include the same as varied, supplemented or
         replaced from time to time.

1.6      References to any enactment include re-enactments, amendments and
         extensions thereof.

1.7      Clause headings are for convenience of reference only and are not to be
         taken into account in construction.

1.8      Unless otherwise specified, references to Clauses and Recitals are to
         Clauses of and the Recitals to this Agreement.

2. REPRESENTATIONS AND WARRANTIES

2.1      The Borrower represents and warrants that the following matters are
         true at the date of this Agreement, and agrees that the representations
         and warranties set out in this Clause 2.1 shall survive the execution
         of this Agreement and shall be deemed to be repeated on the Drawdown
         Date and on each Interest Date with reference to the facts and
         circumstances then subsisting, as if made on such date:

                                      - 4 -

<PAGE>

         2.1.1      the Borrower is a company duly incorporated with limited
                    liability, validly existing and in good standing under the
                    laws of Hong Kong, with full power to own its property and
                    assets and to carry on its business as it is now being
                    conducted;

         2.1.2      the Borrower has complied with all statutory and other
                    requirements relevant to its business;

         2.1.3      the entry into and performance by the Borrower of this
                    Agreement and the other Security Documents are within the
                    corporate powers of the Borrower and have been duly
                    authorised by all necessary corporate actions and approvals;

         2.1.4      the entry into and performance by the Borrower of this
                    Agreement and the other Security Documents do not and will
                    not contravene in any respect any law, regulation or
                    contractual restriction which does, or may, bind the
                    Borrower or any of its assets, and do not and will not
                    result in the creation or imposition of any security
                    interest, lien, charge, or encumbrance on any of its assets
                    in favour of any party other than the Lender;

         2.1.5      all licences, authorisations, approvals and consents
                    necessary for the entry into, performance, validity,
                    enforceability or admissibility in evidence of this
                    Agreement and the other Security Documents have been
                    obtained and are in full force and effect, true copies have
                    been delivered to the Lender and there has been no breach of
                    any condition or restriction imposed in this respect;

         2.1.6      when duly executed and delivered, and where applicable
                    registered, each of this Agreement and the other Security
                    Documents will constitute the legal, valid and binding
                    obligations of the parties thereto and will create a
                    perfected security interest with the required priority in
                    the assets and revenues intended to be covered thereby,
                    enforceable against the parties thereto in accordance with
                    their respective terms, except insofar as enforcement may be
                    limited by any applicable laws relating to bankruptcy,
                    insolvency, administration and similar laws affecting
                    creditors' rights generally;

         2.1.7      the Borrower is not in breach of any law, governmental
                    directive, guideline or policy statement, whether having the
                    force of law or not, and it is not in default under any
                    agreement to which it is party or by which it may be bound,
                    and no litigation, arbitration, tax claim or administrative
                    proceeding is current or pending or (to its knowledge)
                    threatened, which, if adversely determined, would have a
                    materially detrimental effect on its financial condition;

                                      - 5 -

<PAGE>

         2.1.8      there is no continuing Event of Default nor has any event
                    occurred which, with the giving of notice and/or lapse of
                    time and/or satisfaction of any other condition, would
                    constitute an Event of Default;

         2.1.9      the choice of PRC law to govern this Agreement and, where
                    applicable, the other Security Documents and the submission
                    by the Borrower to the non-exclusive jurisdiction of the PRC
                    courts are valid and binding, and the Borrower is not
                    entitled to claim any immunity in relation to itself or its
                    assets under any law or in any jurisdiction in connection
                    with any legal proceedings, set-off or counterclaim relating
                    to this Agreement or the other Security Documents or in
                    connection with the enforcement of any judgement or order
                    arising from such proceedings;

         2.1.10     the financial and other information supplied to the Lender
                    by or on behalf of the Borrower in connection with the
                    negotiation and the preparation of this Agreement or
                    delivered to the Lender pursuant to this Agreement is true
                    and accurate in all material respects when given, and does
                    not contain any misstatement of fact or omit any material
                    fact;

         2.1.11     the Borrower's financial condition has suffered no material
                    deterioration since that condition was last disclosed to the
                    Lender;

         2.1.12     all payments to be made by the Borrower under this Agreement
                    and the other Security Documents may be made free and clear
                    of and without deduction or withholding for or on account of
                    any taxes, and neither this Agreement nor any of the other
                    Security Documents is liable to any registration charge or
                    any stamp, documentary or similar taxes imposed by any
                    authority, including without limitation, in connection with
                    the admissibility in evidence of any thereof;

         2.1.13     the Borrower does not have any established place of business
                    other than in Hong Kong;

         2.1.14     the Borrower's obligations under this Agreement and the
                    other Security Documents will rank at least pari passu with
                    all of its other unsecured and unsubordinated obligations
                    and liabilities from time to time outstanding, other than as
                    preferred by statute.

2.2      The Borrower further represents and warrants that on the Drawdown Date:

         2.2.1      the Vessel is / will be duly registered under and in
                    accordance with the laws of the Panama flag in the sole
                    ownership of the Borrower and will comply with all relevant
                    laws, regulations and requirements (statutory or otherwise)
                    applicable to

                                      - 6 -

<PAGE>

                    ships registered under such flag and engaged in the service
                    in which the Vessel is or is to be engaged;

         2.2.2      the Borrower is / will be the sole, legal and beneficial
                    owner of the Vessel, and neither the Vessel nor the
                    Insurances, Earnings or Requisition Compensation will be
                    subject to any lien, charge or encumbrance of any kind
                    whatsoever other than such as may be constituted by the
                    Security Documents; and

         2.2.3      the Vessel will be insured in accordance with the provisions
                    of the Security Documents, and all the requirements
                    contained in the Security Documents relating to the
                    Insurances and the noting of the Lender's interest thereon
                    will have been satisfied.

3. THE LOAN

3.1      Subject to the provisions of this Agreement and in reliance upon (inter
         alia) the representations and warranties in Clause 2, the Lender agrees
         to advance the Loan to the Borrower on the Drawdown Date.

3.2      The Loan will be available to be drawn in one amount on the Drawdown
         Date and is to be applied exclusively for the purposes referred to in
         Clause 1.1 above.

3.3      The Lender will have no liability whatsoever to advance the Loan or any
         part of the Loan after 30th November 2006 and any part of the Loan
         which has not been advanced to the Borrower at close of business on
         such date shall be cancelled.

4. DRAWDOWN AND ACCOUNTS

4.1      The Borrower may draw the Loan upon giving the Lender notice in writing
         not later than 10:00 a.m. London time three (3) Banking Days before the
         proposed Drawdown Date, which notice shall:

         4.1.1      be effective on receipt by the Lender;

         4.1.2      specify the Banking Day upon which the Loan is required,
                    which must be a Banking Day on or before 30th November 2006;

         4.1.3      specify the Borrower's choice of duration of the first
                    Interest Period;

         4.1.4      give full details of the place and account, which must be
                    acceptable to the Lender, to which the proceeds of the Loan
                    are to be paid;

                                      - 7 -

<PAGE>

         4.1.5      constitute a representation and warranty in the terms of
                    Clause 2; and

         4.1.6      be irrevocable.

4.2      Notwithstanding the giving of notice pursuant to Clause 4.1, the Lender
         will not be obliged to disburse any funds until all the conditions set
         out in Clause 12 have been satisfied.

4.3      Subject to the provisions of this Agreement, the Lender will advance
         the Loan to the Borrower on the Drawdown Date in Dollars in immediately
         available funds by paying the same in accordance with the notice of
         drawdown given by the Borrower.

4.4      The Lender will open and maintain on its books accounts showing the
         amount advanced by it to the Borrower and the amounts of all payments
         of principal, interest and other moneys falling due and received by the
         Lender. The Borrower's obligation to repay the Outstanding Principal,
         to pay interest thereon and to pay all other sums due under the
         Security Documents shall be conclusively evidenced (in the absence of
         manifest error) by the entries from time to time made in the accounts
         opened and maintained under this Clause 4.4.

5. REPAYMENT AND PREPAYMENT

5.1      Subject to the provisions of this Agreement, the Borrower shall repay
         the Outstanding Principal by 36 monthly instalments. The 1st to the
         35th instalments shall be for US$33,000 each and the 36th (last)
         instalments shall be for US$45,000. Each such instalments is to be paid
         on last calendar day falling at successive monthly intervals and the
         first instalment shall be paid on the last calendar day in the month
         next after the Drawdown Date provided that, where the last calendar day
         in any month is not a Banking Day, the relevant Repayment Date shall
         fall on the immediately preceding Banking Day.

5.2      The Borrower shall have the right, upon giving not less than thirty
         (30) Banking Days' notice in writing to the Lender, to prepay without
         penalty (but upon reimbursements to the Lender all costs occasioned by
         such early repayment to be determined by the Lender), the Outstanding
         Principal, in whole or in part, on any Interest Date applicable
         thereto, provided that:

         5.2.1      any prepayment of part of the Outstanding Principal must be
                    in a minimum amount of US$100,000, or otherwise be an
                    integral multiple thereof, and will be applied by the Lender
                    in or towards the discharge of the remaining Repayment
                    Instalments in inverse order of maturity;

         5.2.2      each prepayment must be made together with the accrued
                    interest on the amount

                                      - 8 -

<PAGE>

                    prepaid and all other sums payable in respect thereof under
                    the provisions of this Agreement and, in the case of
                    prepayment of the whole of the Outstanding Principal, shall
                    be accompanied by payment of all other Outstanding
                    Indebtedness; and

         5.2.3      any such notice of prepayment given by the Borrower under
                    this Clause 5.2 shall be effective on receipt by the Lender
                    and shall be irrevocable once given and the Borrower shall
                    be bound to make such prepayment in accordance therewith.

5.3      If the Vessel becomes a Total Loss the Borrower shall prepay the
         Outstanding Principal together with all other Outstanding Indebtedness
         within ninety (90) days following the occurrence of the Total Loss.

5.4      Except as specifically provided in this Agreement or in any other of
         the Security Documents, in the absence of an Event of Default and
         demand for repayment by the Lender, the Lender shall not be obliged to
         accept any other prepayment of the whole or any part of the Outstanding
         Principal.

5.5      Any part of the Outstanding Principal which is repaid or prepaid by the
         Borrower may not be redrawn.

6.       INTEREST

6.1      Subject to the provisions of this Agreement, the Borrower shall pay
         interest on the Outstanding Principal, or on any part thereof, at the
         Interest Rate applicable thereto, in arrears on the last day of each
         Interest Period applicable thereto.

6.2      The Interest Period shall be three (3) calendar months save that the
         first Interest Period shall be the number of days remaining in the
         month of the Drawdown Date plus three (3) months such that the Interest
         Date shall fall on the last calendar day of a month. Each subsequent
         Interest Period shall commence on the last day of the immediately
         preceding Interest Period. If the last day of any Interest Period would
         otherwise fall on a day which is not a Banking Day, that Interest
         period shall be shortened so as to end on the immediately preceding
         Banking Day.

6.3      Subject to the provisions of this Agreement, the Interest Rate
         applicable to the Loan or the Outstanding Principal or any part thereof
         for each Interest Period relating thereto shall be US$ PRIME.

6.4      Without prejudice to any other remedy of the Lender, if the Borrower
         fails to pay on the due date any sum (whether of principal, interest or
         otherwise) due under any one or more of the

                                      - 9 -

<PAGE>

         Security Documents, interest will accrue, and become payable upon
         demand by the Lender, upon the sum unpaid from and including the date
         upon which it fell due for payment until the date of actual payment by
         the Borrower (as well after as before judgment) at 150% of US$ PRIME.
         Any such interest which is not paid when due shall be compounded at the
         end of each such Interest Period or other period determined by the
         Lender for so long as it remains unpaid.

6.5      The Lender will notify the Borrower of each determination of a rate of
         interest under this Agreement and any of the other Security Documents
         and the duration of each Interest Period, in each case promptly upon
         the determination thereof. The certificate or determination of the
         Lender as to the rate and amount of interest from time to time payable
         by the Borrower under this Agreement and any of the other Security
         Documents shall, except in the case of manifest error, for all purposes
         be conclusive and binding on the Borrower.

7. PAYMENTS AND APPLICATION OF FUNDS

7.1      Unless otherwise specified by the Lender, all moneys to be paid by the
         Borrower under this Agreement and any of the other Security Documents
         shall be paid to the Lender on their due dates in Dollars, in funds
         which are for same day settlement in the New York Clearing House
         Interbank Payments System (or in such other Dollar funds as shall for
         the time being be customary for settlement of international banking
         transactions in Dollars), not later than 10:00 a.m. (London time), to:

         [                                  ]

         under advice to the Lender, and bear as reference the name "QIAO YIN -
         mortgage repayment". The Lender shall have the right to change the
         place or account for payment upon giving five (5) Banking Days' prior
         written notice to the Borrower.

7.2      All payments due shall be made on a Banking Day. If the due date for
         payment falls on a day which is not a Banking Day, the payment or
         payments due shall be made on the immediately preceding Banking Day.

7.3      All payments to be made by the Borrower under this Agreement and any of
         the other Security Documents shall be made without set-off or
         counterclaim, and free and clear of, and without deduction for or on
         account of, any present or future taxes, unless the Borrower is
         compelled by law to make payment subject to any such tax.

7.4      If the Borrower is compelled by law to make payment subject to such
         taxes, the Borrower will pay the Lender such additional amounts as may
         be necessary to ensure that the Lender

                                     - 10 -

<PAGE>

          receives a net amount equal to the full amount which the Lender would
          have received had such payment not been subject to such taxes. The
          Borrower shall promptly notify the Lender upon its becoming aware of
          such requirement and deliver to the Lender copies of the receipts from
          the relevant government authority or body evidencing the due and
          punctual payment of such taxes.

7.5      All payments of interest and other payments of an annual or periodic
         nature to be made by the Borrower shall accrue from day to day and be
         calculated on the basis of the actual number of days elapsed and a
         three hundred and sixty (360) day year.

7.6      Except as otherwise specifically provided in this Agreement or in any
         other of the Security Documents, all moneys received or recovered by
         the Lender under the Security Documents will, after discharging the
         cost (if any) incurred in collecting such moneys, be applied as
         follows:

         FIRST, in or towards payment of all moneys expended or liabilities
         incurred by the Lender in respect of expenses, fees or charges relating
         to the preparation, completion and registration of the Security
         Documents or in respect of the protection, maintenance or enforcement
         of the security they create;

         SECONDLY, in or towards the satisfaction of any amounts forming the
         balance of the Outstanding Indebtedness which are then due and payable,
         whether by reason of payment demanded or otherwise, in such order of
         application as the Lender may think fit;

         THIRDLY, at the Lender's discretion, in retention on suspense account
         of such amount as the Lender may consider appropriate to secure the
         discharge of any part of the Outstanding Indebtedness not then due and
         payable, and, upon the same becoming due and payable, in or towards the
         discharge thereof in accordance with the foregoing provisions of this
         Clause 7.6; and

         FOURTHLY, the balance (if any) shall be paid to the Borrower or other
         person entitled.

         The Borrower irrevocably waives any rights of appropriation to which it
         may be entitled.

8.       SECURITY

8.1      As security for the payment of the Outstanding Indebtedness the
         Borrower shall execute, deliver to, and (where appropriate) register in
         favour of, the Lender, in form and substance satisfactory to the
         Lender:

         8.1.1      a first priority Panamanian mortgage over the Vessel; and

                                     - 11 -

<PAGE>

         8.1.2      a first priority assignment of the Insurances, Earnings and
                    Requisition Compensation of the Vessel, incorporating, or
                    together with, such specific assignments of any
                    charterparties, contracts of affreightment or other
                    contracts of employment of the Vessel, as the Lender may at
                    its discretion require.

8.2      As further security for the payment of the Outstanding Indebtedness the
         Borrower shall cause to be delivered to the Lender, and (where
         appropriate) registered in favour of the Lender a guarantee(s) in form
         and substance satisfactory to the Lender duly executed by the
         Guarantors of the Borrower's obligations hereunder.

9.       RETENTIONS

9.1      The Borrower shall establish and maintain with the Lender an account(s)
         and shall procure that throughout the Security Period, unless and until
         the Lender directs otherwise, all Earnings of the Vessel as they fall
         due shall be paid and credited to such account.

9.2      Notwithstanding anything to the contrary contained in this Agreement,
         so long as the Borrower remains under any liability (whether actual or
         contingent) in respect of the Outstanding Indebtedness, the Lender
         shall be entitled to withhold payment (up to the amount of such actual
         or contingent liability) of any moneys from time to time standing to
         the credit of any of the accounts for the time being of the Borrower
         with the Lender and to refuse payment upon any negotiable instrument
         (up to the amount of such actual or contingent liability).

9.3      The Lender is irrevocably authorised by the Borrower to apply, on each
         Interest Date and Repayment Date, any and all amounts on the Borrower's
         in pro tanto satisfaction of the Borrower's obligations to the Lender
         under Clauses 5 and 6.

9.4      On or at any time after the happening of an Event of Default, or the
         happening of any event which with the giving of notice and/or the lapse
         of time and/or the satisfaction of any other condition would constitute
         an Event of Default, the Lender shall forthwith become entitled to
         direct that the Earnings of the Vessel be paid to such place and
         account as the Lender may think fit, and following such Event of
         Default (without prejudice to the Lender's rights under Clause 19) at
         any time and without notice to the Borrower to appropriate all or any
         of the moneys standing to the credit of the Borrower's account and any
         moneys in respect of Earnings which may thereafter be received by the
         Lender and apply the same in or towards the discharge of the
         Outstanding Indebtedness in accordance with Clause 7.6.

9.5      All bank, exchange, telegraph and other charges in connection with the
         inward and outward remittance of moneys to and from the Borrower's
         accounts shall be for the account of the

                                     - 12 -

<PAGE>

         Borrower, and the Lender shall be entitled, and is irrevocably and
         unconditionally authorised, to debit the amount of such charges to the
         account concerned, as and when such charges are incurred.

9.6      Nothing in this Clause 9, whether express or implied, shall relieve the
         Borrower of its absolute and unconditional obligations to repay the
         Outstanding Principal, to pay interest thereon and to pay all other
         sums from time to time due, owing or payable hereunder and under any of
         the other Security Documents.

9.9      Unless otherwise agreed in writing, any amounts for the time being
         standing to the credit of the Borrower's account held with the Lender
         shall earn interest at the rate from time to time offered by the Lender
         to its customers for deposits in Dollars in similar amounts and for
         similar periods.

10.      VALUATIONS

10.1     The Lender may at any time and from time to time arrange for valuations
         of the Vessel to be carried out in order to determine its market value
         in accordance with Clause 10.2 below. Such valuations (which, at the
         discretion of the Lender, may be carried out with or without a physical
         inspection of the Vessel) shall be made in Dollars, (on the basis of a
         sale for prompt delivery, charter-free, at arm's length between a
         willing seller and a willing buyer) by a shipbroker or shipbrokers
         nominated or approved by the Lender. The cost of all such valuations
         shall be for the account of the Borrower, and the Borrower shall
         provide all such assistance as the Lender may require to enable such
         valuations to be carried out.

10.2     For the purposes of this Clause 10.2, the "market value" of the Vessel
         shall be determined by taking the average of the valuations of the
         Vessel made by two shipbrokers nominated or approved by the Lender. The
         Borrower agrees to accept any such average valuation as conclusive
         evidence of the market value of the Vessel at the date of the
         valuation. In the event that the market value of the Vessel, as
         determined in the manner provided above, is less than 130% of the
         amount of the Outstanding Principal, then the Borrower shall, within
         fourteen (14) days of a demand by the Lender to that effect, at the
         sole option of the Lender, either provide the Lender with additional
         security for the Outstanding Indebtedness acceptable to the Lender, or
         prepay such part of the Outstanding Principal as will ensure that
         immediately following such prepayment the market value of the Vessel is
         not less than Outstanding Principal.

                                     - 13 -

<PAGE>

11.      FEES

11.1     The Borrower shall pay to the Lender on the Drawdown Date or 30th
         November 2006 (whichever is the earlier) all set-up fees, costs and
         out-of pocket expenses including all inspections, valuations,
         registration, documentation and legal fees in connection with the Loan.

11.2     The above mentioned fee shall be payable whether or not the Loan is
         drawn and shall not be returnable in any event.

12. CONDITIONS PRECEDENT

12.1     The Lender will not be obliged to advance the Loan or any part thereof
         unless and until it has received notice of drawdown from the Borrower
         in accordance with Clause 4, as well as the fee payable to it under
         Clause 11.1.

12.2     It shall be a further condition precedent to the advance of the Loan
         that the Lender or its legal advisers have received the following, in
         form and substance satisfactory to them.

         12.2.1     copies, certified as true by the secretary or a director of
                    the Borrower, of the Certificate of Incorporation and the
                    Memorandum and Articles of Association or equivalent
                    constitutional documents of the Borrower;

         12.2.2     a certificate of good standing or other evidence that the
                    Borrower is in good standing in its country of
                    incorporation;

         12.2.3     a certificate of incumbency of the Borrower, signed by the
                    secretary or a director of the Borrower, stating its
                    officers and directors, and containing specimens of each of
                    their signatures;

         12.2.4     a certificate as to the shareholding of the Borrower, signed
                    by the secretary or a director of the Borrower, stating the
                    full names and addresses of the person or persons legally
                    and beneficially entitled as shareholders/stockholders of
                    the entire issued and outstanding shares/stock of the
                    Borrower;

         12.2.5     copies, certified as true by the secretary or a director of
                    the Borrower, of resolutions duly passed by the directors
                    and shareholders of the Borrower evidencing approval of the
                    transactions contemplated by this Agreement and the other
                    Security Documents and authorising the execution of the
                    same;

         12.2.6     the original of any power of attorney issued by the Borrower
                    in favour of any person or persons

                                     - 14 -

<PAGE>

                    executing this Agreement and the other Security Documents;

         12.2.7     in respect of every other party to the Security Documents
                    (other than the Lender), the same documents, mutatis
                    mutandis, as those to be provided in Clause 12.2.1 to 12.2.6
                    inclusive above in respect of the Borrower (and in case of
                    an individual, a certified copy of his/her Identity Card or
                    Passport and proof of residential address);

         12.2.8     copies, certified as true by the Secretary or a director of
                    the Borrower, of all licences, authorisations, approvals and
                    consents required in connection with the execution,
                    delivery, performance, validity and enforceability of the
                    Security Documents;

         12.2.9     evidence, by way of copy policies, cover notes and
                    certificates of entry, that insurance (including mortgagee's
                    interest insurance; if applicable) in respect of the Vessel
                    has been effected in accordance with the stipulations of the
                    Security Documents and that the Lender's interest has been
                    or will be noted thereon, together with letters of
                    undertaking from the relevant brokers, protection and
                    indemnity and war risks associations and a favourable
                    written opinion from insurance brokers nominated by the
                    Lender as to the quality of the Insurances of the Vessel;

         12.2.10    valuations of the Vessel conducted on the basis referred to
                    in Clause 10, dated not earlier than one (1) month prior to
                    the Drawdown Date, showing the market value of the Vessel to
                    be not less than 130% of the amount of the Loan;

         12.2.11    a survey report in terms satisfactory to the Lender on the
                    physical condition of the Vessel from an independent marine
                    surveyor appointed or approved by the Lender;

         12.2.12    a copy, certified as true by the secretary or a director of
                    the Borrower, of any management agreement entered into by
                    the Borrower in respect of the Vessel with managers approved
                    by the Lender;

         12.2.13    evidence that the Vessel is duly registered under the
                    Panamanian flag in the sole ownership of the Borrower;

         12.2.14    the Security Documents specified in Clause 8 and all
                    documents, instruments, notices and acknowledgements thereto
                    required under the Security Documents duly executed, and, in
                    the case of the first priority Panamanian mortgage of the
                    Vessel to be executed pursuant to Clause 8, evidence that
                    the same has been duly registered or is capable of immediate
                    registration with the required priority in the appropriate
                    register;

                                     - 15 -

<PAGE>

         12.2.15    such duly completed mandate forms and other documents as the
                    Lender may require for the opening of accounts by the
                    Borrower with the Lender;

         12.2.16    confirmation from the agents in PRC nominated in this
                    Agreement and elsewhere in the Security Documents by the
                    Borrower, the Guarantor and any other party to the Security
                    Documents for the acceptance of service of process, that
                    they consent to such nomination;

         12.2.17    favourable opinions from the Lender's legal advisers with
                    respect to the Borrower, the Guarantor and any other party
                    to the Security Documents, and the overall transaction
                    contemplated by this Agreement, in such terms as the Lender
                    may require;

         12.2.18    such evidence as the Lender may require that the warranties
                    and representations contained in Clause 2 are true and
                    correct at the Drawdown Date, that none of the circumstances
                    specified in Clause 18.1 or 18.2 is subsisting and that no
                    Event of Default, or event which with the giving of notice
                    and/or lapse of time and/or the satisfaction of any other
                    condition would constitute an Event of Default, has occurred
                    or will arise following the advance of the Loan;

         12.2.19    proof that there is a time charterparty in place in respect
                    of the Vessel in form and substance acceptable to the Lender
                    with a daily rate of not less than US$2,200 for a minimum
                    period of 36 calendar months from the Drawdown Date (and a
                    certified copy of such time charterparty).

12.3     Without prejudice to the foregoing provisions of this Clause 12, if the
         Lender in its absolute discretion makes the Loan (or any part of the
         Loan) available notwithstanding that one or more of the conditions
         precedent specified above remains unsatisfied on the Drawdown Date,
         then the Borrower shall procure the satisfaction of such condition or
         conditions precedent within fourteen (14) days thereafter or such
         longer period as the Lender may in its absolute discretion agree in
         writing.

13. REVIEW OF INSURANCES

         The Lender shall be entitled, at any time and from time to time, to
         obtain from insurance brokers appointed by itself, at the Borrower's
         expense, a written opinion as to the quality of the Insurances of the
         Vessel. If the Lender is not satisfied that the Insurances provide the
         Lender with good and adequate security, the Lender may, by written
         notice to that effect, require the Borrower to place, or procure the
         placing of, further and additional insurances and/or to amend or
         procure the amendment of the existing Insurances, whether through the
         existing brokers or otherwise. On receipt of such notice, the Borrower
         must effect or procure

                                     - 16 -

<PAGE>

         the effecting of such additions and/or amendments to the Insurances
         within fourteen (14) days.

14. UNDERTAKINGS OF THE BORROWER

14.1     The Borrower shall throughout the Security Period:

         14.1.1     perform and observe the several  covenants  and  obligations
                    imposed upon it under the Security Documents;

         14.1.2     ensure that the Earnings of the Vessel are paid, and that
                    the persons from whom the Earnings are from time to time due
                    are instructed to pay them, to the Earnings Account, unless
                    and until the Lender directs otherwise;

         14.1.3     inform the Lender promptly of any litigation, arbitration,
                    tax claim or administrative proceeding instituted or (to its
                    knowledge) threatened and of any other occurrence of which
                    it becomes aware which might materially adversely affect its
                    ability, or the ability of any other party to the Security
                    Documents, to perform their respective obligations under the
                    Security Documents, or which might materially adversely
                    affect the security constituted by the Security Documents;

         14.1.4     maintain its corporate existence as a company duly organised
                    and validly existing in its place of incorporation, and
                    obtain and maintain in force, and promptly furnish certified
                    copies to the Lender of, all licences, authorisations,
                    approvals and consents, and do all other acts and things,
                    which may from time to time be necessary or desirable for
                    the continued due performance of its obligations under the
                    Security Documents or which may be required for the
                    validity, enforceability or admissibility in evidence of the
                    Security Documents;

         14.1.5     ensure that its obligations under the Security Documents
                    rank at least pari passu with all its other present, future
                    and/or contingent unsecured and unsubordinated obligations;

         14.1.6     conduct its business in a proper and efficient manner and
                    not change the nature, organisation or conduct of its
                    business or conduct any business other than that of
                    ownership of the Vessel;

         14.1.7     promptly after the happening of any Event of Default or any
                    event which with the giving of notice and/or lapse of time
                    and/or satisfaction of any other condition would constitute
                    an Event of Default, notify the Lender of such event and of
                    the steps (if any) which are being taken to remedy it;

                                     - 17 -

<PAGE>

         14.1.8     maintain adequate and sufficient insurance on and over the
                    Vessel, in respect of hull, machinery and equipment, marine
                    and war risks (including excess risks), protection and
                    indemnity risks and (if appropriate) oil pollution
                    liability, on terms satisfactory to the Lender, and through
                    such brokers, and with such insurers, underwriters and war
                    risks and/or protection and indemnity associations as the
                    Lender in its discretion approves, in such amounts in
                    Dollars as shall from time to time be approved by the
                    Lender, but in any event:

                    (a)      in respect of hull, machinery and equipment, marine
                             and war risks (including excess risks), for not
                             less than whichever is the greater of the full
                             market value of the Vessel and 130% of the amount
                             of the Loan; and

                    (b)      in respect of protection and indemnity risks and
                             (if applicable) oil pollution liability, for an
                             unlimited amount if available and otherwise for the
                             maximum amount obtainable from the protection and
                             indemnity association in which the Vessel is from
                             time to time entered;

                    and otherwise in accordance with the provisions of the
                    Security Documents;

         14.1.9     pay to the Lender on demand all premiums and other amounts
                    payable by the Lender in effecting and maintaining
                    mortgagees interest insurance policies in respect of the
                    Vessel, in the name of the Lender, in such amounts in
                    Dollars, on such terms and conditions and through such
                    brokers and with such insurers and underwriters as the
                    Lender may in its discretion determine, provided that the
                    amount insured in each case shall not exceed 130% of the
                    amount of the Loan;

         14.1.10    pay all taxes, assessments and other governmental charges as
                    they fall due, except to the extent that the Borrower is
                    contesting the same in good faith by appropriate proceedings
                    and has set aside adequate reserves for their payment if
                    such proceedings fail;

         14.1.11    keep proper books of account in respect of its business and
                    whenever so requested by the Lender make the same available
                    for inspection by or on behalf of the Lender;

         14.1.12    provide the Lender within 120 days of the end of each
                    financial year of the Borrower with copies of the profit and
                    loss account and balance sheet of the Borrower, prepared in
                    a form consistent with generally accepted accounting
                    principles and practices consistently applied and audited by
                    auditors previously approved in writing by the Lender;

                                     - 18 -

<PAGE>

         14.1.13    provide the Lender with such other financial and other
                    information concerning the Borrower and its affairs and the
                    Vessel as the Lender may from time to time reasonably
                    require, including (but without limitation) full information
                    regarding the employment, condition, geographical position,
                    crewing and engagements of the Vessel and particulars of all
                    contracts concerning the Vessel;

         14.1.14    (if the Lender considers that the financial position or
                    prospects of the Borrower are deteriorating), give
                    independent auditors appointed to carry out an audit and
                    inspection of its affairs every assistance in that regard;

         14.1.15    promptly, at the request of the Lender from time to time,
                    provide the Lender with a certificate signed by the chief
                    financial officer or chief executive officer of the Borrower
                    confirming that the Borrower is, as at the date of such
                    certificate, in compliance with its obligations under the
                    Security Documents and that no Event of Default has
                    occurred, or, if any has occurred, none is continuing;

         14.1.16    maintain at all times organisation and personnel which are
                    in the opinion of the Lender adequate to provide sufficient
                    management, agency, financial, secretarial and other
                    services for the Vessel;

         14.1.17    to implement and maintain a safety management system ("SMS")
                    which complies with all laws, rules and regulations, and
                    with all the codes, guidelines and standards recommended by
                    the International Maritime Organisation (including without
                    limitation, The International Management Code for the Safe
                    Operation of Ships and for Pollution Prevention as adopted
                    by the International Maritime Organisation as Resolutions
                    A.741(18) and A.788(19) (as amended from time to time, the
                    "ISM Code")), the flag state of the Vessel and the Vessel's
                    Classification Society (if applicable), which may from time
                    to time be applicable to the Vessel and/or the Owner and/or
                    the approved manager, and which is otherwise appropriate
                    having regard to the Owner's obligations under this
                    Mortgage;

         14.1.18    to obtain and maintain in force at all times valid
                    certificates evidencing compliance with the requirements of
                    Clause 14.1.17, including, without limitation, a valid
                    Document of Compliance in relation to itself and a valid
                    Safety Management Certificate in respect of the Vessel as
                    required by the ISM Code;

         14.1.19    to provide the Mortgagee with copies of any such Document of
                    Compliance and Safety Management Certificate upon issuance;
                    and

         14.1.20    to keep or procure that there is kept on board the Vessel at
                    all times a copy of any

                                     - 19 -

<PAGE>

                    such  Document of Compliance  and  the  original of any such
                    Safety Management Certificate.

14.2     The Borrower shall not, at any time in the Security Period, without the
         prior written consent of the Lender:

         14.2.1     (unless in the ordinary course of its business) convey,
                    assign, transfer, sell or otherwise dispose of or deal with
                    any of its real or personal property, assets or rights,
                    whether present or future;

         14.2.2     mortgage, charge, pledge, use as a lien or otherwise
                    encumber, any part of its undertaking, property, assets or
                    rights, whether present or future, (provided that where any
                    such lien arises in the ordinary course of business, the
                    Borrower shall promptly discharge the same);

         14.2.3     make any loans or advances to, or any investments in, any
                    person (including, without limitation, any officer,
                    director, stockholder, employee or customer of the
                    Borrower);

         14.2.4     borrow any money (other than that contemplated by this
                    Agreement) or enter into any agreement for payment on
                    deferred terms or any equipment lease or contract or hire
                    agreement (but so that this covenant shall not prevent it
                    from availing itself in the ordinary course of its business
                    of the usual trade credits available from suppliers of
                    necessaries to shipowners);

         14.2.5     assume, guarantee or endorse, or otherwise become or remain
                    liable for, any obligation of any other person save pursuant
                    to the Security Documents;

         14.2.6     authorise or accept any capital commitment;

         14.2.7     make any payment of principal or interest to any of its
                    shareholders in respect of any loans or loan capital made
                    available to it by its shareholders, or declare or pay any
                    dividends upon any of its shares or stock or otherwise
                    distribute any assets to any of its shareholders whether in
                    cash or otherwise;

         14.2.8     consolidate or subdivide or alter any of the rights attached
                    to, or reduce, any of its share capital, or capitalise,
                    repay or otherwise distribute any amount outstanding to the
                    credit of any capital or revenue reserves, redeem any of its
                    share capital in any way or enter into any arrangement with
                    its creditors;

         14.2.9     issue any further  shares or stock or register  any transfer
                    of any of its shares or stock,

                                     - 20 -

<PAGE>

                    or  admit  any   new  member,  whether  by  subscription  or
                    transfer;

         14.2.10    consolidate, amalgamate or merge with any other entity;

         14.2.11    form or acquire any subsidiary;

         14.2.12    alter or extend its  financial  year for the purposes of the
                    preparation of its accounts, or change its auditors;

         14.2.13    alter any of the  provisions of its  memorandum and articles
                    of association or other constitutional documents;

         14.2.14    permit any changes to be made in the identity of its
                    directors, officers or senior management personnel.

15. EVENTS OF DEFAULT

15.1     There shall be  an  Event of  Default  should  any  one  or  ore of the
         following happen:

         15.1.1     the Borrower fails to make any payment due under any of the
                    Security Documents on its due date, or, in respect of moneys
                    payable on demand, (unless otherwise specifically provided)
                    within seven (7) days from the date of such demand;

         15.1.2     the Borrower is in breach of any one or more of the
                    provisions of the Security Documents relating to the
                    Insurances;

         15.1.3     the Borrower fails to comply with any provision of the
                    Security Documents other than those referred to in Clauses
                    15.1.1 and 15.1.2 and, in the case of any such default which
                    the Lender considers capable of remedy, such default
                    continues for a period of seven (7) days after the Lender,
                    by notice to the Borrower, requires the same to be remedied;

         15.1.4     any licence, approval, consent, authorisation or
                    registration at any time necessary or desirable for the
                    validity, enforceability or admissibility in evidence of the
                    Security Documents, or for the Borrower to comply with its
                    obligations thereunder, or in connection with the ownership
                    or operation of the Vessel, is revoked, withheld or expires,
                    or is modified in what the Lender considers a material
                    respect;

         15.1.5     the Vessel becomes a Total Loss and (without prejudice to
                    the Borrower's obligations under Clause 5.3) the Lender does
                    not receive, within ninety (90) days following the
                    occurrence of the Total Loss, the insurance proceeds
                    relating to the

                                     - 21 -

<PAGE>

                    Total Loss in an amount not less than the amount for which
                    the Vessel is required to be insured under the Security
                    Documents as at the date of the event or circumstances
                    giving rise to the Total Loss or, if lower, the amount of
                    the Outstanding Indebtedness at the date of receipt by the
                    Lender;

         15.1.6     a petition is filed, or an order made, or an effective
                    resolution passed, for the compulsory or voluntary
                    winding-up or dissolution of the Borrower (other than for
                    the purposes of amalgamation or reconstruction in respect of
                    which the prior written approval of the Lender has first
                    been obtained) or any proceedings analogous to winding-up
                    proceedings are begun in any jurisdiction in relation to the
                    Borrower, or if the Borrower suspends payment of, or is
                    unable to or admits inability to pay, its debts as they fall
                    due or makes any special arrangement or composition with its
                    creditors generally or any class of its creditors;

         15.1.7     an administrator, administrative receiver, receiver or
                    trustee or similar official is appointed of the whole, or
                    what the Lender considers a material part, of the property,
                    assets or undertaking of the Borrower, or if the Borrower
                    applies for, or consents to, any such appointment;

         15.1.8     an encumbrancer takes possession of, or distress or
                    execution is levied upon, the whole, or what the Lender
                    considers a material part, of the property, assets or
                    undertaking of the Borrower;

         15.1.9     the Borrower ceases, or threatens to cease, to carry on its
                    business, or disposes or threatens to dispose of what the
                    Lender considers a material part of its property, assets or
                    undertaking, or such a part is seized or appropriated;

         15.1.10    anything is done, suffered or omitted to be done or occurs
                    which, in the opinion of the Lender, would in any way
                    imperil the security created by the Security Documents;

         15.1.11    an event of default occurs in relation to any obligation
                    whatsoever of the Borrower in respect of borrowed money,
                    whether from the Lender or any other lender or any guarantee
                    or indemnity given by the Borrower is not honoured when
                    called;

         15.1.12    any representation or warranty made or deemed to be made in
                    any of the Security Documents, or in any certificate or
                    statement delivered in connection with any of the Security
                    Documents or in the negotiations leading up to the
                    conclusion of this Agreement is, or at any time becomes,
                    incorrect in any respect which the Lender considers
                    materially adverse to the Lender, as if such representation
                    or warranty were made as of such time;

                                     - 22 -

<PAGE>

         15.1.13    the Borrower  ceases to be a company duly registered in good
                    standing in the place in which it was incorporated;

         15.1.14    it becomes impossible or unlawful for the Borrower to fulfil
                    any of its obligations under the Security Documents, or for
                    the Lender to exercise any of the rights vested in it by, or
                    to enforce the security constituted by, the Security
                    Documents;

         15.1.15    if, without the prior written consent of the Lender, there
                    is any change in the legal or beneficial ownership of the
                    shares/stock of the Borrower;

         15.1.16    if, in the opinion of the Lender, there is any material
                    adverse change in the financial condition or prospects of
                    the Borrower;

         15.1.17    if any of the events specified in Clauses 15.1.1 to 15.1.16
                    inclusive occurs (mutatis mutandis) in relation to the
                    Guarantor or to any other party to the Security Documents
                    (other than the Lender);

         15.1.18    if any other party to the Security Documents, being an
                    individual, dies or becomes of unsound mind or is unable or
                    admits in writing his or her inability to pay his or her
                    debts as they fall due or makes a general assignment for the
                    benefit of his or her creditors, or is adjudged bankrupt or
                    insolvent, or files a voluntary petition in bankruptcy or a
                    petition or an answer to a petition seeking an arrangement
                    with his or her creditors;

         15.1.19    any Event of Default (as so described in any other of the
                    Security Documents) occurs.

15.2     Upon the occurrence of an Event of Default and at any time thereafter
         the Lender may, without prejudice to any of its rights and remedies
         under any of the other Security Documents or otherwise, take any one or
         more of the following actions:

         15.2.1     by written notice to the Borrower declare its commitment to
                    advance the Loan cancelled, whereupon the same shall be
                    cancelled;

         15.2.2     by written notice to the Borrower demand the immediate
                    repayment of the Outstanding Principal, all interest accrued
                    thereon and all other Outstanding Indebtedness, whereupon
                    the same shall become immediately due and payable, bearing
                    interest at the Default Rate in accordance with the
                    provisions of Clause 6.4;

         15.2.3     take steps to enforce the  security  created by the Security
                    Documents and/or

                                     - 23 -

<PAGE>

                    otherwise exercise the rights and remedies conferred upon it
                    by this Agreement and the other Security Documents and
                    exercisable on or after the occurrence of an Event of
                    Default.

16. INDEMNITIES AND EXPENSES

16.1     The Borrower shall indemnify the Lender, on demand, against any losses,
         expenses or liabilities whether actual or contingent, (as to the amount
         of which the Lender's certificate shall be conclusive and binding upon
         the Borrower, except in case of manifest error) suffered or incurred by
         the Lender in connection with or as a result of:

         16.1.1     the Loan not being drawn in full on the Drawdown Date
                    specified in the Borrower's notice of drawdown for any
                    reason, other than as a result of a default by the Lender;
                    or

         16.1.2     any repayment or prepayment of the whole or any part of the
                    Outstanding Principal being made on any date other than the
                    last day of the Interest Period applicable thereto; or

         16.1.3     any default in payment by the  Borrower of any sum due under
                    the Security Documents on its due date; or

         16.1.4     the occurrence or continuance of an Event of Default and/or
                    any event which, with the giving of notice and/or lapse of
                    time, would constitute an Event of Default.

         Without prejudice to its generality, the foregoing indemnity shall
         extend to any interest, fees or other sums whatsoever paid or payable
         on account of any funds borrowed by the Lender in order to fund any
         unpaid amount and to any loss (including loss of profit), premium,
         penalty or expense which may be incurred by the Lender in liquidating
         or employing deposits from third parties taken to make, maintain or
         fund the Loan or the Outstanding Principal (or any part thereof) or any
         other amount due or to become due to the Lender under the terms of the
         Security Documents.

16.2     The Borrower shall pay to the Lender on demand, and indemnify and keep
         the Lender indemnified against, all costs, charges, expenses, claims,
         liabilities, losses, duties and fees (including, but not limited to,
         legal fees and expenses on a full indemnity basis) and taxes thereon
         suffered or incurred by the Lender:

         16.2.1     in the  negotiation,  preparation,  printing,  execution and
                    registration  of  this  Agreement  and  the  other  Security
                    Documents;

                                     - 24 -

<PAGE>

         16.2.2     in the enforcement or preservation or the attempted
                    enforcement or preservation of any of the Lender's rights
                    and powers under this Agreement and the other Security
                    Documents or of the security constituted by the Security
                    Documents;

         16.2.3     in connection with any actual or proposed amendment of or
                    supplement to this Agreement or any other of the Security
                    Documents, or with any request of the Lender to grant any
                    consent or waiver in respect of any provision of this
                    Agreement or any other of the Security Documents, whether or
                    not the same is given;

         16.2.4     arising out of any act or omission made by the Lender in
                    good faith in connection with any of the matters dealt with
                    in the Security Documents.

16.3     The Borrower shall pay any and all stamp, documentary, registration and
         like taxes or charges imposed by governmental authorities in relation
         to this Agreement and the other Security Documents, and shall indemnify
         the Lender against any and all liabilities with respect to, or
         resulting from, delay or omission on the part of the Borrower to pay
         such taxes or charges.

16.4     Any amount received or recovered by the Lender in respect of any moneys
         or liabilities due, owing or incurred by the Borrower to the Lender
         (whether as a result of any judgment or order of any court or in the
         bankruptcy, administration, reorganisation, liquidation or dissolution
         of the Borrower or by way of damages for any breach of any obligation
         to make any payment to the Lender) in a currency (the "Currency of
         Payment") other than Dollars in whatever circumstances and for whatever
         reason shall only constitute a discharge to the Borrower to the extent
         of the amount in Dollars which the Lender is able or would have been
         able, on the date or dates of receipt by it of such payment or payments
         in the Currency of Payment (or, in the case of any such date which is
         not a Banking Day, on the next succeeding Banking Day), to purchase in
         the foreign exchange market of its choice with the amount or amounts so
         received.

16.5     If the amount of Dollars which the Lender is so able to purchase falls
         short of the amount originally due to the Lender hereunder, the
         Borrower shall indemnify and hold the Lender harmless against any loss
         or damage arising as a result by paying to the Lender that amount in
         Dollars certified by the Lender as necessary to so indemnify and hold
         harmless the Lender. This indemnity shall constitute a separate and
         independent obligation from the other obligations contained in this
         Agreement, shall give rise to a separate and independent cause of
         action, shall apply irrespective of any indulgence granted by the
         Lender from time to time and shall continue in full force and effect
         notwithstanding any judgment or order for a liquidated sum or sums in
         respect of amounts due hereunder or under any such judgment or order.
         The certificate of the Lender as to the amount of any such loss or
         damage aforesaid (which shall be deemed to constitute a loss suffered
         by the Lender) shall (save in case of manifest error) for all purposes
         be conclusive and binding on the Borrower.

                                     - 25 -

<PAGE>

17. ASSIGNMENTS AND TRANSFERS

17.1     This Agreement shall be binding upon and inure to the benefit of each
         party hereto and its successors and assigns.

17.2     The Borrower may not assign or transfer all or any of its rights,
         benefits or obligations under this Agreement or under any of the other
         Security Documents without the Lender's prior written consent.

17.3     The Lender may freely assign and/or sub-participate all or any of its
         rights and benefits under this Agreement and under the other Security
         Documents.

17.4     The Lender may transfer all or any of its obligations under this
         Agreement and under the other Security Documents subject to the prior
         consent of the Borrower, which shall not be unreasonably withheld,
         provided that no such consent shall be required in the case of a
         transfer to a subsidiary, affiliate or holding company of the Lender.

17.5     The Lender may disclose to any potential transferee, assignee or
         sub-participant, or to any other party with whom it may propose to
         enter into contractual relations in connection with this Agreement or
         any other of the Security Documents, such information about the
         Borrower and its business, assets or financial condition as the Lender
         shall consider appropriate.

17.6     The Lender may at any time and from time to time change its lending
         office and/or delegate any one or more of its rights, powers and/or
         obligations under this Agreement and the other Security Documents to
         any person.

17.7     The Borrower undertakes to do or to procure all such acts and things
         and to sign, execute and deliver or procure the signing, execution and
         delivery of all such instruments and documents as the Lender may
         reasonably require for the purpose of perfecting any such assignment,
         transfer, sub-participation, change or delegation as aforesaid.

18. CHANGE IN CIRCUMSTANCES

18.1     If at any time prior to the commencement of any Interest Period, the
         Lender shall determine that, by reason of circumstances affecting the
         currencies market generally, adequate and reasonable means do not or
         will not exist for ascertaining the Interest Rate applicable to such
         Interest Period, then the Lender shall give notice thereof (hereinafter
         called a "Determination Notice") to the Borrower. If the Determination
         Notice shall be given prior to the Loan or any part thereof being
         advanced by the Lender, then the Lender's obligation to advance the
         Loan or any part thereof shall be suspended during the continuation of
         such circumstances. The

                                     - 26 -

<PAGE>

         Borrower and the Lender shall in any event negotiate in good faith in
         order to agree a mutually satisfactory Interest Rate or Rates, Interest
         Period or Periods and Interest Date or Dates to be substituted for
         those which would otherwise have applied under this Agreement.

18.2     If the Lender shall determine that, by reason of circumstances
         affecting the currencies market generally, deposits in Dollars are not
         available to it in sufficient amounts in the ordinary course of
         business and that accordingly the Lender will not be able to make, fund
         or maintain the Loan or the Outstanding Principal, then the Lender may
         serve written notice of such determination on the Borrower (whereupon
         the obligation of the Lender to make, fund or maintain the Loan or the
         Outstanding Principal or any part thereof shall cease) requiring the
         Borrower to prepay the Outstanding Principal on the next Interest Date
         following the date of such notice, and the Borrower shall prepay the
         Outstanding Principal to the Lender on such Interest Date in accordance
         with and subject to the provisions of Clause 18.6.

18.3     The Lender will not be liable for any failure on its part to provide
         the Loan or maintain the Outstanding Principal or any part thereof
         resulting, directly or indirectly, from any action, inaction or
         purported action of any government or governmental agency or any
         strike, boycott or blockade or any cause whatsoever outside its
         control.

18.4     If, as a result of the introduction of or any change in any applicable
         law, regulation or official directive (whether or not having the force
         of law), or in the interpretation thereof by any authority charged with
         the administration thereof or by any court of competent jurisdiction,
         or compliance by the Lender with any directive, request or requirement
         from any applicable governmental, fiscal or monetary authority (whether
         or not having the force of law):

         18.4.1     there is any change in the basis of taxation (other than the
                    basis of taxation of the Lender's overall net income) of
                    payments by the Borrower to the Lender of principal,
                    interest or otherwise; or

         18.4.2     there is any change in the basis of taxation of payments by
                    the Lender of principal or interest on, or otherwise in
                    respect of, deposits taken from third parties to make, fund
                    or maintain the Loan or the Outstanding Principal; or

         18.4.3     any reserve, special deposit, cash ratio, liquidity or other
                    requirements are imposed, modified or deemed applicable
                    against assets held by or deposits in or for the account of,
                    or loans by, the Lender; or

         18.4.4     any other condition is imposed on the Lender in respect of
                    the transactions contemplated by this Agreement or any other
                    of the Security Documents;

         and, as a result, the cost to the Lender of making, funding or
         maintaining the Loan or the

                                     - 27 -

<PAGE>

         Outstanding Principal or any part thereof is increased, or the amount
         payable or the effective return to the Lender under this Agreement is
         reduced, then, and in any such case, the Lender shall notify the
         Borrower as soon as practicable of the same and the Borrower shall pay
         to the Lender from time to time upon demand such additional moneys as
         the Lender shall specify to be necessary to indemnify the Lender for
         any increased cost, reduction in principal or interest receivable or
         other foregone return whatsoever. It shall not be a defence to a claim
         by the Lender under this Clause that any such increased cost or
         reduction could have been avoided by the Lender. Any amount due from
         the Borrower under this Clause 18.4 shall be due as a separate debt and
         shall not be affected by judgement being obtained for any other sums
         due under or pursuant to this Agreement.

18.5     Notwithstanding anything to the contrary contained in this Agreement,
         if the introduction of, or any change in, any applicable law or
         regulation, or in the interpretation thereof by any authority charged
         with the administration thereof or by any court of competent
         jurisdiction, makes it unlawful for the Lender to maintain or give
         effect to its obligations under this Agreement, then the Lender may
         serve written notice on the Borrower declaring the Lender's obligations
         under this Agreement terminated, whereupon the same shall terminate
         forthwith and the Borrower shall immediately prepay the Outstanding
         Principal to the Lender in accordance with and subject to the
         provisions of Clause 18.6.

18.6     Where the Outstanding Principal is to be prepaid by the Borrower
         pursuant to any of the provisions of this Clause 18, the Borrower shall
         simultaneously with such prepayment pay to the Lender all accrued
         interest on the Outstanding Principal and all other sums payable by the
         Borrower to the Lender pursuant to this Agreement, together with such
         amounts as may be certified by the Lender to be necessary to compensate
         the Lender for any loss (including, without limitation, loss of
         profit), penalty or expense incurred or to be incurred by it on account
         of funds borrowed in order to make, fund or maintain the Loan or the
         Outstanding Principal (or any part thereof) as a consequence of such
         prepayment being made other than on the last day of an Interest Period
         applicable to the whole amount prepaid.

18.7     The certificate or determination of the Lender as to any of the matters
         referred to in this Clause 18 shall, save for any manifest error, for
         all purposes be conclusive and binding on the Borrower.

19. SET-OFF AND LIEN

19.1     The Borrower authorises the Lender, without prejudice to any of the
         Lender's rights at law, in equity or otherwise, at any time and without
         notice to the Borrower:

         19.1.1     to combine and/or consolidate all or any accounts (whether
                    current, deposit, loan or of any other nature whatsoever,
                    whether subject to notice or not and in whatever

                                     - 28 -

<PAGE>

                    currency) of the Borrower with any branch of the Lender;

         19.1.2     to apply any credit balance (whether or not then due) on any
                    such account or accounts of the Borrower in or towards
                    satisfaction of any sum due and payable but not paid to the
                    Lender and any other liability of the Borrower (whether
                    actual or contingent) under this Agreement and/or any of the
                    Security Documents; and

         19.1.3     to do in the name of the Borrower and/or the Lender all such
                    acts and execute all such documents as may be necessary or
                    expedient to effect such application.

         For all or any of the above purposes, the Lender is authorised to
         purchase with the moneys standing to the credit of such account or
         accounts any such other currency or currencies as may be necessary to
         effect such application. The Lender shall not be obliged to exercise
         any right given to it by this Clause 19.

19.2     The Lender shall have a lien on all property and assets of the Borrower
         which, or the certificates of or the deeds of title for which, may from
         time to time be held by the Lender, whether for safe-keeping or
         otherwise.

20.      MISCELLANEOUS

20.1     Time is of the essence as regards every obligation of the Borrower
         under this Agreement and the other Security Documents, but no delay or
         omission by the Lender to exercise any right, power or remedy vested in
         it under this Agreement or any other of the Security Documents or by
         law shall impair such right, power or remedy, or be construed as a
         waiver of, or as an acquiescence in, any default by the Borrower. If
         the Lender on any occasion agrees to waive any such right, power or
         remedy, such waiver shall not in any way preclude or impair any further
         exercise thereof or the exercise of any other right, power or remedy.
         Any waiver by the Lender of any provision of this Agreement or any
         other of the Security Documents, and any consent or approval given by
         the Lender, shall only be effective if given in writing and then only
         strictly for the purpose and upon the terms for which it is given.
         Neither this Agreement nor any of the other Security Documents may be
         amended or varied orally but only by an instrument signed by each of
         the parties thereto.

20.2     The rights, powers and remedies of the Lender contained in this
         Agreement and the other Security Documents are cumulative and not
         exclusive of each other nor of any other rights, powers or remedies
         conferred by law, and may be exercised from time to time and as often
         as the Lender may think fit.

20.3     If at any time one or more of the provisions of this Agreement or any
         other of the Security Documents is or becomes invalid, illegal or
         unenforceable in any respect under any law by

                                     - 29 -

<PAGE>

         which it may be governed or affected, the validity, legality and
         enforceability of the remaining provisions shall not be in any way
         affected or impaired as a result.

20.4     This Agreement may be executed in any number of counterparts and all
         such counterparts taken together shall be deemed to constitute but one
         and the same instrument.

21. FURTHER ASSURANCE

21.1     The Borrower shall, upon demand, and at its own expense, sign, perfect,
         do, execute and register all such further assurances, documents, acts
         and things as the Lender may require for the purpose of more
         effectually accomplishing or perfecting the transaction or security
         contemplated by this Agreement.

22.      NOTICES

22.1     All notices (which expression includes any demand, request, consent or
         other communication) to be given by one party to the other under this
         Agreement and the other Security Documents shall be in writing and
         (unless delivered personally) shall be given by telefax or first class
         pre-paid post (airmail if sent internationally) and be addressed:

         22.1.1     in the case of the Lender, as follows:

                    1A, Majesty Building,
                    138 Pu Dong Road,
                    Shanghai, PRC
                    Attn. Mr. Ryan Pan / Mr. Zhao Lei

                    Fax No.: 86-21-58885977

         22.1.2     in the case of the Borrower, as follows:

                    5F, 950 Dalian Road,
                    Shanghai, PRC
                    Attn. Mr. Li Guang

                    Fax No.: 86-21-65869076

22.2     If either the Lender or the Borrower wishes to change its address for
         communication, the one shall give to the other not less than five (5)
         Banking Days' notice in writing of the change desired.

                                     - 30 -

<PAGE>

22.3     Notices to the Borrower addressed as provided above shall be deemed to
         have been duly given when despatched (in the case of telex and
         telefax), when delivered (in the case of personal delivery), two (2)
         days after posting (in the case of letters sent within the same
         country), or five (5) days after posting (in the case of letters sent
         internationally). Notices to the Lender shall be effective only upon
         their actual receipt by the Lender. In each of the above cases any
         notice received on a non-working day or after business hours in the
         country of receipt shall be deemed to be given on the next following
         working day in such country.

22.4     All notices and documents to be given or delivered pursuant to or
         otherwise in relation to this Agreement and the other Security
         Documents shall be in the English language or be accompanied by a
         certified English translation.

23. APPLICABLE LAW AND JURISDICTION

23.1     This  Agreement shall  be governed by and  construed in accordance with
         PRC law.

23.2     The Borrower irrevocably agrees for the exclusive benefit of the Lender
         that the PRC courts shall have non-exclusive jurisdiction in relation
         to any dispute and any suit, action or proceeding (referred to together
         in this Clause 23 as "Proceedings") which may arise out of or in
         connection with this Agreement and/or any of the other Security
         Documents, and for such purposes irrevocably submits to the
         jurisdiction of such courts.

23.3     The Borrower irrevocably agrees:

         23.3.1     that, for the purpose of Proceedings in the PRC, any
                    summons, writ or other legal process may be served upon
                    YONGZHENG INERNATIONAL MARINE HOLDINGS CO., LTD., a company
                    incorporated in the PRC with its registered office at 5F,
                    950 Dalian Road, Shanghai, PRC who is authorised to accept
                    service on behalf of the Borrower, which shall be deemed to
                    be good service on the Borrower; and

         23.3.2     that throughout the Security Period the Borrower will
                    maintain a duly appointed process agent in Hong Kong, duly
                    notified to the Lender, and that failure by any such process
                    agent to give notice thereof to the Borrower shall not
                    impair the validity of such service or of a judgment or
                    order based thereon.

23.4     Nothing in this Clause 23 shall affect the right of the Lender to serve
         process in any manner permitted by law or limit the right of the Lender
         to take Proceedings against the Borrower in any other court of
         competent jurisdiction, nor shall the taking of Proceedings in one or
         more jurisdictions preclude the taking of Proceedings by the Lender in
         any other jurisdiction, whether concurrently or not.

                                     - 31 -

<PAGE>

23.5     The Borrower irrevocably waives any objection which it may now or
         hereafter have on the grounds of inconvenient forum or otherwise to
         Proceedings being brought in any such court as is referred to in this
         Clause 23, and further irrevocably agrees that a judgment or order in
         any Proceedings brought in the PRC courts shall be conclusive and
         binding upon the Borrower and may be enforced without review in the
         courts of any other jurisdiction.

23.6     The Borrower consents generally in respect of any Proceedings arising
         out of or in connection with this Agreement and/or any of the other
         Security Documents to the giving of any relief or the issue of any
         process in connection with such Proceedings, including, without
         limitation, the making, enforcement or execution against any property
         or assets whatsoever of any order or judgment which may be made or
         given in such Proceedings.

23.7     To the extent that the Borrower may be entitled in any jurisdiction to
         claim for itself or its property or assets immunity in respect of its
         obligations under this Agreement and/or any of the other Security
         Documents from service of process, jurisdiction, suit, judgment,
         execution, attachment (whether before judgment, in aid of execution or
         otherwise) or legal process, or to the extent that in any such
         jurisdiction there may be attributed to it or its property or assets
         such immunity (whether or not claimed) the Borrower irrevocably agrees
         not to claim and irrevocably waives such immunity to the fullest extent
         permitted by the laws of such jurisdiction.

24. AGENTS AND REPRESENTATIVES IN PANAMA

24.1     The Owner and the Mortgagee each confer a special power of attorney
         with right of substitution upon all partners from time to time of
         Messrs. Holman Fenwick & Willan and Messrs. Morgan & Morgan, empowering
         any such partners to take all necessary steps to record this instrument
         of mortgage in the appropriate registry, and to make any and all
         amendments to this Mortgage which such firms or any such partners may
         deem necessary or expedient for such registration.

AS WITNESS the hands of the duly authorised representatives of the parties
hereto the day and year first before written.

SIGNED for and on behalf of YONGCHEN )                YONGCHEN INTERNATIONAL
INTERNATIONAL SHIPPING LIMITED by )                  SHIPPING LIMITED (Stamp)
ZHANG XIN YU, its duly authorised director )             /S/ XINYU ZHANG

                                     - 32 -

<PAGE>

Whose signature is verified by:          )
HENRY CM FUNG
Sollictor, HongKong SAR
c/o Holman, Fenwick & Willian (Stamp)

HENRY FUNG

SIGNED for and on behalf of XIAMEN       )            XIAMEN INTERNATIONAL BANK
INTERNATIONAL BANK, SHANGHAI             )             SHANGHAI BRANCH  (Stamp)
BRANCH by ZHU Jian Wu, its duly          )                   /S/ RYAN PAN
authorised signatory whose signature is  )
verified by                              )

HENRY CM FUNG
Sollictor, HongKong SAR
c/o Holman, Fenwick & Willian (Stamp)

HENRY FUNG

                                     - 33 -

<PAGE>

                     Yongchen International Shipping Limited

                                16B, EIB Centre,

                                40 Bonham Strand,

                                    Hong Kong

To:    Xiamen International Bank (Shanghai Branch)
       1A, Majesty Building,
       138 Pu Dong Road,
       Shanghai,

       PRC

         (By post)

Attn. Mr. Ryan Pan

Dear Sirs,

Re:    M.V. "Qian Yin" - US$1,200,000 Loan Agreement dated 10th August 2006

We are the Borrower under the captioned Loan Agreement.

Reference is made to the negative undertakings under Clause 14.2 of the Loan
Agreement; particularly sub clauses 14.2.1, 14.2.7, 14.2.8, 14.2.9, 14.2.10 and
14.2.11.

Owing to the business development and possible company restructure and possible
listing of our holding company, we would like to remove these clauses in the
Loan Agreement (and other relevant loan documentation).

If you need further documents / information, please contact our Mandy Guo at
(86) 21 - 55958601 ext 833.

Please confirm your agreement below.

Dated the 10th day of December 2006.

Yours faithfully,

FOR AND ON BEHALF OF
YONGCHEN INTERNATIONAL SHIPPING LIMITED (Stamp)

/S/ XINYU ZHANG
----------------------------------
For and on behalf of
Yongchen International Shipping Limited

                                                                       Agreed by
                                                       XIAMEN INTERNATIONAL BANK
                                                         SHANGHAI BRANCH (Stamp)

                                                                    /S/ RYAN PAN
                                  ----------------------------------------------
                                                            For and on behalf of
                                     XIAMEN INTERNATIONAL BANK (SHANGHAI BRANCH)

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