Document:

<PAGE>
                                                                     EXHIBIT 4.3

                         KINDER MORGAN MANAGEMENT, LLC
                         Certificate Evidencing Shares
                Representing Limited Liability Company Interests

No.______                                                    ____________ Shares

         KINDER MORGAN MANAGEMENT, LLC, a Delaware limited liability company
(the "Company"), hereby certifies that _________________________________________
(the "Holder") is the registered owner of ___________________ Listed Shares
representing limited liability company interests in the Company (the "Listed
Shares") transferable on the books of the Company, in person or by duly
authorized attorney, upon surrender of this Certificate properly endorsed. The
designations, preferences and relative, participating, optional or other special
rights, powers and duties relating to the Listed Shares are set forth in, and
this Certificate and the Listed Shares represented hereby are issued and shall
in all respects be subject to the terms and provisions of, the Amended and
Restated Limited Liability Company Agreement of KINDER MORGAN MANAGEMENT, LLC,
as amended, supplemented or restated from time to time (the "Agreement"). Copies
of the Agreement are on file at, and will be furnished without charge on
delivery of written request to the Company at, the principal office of the
Company.

         This Certificate shall not be valid for any purpose unless it has been
countersigned and registered by the Transfer Agent of the Listed Shares.

         Witness the facsimile signatures of the duly authorized officers of the
Company.

Dated:
      ------------------------------

COUNTERSIGNED AND REGISTERED:

EQUISERVE TRUST COMPANY, N.A.
TRANSFER AGENT AND REGISTRAR                By:
                                               -------------------------------
                                                     CHAIRMAN OF THE BOARD

By:                                         By:
   ----------------------------------           -------------------------------
         AUTHORIZED SIGNATURE                               SECRETARY

                            [Reverse of Certificate]

         Capitalized terms used in this paragraph but not defined shall have the
meaning given to them in the Agreement. The Holder, by accepting this
Certificate, is deemed to have (i) executed and agreed to comply with, and to
become bound by, the Agreement; (ii) represented and warranted that the Holder
has all right, power and authority and, if an individual, the capacity necessary
to enter into the Agreement; (iii) appointed any Person duly authorized by the
Board of Directors to act as the true and lawful representative and
attorney-in-fact of the Holder, in the name, place and stead of the Holder, to
make, execute, sign, deliver and file (a) any amendment of the Organizational
Certificate, (b) any amendment to the Agreement, including any amendment to the
Purchase Provisions, made in accordance with the terms of the Agreement, and (c)
all such other instruments, documents and certificates that may from time to
time be required by Law to effectuate, implement and continue the valid and
subsisting existence of the Company or for any other purpose consistent with the
Agreement and the transactions contemplated thereunder; (iv) given the powers of
attorney provided for in the Agreement; and (v) made the waivers and given the
consents and approvals contained in the Agreement.

         The Company will furnish without charge to any shareholder requesting
the same a statement setting forth the powers, designations, preferences and
relative, participating, optional or other special rights of each class of its
shares or series thereof and the qualifications, limitations or restrictions of
such preferences or rights. Such request may be made to the office of the
Secretary of the Company or to the Transfer Agent.

         The following abbreviations, when used in the inscription on the face
of this Certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common         UNIF GIFT MIN ACT - ______Custodian______
TEN ENT - as tenants by the entireties                     (Cust)        (Minor)
JT TEN -  as joint tenants with right                      under Uniform Gifts
          of survivorship and not as                       to Minors Act _______
          tenants in common                                              (State)

                                       TOD -           transfer on death
                                                       ________ TOD ____________
                                                        (owner)    (beneficiary)

                                                       subject to STA TOD rules

    Additional abbreviations may also be used though not in the above list.

                                   STOCK POWER

For value received, _________________________________________ hereby sells,
assigns and transfers unto ____________________________________________________
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF
ASSIGNEE, AND PLEASE INSERT SOCIAL SECURITY OR OTHER TAXPAYER IDENTIFYING NUMBER
OF ASSIGNEE) ___________________ Listed Shares represented by the within
Certificate, and does hereby irrevocably constitute and appoint
_________________________ Attorney to transfer the said Listed Shares on the
books of the within named Company with full power of substitution in the
premises.

Dated,
      ------------------------------

NOTICE:

THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME(S) AS WRITTEN
UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR WITHOUT ALTERATION OR
ENLARGEMENT OR ANY CHANGE WHATEVER. SIGNATURE(S) MUST BE GUARANTEED BELOW.

<PAGE>

-----------------------------------------
(SIGNATURE)

-----------------------------------------
(SIGNATURE)

SIGNATURE(S) GUARANTEED BY:
                           -----------------------------------------

ALL SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH
MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO
S.E.C. RULE 17Ad-15.<PAGE>

                      4.1 Naval Materiel Command, Denmark
                                    Contract

<PAGE>

                                    [GRAPHIC]

                               Contract No. X0132

                                     between

                         NAVAL MATERIEL COMMAND, DENMARK

                                       and

                              offshore systems ltd.
                            107 - 930 West 1st Street
                    North Vancouver, British Columbia V7P 3N4
                                     Canada

                                   concerning

                     The supply, installation and testing of
            Electronic Chart Display and Information System (ECDIS),
                      Automatic Radar Plotting Aids (ARPA),
                            Navigation Computer (NC)
                         and Voyage Data Recorder (VDR)

This Contract, comprising 27 numbered pages containing Clauses 1 through 28, the
terms and conditions of which are the only valid ones, and Appendices 1 through
8, is issued in 2 original copies, which are distributed as follows:
Copy No. 1: NAVAL MATERIEL COMMAND, DENMARK
Copy No. 2: OFFSHORE SYSTEMS LTD.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -2-

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                           <C>
CLAUSE 1: EFFECTIVE DATE OF CONTRACT...........................................................4

CLAUSE 2: SCOPE OF CONTRACT AND CONTRACT PRICE.................................................4

   2.1      Scope of Contract..................................................................4
   2.2      Contract Price.....................................................................4

CLAUSE 3: OPTIONS..............................................................................5

CLAUSE 4: TERMS OF DELIVERY....................................................................6

   4.1      Time of Delivery...................................................................6
   4.2      Place of Delivery and Shipping Instructions........................................6
   4.3      Packing/Packing List/Proforma Invoice/Consignment Note.............................6

CLAUSE 5: TERMS OF PAYMENT.....................................................................7

   5.2      Invoices...........................................................................8
   5.8      Advance Payment Guarantee..........................................................9

CLAUSE 6: DELAY IN DELIVERY...................................................................10

   6.1      General...........................................................................10
   6.2      Penalty and Interest On Advance Payment...........................................10
   6.3      Adjustments Due to Variation in Rates of Exchange.................................11
   6.4      Price Adjustments.................................................................11
   6.5      Force Majeure.....................................................................11

CLAUSE 7: MODIFICATIONS.......................................................................12

CLAUSE 8: PROGRESS MEETINGS AND STATUS........................................................13

   8.1      Post-Contract Award Meeting.......................................................13
      8.1.1     Purpose.......................................................................13
      8.1.2     Methods.......................................................................13
   8.2      Quarterly Progress Meetings.......................................................14

CLAUSE 9: QUALITY ASSURANCE AND WEAPON SAFETY.................................................14

CLAUSE 10: ACCEPTANCE TESTS...................................................................16

CLAUSE 11: WARRANTY...........................................................................18

CLAUSE 12: SPARE PARTS........................................................................19

CLAUSE 13: RIGHTS OF PATENTS AND LICENSES.....................................................20

CLAUSE 14: SUB-CONTRACTORS....................................................................21

CLAUSE 15: CHANGE OF CONTRACT.................................................................21

CLAUSE 16: TERMINATION OF CONTRACT............................................................21

   16.1     Form NMC Convenience..............................................................21
   16.2     For CONTRACTOR's Default..........................................................22
</TABLE>

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -3-

<TABLE>
<S>                                                                                           <C>
CLAUSE 17A: DISAGREEMENTS AND DISPUTES........................................................23

CLAUSE 17B: NOT VALID.........................................................................24

CLAUSE 18: MOST FAVOURED CUSTOMER CLAUSE .....................................................24

CLAUSE 19: SECURITY...........................................................................24

CLAUSE 20: NATO CODIFICATION..................................................................25

CLAUSE 21: SECRECY............................................................................25

CLAUSE 22: TRANSFER OF CONTRACT...............................................................25

CLAUSE 23: CONTRACT LANGUAGE..................................................................25

CLAUSE 24: PUBLIC ANNOUNCEMENTS...............................................................26

CLAUSE 25: NOTICES............................................................................26

CLAUSE 26: VERIFICATION.......................................................................26

CLAUSE 27: PRECEDENCE.........................................................................27

CLAUSE 28: SIGNATURES.........................................................................27
</TABLE>

Appendix   1a:   SPECIFICATION OF SCOPE OF CONTRACT AND CONTRACT PRICE
Appendix   1b:   SPECIFICATION OF SCOPE OF CONTRACT AND TIME OF DELIVERY
Appendix   1c:   SPECIFICATION OF SCOPE OF CONTRACT AND CONTRACT PRICE FOR
                 OPTIONS
Appendix   2:    TECHNICAL SPECIFICATIONS
Appendix   3:    NATO CODIFICATION CLAUSE
Appendix   4:    NMC SECURITY ASPECTS LETTER
Appendix   5:    CONTRACT PRICE ADJUSTMENT TERM
Appendix   6:    ADVANCE PAYMENT GUARANTEE
Appendix   7:    NOT USED
Appendix   8:    SHIPPING INSTRUCTIONS

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -4-

CLAUSE 1: EFFECTIVE DATE OF CONTRACT

With effect from the latest date of signature of this Contract has been made by
and entered into between

          Naval Materiel Command
          Danneskiold-Samsoes Alle 1
          Holmen
          DK - 1434 Copenhagen K
          Denmark

     as buyer, hereinafter called NMC, and

          offshore systems ltd.
          107 - 930 West 1st Street
          North Vancouver
          British Columbia V7P 3N4
          Canada

     as seller, hereinafter called the CONTRACTOR.

CLAUSE 2: SCOPE OF CONTRACT AND CONTRACT PRICE

2.1  Scope of Contract

     The CONTRACTOR agrees to sell and deliver and NMC to buy and take delivery
     of the equipment specified in Appendix 1a and Appendix 1b, the technical
     specifications of which shall be in accordance with Appendix 2.

2.2  Contract Price

2.2.1 The total Contract Price stated in Appendix 1a,

          USD 2.975.681,00

     In words: Two million nine hundred and seventy five thousand six hundred
     and eighty one 00/100 US dollars

     which is at July 2001 price level, is valid for delivery FOB CONTRACTOR's
     or SUBCONTRACTOR'S facilities after CONTRACTOR's choice (INCOTERMS 2000),
     unless otherwise stated in this Contract, and shall be subject to price
     adjustment in accordance with the terms herefore set forth in Appendix 5.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -5-

2.2.2 Taxes and Duties

     a.   With the exception of the taxes, duties and other fees mentioned in b
          below, any taxes, duties and other fees, including Danish Value Added
          Tax (MOMS), which may be or become payable in connection with the
          legalization and performance of this Contract, shall be payable by
          that party in whose country the said taxes, duties and other fees etc.
          originate.

     b.   NMC will not reimburse the CONTRACTOR or his representative(s) for
          personal taxes, taxes, duties and other fees, including MOMS, levied
          on transportation, accomodation, living expenses and other personal
          expenses paid, or to be paid, by the CONTRACTOR or his
          representative(s) during their possible stay in Denmark in connection
          with the performance of this Contract.

     c.   Taxes, duties and other expenses to be paid in connection with
          CONTRACTOR's possible temporary importation into Denmark of tools and
          other equipment to be used by the CONTRACTOR in fulfilling his
          obligations under this Contract, and to which title remains with the
          CONTRACTOR, shall be of no concern of NMC.

CLAUSE 3: OPTIONS

3.1  The CONTRACTOR hereby grants NMC the option to buy the additional equipment
     specified as optional in Appendix 1c.

3.2  The optional equipment shall be delivered to the same standard as is valid
     for the equipment purchased under this Contract, with the exception of such
     changes and/or modifications, however, which the CONTRACTOR may have
     introduced to the equipment with the approval of NMC in accordance with
     Clauses 7 and 15 below.

3.3  Furthermore, the following terms and conditions for the options shall
     apply:

     a.   NMC right to exercise the options will expire Dec 31, 2005.

     b.   A possible exercise of the options by NMC shall be made by an order in
          writing in the form of an Addendum to this Contract.

     c.   The option prices will be adjusted in accordance with the terms and
          conditions herefore laid down in Appendix 5 hereto and could be
          discussed based upon price level at the time of ordering.

     d.   The terms and conditions agreed upon in this Contract shall apply for
          any of the options exercised by NMC prior to the expiration date
          stated in para 3.3.a above.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -6-

CLAUSE 4: TERMS OF DELIVERY

4.1  Time of delivery

4.1.1 Delivery of the equipment purchased under this Contract shall take place
     in accordance with the dates of delivery stated in Appendix 1.

4.1.2 The time of delivery of the optional equipment shall be not later than 3
     months after the CONTRACTOR's receipt of NMC written order.

4.1.3 Unless otherwise stated in this Contract, delivery shall be deemed to have
     taken place when an item of this Contract, together with all the documents
     called for in this Contract, including Acceptance Test Certificate(s), has
     been delivered FOB CONTRACTOR's or SUBCONTRACTOR'S facilities after
     CONTRACTOR's choice (INCOTERMS 2000).

4.2  Place of Delivery and Shipping Instructions

4.2.1 Each shipment of equipment to be made by the CONTRACTOR under this
     Contract shall be marked "CONTRACT NO. X0132" and be addressed to:

     Naval Base Frederikshavn
     Forsyningsafdelingen
     Varemodtagelsen
     Materieidepot Bangsbo
     Vrangbaekvej 109
     DK - 9900 Frederikshavn

     or

     Naval Base Korsoer
     Forsyningsdepot NORET
     Varemodtagelsen
     Norvangen 23
     DK - 4220 Korsoer.

4.2.2 Unless otherwise agreed in writing, each shipment shall take place as
     stated in the enclosed shipping instructions.

4.2.3 In order to ensure the best transport planning the CONTRACTOR shall notify
     NMC freight forwarding agent in due time prior to delivery by telex or
     telefax with info copy to NMC.

4.2.4 Partial delivery of an item/system under this Contract will not be
     allowed.

4.2.5 Shipment shall take place by air freight, truck, railway or ocean freight.

4.3  Packing/Packing List/Proforma Invoice/Consignment Note.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -7-

4.3.1 The CONTRACTOR shall be responsible for ensuring adequate packing of the
     equipment in order to withstand the mode of transportation stated in para
     4.2.5 above.

4.3.2 Should any query be raised with respect to the suitability of packing when
     delivery is in process, delivery cannot be considered to have taken place
     before the packing has been found acceptable by NMC or NMC freight
     forwarding agent.

4.3.3 The Packing List shall contain the following information:

     a.   Contract number.

     b.   The item number(s) and description as stated in Appendix 1.

     c.   The number of packages and their weight.

4.3.4 Two copies of the Packing List are required as follows:

     a.   One copy shall be packed with the equipment.

     b.   One copy shall be securely fastened to the outside of the packing.

4.3.5 Two copies of the Packing List and the Proforma Invoice for customs
     purposes shall under separate cover be forwarded to the address stated in
     para 4.2.1 above.

4.3.6 Certificates of Conformity issued in accordance with Clause 9 below shall
     be attached to the Packing List packed with the equipment as per para
     4.3.4.a above.

4.3.7 Consignment Note, Bill of Lading or Air Waybill, as applicable, and the
     Proforma Invoice shall make reference to NMC SE No. stated in the enclosed
     Appendix 8.

CLAUSE 5: TERMS OF PAYMENT

5.1  Payment of the Total Contract Price stated in para 2.2 above will by NMC be
     made in accordance with the following payment schedule:

5.1.1 44% of the Total Contract Price equal to USD 1.309.299,60 will be paid to
     the CONTRACTOR within 30 days when all of the following events have taken
     place:

     a.   Signing of the Contract.

     b.   NMC receipt of CONTRACTOR's invoice in triplicate.

     c.   NMC receipt of CONTRACTOR's advance payment guarantee which shall be
          in accordance with the provisions of para 5.8 below and in the form
          shown in Appendix 6.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -8-

5.1.2 The balance of the Total Contract Price will be paid within 30 days when
     all of the following events have taken place:

     a.   Delivery in accordance with Clause 4 above.

     b.   NMC receipt of correct invoice in triplicate in accordance with the
          provisions of para 5.2 below.

5.1.3 The CONTRACTOR will raise a guarantee for the first system of each type,
     Large System, Medium System and Small System. These guaranties will be
     returned to the CONTRACTOR when each system has been approved in a Sea
     Acceptance Test (SAT).

5.2  Invoices

5.2.1 The invoices shall reference to the Contract No. and the item numbers
     stated in Appendix 1a, as well as NMC SE No stated in the enclosed
     Appendix 8.

5.2.2 The following documents shall be attached to the invoices:

     a.   Documentation of the exact time of delivery in the form of a copy of
          NMC freight forwarding agents receipt or similar proof of delivery.

     b.   Copies of duly signed Acceptance Test Certificates issued in
          accordance with para 10.7 below.

     c.   Copy of the Packing List.

5.3  If an invoice should not be in accordance with the conditions stated in
     para 5.2 above, NMC shall have the right to reject and subsequently return
     the invoice as being incorrect.

5.4  All payments to be made by NMC under the terms and conditions of this
     contract shall be made in USD by telegraphic transfer to CONTRACTOR's
     Account No. as stated in each of CONTRACTOR's invoices.

5.5  A payment made by NMC under the terms and conditions of this Contract shall
     not in any way constitute NMC acceptance of the equipment.

5.6  The invoices, advance payment guarantee and the documents called for in
     this Clause 5 shall be addressed and forwarded to:

     Naval Materiel Command, Denmark
     Danneskiold-Samsoes Alle 1
     Economy Department
     Holmen
     DK - 1434 Copenhagen K.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -9-

5.7  Payment of an invoice shall be deemed to have taken place when the amount
     invoiced has been remitted by NMC.

5.8  Advance Payment Guarantee

5.8.1 Prior to NMC making the advance payment agreed in para 51.1 above,
     CONTRACTOR shall for the amount furnish a guarantee issued by a finance
     house (bank, insurance company etc.) subject to NMC approval.

5.8.2 The guaranteed amount, with the addition of interest corresponding to the
     amount of interest earned by CONTRACTOR minus financing fee, calculated
     from the date of NMC making such advance payment to the date of return,
     shall, without legal proceedings, be payable upon NMC demand and
     presentation of the guarantee to the finance house.

5.8.3 Furthermore the guarantee shall contain provisions as to NMC right to
     give CONTRACTOR a respite with regard to the time of delivery and to
     otherwise change the provisions of the present agreement without this
     having any effect on the extent and the validity of the guarantee.

5.8.4 In case the guarantee is made payable in accordance with para 5.8.2 above,
     the amount to be repaid to NMC shall never be less than the amount in USD,
     paid by NMC to cover the advance payment.

5.8.5 The guaranteed amount will be reduced pro rata concurrently with
     CONTRACTOR's effectuation of contractual deliveries. Reduction of the
     guarantee shall take place upon NMC written notice to the bank or insurance
     company etc. of issue. Such notice will be forwarded immediately after NMC
     payment of the invoice in question.

5.8.6 The guarantee shall remain valid until reduced to nil or otherwise
     released by NMC in writing.

5.8.7 The costs of establishment and maintenance of the guarantee shall be borne
     by the CONTRACTOR.

5.8.8 To the extent necessary and in conformity with general principles of
     monetary law, it is to be emphasized that debts for money due, denominated
     and/or payable hereunder in a currency of a Member State of the European
     Union (National Currency Unit) shall automatically be deemed to be
     nominated and/or payable in the single European currency at such time as
     the National Currency Unit ceases to be legal tender or, more generally, is
     replaced by the single European currency pursuant to the applicable
     European Union and/or national laws.

     The rate and the conditions for the conversion of the National Currency
     Unit shall be those resulting from the applicable provisions of Article
     109.L of the European Treaty.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -10-

CLAUSE 6: DELAY IN DELIVERY

6.1  General

6.1.1 CONTRACTOR shall immediately notify NMC in writing as soon as he comes
     aware of any circumstances which are likely to give rise to delay in
     delivery and, at the same time, advise NMC the reasons for and the
     anticipated duration of the delay.

6.1.2 CONTRACTOR shall take such steps as he is able to in order to shorten any
     delay, so that the effect of the delay may be mitigated as much as possible
     for NMC.

6.1.3 No delay in delivery, apart from delay due to NMC failure to fulfil its
     obligations under the Contract, Force Majeure or approved by NMC, shall
     result in higher prices or costs for NMC than if delivery had taken place
     in accordance with the contractual date of delivery.

6.2  Penalty and Interest on Advance Payment

6.2.1 Furthermore, CONTRACTOR undertakes to pay a penalty corresponding to 2% of
     the contract value of the supplies delayed, adjusted in accordance with the
     terms and conditions set forth in Appendix 5. The penalty shall be
     calculated for each commenced 7-day period beginning from the first
     calendar day of the delay. The penalty, however, shall not exceed 10% of
     the Total Contract Price untill the prototypes has been supplied and
     approved by both parties. After that the penalty shall not exceed 10% of
     the contract value of the supplies delayed.

6.2.2 If the delay of any supplies, which the CONTRACTOR has undertaken to
     deliver in accordance with the present Contract, results in the
     inapplicability of already delivered supplies, the penalty shall also be
     calculated on the adjusted contract value of the supplies which cannot be
     used on account of the delay.

6.2.3 Furthermore, and in addition to the penalty mentioned above, CONTRACTOR
     shall, for the period of delay, pay an interest on the part of any advance
     payment received related to the non-adjusted contract value of the supplies
     delayed. The interest shall be calculated at the amount of interest earned
     by CONTRACTOR minus financing fee.

6.2.4 NMC shall have the right, without legal proceedings, to deduct the penalty
     and possible interest in any payments to be made to CONTRACTOR after
     CONTRACTOR has been notified.

6.2.5 Upon NMC claim for penalty and interest, NMC shall be under no obligation
     to document any loss and damage suffered by NMC on account of the delay.
     NMC will, however, furnish the CONTRACTOR with a specified statement as to
     how the penalty and interest have been calculated.

6.2.6 In case NMC can document that the sum of loss and damage suffered by NMC
     dire to the delay is greater than the sum of the calculated penalty, NMC
     shall, as

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -11-

     an alternative to accrued penalty, have the right to claim for loss and
     damage corresponding to the loss and damage thus documented.

6.3  Adjustments due to Variation in Rates of Exchange

6.3.1 In case the Contract Price is expressed in a foreign currency and/or
     includes reservations for changes in rates of exchange between a foreign
     currency and DKK, settlement will, in the event of delay in delivery, take
     place as follows:

     a.   If the rate of exchange on the actual day of settlement depart from
          the rate of exchange on the day of settlement stipulated in the
          Contract (contractual day of delivery + days of credit), settlement
          will be made at the rate of exchange quoted on the day of settlement
          stipulated by the Contract.

     b.   NOT VALID

     c.   The rate of exchange shall he defined as the official rate of exchange
          quoted by Denmarks National Bank an the day in question.

6.4  Price Adjustments

     The provisions for price adjustment in case of delay in delivery are set
     forth in Appendix 5.

6.5  Force Majeure

6.5.1 If the delay in delivery is due to circumstances which have prevented
     CONTRACTOR from making delivery on time and which are of such nature which
     he could not reasonably have foreseen at the time of contract signature,
     and if CONTRACTOR's documentation herefore is approved by NMC, the time of
     delivery will be extended by a period by which delivery is delayed due to
     Force Majeure, and the contractual date of delivery will be amended
     accordingly.

6.5.2 NMC approval of a delay as being due to Force Majeure shall be subject to
     CONTRACTOR's fulfilment of the following conditions:

     a.   CONTRACTOR's notification in writing to NMC immediately after the
          Force Majeure situation has been ascertained informing NMC of the
          basis for and, if possible, the anticipated duration of the Force
          Majeure situation and stating the measures taken by CONTRACTOR to put
          the Force Majeure situation to an end.

     b.   CONTRACTOR's submittal of documentation supporting his claim of Force
          Majeure. Such documentation shall, on CONTRACTOR's own initiative, be
          forwarded to NMC no later than 30 working days after the Force
          Majeure situation has been ascertained.

     c.   CONTRACTOR's update of the Force Majeure situation every second week
          in order to be kept informed about the duration of the delay including
          the measu-

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -12-

          res taken to shorten and to eliminate the delay. Such periodical
          updates shall, on CONTRACTOR's own initiative, be forwarded to NMC and
          shall not in any way be a burden to NMC.

6.5.3 NMC will not accept a delay in delivery to the CONTRACTOR from one of his
     sub-contractors as being due to Force Majeure unless the sub-contractor can
     plead Force Majeure in accordance with the provisions of, and on the same
     conditions as stipulated in this para 6.5.

6.5.4 If the delay in delivery is deemed to be due to Force Majeure, CONTRACTOR
     will be exempted from paying penalty, loss and damage and interest.

6.5.5 CONTRACTOR's exemption from paying interest, however, assumes that
     CONTRACTOR can prove that the advance payment has been used for the
     delivery to this effect from a chartered accountant.

6.5.6 The provisions for price adjustment in case of delay in delivery due to
     Force Majeure are set forth in Appendix 5.

CLAUSE 7: MODIFICATIONS

7.1  CONTRACTOR shall have the right to incorporate such modifications to the
     equipment, as he may deem advisable for facilitating the manufacture of the
     equipment provided always that:

     a.   no such modification must/shall affect the interchangeability of parts
          within the equipment.

     b.   no such modification must/shall degrade the performance of the
          equipment.

     c.   no such modification must/shall affect the price or the time of
          delivery of the equipment.

     d.   in the event of any such modification affecting the technical
          specifications and/or -drawings etc., CONTRACTOR shall obtain NMC
          acceptance in writing of such modifications and of such changes to the
          specifications, publications, drawings and diagrams etc..

7.2  In case the CONTRACTOR during the contract period becomes aware of any
     information or develops changes or improvements, which have, or could have,
     an effect on the equipment to be delivered under this Contract, the
     CONTRACTOR shall immediately notify NMC in writing thereof.

7.3  CONTRACTOR shall furthermore, for a period of 10 years after NMC acceptance
     of the equipment, notify NMC of improvements to the equipment as these
     become known to CONTRACTOR. Such information shall be forwarded to NMC in 2
     copies.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -13-

7.4  NMC may at any time during the contract period request modification of the
     equipment.

7.5  Upon CONTRACTOR's receipt of NMC written request for a modification,
     CONTRACTOR shall, as soon as possible, inform NMC of any changes in costs
     and/or in the time of delivery such modification will involve, whereupon
     NMC, within a reasonable time, will inform CONTRACTOR whether the
     modification shall be performed or not.

7.6  In the event that NMC accepts CONTRACTOR's conditions for a modification, a
     formal contract change shall be established in accordance with Clause 15
     below.

7.7  All equipment delivered under this Contract shall be of the same
     modification standard.

CLAUSE 8: PROGRESS MEETINGS AND STATUS

8.1  Post-Contract Award Meeting

8.1.1 Purpose

     If NMC deems it useful the CONTRACTOR shall, upon NMC request, host a
     post-contract award meeting, the purpose of which is to ensure that both
     parties have a clear understanding of all contractual requirements and that
     NMC sees objective evidence that the CONTRACTOR is progressing in
     accordance with the Contract. Both parties undertake there own costs in
     connection with the progress meetings.

8.1.2 Methods

     a.   The post-contract award meeting will take place at CONTRACTOR's
          facilities at the time as may be requested by NMC.

     b.   The meeting shall be conducted with at least the following
          participation:

               i.   NMC:             Project Manager
                                     Quality Specialist
                                     Contracting Officer

               ii.  CONTRACTOR:      Project Manager
                                     Quality Manager

     c.   During the post-contract award meeting the CONTRACTOR shall present
          his:

               i.   Inspection Plan

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -14-

               ii.  Test Plan

               iii. Delivery Schedule showing the planned milestones for
                    production and purchase,

          and any other plans and subjects which the parties may deem relevant.

     d.   At the end of the post-contract award meeting, CONTRACTOR will make a
          report containing action items and decisions. The report shall be
          signed by a representative of each party.

8.2  Quarterly Progress Meetings

8.2.1 Progress meetings to be held between the parties subsequent to the
     post-contract award meeting mentioned in para 8.1 above shall, during the
     performance of this Contract, be held as frequently as may mutually be
     agreed, but not less frequent than every 3 months. The meetings shall take
     place at the most appropriate facility to be mutually agreed upon on a case
     by case basis.

8.2.2 In case the post-contract award meeting is not held in accordance with
     para 8.1 above, the CONTRACTOR shall 1 month after contract signing forward
     to NMC the plans and schedule mentioned in para 8.1.2.c above, and the
     first progress meeting shall be held as may mutually be agreed between the
     parties.

8.2.3 The CONTRACTOR shall, 1 week prior to the scheduled progress meetings,
     forward a Project Status Report to NMC for review. The Project Status
     Report shall contain information with regard to CONTRACTOR's progress in
     relation to the Delivery Schedule presented at the post-contract award
     meeting or submitted to NMC pursuant to para 8.2.2 above.

8.2.4 The results of the above-mentioned meetings shall be the CONTRACTOR be
     summarised in the form of "Minutes of Meeting" and forwarded to NMC for
     approval and/or commenting.

CLAUSE 9: QUALITY ASSURANCE AND WEAPON SAFETY

9.1  CONTRACTOR shall document and maintain a Quality Control Plan (QCP)
     acceptable to NMC for the supplies covered by this Contract. The QCP shall
     be in accordance with the requirements of ISO 9001.

9.2  NMC reserves the right, in accordance with STANAG 4107, to request the
     appropriate National Quality Assurance Authority to monitor that quality
     assurance is carried out in accordance with para 9.1 above.

9.3  Surveillance of CONTRACTOR's QCP will be performed by NMC or its
     authorized representative, who shall have the right to inspect and observe
     develop-

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -15-

     ment, work preparation and production, and any documentation relating
     thereto, in any plant or on any premises where work under this Contract is
     being performed in whole or in part. Government inspection and acceptance
     or NMC inspection and acceptance, as applicable, shall not relieve the
     CONTRACTOR from any of the obligations and responsibilities undertaken by
     him under this Contract, and omission of surveillance shall not in any way
     limit NMC rights.

9.4  CONTRACTOR shall prior to delivery provide objective evidence that parts,
     components, semi-manufactures articles or work conform to the requirements
     specified under this Contract. CONTRACTOR shall draw up and sign a
     Certificate of Conformity (COC) to certify that the supplies conform to the
     requirements of the Contract. The COC shall, if applicable, be presented to
     the Government Quality Assurance Representative (QAR). If the QAR can
     accept the supplies he will sign the COC to certify that the supplies have
     been subject to Government Quality Assurance. A copy of the signed COC
     shall follow the supplies to the place of delivery.

9.5  It shall be the responsibility of the CONTRACTOR to observe that the
     technical specifications regarding materials, form, fit, function and
     methods etc. are strictly followed by himself and possible sub-contractors.
     Where no specific requirements are stated, good industrial or craftsmanlike
     practice shall apply.

9.6  Supplies and materials, which do not conform to the requirements of the
     Contract, shall be segregated and reviewed by CONTRACTOR for disposition.
     If the non-conforming materials and supplies can be corrected by rework,
     CONTRACTOR may implement such rework - after acceptance by NMC - and
     record it for later reporting to NMC. NMC shall have the right to reject
     any such request and demand new conforming supplies and material at no
     additional costs for NMC.

9.7  CONTRACTOR shall upon NMC request provide information regarding
     sub-contracted supplies and materiel.

9.8  CONTRACTOR shall be responsible for ensuring that the relevant requirements
     of this Contract are contained in contracts with his sub-contractors and
     shall be liable for the quality of sub-contracted work and supplies to the
     same extent as for the quality of his own work and supplies. For this
     purpose the CONTRACTOR shall include the following clause in orders awarded
     to possible sub-contractors: "This order is in aid of our Contract No.
     X0132 with the NAVAL MATERIEL COMMAND, DENMARK (NMC) and may be subject to
     Government Quality Assurance Authority or its authorized representative,
     who will notify you of the Government Quality Assurance Activity to be
     performed. You are obliged to provide any assistance necessary for NMC
     representative in his performance of this responsibility in connection with
     this purchase order".

9.9  CONTRACTOR shall control changes in the technical documentation in relation
     to part and/or serial numbering (Configuration Control).

9.10 CONTRACTOR shall be responsible for establishing and maintaining a system
     whereby it shall be possible to trace individual items from the raw
     material

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -16-

     through all stages of manufacture to final delivery. This shall be
     documented by a record of all the items produced with their part and/or
     serial numbers.

9.11 CONTRACTOR shall, during the execution of work covered by this Contract,
     inspect and test raw materials, bought-in supplies, items under fabrication
     and finished articles in order to ensure that they meet the specified
     requirements. The results of such inspection and testing shall be recorded.
     Where required, prototypes or first articles of a lot shall be inspected
     and released by NMC or its authorized representative before production may
     be continued. CONTRACTOR shall also provide records of environmental and
     operational tests, where such tests are specified as being part of the
     contract work.

9.12 Records of manufacturing inspections and tests shall be stored by
     CONTRACTOR for period of 10 years after completion or termination of this
     contract.

9.13 NOT VALID

9.14 NOT VALID

9.15 NOT VALID

9.16 NOT VALID

9.17 NOT VALID

9.18 NOT VALID

CLAUSE 10: ACCEPTANCE TESTS

Factory Acceptance Testing (FAT)

10.1 The equipment to be delivered under this Contract shall prior to delivery
     be subject to FAT and, if applicable, be acceptance tested as a complete
     system, in order to verify that the equipment fulfils the technical
     specifications laid down in this Contract.

10.2 NMC shall have the right to witness the above-mentioned FAT.

10.3 Test specifications and test procedures, which shall include CONTRACTOR's
     detailed proposal for an Acceptance Test Programme (including
     specifications and procedures for Harbour Acceptance Testing (HAT) and Sea
     Acceptance Testing (SAT), as required), Test Protocol Format and Acceptance
     Test Certificate, test equipment to be used and dates for performing the
     FAT, shall be forwarded to NMC for approval and/or commenting 2 months in
     advance of the commencement of the FAT. NMC approval of and/or comments to
     CONTRACTOR's proposal will be forwarded to CONTRACTOR 2 weeks after NMC
     receipt of the proposal, so that agreement between the parties can be
     reached by not later than 1 month prior to the commencement of the FAT.
     CONTRACTOR shall

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -17-

     provide his own personnel and make the necessary test equipment available
     for the FAT. Test equipment used may be checked by NMC on request.

10.4 The dates for the FAT shall be so arranged as to permit the necessary work
     and travel to be performed in connection with the FAT, and as to allow for
     a reasonable estimated time to enable the delivery of the equipment to
     proceed in a timely manner. The CONTRACTOR shall, by telex or telefax 10
     working days before the date of the beginning of the FAT, confirm the dates
     agreed. The CONTRACTOR will be held responsible for the consequences in
     case he fails to notify NMC in accordance herewith. Should the agreed
     programme for the FAT slip resulting in a delay in delivery, such delay
     will be considered to be a delay under the terms of para 6.2 above.

10.5 Upon the arrival of NMC representative(s) to witness the FAT, the
     CONTRACTOR shall present the Test Protocol listing the equipment that has
     been successfully and completely tested by CONTRACTOR's Quality Control
     Department in accordance with the relevant technical specifications and
     requirements and thus found acceptable under the terms of this Contract.
     The Test Protocol shall be signed by the CONTRACTOR and, if applicable, by
     QAR.

10.6 The CONTRACTOR shall accept to perform any additional tests which NMC may
     require acting reasonable. However, if the results of these tests indicate
     that the item is in accordance with the relevant specifications, the
     CONTRACTOR may, subject to negotiations between the parties, claim the
     additional costs incurred. Delays in delivery of the equipment arising from
     the additional tests will be considered as being delays due to Force
     Majeure under the terms of para 6.5 above.

10.7 When CONTRACTOR has successfully demonstrated that the equipment fulfils
     the requirements of the relevant specifications and operates in accordance
     with the requirements of this Contract, he shall issue an Acceptance Test
     Certificate which shall be signed by the CONTRACTOR, whereafter the
     equipment shall be deemed to be ready for delivery.

10.8 In case the FAT results in the NMC rejection of the equipment because it
     does not meet the requirements of the relevant specifications, CONTRACTOR
     shall produce specific evidence of the remedial measures taken and of the
     consequent results obtained after the rejection before the equipment can be
     presented for a new FAT.

10.9 In case delays during FAT necessitate prolonged or further acceptance
     testing beyond the scope agreed to in the Acceptance Test Programme, NMC
     costs for direct travel, accomodation and subsistence expenses in
     connection with the additional test(s) shall be paid by the CONTRACTOR in
     accordance with the Danish Government standard rates for such costs and
     expenditures.

10.10 In case NMC fails to show up at CONTRACTOR's facilities at the
     commencement date of the FAT as mutually agreed in the Acceptance Test
     Programme, and if NMC absence continues for 10 working days, then the
     CONTRACTOR shall forward the Test Protocol described in para 10.5 above to
     NMC. If NMC has

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -18-

     made no specific objection to the contents of the Test Protocol within 10
     working days from NMC receipt of the same, then CONTRACTOR shall ship the
     equipment in accordance with the the terms of delivery stipulated in
     Clause 4.

10.11 NMC shall have the option to at any time to accept the equipment without
     going through the acceptance procedures set forth in this Clause 10, in
     which case the CONTRACTOR shall forward, not later than the agreed date for
     the commencement of FAT in the Acceptance Test Programme, the
     above-mentioned Test Protocol and ship the equipment in accordance with the
     terms of delivery stipulated in Clause 4 above.

HAT and SAT

10.12 Subsequent to delivery and installation of the equipment any HAT and SAT
     specified in the Acceptance Test Programme shall be performed by NMC under
     the responsibility and supervision of the CONTRACTOR.

10.13 CONTRACTOR shall be liable for the risk of loss of and damage to the
     equipment during the performance of HAT and SAT to the extent that loss of
     and damage to the equipment during the performance of HAT and SAT cannot be
     attributed to gross negligence on the part of NMC or NMC failure to follow
     CONTRACTOR's specific instructions which NMC under the given circumstances
     shall have a reasonable possibility to comply with.

CLAUSE 11: WARRANTY

11.1 The CONTRACTOR warrants the quality, materials, design, hardware and good
     workmanship of the equipment to be supplied by him under this Contract for
     a period of up to 12 months from the date of its completed installation or
     24 months after delivery (excl. backup batteries which will have a 12
     months warranty period), whichever period first expires.

11.2 The CONTRACTOR shall, at his own expense, correct, without delay, any
     defects in quality, materials, design, hardware and workmanship which are
     detected in any of the equipment supplied by him during the warranty
     period.

11.3 The defective equipment shall be returned for repair at Flaadestation
     Frederikshavn or Flaadestation Korsor. All transportation costs in
     connection with any warranty claim made by NMC sha11 be borne by the
     CONTRACTOR.

11.4 For equipment or parts thereof having been repaired or replaced, a new
     warranty period for 12 months from delivery shall apply.

11.5 Any defect resulting from normal wear or tear or improper use, installation
     or storage of the equipment by NMC within the warranty period, is not
     covered by the warranty.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -19-

11.6 NMC shall inform the CONTRACTOR in writing of any defect as soon as
     possible after its discovery.

11.7 In the event CONTRACTOR fails to fulfil his warranty obligations, NMC shall
     have the right to remedy or to have remedied the defect, in both cases for
     CONTRACTOR's account after this has been accepted by both parties.

11.8 The warranty shall not in any way be prejudiced by inspection, quality
     control or acceptance of the equipment.

CLAUSE 12: SPARE PARTS

12.1 The CONTRACTOR shall, for spare parts which may not already have been
     selected by NMC for delivery under this Contract, upon NMC request, offer
     spare parts in the form of a Spare Parts List containing the following
     information:

     .    Item number
     .    Description and type
     .    NATO stock number (where available)
     .    True manufacturer's part number
     .    True manufacturer's name and code
     .    Recommended quantity of on-board spares or depot level spares (if and
          as applicable)
     .    Calculated mean time between failure (where available)
     .    Unit prices
     .    Total price
     .    Remarks.

12.2 During a period of 5 years after NMC acceptance of the equipment, the
     CONTRACTOR undertakes to supply such spare and replacement parts as NMC may
     require to meet its needs for repair and replacement. Spare parts ordered
     from the CONTRACTOR pursuant hereto shall be supplied at prices, the
     calculation methods of which shall be the same as those used by the
     CONTRACTOR at the time of contract signature, and delivered at times to be
     agreed between the parties and otherwise upon the terms and conditions of
     this contract.

12.3 After the 5-year period mentioned above, the CONTRACTOR undertakes to
     inform NMC of any intention to cease the manufacture of such spare and
     replacement parts at least 6 months prior to such cessation. The CONTRACTOR
     shall, on terms to be agreed, accept final provisioning orders for such
     spares and replacement parts at least 3 months prior to such cessation.

12.4 The CONTRACTOR shall, in connection with NMC purchase of spare and
     replacement parts pursuant to this Clause 12, upon NMC request, host a
     spare parts provisioning conference at CONTRACTOR's facilities.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -20-

12.5 In case the CONTRACTOR fails to fulfil the obligations undertaken by him
     pursuant to paras 12.2 and 12.3 above, the economic costs should be
     discussed between the parties.

CLAUSE 13: RIGHTS OF PATENTS AND LICENSES

13.1 The CONTRACTOR guarantees that to the best of his knowledge at the time of
     signing the Contract he holds all patents and licenses required to fulfil
     his obligations under this Contract.

13.2 The CONTRACTOR undertakes to indemnify NMC in the event of any claim being
     made or action being brought against NMC in respect of infringements of
     patents, copyrights and licenses, owing to or arising from the performance
     of this Contract provided that:

     a.   CONTRACTOR be promptly notified in writing of any such claim or
          action,

     b.   CONTRACTOR be rendered such assistance from NMC as may be required in
          connection with the settlement of such claim or action,

     c.   the equipment has been used for the specific purpose for which
          CONTRACTOR supplied the same,

     d.   the infringement is not due to CONTRACTOR having followed a design or
          instructions furnished by NMC.

13.3 The CONTRACTOR shall he at liberty to contest any such claim or action or
     to conduct any negotiations for the settlement of the same in the name of
     NMC.

13.4 All charges and expenses arising from the above-mentioned obligations
     including NMC expenses for legal advice and technical assistance shall be
     discussed beetwen the parties.

13.5 CONTRACTOR accepts to transfer the Source Code for non-standard software to
     NMC (including software developed against NMC specifications and payed by
     NMC) or to deposit it on NMC account.

13.6 CONTRACTOR accept to give NMC a non-exclusive ownership for all nonstandard
     documentation and software (including software developed against NMC
     specifications and payed by NMC) for use within The Danish Defence
     (described in Enclosure No. 5). This ownership should give NMC the right to
     copy the documentation and software without limit for use within The Danish
     Defence.

13.7 CONTRACTOR accept that NMC after negotiations will have the freedom to
     purchase replacement- and spareparts direct at the subcontractor after
     expiration of the contract and any amendments thereto.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -21-

CLAUSE 14: SUB-CONTRACTORS

14.1 The CONTRACTOR shall include in his sub-contracts, if any, provisions
     imposing the same obligations as those he himself has assumed towards NMC
     in his Contract, in particular with regard to:

     a.   Technical specifications.
     b.   time of delivery.
     c.   Warranty terms.
     d.   Quality control, in process inspection and government inspection, as
          applicable.
     e.   Security.
     f.   Secrecy.
     g.   NATO Codification (where available).
     h.   Public announcement.
     i.   Spare parts availability.

14.2 The CONTRACTOR shall under all circumstances have the sole responsibility
     towards NMC for fulfilling the Contract as written, regardless of his use
     of subcontractors or not.

CLAUSE 15: CHANGE OF CONTRACT

15.1 The terms and conditions contained in this Contract shall not be changed in
     any other way than by the establishment of amendments, which shall be in
     writing and signed by both parties in order to be legally valid. Such
     amendments, which shall be expressly designated as amendments to this
     Contract and numbered consecutively, shall be issued in two original
     copies, one of which shall be left with the CONTRACTOR and one with NMC.

15.2 Changes in the technical specifications which will not have an impact on
     the price(s) and the time of delivery, however, may be agreed upon by any
     other written agreement signed by both parties.

15.3 Verbal agreements shall only be valid if subsequently confirmed in writing
     by both parties in accordance with the above-mentioned provisions.

CLAUSE 16: TERMINATION OF CONTRACT

16.1 For NMC Convenience

16.1.1 NMC shall be entitled to terminate this Contract in whole or in part at
     any time by giving the CONTRACTOR 30 days written notice. Upon the
     expiration of such 30-

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -22-

     day notice, this Contract shall be terminated, but this without prejudice
     to the rights of the parties accrued to the date of termination.

16.1.2 After receipt of notice of termination CONTRACTOR shall submit to NMC his
     valid termination claims in the form and with the documentation as mutually
     agreed upon between the parties.

16.1.3 CONTRACTOR and NMC may agree upon the whole or any part of the amount or
     amounts to be paid to CONTRACTOR by reason of the total or partial
     termination of work pursuant to this para 16.1, the amount or amounts of
     which may include a reasonable allowance for profit or work done or to be
     done, provided that such agreed amount or amounts shall not exceed the
     Total Contract Price.

16.2 For CONTRACTOR's Default

16.2.1 NMC shall be entitled to terminate this Contract in whole or in part in
     the following cases:

     a.   If the delivery of any supply is delayed beyond 6 months, with the
          exception of delays due to Force Majeure, mutual agreement or caused
          by NMC.

     b.   If the CONTRACTOR becomes bankrupt, insolvent or has been granted a
          moratorium.

     c.   If the CONTRACTOR's circumstances otherwise prove to be such that he
          will not be able to fulfil his obligations under this Contract.

     d.   If the CONTRACTOR's security clearance or other certification or
          permits necessary for his fulfilment of the Contract are repealed.

     e.   If the CONTRACTOR otherwise is in default in carrying out any of the
          terms, conditions or obligations under this Contract.

16.2.2 If the conditions for termination according to para 16.2.1 above are
     fulfilled, and NMC is unable to reasonably use supplies already received,
     then NMC shall furthermore be entitled to terminate the Contract for such
     supplies, in which case such supplies will be returned to the CONTRACTOR in
     a good and maintained condition.

16.2.3 In case the CONTRACT is terminated in accordance with paras 16.2.1 and
     16.2.2 above, the following legal effects shall apply:

     a.   In case of termination according to para 16.2.1.a, the CONTRACTOR
          shall immediately repay NMC any advance payment(s) received plus
          accrued interest according to the amount of interest earned by
          CONTRACTOR mi-

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -23-

          nus financing fee, calculated for the period from NMC having made such
          advance payment(s) and until the date of termination. NMC shall
          furthermore have the right to claim for accrued penalty for the period
          from the contractual date of delivery and until the date of
          termination, or claim for loss and damage incurred by NMC due to the
          termination of the Contract to the extent provided for under Danish
          law.

     b.   In case of termination according to paras 16.2.1.c through
          16.2.1.e the CONTRACTOR shall immediately repay NMC any advance
          payment(s) received plus accrued interest as stipulated in para
          16.2.3.a above. NMC shall furthermore have the right to claim for loss
          and damage incurred by NMC due to the termination of the contract as
          in para 16.2.3.a above.

     c.   In case the termination includes already delivered supplies to be
          returned to CONTRACTOR pursuant to para 16.2.2, CONTRACTOR shall also
          repay to NMC the amount(s) NMC may have paid for such supplies.

     d.   NMC shall furthermore be entitled to take possession of any materiel,
          documentation, drawings etc., to which NMC has acquired title during
          the performance of this Contract.

16.2.4 If this Contract is terminated under para 16.2.1, CONTRACTOR is obligated
     and NMC has the right, in addition to any other rights provided for in this
     Clause 16, to request CONTRACTOR to transfer title of and deliver to NMC

     a.   any completed supplies, and

     b.   such partially completed supplies and materials, as CONTRACTOR has
          specifically produced or specifically acquired for the performance of
          such part of this Contract as has been terminated, and CONTRACTOR
          shall, upon request by NMC, protect and preserve property in his
          possession in which NMC has an interest and to which such
          termination relates.

     c.   Payment for completed supplies shall be at prices stipulated or
          calculated in accordance with the relevant provisions of this
          Contract.

     d.   Payment for partially completed supplies or materials and for the
          protection and preservation of property shall be in an amount agreed
          upon between NMC and CONTRACTOR having regard to the provisions of
          this Contract.

16.2.5 In the event of failure of CONTRACTOR and NMC to agree upon the amount
     or amounts to be settled between the parties pursuant to this para 16.2,
     such failure shall be deemed a dispute subject to settlement in accordance
     with Clause 17 below.

CLAUSE 17A: DISAGREEMENTS AND DISPUTES

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -24-

     Any disagreement arising between the parties relating to the terms and
     conditions of this Contract, which cannot be settled in a amicable way,
     shall be deemed to be a dispute subject to final settlement by a Danish
     Court of Justice in accordance with Danish law. The place of jurisdiction
     shall be Copenhagen.

CLAUSE 17B: NOT VALID

CLAUSE 18: MOST FAVOURED CUSTOMER CLAUSE

18.1 The CONTRACTOR guarantees that the price laid down in this Contract is not
     less favourable than the price for identical equipment he would offer to a
     third party under comparable circumstances.

18.2 In the event that equipment, identical to that supplied against this
     Contract during a period from one year before contract signing and until
     contract completion or termination, should be offered and/or delivered to a
     third party at a lower price than valid for this Contract, the price of
     this Contract shall be reduced to the price valid for the third party.

18.3 The price comparison shall be made at the time of final price adjustment of
     this Contract, if applicable for the purpose of this price comparison, the
     price to the third party shall be changed in order for both prices to be
     compared on an equal basis. The price to the third party shall then be
     adjusted in accordance with the terms herefore valid for the price
     adjustment for this Contract. If then the adjusted price to the third party
     is lower than the adjusted price for this Contract, then the adjusted price
     to the third party shall be adopted for this Contract.

CLAUSE 19: SECURITY

19.1 Access to and treatment of classified matters and documents, if applicable
     to this Contract or its performance, shall be governed by the NATO security
     regulations laid down in NATO Document C-M(55)15(FINAL), encl. D, the
     applicable security laws and regulations in CONTRACTOR's country and
     Appendix 4 hereto.

19.2 The CONTRACTOR shall not be allowed to disclose classified matters or
     documents to any of his supplies or sub-contractors unless the supplier or
     subcontractor is able to fulfil the security requirement mentioned in para
     19.1 above.

19.3 The CONTRACTOR shall comply with all the instructions relating to security
     obligations, in particular those relating to supervision of personnel
     security procedures, safety of materials and actual or presumed sabotage.

19.4 NMC will consider a failure by the CONTRACTOR to observe the security
     regulations referred to in para 19.1 above as a fundamental breach of this
     Contract.

19.5 CONTRACTOR shall, in accordance with the appropriate procedures and through
     the appropriate channels, immediately after signature of this Contract

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -25-

     apply for the necessary security clearance of his personnel involved with
     this Contract and likely to visit Danish military installations, including
     NMC facilities at Holmen, Copenhagen during CONTRACTOR's performance of
     this Contract.

19.6 CONTRACTOR shall prior to each visit of his personnel advise NMC hereof in
     writing giving the following information:

     .    Full name(s)
     .    Security clearance
     .    Date of birth
     .    Passport number
     .    Place of visit
     .    Date of arrival
     .    Date of departure.

CLAUSE 20: NATO CODIFICATION

20.1 the CONTRACTOR shall, without costs for NMC and not later than 6 months
     following the delivery of the prototypes, furnish to NMC the information
     and data required for NAT0 Codification in accordance with Appendix 3.

20.2 In case the above-mentioned information and data are not furnished as
     required, NMC shall have the right, in any payment, to withhold an amount
     corresponding to 5% of the Total Contract Price. The withheld amount will
     be repaid to CONTRACTOR when the provisions of this Clause 20 have finally
     been fulfilled.

CLAUSE 21:SECRECY

21.1 The CONTRACTOR shall not disclose any of the contents of this Contract to
     third parties unless this should be deemed necessary for the performance of
     the Contract, in which case the CONTRACTOR shall observe the security
     provisions of Clause 19 above.

21.2 Unless explicitly agreed otherwise in writing by NMC, the CONTRACTOR may
     not under any circumstances, ever after the Contract has been terminated
     for any reason whatsoever, consider himself free from obligations of
     secrecy.

CLAUSE 22: TRANSFER OF CONTRACT

     This Contract cannot be transferred to any other party without the prior
     written consent of NMC

CLAUSE 23: CONTRACT LANGUAGE

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -26-

23.1 This Contract is expressed in the English language. In case of conflict of
     interpretation of the Contract, the plain English meaning of the text shall
     be ruling.

23.2 Irrespective of any translation of this Contract into any other language,
     the wording of this Contract shall be literally valid.

CLAUSE 24: PUBLIC ANNOUNCEMENTS

     The CONTRACTOR shall not be allowed to make any written or verbal
     announcement with regard to the establishment or performance of this
     Contract without the prior written consent of NMC.

CLAUSE 25: NOTICES

     Unless otherwise stated in this Contract any notice to be served pursuant
     to this Contract, which will or may have contractual consequences, shall be
     sent by mail, telex or telefax.
     In case of NMC to:

     NAVAL MATERIEL COMMAND
     Danneskiold-Samsoes Alle 1
     Commercial Department
     Holmen
     DK - 1434 Copenhagen K
     Denmark
     Telefax:      +45 3266 3299
     Telex:        22372
     e-mail:       ka@nmc.dk

     In case of the CONTRACTOR to:

     offshore systems ltd.
     107 - 930 West 1st Street
     North Vancouver
     British Columbia
     Canada V7P 3NA
     Telefax:      +1 (604) 987 2555
     e-mail:       osl@osl.com

CLAUSE 26: VERIFICATION

NMC shall have the right at any time to have any fulfilment of a CONTRACTOR
obligation, the immediate verification of which is not possible for NMC,
certified by CONTRACTOR's chartered accountant.

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -27-

CLAUSE 27: PRECEDENCE

     In case of any inconsistency or conflict between the terms and conditions
     of the clauses of this Contract and its appendices, then the terms and
     conditions in the contract clauses shall apply.

CLAUSE 28: SIGNATURES

For NAVAL MATERIEL COMMAND                      For offshore system ltd
Date 13/8/2001                                  Date 20/08/01

/s/ P.B.Sorensen                                /s/ John Jacobson
-----------------------------------             --------------------------------

In letters:                                     In letters:

Paul B. Sorensen                                John Jacobson
Rear-Admiral                                    President & CEO
Chief of the Naval Material Command             OFFSHORE SYSTEMS LTD.
Denmark

Witness to signature                            Witness to signature

/s/ Bent Hansen                                 /s/ Andrew Carniel
-----------------------------------             --------------------------------

In letters:                                     In letters:

Bent Hansen                                     Andrew Carniel
Technical Director                              UP B.D
Naval Materiel Command                          OFFSHORE SYSTEMS LTD.
Denmark

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                                                     APPENDIX 1a
                                                           to Contract No. X0132

                       SPECIFICATION OF SCOPE OF CONTRACT
                               AND CONTRACT PRICE

--------------------------------------------------------------------------------
Item no.   Description                       Quantity   Unit price   Total price
--------------------------------------------------------------------------------
1A         Large Ship Solution                   9         62,673       564,057
--------------------------------------------------------------------------------
1B         Medium Ship Solution                 22         59,718     1,313,796
--------------------------------------------------------------------------------
1C         Small Ship Solution                  20          4,638        92,760
--------------------------------------------------------------------------------
1E         Training Systems:
           8 station and 1 control               2         31,530        63,060
           For maintenance and training          3         13,573        40,719
--------------------------------------------------------------------------------
Subtotal                                                              2,074,392
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
2A         Program Management                    1        436,826       435,826
--------------------------------------------------------------------------------
2B         Maintenance and Operator              1         29,450        29,450
           Documentation
--------------------------------------------------------------------------------
2C         Installation and Set To Work *)       1        128,840       128,840
--------------------------------------------------------------------------------
2D         Factory  Acceptance Test **)          1         58,123        58,123
--------------------------------------------------------------------------------
2E         Habour Acceptance Test *)             1        117,826       117,826
--------------------------------------------------------------------------------
2F         Sea Acceptance Test *)                1        130,134       130,134
--------------------------------------------------------------------------------
Subtotal                                                                901,289
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Total                                                         USD     2,975,681
--------------------------------------------------------------------------------

*) of all vessels
**) of all vessels and training systems

--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                                                     APPENDIX 1b
                                                           to Contract No. X0132

                       SPECIFICATION OF SCOPE OF CONTRACT
                              AND TIME OF DELIVERY

--------------------------------------------------------------------------------
Item no.   Description                      Quantity    Time of delivery
--------------------------------------------------------------------------------
1A         Large Ship Solution                  9
--------------------------------------------------------------------------------
1B         Medium Ship Solution                22
--------------------------------------------------------------------------------
1C         Small Ship Solution                 20
--------------------------------------------------------------------------------
1E         Training Systems:
           8 station and 1 control              2
           For maintenance and training         3
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
2A         Program management                   1
--------------------------------------------------------------------------------
28         Maintenance and Operator             1
           Documentation
--------------------------------------------------------------------------------
2C         Installation and Set To Work *)      1
--------------------------------------------------------------------------------
2D         Factory Acceptance Test **)          1
--------------------------------------------------------------------------------
2E         Habour Acceptance Test *)            1
--------------------------------------------------------------------------------
2F         Sea Acceptance Test *)               1
--------------------------------------------------------------------------------

All times of delivery in this Appendix 1b as well as Appendix 1b to Amendment
No. 1 to this Contract to be as agreed at Post Contract Review Meeting

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                                                     APPENDIX 1c
                                                           to Contract No. X0132

                  SPECIFICATION OF SCOPE OF OPTIONS TO CONTRACT
                               AND OPTIONS PRICES

--------------------------------------------------------------------------------
Item no.   Description                       Quantity   Unit price   Total price
--------------------------------------------------------------------------------
3D         Large Ship Solution                  5         62.673        313.365
--------------------------------------------------------------------------------
3D         Medium Ship Solution                20         59.718      1,194.360
--------------------------------------------------------------------------------
3D         Small Ship Solution                 40          4.638        185.520

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

--------------------------------------------------------------------------------
Total                                                        USD      1,693.245
--------------------------------------------------------------------------------
NAVAL MATERIEL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                                                      Appendix 2
                                                           to Contract No. X0132

                                    [GRAPHIC]

                             TECHNICAL SPECIFICATION

                                     for the

            Electronic Chart Display and Information System (ECDIS)

                      Automatic Radar Plotting Aids (ARPA)

                            Navigation Computer (NC)

                           Voyage Data Recorder (VDR)

                                     for the

                                Royal Danish Navy

                                                                         1 of 34

<PAGE>

                             TECHNICAL SPECIFICATION

     0.   TABLE OF CONTENTS

0.   TABLE OF CONTENTS.........................................................2

1.   GENERAL...................................................................7

     1.1  BACKGROUND...........................................................7

     1.2  PREREQUISITES........................................................7

     1.3  DESCRIPTION OF THE REQUIRED SYSTEMS IN GENERAL.......................7

     1.4  NMC SUPPORT TO REALIZE THE PROJECT...................................8

2.   OPERATIONAL REQUIREMENTS FOR ECDIS SYSTEM.................................9

     2.1  GENERAL OPERATIONAL REQUIREMENTS.....................................9

          2.1.1 Highly desirable...............................................9
          2.1.2 Desirable......................................................9

     2.2  NAVIGATIONAL REQUIREMENTS...........................................10

          2.2.1 Highly desirable..............................................10
          2.2.2 Desirable.....................................................10

     2.3  ADMINISTRATIVE REQUIREMENTS.........................................10

          2.3.1 Highly desirable..............................................10

     2.4  OTHER REQUIREMENTS..................................................10

          2.4.1 Highly desirable..............................................10

     2.5  EDUCATIONAL REQUIREMENTS............................................11

          2.5.1 Highly desirable..............................................11

3.   TECHNICAL REQUIREMENTS FOR THE ECDIS SYSTEM............................. 12

     3.1  SYSTEM BLOCK DIAGRAM................................................12

     3.2  DETAILED DESCRIPTION, ECDIS AND PLANNING STATION....................12

          3.2.1 International standards and resolutions.......................12

                                                                         2 of 34

<PAGE>

          3.2.2 Chart data types..............................................12
          3.2.3 General display functionality.................................12
          3.2.4 General interface description.................................12
          3.2.5 ARPA/radar function...........................................13
          3.2.6 Planning Station functionality................................13
          3.2.7 ENC program for portable PC (backup)..........................14

4.   OPERATIONAL REQUIREMENTS FOR THE VDR SYSTEM..............................15

     4.1  GENERAL OPERATIONAL REQUIREMENTS....................................15

          4.1.1 Highly desirable..............................................15

     4.2  ADMINSTRATIVE REQUIREMENTS..........................................15

          4.2.1 Highly desirable..............................................15

5.   TECHNICAL REQUIREMENTS FOR THE VDR SYSTEM................................15

     5.1  NATIONAL AND INTERNATIONAL STANDARDS AND SPECIFICATIONS.............15

6.   OPERATIONAL REQUIREMENTS FOR THE NC SYSTEM...............................16

     6.1  OPERATIONAL REQUIREMENTS............................................16

7.   TECHNICAL REQUIREMENTS FOR THE NC SYSTEM.................................16

     7.1  NC OVERVIEW.........................................................16

          7.1.1 Overall overview..............................................16

     7.2  FUNCTIONAL DESCRIPTION..............................................16

          7.2.1 Description of failur detection...............................17

     7.3  INTERFACING SYSTEMS.................................................18

     7.4  POWER SUPPLY........................................................18

     7.5  ENVIRONMENTAL REQUIREMENTS..........................................18

8.   EDUCATION SYSTEMS FOR RDN NAVIGATIONAL SCHOOLS...........................19

     8.1  GENERAL REQUIREMENT FOR EDUCATION SYSTEMS...........................19

     8.2  SPECIFIC REQUIREMENT FOR EDUCATION SYSTEMS..........................19

          8.2.1 Mandatory requirement:........................................19

                                                                         3 of 34

<PAGE>

          8.2.2 Highly desirable:.............................................19

          8.2.3 Desirable.....................................................20

9.  SYSTEM INTERFACE SPECIFICATION............................................21

     9.1 SYSTEM DIAGRAM.......................................................21

     9.2 ECHO SOUNDER OUTPUT..................................................22

     9.3 GPS 1 AND GPS 2 OUTPUT...............................................22

     9.4 SPEED LOG OUTPUT.....................................................22

     9.5 INS 1 AND INS 2 OUTPUT...............................................22

     9.6 AIS TO ECDIS.........................................................22

     9.7 MANOUEVERING SYSTEM TO VDR...........................................22

     9.8 RADAR TO ECDIS/VDR...................................................22

     9.9 NC INTERFACE SPECIFICATION...........................................23

          9.9.1 Output to INS1 and INS2.......................................23
          9.9.2 Output to ECDIS...............................................23
          9.9.3 Output of Navigation solution to C3 ..........................23
          9.9.4 Input from INS 1 and INS 2....................................23
          9.9.5 Input from MIL GPS/DGPS.......................................23
          9.9.6 NMEA 0183 output..............................................23
          9.9.7 PC (operators interface)......................................24

     9.10 POWER SUPPLY........................................................24

10. SYSTEM CONSTRUCTION REQUIREMENTS..........................................25

     10.1 CONSTRUCTION REQUIREMENTS FOR THE ECDIS AND PLANNING STATION .......25

          10.1.1 Flat screen displays.........................................25
          10.1.2 ECDIS and Planning Station in general........................25

     10.2 CONSTRUCTION REQUIREMENTS FOR THE VDR...............................25

          10.2.1 General VDR requirements.....................................25

     10.3 CONSTRUCTION REQUIREMENTS FOR THE NAVIGATION COMPUTER...............25

                                                                         4 of 34

<PAGE>

11. SYSTEM AVAILABILITY AND MAINTAINABILITY...................................27

     11.1 MTBF................................................................27

     11.2 MAINTENANCE.........................................................27

     11.3 REPAIR PRICING AND MANUFACTOR STORED SPARES.........................27

     11.4 RECOMMENDE TOOLS....................................................27

     11.5 FUNCTION TEST/TROUBLE SHOOTING......................................27

     11.6 PREVENTIVE MAINTENANCE..............................................27

     11.7 EXPECTED MAINTENANCE COSTS..........................................27

     11.8 MANUFACTORER OBLIGATIONS............................................27

12. SYSTEM DOCUMENTATION AND TEST PROCEDURES..................................28

     12.1 DOCUMENTATION STANDARD FOR EACH SYSTEM..............................28

          12.1.1 Operators manual.............................................28
          12.1.2 Technical manual.............................................28

     12.2 DOCUMENTATION FORMAT................................................29

     12.3 LANGUAGE............................................................29

     12.4 CODIFICATION INFORMATION............................................29

     12.5 TEST PROCEDURES AND DOCUMENTATION...................................29

13. TECHINAL TRAINING COURSES.................................................30

14. QUALITY ASSURANCE.........................................................31

     14.1 ORGANISATION........................................................31

     14.2 QUALITY CERTIFICATION...............................................31

     14.3 QUALITY ASSURANCE...................................................31

15. TECHNICAL ASSISTANCE......................................................31

                                                                         5 of 34

<PAGE>

16. PROJECT MANAGEMENT........................................................31

     16.1 ORGANISATION........................................................31

     16.2 CONTINUITY..........................................................31

17. ANNEX 1...................................................................32

     17.1 DEFINITIONS AND ABBREVIATIONS.......................................32

18. ANNEX-2...................................................................33

     18.1 INTERFACE SPECIFICATION BETWEEN AGI SPEED LOG AND ECDIS/VDR/NC......33

19. ANNEX-3...................................................................34

     19.1 INTERFACE SPECIFICATION BETWEEN NC AND C3...........................34

                                                                         6 of 34

<PAGE>

1.   GENERAL

1.1  BACKGROUND

Naval Materiel Command Denmark (NMC), is procuring agency for the Royal Danish
Navy (RDN). NMC has a requirement for Electronic Chart Display and Information
System (ECDIS), Automatic Radar Plotting Aids (ARPA), Navigation Computer (NC)
and Voyage Data Recorder (VDR), for most of the ships in the navy.

1.2 PREREQUISITES

Potential suppliers must, prior to contract award, be able to demonstrate full
approved ECDIS and ARPA and VDR systems which fulfil requirements in
appropriated standards. If the approval of the ECDIS is not finished when the
tender is send to the NMC. The supplier must make it probable that the system
will be approved prior to contract award by presenting a progress plan from a
recognised approval authority. The approval must be fulfilled prior to contract
award.

As the ships in the RDN can change role with short notice, it is mandatory for
NMC that an ENC license can be transferred from one ship to another. In other
words: it is mandatory that the Electronic Navigational Chart key (RSA Secure ID
key from Primar) is kept within the Danish Navy Chart Centre.

Although not mandatory it is preferred that the common operating system is
either Win NT 4.0 or SUN Solaris SE (Secure Edition) newest edition in
accordance with NMC security standards.

1.3  DESCRIPTION OF THE REQUIRED SYSTEMS IN GENERAL

The ECDIS systems shall be approved according to IMO, IHO and IEC standards for
ECDIS and fulfil the IMO and IEC standards for ARPA display systems (not the
Radar scanner systems).

The ECDIS shall be "dual fuel" systems (Electronic Nautical Charts (ENC) &
raster charts) and shall also be able to handle Digital Nautical Charts (DNC)
(from NIMA, US).

The ECDIS shall be capable for a later upgrade to WECDIS (Warship ECDIS) 1n
accordance with NATO STANAG 4564, for introduction of Additional Military Layers
(AML).

The ECDIS shall be able to present radar overlay as well as ARPA tracks. It
shall be possible to present Electronic Navigation Chart (ENC) and ARPA radar
pictures independently on two different screens.

Each ECDIS shall include a route planning/backup station according to IMO
performance standards.

Interface to VDR is required, as well as all navigation sensors and
navigational radars.

The education systems must be designed for the certification training of
navigators in compliance with IMO's STCW 95 convention. The education systems
must include or be able to interface with a simulator, which is capable to
deliver training, and assessment to a degree necessary to gain the competence as
required by the STCW code for navigation at operational level (A-11/1) and
management level (A-11/2).

                                                                         7 of 34

<PAGE>

The ARPA systems must interface to common navigational radar's. The ARPA display
must be able to control the navigational radar's, where it is technical
possible. The NC shall as a minimum interface to two INS, two GPS and speed LOG,
and output the best estimate of position to the ECDIS and other clients based on
Kalman filter technique.

The NC shall contain a reliable failure detection and isolation/reconfiguration
algorithm for the various sensor inputs.

The VDR system shall be designed according to IMO performance standard for
VDR and shall record ARPA/radar picture, radiolvoice data, position, speed,
course, depth and machine manoeuvring and alarm data.

The VDR shall fulfil IMO and IEC standards for VDR in high-speed vessels except
the final storage unit ("the black box unit").

1.4  NMC SUPPORT TO REALIZE THE PROJECT

NMC is obliged to deliver the necessary data in due time, for fulfilling the
hardware and software specifications. Time scale for delivery of data not
covered by this document, is to be negotiated.

NMC will participate in progress meetings. A schedule for progress meetings is
to be negotiated.

                                                                         8 of 34

<PAGE>

2.    OPERATIONAL REQUIREMENTS FOR ECDIS SYSTEM

Note: The following operational requirements, which are not necessarily a part
of the IMO Performance Standard for ECDIS, will be used in the evaluation
process of the offers. The requirements are graduated in paragraphs indicating
if the requirement is highly desirable or desirable, in a not prioritised order.

2.1  GENERAL OPERATIONAL REQUIREMENTS

2.1.1 HIGHLY DESIRABLE

The offered system:

a.   Must be a "dual fuel" system, accepting both raster and vector maps (ENC,
     DNC, ARCS etc.).
b.   Must be able to present different charts types at the same time (seamless).
c.   Must be able to present charts in different scale in at least two windows
     on the display in a different scale.
d.   Must be able to show the charts in full display mode.
e.   Must have a drawing facilities so that the operator is able to draw, move
     and save lines and areas. It shall be possible to use both trackball and
     keyboard when defining the start and end points. When a position is typed
     in, it shall be possible to do it in both LAT-LONG and UTM coordinates.
f.   Must be able to change chart scale easily and very fast e.g. within 1 sec.
g.   Must have easy and quick shifting from one chart system to another.
h.   Must be able to show Search And Rescue (SAR) plans.
i.   Must have a man overboard (MOB) functions with distance and bearing to
     event position shown on the charts.
j.   Must be able to accept AML's according to NATO STANAG 4564.
k.   Must have the possibility for the user, to define additional layers, with
     information like symbols for chart corrections, tactical operations or just
     text.
l.   Must be able to present symbols for identified targets (e.g. frigates,
     fishery ship and merchant ship). Symbolic library will be delivered from
     NMC (NATO and RDN standard symbol library).
m.   Must be able to do a presentation of data from a database with pilot,
     harbour and lighthouse information.
n.   Must be able to do a presentation of oceanographic, meteorological and tide
     data from a library or an input fee.
o.   Must have menus being user-friendly seen from a navigational point of view
     e.g. no more than tree steps in menu structure (for common used functions
     not more than one step) and a possibility for user defined "hotkeys" e.g.
     MOB, Logbook input, chance of chart scale (zoom in/out).
p.   Must have common windows based man-machine interface.
q.   Must be able to choose between two different radar inputs.

2.1.2 DESIRABLE

a.   Must have a Man Over Board (MOB) button (physical input).
b.   Must have a possibility for showing symbols in a "paper chart like" way.

                                                                         9 of 34

<PAGE>

2.2  NAVIGATIONAL REQUIREMENTS

2.2.1 HIGHLY DESIRABLE

The offered system:

a.   Must handle navigational planning the same way as on paper charts.
b.   Must have a route planning function able to:
     b.1  Calculate Estimated Time of Arrival (ETA) continuously from speed over
          ground.
     b.2  Calculate ETA from chosen speed or leg speed.
     b.3  Calculate speed from chosen Planned Time of Arrival PTA (Planned ETA).
     b.4  Handle planning of different speeds on each leg in the route.
     b.5  Always present distance/ETA to next WP and last WP in the route.
     b.6  Calculate wheel-over spots from the units Rate Of Turn (ROT).
     b.7  Make a route from existing WP's or WP library.
     b.8  Reverse a route.
     b.9  Editing functions on existing route.
     b.10 Check the route with chosen alarm limits (e.g. depths, turning rate).
     b.11 Initiate a route starting from ships own position to first WP.
c.   Must be able to independently display all available displayable information
     on each screen in the system (except dedicated slave displays).
d.   Must calculate sea current on the basis of LOG and GPS information.
e.   Must initiate WP do the basis of:
     e.1  LAT/LON, UTM and GEOREF.
     e.2  Bearing/distance.
     e.3  Cross bearing, manually or from an electro optical system. It must be
          possible to transfer bearings from the ships bridge pointer to the
          ECDIS system.
     e.4  Indication of time and LOG.
     e.5  Position calculated from a number of distances.

2.2.2 DESIRABLE

The offered system:

a.   Must log notices (keyboard input) during the voyage.
b.   Must be able to plan great circle voyage.

2.3  ADMINISTRATIVE REQUIREMENTS

2.3.1 HIGHLY DESIRABLE

The offered system

a.   Must have electronic voyage recording with manually logging of incidents.
b.   Must have a recording function for time stamped messages. These messages
     must be output to the VDR if such a system is on board.
c.   Must be able to replay and analyse collected data.

2.4  OTHER REQUIREMENTS

2.4.1 HIGHLY DESIRABLE

The offered system

a.   Must interface to a planning/backup station and at least one slave display.
b.   Must interface to gyro/INS, LOG, echo sounder and GPS.

                                                                        10 of 34

<PAGE>

c.   Must use GPS as the primary positioning system, and go to INS positioning
     at GPS failure. An alarm must be generated at GPS failure. Must prioritise
     GPS input in the following order (highest priority first): P(Y) code, DGPS,
0     CA code.
d.   Must have a function for radar overlay on the electronic map.
e.   Must interface to ARPA, NC and VDR.
f.   Must interface to Automatic Identification System (AIS) and present AIS
     objects on the display.
g.   Must transmit NMEA 0183 v. 2.20 or 2.30 message $GPWPL and $GPRTE, or other
     types of messages with route - and waypoint information (for use in ships
     manoeuvring system).

2.5  EDUCATIONAL REQUIREMENTS

Note: The following requirements are for on board education. Requirements for
education systems to the to RDN navigational schools are in chapter 7.

2.5.1 HIGHLY DESIRABLE

The offered system:
a.   Must include a Computer Based Training (CBT) program to use far on board
     user training in English or Danish language.
b.   Must contain an extended on line help function.
c.   Must include detailed User Manuals in English or Danish language. See (S)
     11.1.1 for details.
d.   Must exist as an education system or shall be able to interface to existing
     education system for education in ECDIS on navigational schools.

                                                                        11 of 34

<PAGE>

3.   TECHNICAL REQUIREMENTS FOR THE ECDIS SYSTEM

3.1  SYSTEM BLOCK DIAGRAM

Figure 8.1 shows the navigation system that NMC plan to install on most Navy
vessels.

3.2  DETAILED DESCRIPTION, ECDIS AND PLANNING STATION

3.2.1 INTERNATIONAL STANDARDS AND RESOLUTIONS

The offered ECDIS shall be based on an approved ECDIS (referring to (S) 1.2).
That is approved/certified to:
a.   IHO S-57   IHO Transfer Standard for Digital Hydrographic Data.
b.   IHO S-52   IHO Specification for Chart Content and Displays of ECDIS.
c.   IMO resolution A.817(19) Performance standard for ECDIS.
d.   IMO resolution MSC.64(67), Annex 5 ECDIS Back-up requirements,
e.   IMO resolution A.823(19) ARPA/radar.
f.   IEC 61174 ECDIS Performance Standard (test and results).
     (version 2 expected to be approved by IMO as per June 2001)
Also commensurate with:
a.   NATO STANAG 4564   WARSHIP ECDIS (WECDIS).

3.2.2 CHART DATA TYPES

The offered ECDIS shall accept the following Chart Data:
a.   S-57       Official electronic charts issued by nations Hydrographic
                Offices.
b.   ARCS       Produced by the UK Hydrographic Office
c.   DNC        Produced National Imaging Mapping Agency (NIMA).

Highly desirable:
a.   CM93       Electronic Charts from C-MAP.

3.2.3 GENERAL DISPLAY FUNCTIONALITY

The ECDIS will be placed on the bridge, and must have two displays connected,
with the option of connecting one slave display to each display. The Planning
station must have one display connected also with the option of connecting of
one slave display. The two displays in the ECDIS must independently of each
other display ARPA/radar picture, ECDIS picture or ECDIS picture with radar
overlay. Switch from radar picture to ECDIS picture or ECDIS picture with radar
overlay must be quick and easy.

3.2.4 GENERAL INTERFACE DESCRIPTION

The ECDIS shall contain the following interfaces:
a.   Planning Station
b.   ARPA/radar
c.   NC
d.   VDR
e.   Echo sounder
f.   MILL GPS
g.   GPS
h.   Speed LOG

                                                                        12 of 34

<PAGE>

i.   INS/Gyro

In the evaluation process the following interfaces are highly desirable and of
importance for NMC:

a.   Additional GPS
b.   Wind speed and direction

All above-mentioned interfaces are described in details in chapter 8.

Planning Station will not be connected to a NC and must be able to receive GPS
position data directly as backup.

3.2.5 ARPA/RADAR FUNCTION

As it is envisaged at NMC that the ECDIS will substitute existing ARPA displays
on the bridges, NMC are concerned about the ARPA/radar function in the
evaluation of the bids. The offered ARPA display must be compliant to IMO
resolution A.823(19).

Highly desirable:

Radar control:

a.   GAIN, STC, FTC, CONTRAST and BRILLIANCE are functions that must be
     implemented as turn buttons.

Hotkeys:

b    PPI centre the ship - off-centre
c.   VRM
d.   EBL - EBL off centre
e.   Minimum one set of parallel-indexes locked to own ship
f.   Fixed True Motion
g.   True Motion
h.   Relative Motion.
i.   Acquire Target
j.   Update Target
k.   Delete Target
l.   Present Target Data:
l1.  BEARING
l2.  DISTANCE
l3.  CPA
l4.  TCPA
l5.  COURSE
l6.  SPEED
l7.  TRACKNUMBER
m.   Track number editor (5 a1pha-nurnerlc characters)

Desirable:

n.   Present Target Data:
n1.  BCR
n2.  BCT
n3.  TRACK SYMBOL (connecting different symbols from a library to the track)

3.2.6 PLANNING STATION FUNCTIONALITY

Planning Station must work independently from the ECDIS (monitoring station).
The station will have two purposes:

                                                                        13 of 34

<PAGE>

1)   Planning of voyages.
2)   Backup for the monitoring station.

For 1)

As Planning Station, the station is used for planning and saving routes and
waypoints.

When planning is carried out, transfer of voyage data must be transferred to the
monitoring station, without interfering with ongoing work on the monitoring
station.

For 2)

As Planning Station the station must have the exact same features as the
monitoring station apart from functions involving the interfaces mentioned in
(S) 2.2.4.

The Planning Station must however interface to a GPS receiver for position
retrieval.

In the large system a full stationary ECDIS (and backup) station must be
provided.

Hardware must fulfill MSC.64 (67), Annex 5 as described in (S) 5.2.1.d.

Arrangements on how to comply with section 3.1 in this Annex 5 must be
described.

3.2.7 ENC PROGRAM FOR PORTABLE PC (BACKUP)

An ENC program for portable PC for backup purpose, must be part of the bidder's
offer. The program must be based on the offered ECDIS and be operated basically
in the same way. GPS input to the program is mandatory.

Bidder must specify the portable PC necessary to run the program.

Hardware must fulfil MSC.64 (67), Annex 5 as described in (S) 5.2.1 d. except
for monitor size and type where a 15.1" TFT will be acceptable. Arrangements on
how to comply with section 3.1 in this Annex 5 must be described.

                                                                        14 of 34

<PAGE>

4.   OPERATIONAL REQUIREMENTS FOR THE VDR SYSTEM

Note: The following operational requirements will be used in the evaluation
process of the offers. The requirements are graduated in paragraphs indicating
if the requirement is highly desirable or desirable.

4.1  GENERAL OPERATIONAL REQUIREMENTS

4.1.1 HIGHLY DESIRABLE

The offered system

a.   Must keep recorded data physical secure preventing unauthorized
     manipulation.
b.   Must mark data with unambiguous "ships mark".
c.   Must include a "chiefs key" to stop (halt) recording, but must under no
     circumstances delete what is recorded.
d.   Must keep recorded navigation and machine manoeuvring data for at least 6
     month.
e.   Must record actual ECDIS picture (as seen by Officer Of Watch) at least
     each 10 seconds.
f.   Must record wind speed and wind direction coming from wind measuring unit.
g.   Must record voice communication from a number of systems.

4.2  ADMINSTRATIVE REQUIREMENTS

4.2.1 HIGHLY DESIRABLE

The offered system

a.   Must present data with recorded date and time.
b.   Must present recorded data at on general PC.
c.   Must present recorded data graphical at on PC.
d.   Must be able to sort recorded data after user-defined criteria in order to
     present only necessary recorded data on the screen at read out.
e.   Must be able to print all types of recorded data.

5.   TECHNICAL REQUIREMENTS FOR THE VDR SYSTEM

5.1 NATIONAL AND INTERNATIONAL STANDARDS AND SPECIFICATIONS

The VDR must be compliant to:

..    IMO A.861(20) VDR Performance Standard except (S) 5.1.3 - Final storage
     unit ("Black Box Function").
..    Danish Maritime Authority Technical Regulation no. 9 dated 4. DEC 1997.

VDR functionality as an integrated part of the ECDIS system will be acceptable
when compliant to the references above.

Sensor interfaces are described in details in chapter 8.

                                                                        15 of 34

<PAGE>

6.   OPERATIONAL REQUIREMENTS FOR THE NC SYSTEM

6.1  OPERATIONAL REQUIREMENTS

a.   Navigation solution must be best estimates of all useable sensors (INS,
     Mill. GPS/DGPS etc.) with regard to sensors specified accuracy - in 3
     dimensions.
b.   The navigation solution output from the NC must be robust without jumps and
     spikes in case of any type of sensor failure.
c.   Integrity check must be performed on all connected and interfaced sensors.
d.   An alarm must be transmitted to operator's display in case of sensor
     failure or sensor degradation beyond specified limits. The alarm must
     specify the nature of failure. e. It must he possible to have raw sensor
     data presented on the operators display.

7.   TECHNICAL REQUIREMENTS FOR THE NC SYSTEM

7.1  NC OVERVIEW

7.1.1 OVERALL OVERVIEW

Figure 7.1 illustrates the NC block diagram. The NC must interface to the
available navigation sensors onboard, and output position, velocity and time to
a variety of equipment. Following interfaces must be implemented:

a.   INS 1
b.   INS 2
c.   MIL GPS 1
d.   MIL GPS 2/DGPS
e    SPEEDLOG
f.   Ships C3 system (position, speed and time)
g.   NMEA 0183 output
h.   Operators display (sensor status and configuration)

7.2  FUNCTIONAL DESCRIPTION

As integrity becomes an increasingly important aspect in modern warship
navigation, integrity functionality is an important feature in the NC. NATO
definition of integrity is" The ability of a navigation system to provide timely
warnings to determine if and when the system should not be used" (the word
"should" indicates a strong advice but not a mandatory action).

As a consequence of this, the NC must have a dual function:

First, the NC must provide best estimate of own-ship navigation data for output
data strings (on "NMEA 0183" data lines and C3 output) to clients based on all
sensor input, including x, y and z transition ("compensation") of the sensor
locations to a vessel reference point.

Second, the NC must be able to detect, isolate and remove failed sensors from
the navigation solution. This means a real time adaptive integrity monitoring
procedure of the position information form the various sensors. In other words
the NC must perform:

..    Fault detection
..    Sensor isolation

                                                                        16 of 34

<PAGE>

..    Filter adaptation/reconfiguration

A warning must be send to the ALARM output and PC, that a sensor failure has
occurred, and that the navigation solution may be degraded.

There are two classes of failures:

1)   Hard failures
2)   Soft failures

1) Hard failures are the sudden and rapid failures of sensors that are not
uncommon, for example when a sensor suddenly provides no data or obviously
incorrect data.

2) Soft failures are characterised by slowly degrading sensor performance. For
example an INS accelerometer bias that slowly grows out of specification can
cause unreliable INS data if allowed to continue.

7.2.1 DESCRIPTION OF FAILUR DETECTION

Mandatory

a.   Tender must outline the method for "best estimate of navigation solution".
b.   Tender must outline the detection method for detection of Hard Failures.
c.   Tender must outline the detection method for detection of Soft Failures.

                                   [GRAPHIC]

                                                                        17 of 34

<PAGE>

7.3  INTERFACING SYSTEMS

Interface specification for the various interfaces is outlined in details in
chapter 8.

INS 1 and INS 2:

The two INS will be SAGEM Sigma 40, Ring Laser Gyros (RLG).

P(Y)/MIL GPS:

Three different military P(Y) code GPS receivers are in service in RDN:

1)   Sagem GPS 40-6/12.
2)   Rockwell Collins PLGR+96.
3)   Rockwell Collins PLGRII/SOLGR.

DGPS:

Several different DGPS receivers are in service in RDN (e.g. Northstar 931,
CSIMBX).

LOG:

An AGI Log will interface to the NC.

C3:

Since the early 80'ties, RDN has used a Command Control and Communication (C3)
system produced by TERMA Elektronik A/S.

NMEA 0183

National Marine Electronics Association publish the "NMEA 0183 Standard For
Interfacing Marine Electronic Devices". This is the most used interface
specification today for small marine equipment. Latest version is version 2.3.

[Illegible]

Operators interface will be a PC with common operating system.

7.4  POWER SUPPLY

See paragraph 8.10

7.5  ENVIRONMENTAL REQUIREMENTS

The NC must be ruggedized, stand-alone and fulfil the environmental
specifications given in IEC 60945.

                                                                        18 of 34

<PAGE>

8.   EDUCATION SYSTEMS FOR RDN NAVIGATIONAL SCHOOLS

8.1  GENERAL REQUIREMENT FOR EDUCATION SYSTEMS

The education systems must be designed for the certification training of
navigators in compliance with IMO's STCW 95 convention.

The educational systems must include or be able to interface with a simulator,
which is capable to deliver training, and assessment to a degree necessary to
gain the competence as required by the STCW code for:

NAVIGATION AT OPERATIONAL LEVEL (A-11/1):

..    Plan and conduct a passage and determine position.
..    Maintain a safe navigational watch
..    Use of radar and ARPA to maintain safety of navigation.
..    Manoeuvre the ship.

NAVIGATION AT MANAGEMENT LEVEL (A-11/2):

..    Plan a voyage and conduct navigation
..    Determine position and accuracy of resultant position fixing by any means
..    Determine and allow for compass errors
..    Establish watch keeping arrangements and procedures
..    Maintain safe navigation through the use of radar and ARPA and modern
     navigational systems to assist command and decision-making.
..    Manoeuvre and handle the ship in all conditions.

8.2  SPECIFIC REQUIREMENT FOR EDUCATION SYSTEMS

8.2.1 MANDATORY REQUIREMENT:

The educational systems must include or be able to interface with a simulator
that outputs NMEA sentences and as a minimum provide the data listed below:

a.   Must be able to display radar overlay.
b.   Must be able to simulate other traffic.
c.   Must be able to simulate deviation from the planned route, caused by wind,
     current etc.
d.   Must be easy to create training exercises in different exercise areas.
e.   Must include different types/sizes of exercise ships.

8.2.2 HIGHLY DESIRABLE:

a.   Ability to record, save and playback games, including tracks with
     predefined route, speed and size of the echo.
b.   Ability to create a number of predefined routes.
c.   Ability to change echo sizes from a pleasure boat to an ULCC.
d.   Ability to create a route with mouse/ball and keyboard.
e.   Ability for "exercise" to receive a "DISTRESS message indication".
f.   A number of different weather conditions that automatically will interfere
     with the presented Radar picture.
g    A possibility for the instructor to filtrate the visual picture and
     filtrate information on the track information.
h.   Must include a separate radar display.

                                                                        19 of 34

<PAGE>

i.   Must have the same man machine interface (MMI) as the operational system.
j.   Must include detailed user manuals in English language.
k.   Must include a user education programme in English language.
1.   Must contain an on-line help function.

8.2.3 DESIRABLE.

a.   Must include/or have the possibility to upgrade with a separate visual
     display.
b.   Must include a conning display.

                                                                        20 of 34

<PAGE>

9.   SYSTEM INTERFACE SPECIFICATION

9.1  SYSTEM DIAGRAM

Note: Dotted lines indicate units that are not part of this specification.
Dashed lines indicate interfaces that are desirable.

                                    [GRAPHIC]

                                                                        21 of 34

<PAGE>

9.2  ECHO SOUNDER OUTPUT

Output from Echo sounder is RS422. NMEA 0183 v. 2.0. Message DPT and DBT.

Note: It is highly desirable that the ECDIS is able to interface to the Kelvin
Hughes MS50 echo sounder.

9.3  GPS 1 AND GPS 2 OUTPUT

Output from GPS receivers are RS422 or RS232.

The ECDIS must retrieve the necessary information from the following messages
from the GPS receivers:

..    NMEA 0183 v. 2.0. Message GGA, GLL, VTG, ZDA and HDT
..    NMEA 0183 v. 2.2. Message RMC, GGA, GLL, VTG, ZDA and HDT
..    NMEA 0183 v. 2.3. Message RMC, GGA, GLL, VTG, ZDA and HDT

In version 2.2 and 2.3 message GLL can distinguish between a CA code, a
PPS code (P(Y)) and a CA/DGPS position, and thereby determine a quality
factor:

     CA code position:     100m   CEP95%
     DGPS position:          5m   CEP95%
     P(Y) code position:     5m   CEP95%

9.4  SPEED LOG OUTPUT

Output from speed LOG is RS422.

The ECDIS must support the following messages from the speed LOG:

..    NMEA 0183 v. 2.00. Message VBW and VLW.

It is highly desirable that the ECDIS is able to interface to a special AGILOG
NMEA-like message laid out in Annex 2.

9.5  INS 1 AND INS 2 OUTPUT

Output from INS 1 and INS2 are RS 422.
NMEA 0183 v. 2.20., $INXXX, where XXX is message GLL, HDT and VTG.

9.6  AIS TO ECDIS

It is desirable that the ECDIS can interface to AIS equipment compliant with
ITU-R M.1371.

9.7  MANOUEVERING SYSTEM TO VDR

The VDR must interface to two RS232 lines, 9600 baud, for recording of 1) alarms
and 2) manoeuvring data.

9.8  RADAR TO ECDIS/VDR

The ECDIS must accept input from common radars. It is highly desirable that it
is possible to select between two different ARPA/radar inputs. Interface also
according to IMO resolution A.823(19).

                                                                        22 of 34

<PAGE>

9.9  NC INTERFACE SPECIFICATION

9.9.1 OUTPUT TO INS1 AND INS2

Interface for position update of INS's. NMEA 0183 v. 2.20, $GPXXX, where XXX is
GGA, GLL, HDT, VTG.

9.9.2 OUTPUT TO ECDIS

In order not to violate the approval of the ECDIS, potential suppliers of both
ECDIS and NC are free to design this interface to the offered ECDIS.

If only bidding on the NC the interface to the ECDIS is preferred to be NMEA
0183 v.2.20, $GPXXX, where XXX is GGA, GLL, HDT, VTG.

9.9.3 OUTPUT OF NAVIGATION SOLUTION TO C3

ANNEX 3 contains the interface specification between the NC and C3 with respect
to the navigation solution. The document is based on the present SAGEM GPS
40-6/12 interface to C3.

Note:
NC is to disregard inputs from C3 to NC.

9.9.4 INPUT FROM INS 1 AND INS 2

Input from INS 1 and INS2 are RS 422.

NMEA 0183 v. 2.20., $INXXX, where XXX is message GLL, HDT and VTG.

9.9.5 INPUT FROM MIL GPS/DGPS

The two GPS inputs must be identical and must support:

..    NMEA 0183 v. 2.0. Message GGA, VTG, ZDA, HDT
..    NMEA 0183 v. 2.2. Message RMC, GGA, VTG, ZDA, HDT
..    NMEA 0183 v. 2.3. Message RMC, GGA, VTG, ZDA, HDT

In version 2.2 and forward, message GLL can distinguish between a CA code, a
P(Y) code and a CA/DGPS position, and thereby make quality estimation:

     CA code position:     100m   CEP95%
     DGPS position:          5m   CEP95%
     P(Y) code position:     5m   CEP95%

9.9.6 NMEA 0183 OUTPUT

The NMEA output must consist of 8 outputs in parallel. Electrical interface as
described in chapter 5. Data Transmission and Data Format Protocol as described
in the NMEA 0183-specification version 2.0. The NC must as a minimum output the
following messages:

..    $GPGLL version 2.0
..    $GPGGA version 2.0
..    $GPVTG version 2.0
..    $GPZDA version 2.0
..    $GPHDT version 2.0

Note: Navigation data in the $GP-messages must be based on the NC's estimate,
and not directly from the GPS.

                                                                        23 of 34

<PAGE>

9.9.7 PC (OPERATORS INTERFACE)

A PC software-package must be part of the delivery, for presenting sensor data,
and allowing the operator to send commands to the NC.

OUTPUT TO PC:

..    All available (received) raw sensor data
..    Sensor failure alarm and type of alarm
..    Filter parameters (on request)
..    SW version (on request)
..    Replica of INS data to C3
..    Replica of navigation solution to C3
..    Replica of NMEA output(s)

INPUT TO NC:

..    Status-request-commands for the individual sensors and the NC.

An Interface Specification document describing the interface between the NC and
PC must be provided, not later than 4 month from sign of contract.

9.10 POWER SUPPLY

ECDIS, VDR and NC must be powered by an adaptive power supply, approximately
95-240V/47-63 Hz with appropriate power backup (UPS) according to the relevant
performance standards and with a 24VDC +/-30% power fallback to the ships
emergency power system for VDR, NC and the minimum required ECDIS system.

                                                                        24 of 34

<PAGE>

l0.  SYSTEM CONSTRUCTION REQUIREMENTS

10.1 CONSTRUCTION REQUIREMENTS FOR THE ECDIS AND PLANNING STATION

10.1.1 FLAT SCREEN DISPLAYS

NMC will prefer a flat screen display solution based on appropriate color flat
screen technology.

NMC is aware that the applicable performance standard IEC 61174 currently is
undergoing changes to include flat screen solutions and that the revised edition
is expected to be approved by June 2001.

10.1.2 ECDIS AND PLANNING STATION IN GENERAL

Radar:

It is highly desirable that it is possible to shift between 2 external radar
input on the ECDIS.

PCB:

It is highly desirable that as many as possible of the PCB in the ECDIS, will be
COTS products.

Electrical interfaces:

All data interfaces must be either RS232 or RS422. It is highly desirable that
type is either hardware-or software configurable.

Language:

Language used on front panels, modules, PCB's etc. must be English.

Marking:

Modules, cards, cables and connectors must be marked in accordance with block
diagram drawings for easy identification.

10.2 CONSTRUCTION REQUIREMENTS FOR THE VDR

10.2.1 GENERAL VDR REQUIREMENTS

The offered VDR must as minimum meets the following requirements:

..    Maintenance free.
..    Do not require attention from shipboard personnel once fitted.

10.3 CONSTRUCTION REQUIREMENTS FOR THE NAVIGATION COMPUTER

The NC must be ruggedized, stand-alone and fulfil the environmental
specifications given in IEC 60945. However, NMC will prefer a solution where the
NC is housed in the ECDIS casing.

Note:

Tender must specify the NC case construction and the PCB products offered. The
NC must be wall-mountable with all connectors mounted at the case bottom or
side. Mating connectors other than D-sub connectors must also be part of the
delivery.

Connectors (chassis):

                                                                        25 of 34

<PAGE>

..    Signal/data, sensors:  D-sub 15-pole, male
..    NMEA output:           D-sub 9-pole, female
..    C3 output:             D-sub 25-pole, female
..    Power 115/220V:        IEC 320
..    Power 24V:             VG95234 A 16-11 P (chassis part)
..        ----               VG95234 D 16-11 S (mating part)

During pin configuration for D-sub connectors, care must be taken to eliminate
output short circuits, when connectors by mistake are connected to the wrong
chassis part. For NMEA output NMC will deliver a pin-number list.

PCB:

As many as possible of the PCB in the NC, must be COTS products.

Electrical interfaces:

All data interfaces must be either RS232 or RS422. Type must be either
hardware-or software configurable. Each of the 8 NMEA 0183 outputs (in parallel)
must have its own independent RS422/RS232 driver and be electrically isolated
from power supply and each other.

Build In Test Equipment:

The NC must have Build In Test Equipment (BITE), able to identify failures to
module/PCB level.

Language:

Language used on front panels, modules, PCB's etc. must be English.

Marking:

Modules, cards, cables and connectors must be marked in accordance with block
diagram drawings for easy identification.

                                                                        26 of 34

<PAGE>

11.  SYSTEM AVAILABILITY AND MAINTAINABILITY

The following counts for all the offered equipment.

11.1 MTBF

ECDIS, Planning Station, and NC Mean Time Between Failure (MTBF) must be stated.
The calculation method or standard for the MTBF must be described.

11.2 MAINTENANCE

A list of the exchangeable parts, modules and PCB's must contain:

11.3 REPAIR PRICING AND MANUFACTOR STORED SPARES

Tender must specify the repair pricing policy, that is:

..    % of new price or
..    Actual repair price

Specify spareparts NOT being in normal storage for quick delivery.

11.4 RECOMMENDE TOOLS

List test/repair equipment, and control procedures requirements, for
modules/PCB's exchange in workshop and field.

11.5 FUNCTION TEST/TROUBLE SHOOTING

..    Specify function test of the overall system.
..    Specify Build in Test Equipment (BITE) for readout down to module level.
..    Specify Mean Time To Repair (MTTR).
..    If the company can offer a program for Automatic Test Equipment (ATE),
     please specify.

11.6 PREVENTIVE MAINTENANCE

..    Specify the preventive action, which can diminish failures. E.g. period for
     cleaning of filters and lubrication.

11.7 EXPECTED MAINTENANCE COSTS

..    An estimate of maintenance costs per system per year must be given.

11.8 MANUFACTORER OBLIGATIONS

..    Non-COTS Spare parts have to be deliverable for 10 years.

                                                                        27 of 34

<PAGE>

12. SYSTEM DOCUMENTATION AND TEST PROCEDURES

12.1 DOCUMENTATION STANDARD FOR EACH SYSTEM

MIL-STD type documentation is not required. Commercial standard is acceptable as
long as the content fulfils the demands listed below. One set of manuals for
each delivered system plus 5 extra sets of manuals for the Navel Documentation
Office. The documentation must at least include following:

12.1.1 OPERATORS MANUAL

Including:

..    A short introduction.
..    A general user information.
..    A general technical description in short form.

A more deep explaining of the functions (the commands/controls etc.) and must
include at least:

..    Block diagrams.
..    Functional description.
..    Interface description

12.1.2 TECHNICAL MANUAL

Including all technical documentation and functional descriptions. The technical
manual must also include:

Standard workshop maintenance instructions, which at least include the items
listed below:

..    Visual inspection specifications.
..    Unit test specifications.
..    Sub unit test specifications.
..    System test specifications.
..    Installation test specifications.
..    Interface test specifications with:
     .    Interface signal diagrams.
     .    Interface timing diagrams.
     .    Interface data transfer diagrams.
..    Onboard periodic maintenance instructions (daily, weekly, monthly, etc.).
..    Fault location guidance.
..    Repair instructions.
..    Precautions.
..    Test equipment requirements for workshop level maintenance.
..    Test equipment requirements for onboard level maintenance.
..    Software information for operation and maintenance.

Installation documentation, extra to the above mentioned documentation, and
delivered prior to first installation:

..    Mechanical installation drawings.
..    Mechanical installation procedure.
..    Mechanical alignment procedure.
..    Electrical installation drawings in NMC cable wiring forms (example will be
     provided).
..    Electrical installation procedures.

                                                                        28 of 34

<PAGE>

Additional information, like:

..    COTS parts procurement specification.
..    Software description for use of automatic PCB test equipment e.g. FACTRON
     test systems.

12.2 DOCUMENTATION FORMAT

Preferable a paper copy in A4-ring binders and an electronic copy (CD-ROM) in
the following format:

..    Drawings in AutoCAD ver.14 or higher, (file format "DWG") for WINDOWS. NMC
     will provide the Contractor with a set of current drawing-standards
     regarding headers, types, etc.
..    Text in MS-WORD for WINDOWS 97(TM) or Acrobat reader (format PDF).

12.3 LANGUAGE

All documentation shall be in English or Danish for the delivered systems.

12.4 CODIFICATION INFORMATION

Lists giving information of all electrical items (units, modules, customized
parts) must be provided for the purpose of codification for use by the Navy
supply system. In case the equipment and its parts, or some of it, have already
been codified only the list with the NATO stock numbers shall be supplied and be
part of the technical manual.

12.5 TEST PROCEDURES AND DOCUMENTATION

Following test documents must be produced by the contractor and approved by NMC
before test:

..    Factory Acceptance Test (FAT) procedure.
..    Harbour Acceptance Test (HAT) procedure.
..    Sea Acceptance Test (SAT) procedure.

Details of the tests are to be negotiated.

                                                                        29 of 34

<PAGE>

13. TECHINAL TRAINING COURSES

Tenders are asked to quote for an optional Training Course for each delivered
system type e.g. ECDIS, NC or course packets.

Student's background:

Skilled civilian navigation equipment technicians from the Navy workshops and
experienced instructors from the Navy Schools.

Language:

The training course shall be conducted in English or Danish language.

Number of students:

Max 8 to 10.

Duration:

Max l week.

Content:

The training course shall enable the students to maintain the equipment at depot
level and become familiar with the operational use.

The quotation shall contain a training course syllabus.

The training course shall be conducted as both a theoretical and practical a
course.

Course materiel:

Written training course materiel shall be supplied to the students and is to
remain their property.

                                                                        30 of 34

<PAGE>

14.  QUALITY ASSURANCE

14.1 ORGANISATION

An organisation chart showing the quality assurance organisation shall be
supplied with the quotation.

14.2 QUALITY CERTIFICATION

It shall be stated to which quality level (AQAP number or similar) the company
has been certified.

14.3 QUALITY ASSURANCE

A description of how quality throughout the design and production phases is
obtained shall be provided.

15.  TECHNICAL ASSISTANCE

Tender must specify price on technical assistance for:

..    Setting to work.
..    Harbour Acceptance Test.
..    Sea Acceptance Test.
..    General technical assistance, on-board/workshop.

16.  PROJECT MANAGEMENT

16.1 ORGANISATION

A project organisation chart (preferably with names) shall be provided.

16.2 CONTINUITY

In order to ensure continuity throughout the project it is a requirement that
key personnel from the project organisation is involved as early as possible.

                                                                        31 of 34

<PAGE>

17.  ANNEX 1

17.1 DEFINITIONS AND ABBREVIATIONS

AML       Additional Military Layers
AIS       Automatic Identification System
ARPA      Automatic Radar Plotting Aid
BCR       ?
BCT       ?
C3        Command, Control and Communication system
COTS      Commercial Off The Shelf
CPA       Closest Point of Approach
DGPS      Differential GPS
EBL       Electronic Bearing Line
ECDIS     Electronic Chart Display and Information System
ENC       Electronic Navigational Chart
ETA       Estimated Time to Arrival
FTC       Fast Time Constant
GFE       Government Furnished Equipment
GMDSS     Global Maritime Distress and Safety System
GPS       Global Positioning System
HAT       Harbour Acceptance Test
IMO       (the) International Maritime Organization
INS       Inertial Navigation System
LAN       Local Area Network
N.A.      Not Applicable
NMEA      National Marine Electronics Association
NC        Navigation Computer
NMC       Naval Materiel Command Denmark
MIL GPS   Military GPS receiver/P(Y) code receiver
PCB       Printed Circuit Board
PPI       Plan Position Indicator
PTA       Planned Time of Arrival
P(Y)      The crypto coded military GPS code
RDN       Royal Danish Navy
RLG       Ring Laser Gyro
SAT       Sea Acceptance Test
SENC      System Electronic Navigational Chart
STANAG    NATO Standard Agreement
STC       Sensitivity Time Control
TCPA      Time to Closest Point of Approach
WECDIS    Warship Electronic Chart Display and Information System
WP        Waypoint
XTE       Cross Track Error

                                                                        32 of 34

<PAGE>

18.  ANNEX-2

18.1 INTERFACE SPECIFICATION BETWEEN AGI SPEED LOG AND ECDIS/VDR/NC

                                                                        33 of 34

<PAGE>

                 [LOGO] Aeronautical & General Instruments Ltd.

            Fleets Paint, Willis Way, Poole, Dorset BH15 3SS England

Tel: 00 44 (0)1202 695661                    E-mail: brian.hunt@aggiltd.co.uk
Fax: 00 44 (0)1202 685 674

There will be 2 strings transmitted alternately.

     $VMVBW,speed,0.0,A,,,*hh(CR)(LF)

     $VMVLW,distance,N,,*hh(CR)(LF)

Where:

     speed is      00.00 to 89.99 knots

     distance is   00000.00 to 99999.99 nautical miles

     A is          'A' when log is operating normally
                   and 'V' when the log is in Simulate mode or
                   there is a fault.

     hh is         the checksum, an 8 bit exclusive OR of all
                   characters including ',' between but not
                   including the $ and * characters.

                   The hexadecimal value of the most significant
                   and least significant 4 bits of the result are
                   converted to two ASCII characters (0-9, A-F)
                   for transmission. The most significant
                   character is transmitted first.

The decimal points in speed and distance will be transmitted.

The following parameters are used

     Baud rate     4800
     DATA bits     8 (d7=0)
     Parity        None
     Stop bits     One

All transmitted data shall be interpreted as ASII characters.

Repetition/Update rate.

     Both strings shall be transmitted at intervals of 500ms +/-12ms.

AGI 24/9/98

I can confirm that you can ignore either of the Messages should you choose to.

<PAGE>

19.  ANNEX-3

19.1 INTERFACE SPECIFICATION BETWEEN NC AND C3

Interface Specification Document for interface between PET C3 system and SAGEM
40-6/12 GPS receiver. PET-D-0407.

                                                                        34 of 34

<PAGE>

STANDARD FLEX 300 & INSPECTION SHIP 86
INTERFACE SPECIFICATION DOCUMENT for Interface between
                         PET C3-SYSTEM
                         SAGEM 40-6/12 GPS RECEIVER

PET Contract number: 7X5070 (TERMA)
SAGEM Contract number: 7Y21192
Copy No: 3 of 3
Issue No: 1
Prepared by: PET

This specification is agreed upon when signed by all parties involved.
Changing in this agreement must be mutually agreed upon.

Approval for:

* Naval Materiel Command, Denmark

/s/ STEEN SALLING             STEEN SALLING                      931116
--------------------------------------------------------------------------------
Signature                     Name                               Date

* PET

/s/ UFFE KIM POULSEN          UFFE KIM POULSEN                   931111
--------------------------------------------------------------------------------
Signature                     Name                               Date

* SAGEM

/s/ ERIC LOFFLER              ERIC LOFFLER                       Illegible
--------------------------------------------------------------------------------
Signature                     Name                               Date

<PAGE>

AMENDMENTS:

Amendment No        Description        Pages        Date       Remarks/Signature
--------------------------------------------------------------------------------

                                 2(6+appendix)                           Rel 1.0

<PAGE>

1.   Scope

     This specification defines, together with the appended SAGEM document, the
     interface between the PET C3 system and the SAGEM 40-6/12 GPS receiver.
     Power interfaces are not included.

     This specification is to be considered the main document for the C3 system.
     It describes the electrical connection of the two systems and the interface
     test. Details of the electrical and functional interfaces between the C3
     system and the GPS receiver is found in the appended SAGEM document. In
     case the two documents contain contradictory clauses or clauses which may
     be contradictorily interpreted this specification (PET-D-0407) takes
     precedence.

2.   Electrical Interface

2.1  Interface Cabling

                                   [GRAPHIC]

                                 4(6+appendix)                           Rel 1.0

<PAGE>

LIST OF ABBREVIATIONS:

CCITT Comite Consultatif International Telegraphique et Telephonique
C3    Command Control and Communication
GPS   Global Positioning System
HAT   Harbour Acceptance Test
IT    Integration Test
LBTS  Land Base Test Site
SIU   Standard Interface Unit

REFERENCE LIST:

EIA  Standards RS-422A,December 1978
CCITT Recommendations V.24
MIL-STD 461A
MIL-STD-461B

LIST OF CONTENT

AMENDMENTS
LIST OF ABBREVIATIONS
REFERENCE LIST
Section 1. Scope
Section 2. Conductor List
           2.1  Interface Cabling
           2.2  Conductor List
Section 3. Functional Interface
Section 4. Interface Test
           4.1  Test Procedures
           4.2  Test Tools

APPENDIX

           "44-6/12 GPS Receiver. Ship data network interface specification",
           SAGEM Document NTA 15/97-210, August 1993

                                 3(6+appendix)                           Rel 1.0

<PAGE>

1.   Scope

     This specification defines, together with the appended SAGEM document, the
     interface between the PET C3 system and the SAGEM 40-6/12 GPS receiver.
     Power interfaces are not included.

     This specification is to be considered the main document for the C3 system.
     It describes the electrical connection of the two systems and the interface
     test. Details of the electrical and functional interfaces between the C3
     system and the GPS receiver is found in the appended SAGEM document. In
     case the two documents contain contradictory clauses or clauses which may
     be contradictorily interpreted this specification (PET-D-0407) takes
     precedence.

2.   Electrical Interface

2.1  Interface Cabling

                                   [GRAPHIC]

                                4 (6+appendix)                           Rel 1.0

<PAGE>

2.2  Conductor List

Cable type SG-Sdo 5x2x0.35      Cable class D4
--------------------------------------------------------------------------------
Notes:                    Digital Link RS422
--------------------------------------------------------------------------------
System: C3                                   System: GPS Receiver
Unit: 450 (SIUI)                             Unit: GPS 40-6/12
Inlet: P351                                  Inlet: J11
Connector: KPSE 6E 14-19 PW DZ               Connector: MIL 38999-13 PINS female

Conductor    Pair    Terminal        Terminal    Function
--------------------------------------------------------------------------------
Red          1       P               1           Data out (from C3) +(B)
Black                R               2           Data out (from C3) -(A)
--------------------------------------------------------------------------------
Blue         2       B               n.c.        Spare
Black                C               n.c.        Spare
--------------------------------------------------------------------------------
White        3       D               3           Data in (to C3) +(B')
Black                E               4           Data in (to C3) -(A')
--------------------------------------------------------------------------------
White        4       H               n.c.        Spare
Black                J               n.c.        Spare
--------------------------------------------------------------------------------
White        5       n.c.            n.c.        Spare
Black                n.c.            n.c.        Spare
--------------------------------------------------------------------------------
Screen               Shell           Shell       Ground in SIU1 and GPS Receiver
--------------------------------------------------------------------------------

   n.c. : not connected

                                5 (6+appendix)                           Rel 1.0

<PAGE>

3.   Functional Interface

     The function interface is described in the SAGEM document. Note, however,
     that the UTC Time provided by the GPS receiver is not used by the C3 system
     (growth potential).

4.   Interface Test

4.1  Test procedures

     The following tests will be performed to confirm that the C3 system and the
     40-6/12 GPS Receiver system do cooperate as expected:

          .    test in a Land Base Test Site (LBTS)
          .    Harbour Acceptance Test (HAT)

     The tests will only be performed for one of the ship classes SF300/IS86.

     Land Base Test Site

     The main purpose of the LBTS is to serve as a facility for the integration
     test of the C3 system and the subsystem.

     The 40-6/12 will be integrated and tested in the LBTS before it is
     installed on the ship. NMC will provide the parts of the GPS receiver
     system which are necessary to perform the test.

     Harbour Acceptance Tests

     The HAT follows the Integration Test and is the final test of the interface
     with the systems installed on the ship. The actual tests to be performed
     are described in an agreed HAT Specification. The result is given in HAT
     Report.

4.2  Test tools

     LBTS comprising parts of C3 equipment.

                                6 (6+appendix)                           Rel 1.0

<PAGE>

                                     40-6/12

                                  GPS Receiver

                                Ship data network
                             interface specification

                                    [GRAPHIC]

August 1993                                                        NTA 15/97-210

<PAGE>

                                                                    [LOGO] SAGEM

                             3 ELECTRICAL INTERFACE

3.1  Standard references

     The electrical interface for the serial data communication between the SDN
     and the GPS 40-6/12 will be according to EIA STANDARD RS-422A (Ref [1]).

3.2  Serial data interface

3.2.1 SIGNALS

     The balanced voltage interface of the serial links is shown in the figure
     3.1 below.

                                    [GRAPHIC]

     The electrical characteristics of the generator and the receiver are
     specified in the RS-422 specification paragraph 4.

     The following subset of the intercharge circuits specified in CCITT
     Recommendation V.24 is used:

     .    CT103 Transmitted data,
     .    CT104 Received data.

3.2.2 SIGNAL TIMING

     The serial data communication is asynchronous.

     Baud rate               :   4800 Bps

     Number of start bits    :   1

     Number of data bits     :   8

     Number of parity bits   :   1

     Parity                  :   EVEN

     Number of stop bits     :   1

     The according format is :

        ----------------------------------------------------
        0   d0   d1   d2   d3   d4   d5   d6   d7   P   1
     ----------------------------------------------------

AUGUST 1993                                                                  3.1

<PAGE>

                                                                    [LOGO] SAGEM

3.3  Electromagnetic interference

     The SDN is designed to meet the electromagnetic interference requirements
     specified in MIL-STD-461B (class A4). For conducted emission on control and
     signal leads (not applicable in 461B) MIL-STD-461A CE02 and CE04 will be
     fulfilled.

     The GPS 40-6/12 receiver is designed to meet MIL-STD-461C/462 class A5
     requirements CEO1, CEO3, RE01 and REO2.

     If EMI problems should arise onboard due to different EMI specifications,
     NMC will take steps to salve the problem.

3.4  Interface cabling

     System               :   GPS User Equipment

     Unit                 :   GPS 40-6/12

     Inlet                :   J11 - SHIP DATA NETWORK

     Connector            :   MIL 38999-13 PINS FEMALE

     Plug connection fist :

     ======================
     Terminal      Function
     ----------------------
         1           RXD +
     ----------------------
         2           RXD -
     ----------------------
         3           TXD +
     ----------------------
         4           TXD -
     ----------------------
         5            GND
     ----------------------
       6-13        RESERVED
     ======================

AUGUST 1993                                                                  3.2

<PAGE>

                                                                    [LOGO] SAGEM

                              GPS 40-6/12 RECEIVER
                               SHIP DATA NETWORK
                            INTERFACE SPECIFICATION

AUGUST 1993                                                        NTA 15/97-210

<PAGE>

                                                                    [LOGO] SAGEM

                             40 - 6/12 GPS RECEIVER

                                Ship data network
                             interface specification

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

Contract number:        7Y21192 - THE NAVAL MATERIEL COMMAND, DENMARK

Reference number:       SAGEM 15/354/GPS/024/93

Index:                  none

Issue date:             93-09-15

Prepared by:            SAGEM

This specification is agreed upon when signed by all parties involved.
Changing in this agreement must be mutually agreed upon.

Approval for:

NAVAL MATERIEL COMMAND, DENMARK

/s/ STEEN SALLING               STEEN SALLING             16-11-93
--------------------------------------------------------------------------------
Signature                          Name                     Date

SAGEM

/s/ ERIC LOFFLER                ERIC LOFFLER              01/10/93
--------------------------------------------------------------------------------
Signature                          Name                     Date

TERMA Electronik AS

/s/ UFFE KIM POULSEN            UFFE KIM POULSEN          03/03/95
--------------------------------------------------------------------------------
Signature                          Name                     Date

AUGUST 1993                                                                  0.1

<PAGE>

                                                                    [LOGO] SAGEM

                                 INDEX OF PAGES

This document includes 16 sheets numbered and dated according to the following
table:

-------------------------------------------
     SHEETS #
from         to              ISSUE DATE
-------------------------------------------
TITLE                   AUGUST        1993

 0.1        .0.6        AUGUST        1993

 1.1                    AUGUST        1993

 2.1                    AUGUST        1993

 3.1         3.2        AUGUST        1993

 4.1         4.4        AUGUST        1993

 5.1                    AUGUST        1993

AUGUST 1993                                                                  0.2

<PAGE>

                                                                    [LOGO] SAGEM

                           EVOLUTION OF THE DOCUMENT

--------------------------------------------------------------------------------
INDEX                   DATE                     NATURE OF MODIFICATION
--------------------------------------------------------------------------------
None                 AUGUST 1993               First issue of the document
--------------------------------------------------------------------------------

AUGUST 1993                                                                  0.3

<PAGE>

                                                                    [LOGO] SAGEM

                                    CONTENTS

REFERENCE LIST

1    SCOPE

2    SYSTEM DESCRIPTION

     2.1  BRIEF OVERALL FUNCTION DESCRIPTION

     2.2  GPS 40-6/12 FUNCTION DESCRIPTION

     2.3  SHIP NAVIGATION COMPUTER FUNCTIONAL DESCRIPTION

     2.4  SDN AND GPS 40-6/12 INTEGRATION DESCRIPTION

3    ELECTRICAL INTERFACE

     3.1  STANDARD REFERENCES

     3.2  SERIAL DATA INTERFACE

          3.2.1 Signals
          3.2.2 Signal timing

     3.3  ELECTROMAGNETIC INTERFERENCE

     3.4  INTERFACE CABLING

4    FUNCTIONAL INTERFACE

     4.1  MESSAGE DESCRIPTION

          4.1.1 Message standard reference
          4.1.2 Order of Transmission
          4.1.3 Serial transmission

     4.2  MESSAGE LIST

          4.2.1 Message sent from GPS 40-6/12 to SNC
          4.2.2 Message sent from SNC to GPS 40-6/12

     4.3  MESSAGE FORMATS

          4.3.1 High level message structure
          4.3.2 Message layout
          4.3.3 Check Sum

     4.4  MESSAGE PROTOCOL

5    INTERFACE TEST

     5.1  TEST PROCEDURE

AUGUST 1993                                                                  0.4

<PAGE>

                                                                    [LOGO] SAGEM

                              LIST OF ABREVIATIONS

GPS     Global Positioning System

CCITT   Comite Consultatif International Telegraphique et Telephonique

EIA     Electronic Industries Association

SA      Selective Availability

AS      Anti Spoofing

PPS     Precise Positioning Service

SPS     Standard Positioning Service

DGPS    Differential GPS

SDN     Ship Data Network

SNC     Ship Navigation Computer

AUGUST 1993                                                                  0.5

<PAGE>

                                                                    [LOGO] SAGEM

                                 REFERENCE LIST

Ref[0] GPS 40-6/12 receiver Ship Data Network Interface Specification
Ref[1] EIA standard RS-422A, December 1978
Ref[2] CCITT recommendations V.24
Ref[3] MIL-STD-461A
Ref[4] MIL-STD-461B
Ref[5] MIL-STD-462

AUGUST 1993                                                                  0.6

<PAGE>

                                                                    [LOGO] SAGEM

                                     1 SCOPE

This specification defines the interface between the loca1 Ship Data Network and
the SAGEM GPS 40-6/12 receiver. Power interfaces are not included in this
specification.

In case the referred documents contain contradictory clauses or clauses which
may be contradictorily interpreted the following priority shall be followed by
interpretation:

..    This document Ref [0].
..    EIA STANDARDS RS-422A, December 1978, Ref [1].
..    CCITT Recommendations V.24, Ref [2].

If this specification makes definitions which do not agree with the referred
documents, in sections where these in other respects are referenced, then it
will be explicity mentioned.

AUGUST 1993                                                                  1.1

<PAGE>

                                                                    [LOGO] SAGEM

                              2 SYSTEM DESCRIPTION

2.1  Brief overall function description

     The GPS receiver provides when available the best position and velocity
     estimate using GPS, Log and Attitudes measurements to the Ship Navigation
     Computer. These data are then distributed to other systems by the SDN
     system as required.

     The SNC provides position, velocity, attitudes and log informations to the
     GPS receiver for initializations and navigation purposes.

2.2  GPS 40-6/12 function description

     The GPS 40-6/12 receiver is a military 18 channels P(Y) code receiver with
     full SA/AS and PPS capabilities. This receiver consists of the following
     modules:

     .    Reception Antenna Unit

          The main function of the Reception Antenna Unit is to acquire, to
          filter and to amplify the signals transmitted by GPS satellites.

     .    Receiver Processor Unit

          This unit is the central element of the GPS user equipment. Its
          function is to provide a navigation solution from GPS and different
          external sensors (if available). This unit supports the PPS and SPS
          GPS modes, as well as DGPS navigation computation.

     .    Control and Display Unit

          This unit allows the operator first to control the basic operating
          modes and to set the Navigation Conditions of the User Equipment, and
          also to visualize the navigation solution, warning messages or global
          status of the equipment.

2.3  Ship Navigation Computer Functional description

     The own ship position and velocity data received from the GPS can be
     presented in different totes on the SNC standard consoles together with
     corresponding information from other sources. The SNC selects data from
     sensors in a predefined order of priority or as directed by the operator.
     The data are used for navigation and manoeuvring of the ship and is also
     distributed via the local area network to other subsystems.

2.4  SDN and GPS 40-6/12 integration description

     The information between the SDN and the GPS 40-6/12 is exchanged via a
     RS-422 full duplex serial data link.

AUGUST 1993                                                                  2.1

<PAGE>

                                                                    [LOGO] SAGEM

                             4 FUNCTIONAL INTERFACE

4.1  Message description

4.1.1 MESSAGE STANDARD REFERENCE

     Not applicable.

4.1.2 ORDER OF TRANSMISSION

     The most significant byte within each data element shall be transmitted
     first. In events where a data element requires more than one byte, the most
     significant byte shall be followed by less significant byte(s) in ascending
     numerical order.

4.1.3 SERIAL TRANSMISSION

     For the serial transmission the least significant bit of each byte shall be
     transmitted first.

4.2  Message list

4.2.1 MESSAGE SENT FROM GPS 40-6/12 TO SDN

                                                                OUTPUT   UPDATE
     Status, Time, Position, Velocity                           1 Hz     1 Hz

4.2.2 MESSAGE SENT FROM SDN TO GPS 40-6/12

                                                                OUTPUT   UPDATE
     Position, Velocity, Heading Pitch Roll, H/P/R Rates, Log   1 Hz     1 Hz

4.3  Message formats

4.3.1 HIGH LEVEL MESSAGE STRUCTURE

     A common message format is adapted for input and output.

     Each message start with an identification of four bytes : 7F,FF,FF,7F.

     The next byte gives the length of the information field.

     Each message is ended by a check sum field of one byte. This information is
     used to decide if the message has been received without transmission
     errors.

          ------------------------------------------------------------
          MESSAGE ID      LENGTH      INFORMATION FIELD      CHECK SUM
          ------------------------------------------------------------

                                  message structure

AUGUST 1993                                                                  4.1

<PAGE>

                                                                    [LOGO] SAGEM

     Where :

     MESSAGE ID          :   A code, 4 bytes, containing the identification
                             7F,FF,FF,7F.

     LENGTH              :   The information field number of bytes (check sum
                             excluded) refer to message layout in 4.3.2.

     INFORMATION FIELD   :   Refer to message layout 4.3.2.

     CHECK SUM           :   Refer to section 4.3.3.

4.3.2 MESSAGE LAYOUT

     Below is listed in the order of occurrence all the messages items. For each
     data is specified the item number, a brief description of the content, the
     number of bytes, maximum value and unit associated, and LSB value. Data are
     to be interpreted as two's complement when no other comment is given
     explicitly. LSB is the bit number 0.

4.3.2.1   Message sent from GPS 40-6/12 to SNC

          The length of this information field is 31 bytes.

-------------------------------------------------------------------------------
ITEM             DATA              LENGTH    RANGE     UNIT          LSB
-------------------------------------------------------------------------------
  1    GPS UE Status (1)              1     FF hex     n.a.          n.a.
-------------------------------------------------------------------------------
  2    UTC time (ASCII coding as
       YYYYMMDDhhmmss) (2)           14       n.a.     n.a.          n.a.
-------------------------------------------------------------------------------
  3    Latitude (3)                   3     +/- PIE   radian   PIE X 2/-23/ rad
-------------------------------------------------------------------------------
  4    Longitude (3)                  2     +/- PIE   radian   PIE X 2/-23/ rad
-------------------------------------------------------------------------------
  5    CEP (95%)                      2     +32767    meter       1 meter
-------------------------------------------------------------------------------
  6    North velocity                 2     +/-128     m/s       2/-8/ m/s
-------------------------------------------------------------------------------
  7    East velocity                  2     +/-128     m/s       2/-8/ m/s
-------------------------------------------------------------------------------
  8    Sea current North              2     +/-128     m/s       2/-8/ m/s
-------------------------------------------------------------------------------
  9    Sea current East               2     +/-128     m/s       2/-8/ m/s
-------------------------------------------------------------------------------

     (1)  GPS UE Status:

          7        6         5        4        3        2       1        0
        -------------------------------------------------------------------
        n.u.      n.u.      LAC      NAV      ERR      SC      SPD      POS
        -------------------------------------------------------------------

           POS:  0=Position/CEP not available,     1=Position/CEP available
           SPD:  0=Velocity not available,         1=Velocity available
           SC :  0=Sea Current not available,      1=Sea Current available
           ERR:  0=GPS OK,                         1=GPS internal faillure
           NAV:  0=GPS Navigation,                 1=Dead Reckoning
           LAC:  0=Level arm not corrected         1=Level arm corrected

     (2)  UTC Time:

          The UTC time format is an ASCII string YYYYMMDDHHMMSS (e.g.
          19930428173551). This time is synchronized to the GPS position and
          velocity measurements.

AUGUST 1993                                                                  4.2

<PAGE>

                                                                    [LOGO] SAGEM

     (3)  Latitude/Longitude

          The latitude and longitude data are in WGS-72. The position is
          corrected to the ship's reference point if attitude parameters are
          available. If not, the antenna position will be provided.

4.3.2.2   Message sent from SNC to GPS 40-6/12

          The length of this information field is 29 bytes.

--------------------------------------------------------------------------------
ITEM             DATA             LENGTH    RANGE     UNIT           LSB
--------------------------------------------------------------------------------
  1    SNC Data Status (1)           1     FF hex     n.a.           n.a.
--------------------------------------------------------------------------------
  2    Latitude (2)                  3     +/- PIE   radian    PIE X 2/-23/ rad
--------------------------------------------------------------------------------
  3    Longitude (2)                 3     +/- PIE   radian    PIE X 2/-23/ rad
--------------------------------------------------------------------------------
  4    CEP (95%)                     2     +32767    meter        1 meter
--------------------------------------------------------------------------------
  5    North velocity                2     +/-128     m/s        2/-8/ m/s
--------------------------------------------------------------------------------
  6    East velocity                 2     +/-128     m/s        2/-8/ m/s
--------------------------------------------------------------------------------
  7    Heading                       2     +/- PIE   radian    PIE X 2/-15/ rad
--------------------------------------------------------------------------------
  8    Roll                          2     +/- PIE   radian    PIE X 2/-15/ rad
--------------------------------------------------------------------------------
  9    Pitch                         2     +/- PIE   radian    PIE X 2/-15/ rad
--------------------------------------------------------------------------------
 10    Heading rate                  2     +/- PIE    rad/s   PIE X 2/-15/ rad/s
--------------------------------------------------------------------------------
 11    Roll rate                     2     +/- PIE    rad/s   PIE X 2/-15/ rad/s
--------------------------------------------------------------------------------
 12    Pitch rate                    2     +/- PIE    rad/s   PIE X 2/-15/ rad/s
--------------------------------------------------------------------------------
 13    Log North velocity            2     +/- 128    m/s        2/-8/ m/s
--------------------------------------------------------------------------------
 14    Log East velocity             2     +/- 128    m/s        2/-8/ m/s
--------------------------------------------------------------------------------

     (1)  C3 Data Status:

          7        6         5        4        3        2       1        0
        -------------------------------------------------------------------
        n.u.      n.u.     n.u.      LOG      R/P      HDG     SPD      POS
        -------------------------------------------------------------------

           POS:  0=Position/CEP not available,       1=Available
           SPD:  0=Velocity not available,           1=Available
           HDG:  0=HDG and HDG rate not available,   1=Available
           R/P:  0=R/P and R/P rate not available,   1=Available
           LOG:  0=Log not available                 1=Available

     (2)  Latitude/Longitude:

          The latitude and longitude data are in WGS-72. The given position is
          relative to the ship's reference point.

AUGUST 1993                                                                  4.3

<PAGE>

                                                                    [LOGO] SAGEM

4.3.3 CHECK SUM

     The check sum is a byte by byte addition of all bytes of the information
     field (length is not included in the check sum) modulo 256.

4.4  Message Protocol

     No protocol is applicable.

     The input and output rate are 1 Hz.

     None of the messages requires an explicit message as answer.

AUGUST 1993                                                                  4.4

<PAGE>

                                                                    [LOGO] SAGEM

                                5 INTERFACE TEST

5.1  Test procedure

     The tests to be performed to confirm that the interface of GPS User
     Equipment with the SDN is in accordance with this specification will be
     described in the Factory Acceptance Test Procedure FATP. This document will
     be submitted to the NMC approbation.

AUGUST 1993                                                                  5.1

<PAGE>

   6, avenue d'lena, 75783 PARIS Cedex 16, FRANCE, S.A. au Capital de FRF, 181
                       280 000, R.C.S. PARIS B 562 082 909

                                  [LOGO] SAGEM

<PAGE>

                                                                   APPENDIX 3 to
                                                              Contract No. X0132

                        NATO CODIFICATION CONTRACT CLAUSE

The CONTRACTOR will furnish to the Agency designated by the National
Codification Authority of the producing country, engineering drawings,
specifications and related documentation conveying item identification data, and
also draft item identifications if required, as specified by the producing
country, for those items designated by the contracting authority to support the
equipment covered by the Contract, and for which new item identifications must
be prepared.

For items procured by the CONTRACTOR from a sub-contractor or vendor, the
CONTRACTOR will furnish the name of the actual manufacturer(s) and his/their
drawings or part numbers and applicable technical data, plus draft item
identifications if required.

All technical data and related draft item identifications required will be
submitted at the earliest practicable date but in all instances not later than
at the times specified by the Contract.

For the life of the Contract, the CONTRACTOR will provide updating information
regarding all modifications or design changes made to the equipment or spare
parts.

When draft item identifications are to be furnished, these will be provided in
accordance with the guide for the preparation of item identifications furnished
by the NCB or by the designated agency of the producing country.

The CONTRACTOR will contact the National Codification Authority in the producing
country without delay for any further particulars.

The CONTRACTOR agrees that Naval Materiel Command, Denmark shall have the right,
free of charge, to duplicate and to use for codification purposes any part of
reports, drawings, blueprints, data and technical information specified to be
delivered under this Contract.

The CONTRACTOR agrees to insert the provisions of this Clause in his
sub-contracts.

--------------------------------------------------------------------------------
NAVAL MATERIAL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                                                   APPENDIX 4 to
                                                              Contract No. X0132

                           NMC SECURITY ASPECTS LETTER

The CONTRACTOR and any sub-contractor(s) are required to comply with NATO
Security Regulations as implemented by the National Security Authority of the
country in which the work is performed.

1.   The CONTRACTOR shall:

1.1  Safeguard all classified information and material in accordance with the
     requirements established by the National Security Authority of the country
     in which the work is performed.

1.2  Appoint an officer to be responsible for supervising and directing security
     measures in relation to this Contract or sub-contract.

1.3  Submit personal particulars for the persons participating in the project in
     due time to this National Security Authority with the purpose of obtaining
     security clearances at the required level.

1.4  Maintain, preferably through the officer responsible for security measures,
     a continuing relationship with the National Security Authority in order to
     ensure that all NATO classified information involved in the Contract and
     sub-contracts is properly safeguarded.

1.5  Obtain NMC permission before copying any classified material (including
     documents) entrusted to him by NMC.

1.6  Supply his National Security Authority, when so requested with necessary
     information on the persons who will be required to have access to NATO
     classified information concerning this Contract.

1.7  Maintain a record of his employees taking part in the project and having
     been cleared for access to NATO classified information. This record must
     show the period of validity and the level of the clearance.

1.8  Deny access to NATO classified information to any persons other than those
     authorized.

1.9  Limit the dissemination of NATO classified information to the smallest
     number of persons needed for a proper performance of this Contract or
     sub-contract.

1.10 Comply with any request from NMC or its National Security Authority that
     persons to be entrusted with NATO classified information sign a statement
     undertaking to safeguard that information and signifying their
     understanding of their obligations under national legislation on the
     safeguarding of classified informa-

--------------------------------------------------------------------------------
NAVAL MATERIAL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

     tion, and that they recognize that they may have comparable obligations
     under the laws of the other NATO countries in which they may have access to
     classified information.

1.11 Report to the Danish Defence Intelligence Service, Industry Section, NMC
     Security Officer and to his National Security Authority and breaches or
     suspected breaches or security, suspected sabotage or subversive activity,
     any breach giving rise to doubts as to trustworthiness or managerial staff
     of the facility or any changes that affect the security arrangements and
     security status of the facility, and any other information which may be
     required by his National Security Authority, such as reports on holdings of
     NATO classified information or material.

1.12 Obtain the approval of NMC before beginning negotiations with a view to
     subtracting any part of the work which would involve the sub-contractor
     having possible access to NATO classified information, and make certain
     that the sub contractor is subject to appropriate security obligations
     which in no case may be less stringent than those provided for in this
     Contract.

1.13 Undertake not to utilize, other than for the specific purpose of this
     Contract, and sub-contracts, without the written permission of NMC, any
     NATO classified information referred to above, as well as that developed in
     connection with this Contract and sub-contract unless such information has
     been destroyed, or its retention has been duly authorized by the CONTRACTOR
     or the sub-contracting officer. Such NATO classified information shall be
     returned at such time as the CONTRACTOR's officer may direct.

1.14 Comply with any procedure established with respect to the dissemination of
     NATO classified information in connection with this Contract or
     sub-contract.

2.   Clearance and Clearance Level.

     Any person taking part in the performance of classified work must possess
     the appropriate NATO security clearance issued by his National Security
     Authority. The level of this clearance must be at least equal to the
     security category of the material, the related information or
     specifications. No change in level of classification of documentation or
     material shall be carried out by CONTRACTOR unless written authorization is
     obtained from NMC.

3.   Transfer of Classified Information.

     Unless specifically authorized to do so by NMC, the CONTRACTOR shall not
     pass on any NATO classified information to any third party to whom a
     request to supply goods or services has been submitted.

     The carriage/return of NATO classified material from private firms to NMC
     is to take place on the CONTRACTOR's initiative through their National
     Security Authorities.

--------------------------------------------------------------------------------
NAVAL MATERIAL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

4.   If Security Is Not Established.

     Failure to implement the provisions of this letter and the security
     regulations established by the National Security Authority of the country,
     where the contractual work is being performed, may result in termination of
     this Contract without reimbursement, and the CONTRACTOR cannot raise any
     claim against NMC or the national government of the said country in case of
     such termination.

5.   Security Check List.

     The attached NMC Security Requirements Check List (SRCL) encl.       to
                                                                    -----
     appendix      , indicates the level of classification of the data and
              -----
     material (equipment, information, technical manuals, specifications) which
     may be handled in the performance of work under this Contract and which
     must be safeguarded in accordance with the provisions of this letter.

--------------------------------------------------------------------------------
NAVAL MATERIAL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -1-

                                                                   APPENDIX 5 to
                                                              Contract No. X0132

                         CONTRACT PRICE ADJUSTMENT TERMS

1.   Should any change occur in the cost of the relevant materials and/or labour
     during the period of performance of the contract, the Basic Contract Prices
     shall be subject to adjustment on the basis of the following formula and
     terms:

                Po        M1     L1
               ---        --     --
1.1  P1   =    100 (a + b Mo + c Lo)

     where:

     P1   =    Adjusted Contract Price (the price (or rate) to be paid as of the
               date of calculation)

     Po   =    Basic Contract Price (the price (or rate) stated in the contract
               for the goods or services)

     M1   =    Mean value of all indices as specified in (S) 1.2.a below for
               materials for the period between the date of signing the Contract
               up to 1 month(s) before actual delivery

     Mo   =    Price index for the same materials as mentioned under M1 at the
               date of signing the Contract equal to July 2001.

     L1   =    Mean value of all the indices as specified in (S) 1.2.b below for
               labour for the period between the date of signing the Contract up
               to 1 month(s) before actual delivery.

     Lo   =    Labour index as mentioned under L1 at the date of signing the
               Contract equal to July 2001.

     a, b and c represent the contractually agreed percentages and of the
     individual elements of the Basic Contract Price and shall in total be equal
     to 100 per cent.

     a    =    Percentage of fixed proportion

     b    =    Percentage of proportion of materials

     c    =    Percentage of proportion of labour
               (including social charges).

1.2  For the purpose of determining the value of materials and labour, the
     parties agree to use the following documents as sources of reference:

--------------------------------------------------------------------------------
NAVAL MATERIAL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                      -2-

     a.   Materials

          Publication: Statistic Canada for the "Consumer Price Index" for "All
          Items" for "Canada" based upon the "1996 Classification", "monthly
          indices", "Canada and provinces" (with 1992 = 100) and which, for June
          2000, was reported to be "113,7".

     b.   Labour

          Publication: Statistic Canada for the "Consumer Price Index" for "All
          Items" for "Canada" based upon the "1996 Classification", "monthly
          indices", "Canada and provinces" (with 1992 = 100) and which, for June
          2000, was reported to be "113,7".

2.   The SUPPLIER shall every month/quarter provide Naval Material Command (NMC)
     with the above mentioned indices as soon as they have been published.

3.   In case of delay in delivery the adjusted price shall not be higher than
     the price calculated at the date of the contractual delivery.

4.   Price adjustment shall be calculated by the CONTRACTOR as soon as possible
     after delivery has taken place and after the latest relevant index has been
     published.

5.   Invoices covering price adjustment will be paid within 30 days after
     receipt and approval by NMC.

6.   In case of delay of delivery due to Force Majeure, the period for price
     adjustment will only be extended for that part of the equipment being so
     delayed. for the purpose of NMC granting an extension of the time of
     delivery due to Force Majeure, the CONTRACTOR shall present an updated
     production and purchase plan to NMC. The price adjustment shall then be
     calculated for each Basic Contract Price as follows:

     a.   That part of the equipment being produced before the delay shall be
          adjusted as if the contractual time of delivery was achieved.

     b.   That part of the remaining proportion of equipment not affected by the
          delay shall be adjusted as if the contractual time of delivery was
          achieved.

     c.   That part of the remaining proportion of equipment being affected by
          the delay shall be adjusted for a period corresponding to the
          extension of the time of delivery granted by NMC due to Force Majeure.

     d.   The total part of the remaining proportion of labour shall be adjusted
          as in c above.

--------------------------------------------------------------------------------
NAVAL MATERIAL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

                                                                   APPENDIX 6 to
                                                             Contract No. X 0132

Advance Payment Guarantee No.
                              ----------

In accordance with the terms of Contract No.          dated            between
                                             --------       ----------
NAVAL MATERIEL COMMAND, DANNESKIOLD-SAMSOES ALLE 1, Holmen, 1434 Copenhagen K,
Denmark, as buyer, and

as CONTRACTOR for the delivery of
                                  ----------------------------------------------
NAVAL MATERIEL COMMAND, DENMARK (NMC) will pay an advance payment of:

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

(in words                                                                      )
          ---------------------------------------------------------------------
representing    % of the Total Contract Price.
             ---
We
   -----------------------------------------------------------------------------
hereby undertake to repay NMC the above-mentioned amount on NMC first demand in
writing.

The amount repaid, however, shall never be less than the amount in Danish Kroner
paid by NMC to cover the above advance payment in
                                                  ------------------------------

This guarantee shall also be subject to an interest calculated at the rate of 5%
above, Denmarks National Bank's rate of discount, in case of delay in delivery
or termination in accordance with the provisions of the above-mentioned
contract.

This guarantee will be reduced pro rata concurrently with CONTRACTOR's
effectuation of contractual deliveries. Reduction of the guaranteed amount,
however, shall not take place before written notice of such reduction has been
served by NMC.

NMC shall be entitled to grant the CONTRACTOR a respite with regard to the time
of delivery and to otherwise change the provisions of the Contract without this
having any effect on the extent and the validity of the guarantee.

This guarantee shall remain valid until reduced to nil or otherwise released by
NMC in writing.

After the expiration of the guarantee this document shall be returned to

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

--------------------------------------------------------------------------------
NAVAL MATERIAL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

This guarantee shall be governed and construed in accordance with the laws of
Denmark, and shall be subject to the exclusive jurisdiction of the Danish
courts.

To the extent necessary and in conformity with general principles of monetary
law, it is to be emphasized that debts for money due, denominated and/or payable
hereunder in a currency of a Member State of the European Union (National
Currency Unit) shall automatically be deemed to be nominated and/or payable in
the single European currency at such time as the National Currency Unit ceases
to be legal tender or, more generally, is replaced by the single European
currency pursuant to the applicable European Union and/or national laws.

The rate and the conditions for the conversion of the National Currency Unit
shall be those resulting from the applicable provisions of Article 109.L of the
Auropean Treaty.

--------------------------------------------------------------------------------
NAVAL MATERIAL COMMAND
CONTRACT DEPARTMENT

                                                            /s/ Illegible
                                                            --------------------

<PAGE>

Naval Materiel Command Denmark                                      Overseas CAN
Danneskiold-Samsoes Alle 1
Overseas CAN Holmen, DK 1434 Copenhagen K

                                                                      Appendix 8
                                                           to Contract No. X0132

Shipping instructions
to Naval Materiel Command Denmark (NMC) Contract No.: X0132.1

Consignor: offshore systems ltd.
Contact person:
Phone/Fax/E-mail: +1 604 904 4600 / +1 604 987 2555 / osl@osl.com

The goods procured under this Purchase Order are to be delivered by:
-------------                      ---------                  ------------------
Surface   [X]                      Air   [ ]                  Consolidated   [ ]
-------------                      ---------                  ------------------

Special Instructions:
---------------------               --------------------------------------------
Dangerous Goods   [ ]               Classified delivery (to be marked CSS)   [ ]
---------------------               --------------------------------------------

using NMC Transport Agent:
------------------------------------------------------------------
FCI FISKER CARGO INC.                Telephone:   514 636-1122
715 Stuart Graham Blvd., Suite 101   Telefax:     514 636-5025
Dorval, Quebec H4Y 1E7
Canada

Contact: Ms Ginette Belanger         E-mail:      ginetteb@fci.ca
------------------------------------------------------------------

Booking:

..    NMC Transport Agent is to be contacted in due time prior to dispatch in
     order to arrange for shipment.
..    Each package is to be marked with NMC Contract No. X0132
..    Proof of delivery (Transport Documents etc.) must accompany the original
     invoice.
..    Any extra costs deriving as consequence of Seller's deviation from this
     shipping instruction will be deducted from the amount invoiced by Seller.

Parcel Past:

If the contents of this order can be forwarded by mail without using said
forwarding agent, it is SELLER's responsibility that the goods are forwarded
directly to the delivery address:

          [X]                        [X]                       [ ]
VAT No.: DK 16 08 80 72    VAT No.: DK 32 24 17 51   VAT No.: DK 32 24 17 51
Naval Base Frederikshavn   Naval Base Korsoer        Naval Base Korsoer
Materieldepot Bangsbo      Forsyningsdepot Noret     Varemodtagelsen
Varemodtagelsen            Varemodtagelsen           Cryptodistributioncentre
Vrangbaekvej 109           Norvangen 23              Norvangen 23
DK-9900 Frederikshavn      DK-4220 Korsoer           DK-4220 Korsoer
Denmark                    Denmark                   Denmark

NMC point of contact: See attached Purchase Order.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]