Document:

Ship
Lease Contract

    (“Hengsheng
Dredging 88”)

    

    (Unofficial
Transaltion)

    

    
      	
              Party
      A:

            	
              Lianyungang
      Hengrong Shipping Service Co., Ltd.

            

    

    
      	
              Address:

            	
              No.
      6 Street, Development Zone, Lianyun District,
  Lianyungang

            

    

    
      	
              Fujian
      Office:

            	
              803
      International Plaza, 89 Middle Fuxin
Road

            

    

    Jin’an
District, Fuzhou

    Legal
Representative: CHEN Xiaobin

    

    
      	
              Party
      B:

            	
              Fujian
      Xing Gang Shipping Service Co.,
Ltd.

            

    

    
      	
              Address:

            	
              17th
      Floor, Building A, Zhongshan Plaza, 154 Hudong Road,
  Fuzhou

            

    

    Legal
Representative: LIN Qing

    

    Party A
and Party B, after friendly consultation, have formulated this leasing contract
to be adhered to by both parties.

    

    I.           Based
on Party B’s need, Party A agrees to lease the dredging boat it owns, “Hengsheng
Dredging 88” (the “Boat”), to Party B for its use.

    

    II.          Term
of the lease

    1.           The
term of the lease is three years (from January 10, 2008 to January 9,
2011).

    2.           Within
seven days upon the expiration of the 3-year term of the lease, Party A shall
transfer the Boat unconditionally to Party B and complete all the relevant
change procedures including but not limited to the ship ownership change
registration, with Party A responsible for all the expenses in connection with
such procedures.

    

    III.         Payment
of the lease fee

    1.           The
lease fee is calculated in RMB, and the annual lease fee is Four Million Seven
Hundred Fifty Thousand Yuan even (¥4,750,000.00).

    2.           The
lease fee is to be paid quarterly.  At the end of each quarter, Party
B will pay the lease fee to Party A in the form of bank transfer into the bank
account designated by Party A.

    3.           In
the month of delivering the Boat, Party B must pay to Party A a ship security
deposit of Twenty-Three Million Yuan (¥23,000,000.00).  The said
security deposit will be returned to Party B within seven days upon the
expiration of the 3-year term of the lease.

    4.           After
the expiration of the 3-year term of the lease and within seven days upon the
completion of all the change registration procedures by Party A in accordance
with the Provision II.2 herein, Party B shall pay to Party A a ship transfer
consideration of Ninety-Seven Million and Five Hundred Thousand Yuan even
(¥97,500,000.00).  Party B can use the security deposit specified in
the above provision to directly offset a portion of the ship transfer
consideration and pay the remaining balance of the consideration in
full.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    IV.         Rights
and obligations of each of the two parties

    (A)           Party
A’s rights and obligations

    1.           Party
A has the right to receive the lease fee according to the schedule provided
herein.

    2.           Party
A confirms the ownership of the Boat and has processed the relevant certificates
required by the State law and statutes.

    3.           Party
A may, upon obtaining consent from Party B, dispatch a representative to the
Boat to supervise the ship operation at its own expense.  If Party A’s
representative believes that any of Party B’s actions violates this contract or
can damage the body of the Boat, Party A must issue a written report and settle
the matter between the two parties amicably through consultation.

    4.           Party
A warrants that, on the day of delivering the Boat and during the term of the
lease, the technical specifications of the Boat are in conformity with those
specified in all the ownership certificates; if there are discrepancies, the
lease fee shall be reduced and such reduction should be an amount sufficient to
compensate the lessee for any resulting loss.

    5.           Party
A warrants that, on the day of delivering the Boat and during the term of the
lease, the Boat is tight, solid, strong and in good working condition, and is
suitable for the operation of the project; the body of the Boat and the machines
and equipment on board are in full working condition.

    6.           On
the day of delivering the boat, Party A must also provide all the certificates
required for its operation, including but not limited to “People’s Republic of
China Ship and Vessel Ownership Registration Certificate”, “People’s Republic of
China Ship and Vessel Nationality Certificate”, “Maritime Ship and Vessel
Inspection Certification Record”, “Maritime Cargo Vessel Seaworthiness
Certificate”, “Maritime Ship and Vessel Tonnage Certificate”, “Maritime Ship and
Vessel Oil Pollution Prevention Certificate” and “Maritime Ship and Vessel Load
Line Certificate”.

    7.           During
the term of the lease, Party A must process on time, completely and fully all
the procedures regarding ship inspections and insurances at its own cost; Party
B must provide active cooperation and must not knowingly set up any
obstacles.

    8.           Before
delivering the Boat, Party A must engage a professional shipyard to perform
comprehensive inspection and repairs on the Boat and ensure that the Boat has a
life of use no less than ten years.

    9.           During
the term of the lease, Party A must assign crewmen for the Boat who are
competent and have professional qualifications for their respective posts in
accordance with the provisions of "Crewmen Assignment
Agreement".  (See Attachment 1 hereto, "Crewmen Assignment Agreement",
for details.

    10.         If,
due to business need, Party A needs to relocate its office to a new address or
to change its bank account, Party A must notify Party B in writing fifteen
business days in advance; if there is need to change the contact telephone
number, Party A must notify Party B in writing two business days in
advance.

    11.         If
Party B's payment of the lease fee is fifteen days or more past due, Party A may
resort to litigation at the court and may unilaterally dissolve this
contract.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    12.         Party
A's dissolution of this contact during the term of the lease or failure to
transfer the Boat to Party B upon the expiration of the lease shall constitute
the breach of contract; Party B shall have the right to demand the continuation
of the performance of this contract; Party A must at such time pay a breach
penalty of RMB 10,000,000.00 to Party B and Party B can demand Party A to
compensate Party B for any resulting loss.

    (B)           Party
B’s rights and obligations

    1.           Starting
from the day of the execution of this contract, Party B has the right to
dispatch its representatives at its own expenses to inspect the Boat and
familiarize themselves with the operation of the Boat.

    2.           Party
B has the right to sublease the Boat; however Party B shall still have full
responsibility toward Party A to perform this contract.

    3.           Party
B must pay the lease fee on time in accordance with the provisions
herein.

    4.           The
use of the Boat leased by Party B from Party A is limited to port dredging
operations and similar projects.  If Party B needs to add equipment on
board the Boat, Party B must obtain consent from Party A before any
implementation.

    5.           During
the term of the lease, Party B shall still pay the lease fee when the Boat is
unable to be operated normally due to climate factors (such as Typhoon, rain or
fog).

    6.           Any
damages and losses suffered by both parties due to the occurrence of any humanly
irresistible disaster or to government edicts and military action, whether or
not the Boat is in navigation or in mooring, must be handled in accordance with
the provisions of maritime laws and statutes.

    7.           Party
B shall not dispatch the Boat to, or let it enter, any frozen waters, nor shall
Party B let the Boat enter an area where, at the time of the Boat's arrival, the
light tower, light boat, navigation mark or buoy will be, or are likely to be,
removed soon or an dangerous area with ice hazard, such that the Boat will not
be able to arrive at the location of operation smoothly or to exit the location
after its operation.

    8.           Before
obtaining consent from Party A in writing, Party B shall not dispatch the Boat
to dock at a Taiwan port or let it navigate out of the border of the People's
Republic of China for any reason or any purpose.

    9.           Party
B is strictly forbidden to use the Boat to transport any hazardous
material.  Party B shall not use the Boat to engage in any illegal
activities, including but not limited to smuggling, pilfering, stealing and
illegal immigration.

    10.         If,
at the end of the quarter, Party B fails to pay the lease fee or pay the lease
fee in full for the corresponding period,  Party B then shall,
starting from the following month, pay a breach penalty calculated at the daily
rate of 0.1% of the total of the unpaid portion of the lease fee; but the
cumulative total of such breach penalty shall not exceed 5% of the lease fee for
the corresponding period.

    

    V.          Delivery
of the Boat

    1.           Time
of delivery: before January 22, 2008.

    2.           Port
of delivery: at the coal dock of Guangdong Guohua Taishan Power
Plant.

    3.           At
the time of delivery, the cabins of the Boat must be emptied and cleaned and be
suitable for loading and receiving cargo.

    4.           Delivery
notice: Party A must confirm with Party B the actual time of delivery seven days
before the date of delivery.

    At the time of delivering the Boat, the
ship inspection engineer appointed by Party A must inspect the cargo cabin and
confirm the amount of fuel stored on board at the port of
delivery.  Party A shall be responsible for the inspection engineer's
inspection fee.  Before the amount of fuel stored on board is
measured, the draft of the front and back of the Boat must be adjusted for
balance or the draft differential between the stern and bow of the Boat must not
exceed 6 feet.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    5.           Supporting
parts that come with the Boat: at the time of delivery, Party A must equip the
Boat with all the corresponding supporting parts.  6. [sic] At the
time of delivery, Party A must ensure that the amount of fuel stored on board
must be above 80% of the Boat's maximum fuel storage capacity.

    6.           As
Party A will transfer the Boat to Party B upon the expiration of the term of the
lease, the date of expiration of the term of the lease shall be the date of
transfer of the Boat by Party A to Party B; and Party A and Party B shall at
such time process the delivery and acceptance procedures.  And the
handling of the crewmen assigned by Party A shall also be decided at such time
through consultation between the two parties.

    

    VI.         All
attachments hereto are the component parts of this contract and shall have the
same legal effect as this contract.

    

    VII.        The
original of this contract is in triplets, with one to Party A, Party B and the
ship administration office each; it has six copies, with two to Party A, Party B
and the ship administration office each; this contract will take effect after it
is signed and imprinted with seals by both Party A and Party B.

    

    VII.        All
matters not covered herein shall be settled in supplemental agreements through
consultation between the two parties, and all such supplemental agreements shall
have the same legal effect as this contract.

    

    Signature
(Seal) of Party A’s representative:

    /s/ CHEN
Xiaobin

    /seal/
(seal visible but not legible)

    Date:    January
8, 2008

    

    Signature
(Seal) of Party B’s representative:

    /s/ LIN
Qing

    /seal/
(seal visible but not legible)

    Date:    January
8, 2008

     

    
      
         

      

      
        4Crewmen
Assignment Agreement

      (“Hengsheng
Dredging 88”)

      

      (Unofficial
Translation)

      

      
        	
                Party
      A: 

              	
                Lianyungang
      Hengrong Shipping Service Co., Ltd.

              

      

      
        	
                Address:

              	
                No.
      6 Street, Development Zone, Lianyun District,
  Lianyungang

              

      

      
        	
                Fujian
      Office:

              	
                803
      International Plaza, 89 Middle Fuxin
Road

              

      

      Jin’an
District, Fuzhou

      Legal
Representative: CHEN Xiaobin

      

      
        	
                Party
      B:

              	
                Fujian
      Xing Gang Shipping Service Co.,
Ltd.

              

      

      
        
          
            	
                    Address:

                  	
                    17th
      Floor, Building A, Zhongshan Plaza, 154 Hudong Road,
  Fuzhou

                  

          

        

      

      Legal
Representative: LIN Qing

      

      Party A and Party B, after friendly
consultation based on the principles of equality and mutual benefit and on the
basis of the “Ship Leasing Contract” executed by the two parties, have reached
the agreement regarding the matter of Party A assigning crewmen during the term
of Party B’s lease of dredging engineering boat “Hengsheng Dredging 88” from
Party A as follows:

      

      Article
I          Generals

      

      1.         
   The term “assigned crewmen” used herein means those crewmen
who are assigned by Party A, pursuant to the provisions of the “Ship Leasing
Contract” executed by the two parties and the provisions of herein, to work at
relevant posts on “Hengsheng Dredging 88”; see the attached list for crewmen
assignment details.

      

      2.          
  In addition to paying to Party A the ship leasing fee in accordance
with the provisions of the “Ship Leasing Contract” executed by the two parties,
Party B must also pay to Party A the crewmen assignment fee; the said crewmen
assignment fee is RMB Three Hundred Thousand Yuan (¥300,000.00) per month. Party B must pay
the crewmen assignment fee to Party A for the corresponding period at the time
of paying the ship leasing fee.  If a period is less than a month, the
fee for the period is calculated on the basis of one month.

      The said crewmen assignment fee
includes salaries that Party A should pay to the crewmen working “Hengsheng
Dredging 88” and all benefits and insurances (including but not limited to
pensions insurance, unemployment insurance, medical insurance, family planning
insurance, injury insurance, housing fund and commercial
insurance).

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                3.

              	
                Term
      of the agreement

              

      

      The effective period of this agreement
corresponds to and is the same as the term of the lease specified in the “Ship
Leasing Contract” executed by the two parties.

      

      Article
II          Party A’s Rights and
Obligations

      

      
        	
                4.

              	
                Party
      A has the following obligations:

              

      

      4.1           Assign
crewmen for the ship pursuant to the provisions herein; educate the crewmen on
the compliance with the State laws, statutes and regulations; educate the
assigned crewmen on the compliance with Party B’s rules and policies, on
maintaining confidentiality of commercial secrets and on safeguarding Party B’s
legitimate rights and interests.

      4.2           Ensure
that the assigned crewmen have the qualifications and skills required of their
respective posts and possess valid and complete employment qualification
documents, including but not limited to crewmen service books, maritime crewmen
professional training certificates and maritime crewmen service competency
certificates.

      4.3           Party
B must notify Party A in writing, three business days in advance, of the
boarding time and boarding location for the crewmen assigned by Party
A.  Party A must ensure that all the assigned crewmen will report for
duty at the time and location specified by Party B.  If there is any
factor on Party B’s part that causes a waiting period of more than half a month
before the assigned crewmen can be aboard, Party B must still pay the same
amount of crewmen assignment fee to Party A pursuant to the provisions
herein.

      4.4           After
the assigned crewmen have passed assessment and been placed on duty by Party B,
Party A shall not replace them at will.  Party A must ensure that
Party B has the absolute leadership authority over the assigned
crewmen.  During the term of the agreement, the assigned crewmen must
follow the operation arrangement from Party B’s safety and shipping service
scheduling department.

      4.5           Party
A will pay salaries and bonuses to the assigned crewmen and withhold and pay on
their behalf personal income taxes and make payment for them of all the State
mandated insurances, including but not limited to pensions insurance,
unemployment insurance, medical insurance, family planning insurance, injury
insurance, housing fund and commercial insurance.

      4.6           If
Party B requests Party A to replace certain assigned crewmen pursuant to the
provisions herein, Party A must replace them promptly so as not to affect Party
B’s normal operation.

      4.7           In
the event of the occurrence of any accident causing injury to the assigned
crewmen, Party A must, after receiving notification from Party B, handle such
accident properly in accordance with the provisions of relevant insurance and be
responsible for submitting report and insurance claims.

      4.8           If
there a change in the Party A’s bank account number, Party A must notify Party B
in writing two business days in advance.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                5.

              	
                Party
      A has the following rights:

              

      

      5.1           Party
A has the right to receive the crewmen assignment fee pursuant to the provisions
herein;

      5.2           Upon
the occurrence of any of the following during the term of this agreement, Party
A can request to dissolve this agreement without any liabilities; but such
request must be sent to Party B in writing 30 days in advance:

      (1)           Party
B violates the State laws and statues and the relevant provisions
herein;

      (2)           Party
B’s actions violate the assigned crewmen’s legitimate rights and
interests;

      (3)           Party
B refuses to pay the crewmen assignment fee or Party B’s payment of such fee is
a month past due.

      

      Article
III           Party B’s Rights and
Obligations

      

      
        	
                6.

              	
                Party
      B has the following rights:

              

      

      6.1           Party
B has the right to conduct assessment on the crewmen assigned by Party
A.  If the assigned crewmen do not have the qualifications or skills
required of their respective posts, Party B has the right to demand Party A to
replace them and Party A shall not refuse such demand.  Party A must
bear corresponding responsibility if the assigned crewmen’s lack of
qualifications or skills causes any loss to Party B.

      6.2           Party
B has the right to require the assigned crewmen to comply with all the rules and
policies formulated in accordance with the relevant State laws and policies and
follow Party B’s production and operation arrangements.

      6.3           If
the assigned crewmen engage in any of the following during the term of the ship
lease, Party B has the right, upon Party A’s acknowledgement, to demand Party A
to recall them without any liability for breach:

      (1)           Violation
of Party B’s work disciplines or rules and regulations, and after criticism and
education, failure to make any correction or rectification;

      (2)           Negligence
of duties, resulting in serious loss or damage to Party B’s
interests;

      (3)           Violation
of law and statutes or being the subject of criminal legal
proceedings;

      (4)           Inability
to perform original work duties after treatment period for illness or
work-related injury and inability, or refusal, to perform other work assigned by
Party A;

      6.4           Party
B has the right to submit written opinion on, and negotiate with regard to, the
behavior that violates the relevant provisions of this
agreement.  Party A must respond to Party B in writing within ten
business days upon receiving the written opinion from Party B.

      

      
        	
                7.

              	
                Party
      B has the following obligations:

              

      

      7.1           Manage
the assigned crewmen in such areas as their posts’ duties and responsibilities
and labor discipline and provide them with relevant training;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      7.2           Provide
to the assigned crewmen working environment, labor conditions and labor
protection that are in compliance with the provisions of the State’s “Labor
Law”;

      7.3           Pay
the crewmen assignment fee in accordance with the provisions of this
agreement.  If Party B fails to pay the crewmen assignment fee on time
pursuant to the provisions of this agreement, Party B must pay a breach penalty
at the daily rate of 0.1% of the total of the unpaid or past due crewmen
assignment fee; but the cumulative total of such breach penalty shall not exceed
5% of the total crewmen assignment fee for the corresponding
period.

      7.4           Pay
to Party A the corresponding expenses for those assigned crewmen who suffer
work-related injury or contract occupational disease and, upon verification,
have lost, or partially lost, their ability to work and who suffer work-related
death;

      7.5           Supervise
in the processing of relevant legal work documents for the dispatch crewmen
required for the term of service and educate them on the adherence of
disciplines and compliance of law;

      7.6           Notify
Party A fifteen business days in advance in the event of relocation of work
location due to business need; notify Party A two business days in advance in
the event of any change of contact telephone number and fax number;

      7.7           arrange
work posts for the assigned crewmen in accordance with the provisions herein,
consult with Party A if there is need for any change and bear all consequences
resulting from changing the posts of the assigned crewmen without prior
consultation with Party A.

       

      Article
IV           Dispute and
Arbitration

      

      8.           
 Any dispute arising from performance of, or in connection with, this
agreement must be settled through consultation; if such consultation fails,
either party may submit the dispute to the jurisdiction of the people’s court at
Party B’s location.

       

      Article
V           Others

      

      9.           
 Other matters not covered herein must be settled by Party A and Party B
through consultation or be provided in supplemental agreement formulated in
accordance with relevant provisions of the State law, statutes and
regulations.

      

      10.       
   If any content herein conflicts with the State law or policies, or
is inconsistent due to the changes of the law and policies, the provisions of
the law or such policies shall prevail.

      

      11.        
  All attachments hereto are the component parts hereto and have the
same legal effect.

       

      12.        
  This agreement shall become effective at the same time when the “Ship
Leasing Contract” executed by the two parties takes effect.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      13.      
    This agreement is in duplicates, with one to each party, and
both have the same legal effect.

      

      
        
          	
                  Signature
      (Seal) of Party A’s representative:

                
	
                  /s/
      CHEN Xiaobin

                
	
                  /seal/
      (seal visible but not legible)

                
	
                  Date:     January
      8, 2008

                
	 
      
	
                  Signature
      (Seal) of Party B’s representative:

                
	
                  /s/
      LIN Qing

                
	
                  /seal/
      (seal visible but not legible)

                
	
                  Date:     January
      8, 2008

                

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Attachment:
List of Assigned Crewmen

      
        
          	
                  Post

                	 
      	
                  Number

                
	
                  Captain

                	 
      	
                  1

                
	
                  First
      Mate

                	 
      	
                  1

                
	
                  Chief
      Engineer

                	 
      	
                  1

                
	
                  Second
      Mate

                	 
      	
                  1

                
	
                  Second
      Engineer

                	 
      	
                  1

                
	
                  Third
      Engineer

                	 
      	
                  1

                
	
                  Fourth
      Engineer

                	 
      	
                  1

                
	
                  Third
      Mate

                	 
      	
                  1

                
	
                  Seamen
      Chief

                	 
      	
                  1

                
	
                  Long
      Mechanic

                	 
      	
                  1

                
	
                  Mechanic

                	 
      	
                  8

                
	
                  Seaman

                	 
      	
                  9

                
	
                  Cook

                	 
      	
                  1

                
	
                  Total

                	 
      	
                  28

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