Document:

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                                                                     EXHIBIT 4.6
[LOGO] Industry Canada Industrie Canada

                 DEVELOPMENT OF AN ELECTRONIC CHART DISPLAY AND
              INFORMATION SYSTEM - PARAMILITARY\MILITARY (ECDIS-PM)

              TPC PROJECT N0.710-465430

                         Technology Partnerships Canada

              This Agreement made this 15/TH/ day of November, 1999

                                    Between:

                    HER MAJESTY THE QUEEN IN RIGHT OF CANADA
        as represented by the Minister of Industry (hereinafter referred
                             to as "the Minister")

                                      And:

             Offshore Systems Ltd., a corporation duly incorporated
            under the laws of British Columbia (hereinafter referred
                         to as "OSL" or "the Recipient")

                                      And:

      Offshore Systems International Ltd., a corporation duly incorporated
         under the laws of British Columbia (hereinafter referred to as
                           "OSI" or "the Intervenor")

[LOGO]  Technology Partnerships        Partenariat technologique
        Canada

        10th floor, 300 Slater Street    10/e/ etage 300. rue Slater
        OTTAWA, Ontario K1A C08          OTTAWA (Ontario) K1A 0C8         Canada

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                         TECHNOLOGY PARTNERSHIPS CANADA
                           AGREEMENT TABLE OF CONTENTS

1.0     The Agreement
        1.1     Entire Agreement
        1.2     Definitions
2.0     The Project
        2.1     Conduct of the Project
        2.2     Project Completion Date
        2.3     Material Changes
        2.4     Disposal of Special Purpose Equipment
        2.5     Transfer of Special Purpose Equipment to Production
3.0     The Contribution
        3.1     Sharing Ratio and Contribution Ceiling
        3.2     Annual Contribution Disbursement Limits
        3.3     Eligible Costs Period
        3.4     Environmental Protection Measures
        3.5     Set-Off Rights of Minister
4.0     Other Government Assistance
        4.1     Disclosure
        4.2     Continuing Disclosure Obligation
5.0     Claims for Payment
        5.1     Claim Procedures
        5.2     Hold-Back Rights
        5.3     Final Claim
        5.4     Certification of Claims
        5.5     Overpayment by Minister
6.0     Royalty Payments
        6.1     Date of Commencement of Gross Revenues
        6.2     Royalty Rate
        6.3     Royalty Due Date
        6.4     Royalty Statements and Payment
        6.5     Dividend Payment Restriction
        6.6     Payment Date
7.0     Monitoring and Reporting
        7.1     Annual Financial Statements
        7.2     Access to Accounts and Records
        7.3     Access to Project
        7.4     Access to Third-Party Information
        7.5     Project Progress Reports
        7.6     Commercial Exploitation Reports
8.0     Special Conditions
        8.1     Other Agreements
        8.2     Background Technology
        8.3     OSI Benefit
        8.4     Financial Support
        8.5     Articles Applicable to OSI
9.0     Intellectual Property
        9.0     Ownership of Technology
        9.2     Commitment to Exploitation in Canada
        9.3     Limitation on Transfer of Technology
10.0    Default and Recovery
        10.1    Events of Default
        10.2    Remedies on Default
        10.3    Remedies Fair and Reasonable
        10.4    No Waiver
11.0    Force Majeure
        11.1    No Default for Force Majeure
        11.2    Definition of Force Majeure
12.0    Representations, Warrants and Undertakings
        12.1    Power and Authority of the Recipient
        12.2    Authorised Signatories
        12.3    Binding Obligations
        12.4    No pending Suit or Action
        12.5    No Gifts or Inducements
        12.6    Compliance with Environmental Protection Requirements
13.0    General Conditions
        13.1    Members of the House of Commons or the Senate
        13.2    Annual Appropriations
        13.3    Confidentiality
        13.4    No Assignment of Agreement
        13.5    Compliance with Post-Employed Provisions
14.0    Announcements
        14.1    Consent to Public Announcement
        14.2    Confidentiality Obligation
15.0    Notice
        15.1    Form and Timing of Notice
        15.2    Change of Address
        15.3    Addresses
16.0    Other Provisions
        16.1    No Partnership Created
        16.2    Binding Agreement
        16.3    Signature in Counterparts
        16.4    Governing Laws
        16.5    Term of Agreement
        16.6    Deadline for Signature

SCHEDULES

Schedule "A" - Statement of Work,
Schedule "A1" - Special Purpose Equipment List
Schedule "B" - Report on Estimated & Actual Project Benefits and Results
Schedule "C" - Report on Estimated & Actual Sales and Royalties
Schedule "D" - TPC Project Cost Principles
Schedule "E" - Project Fact Sheet for News Release

                                                  TPC Project Number: 710-465430

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INTRODUCTION

The Minister and OSL recognize that, in order to enhance productivity and
competitiveness in the aerospace, defence and related high-technology industry
sectors in Canada, it is necessary to conduct applied research in
commercializing innovative technology;

The Minister is charged with certain duties and functions which the Minister is
required to carry out, with the public policy objectives of strengthening the
national economy, promoting sustainable development, increasing the
international competitiveness of Canadian industry, goods and services, and
encouraging the fullest and most efficient development and use of science and
technology;

The Minister is responsible for the Technology Partnerships Canada Program, a
discretionary source of funding, designed to promote economic growth and create
jobs in Canada, in knowledge-intensive sectors of the economy, by strategically
investing its funding in results-oriented, near-market projects that involve
activities that foster innovation, rapid commercialization and value-added
production;

OSL has requested a financial contribution from the Minister to develop an
electronic chart display and information system - paramilitary\military
(ECDIS-PM), with the specific intent of commercially exploiting the project
results and developing advanced production capabilities;

 In consideration of their respective obligations which are set out below, the
parties agree as follows:

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1.0  The Agreement
1.1  Entire Agreement
     This Agreement, including

           Schedule "A" - Statement of Work
           Schedule "A1" - Special Purpose Equipment List
           Schedule "B" - Report on Estimated & Actual Project Benefits and
           Results
           Schedule "C" - Report on Estimated & Actual Sales and Royalties
           Schedule "D" - TPC Project Cost Principles, and
           Schedule "E" - Project Fact Sheet for News Release,

     (this "Agreement"), is made pursuant to the Technology Partnerships Canada
     Program and constitutes the entire Agreement between the parties and
     supersedes all previous documents, negotiations and undertakings related to
     its subject matter.

1.2  Definitions
     For the purposes of this Agreement,

     "Effective Date" means 23 December 1998, which is the earliest date on
     which Eligible Costs may be incurred.

     "Eligible Costs" means the cost elements specified in the Statement of Work
     necessary for the performance of the Project and incurred and paid for by
     the Recipient in accordance with the TPC Project Cost Principles (Schedule
     "D");

     "Gross Revenues" means all revenues, receipts, monies and other
     considerations of whatever nature earned or received by OSL, whether in
     cash, or by way of benefit, advantage, or concession, and without
     deductions of any nature, net of any returns or discounts actually credited
     and any sales, excise, ad valorem or similar taxes paid but without
     deduction for bad debts or doubtful accounts, as determined in accordance
     with generally accepted accounting principles, applied on a consistent
     basis. Transactions with related persons (as that term is defined in the
     Income Tax Act) will be deemed made in an amount equal to the highest price
     obtained for a similar product in the preceding calendar year.

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     "Intellectual Property" means all technical data, including, without
     limitation, all designs, specifications, software, data, drawings, plans,
     reports, patterns, models, prototypes, demonstration units, practices,
     inventions, methods, applicable special purpose equipment and related
     technology, processes or other information conceived, produced, developed
     or reduced to practice in carrying out the Project, and all rights therein
     including, without limitation, patents, copyrights, industrial designs,
     trade-marks, and any registrations or applications for the same and all
     other rights of intellectual property therein, including any rights which
     arise from the above items being treated by OSL as trade secrets or
     confidential information;

     "Long Term Lease" means any lease of any system in accordance with the
     definition of "finance lease" in the Canadian Institute of Chartered
     Accountants Generally Accepted Accounting Procedures of December 1978; and

     "Special Purpose Equipment" means equipment, including ancillary systems,
     instrumentation, or special test equipment that is purchased, leased,
     manufactured or otherwise acquired for the purposes of the Project the item
     cost of which exceeds $250,000, and prototypes or pilot plants that are
     designed and built by OSL to demonstrate the product or system to be
     commercialized but excluding jigs, tools, dies and fixtures.

2.0  The Project

2.1  Conduct of the Project
     OSL will carry out the Project ("the Project") in Canada, involving
     development of the electronic chart display and information system -
     paramilitary\military, as described in Schedule "A", in a diligent,
     professional manner using qualified personnel.

2.2  Project Completion Date
     OSL shall ensure that the Project is completed on or before 31 March 2003,
     unless otherwise agreed to in writing by the Minister.

2.3  Material Changes
     OSL will not, without the prior written consent of the Minister alter in
     any material aspect the Project assisted by the Minister. An alteration in
     a material aspect will have occurred only if

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                                       -6-

         (a)   a Project performance milestone described in the Statement of
               Work is not expected to be achieved within 6 months of the
               projected completion date for that element;

         (b)   the estimated Eligible Costs for the Project described in the
               Statement of Work are expected to be exceeded by 20% or more;

         (c)   the Project will be carried out at locations other than the
               following: North Vancouver B.C.

         Such consent of the Minister will not be unreasonably withheld.

2.4      Disposal of Special Purpose Equipment

         Except in the situation described in section 2.5, if OSL transfers to
         commercial production, transfers outside of Canada, sells, leases, or
         otherwise disposes of any Special Purpose Equipment, the Minister will
         require OSL to repay the greater of an amount equal to that of

         (a)   multiplying the proceeds of disposition of the Special Purpose
               Equipment by the ratio of the total amount of the contribution
               paid by the Minister to the total amount paid by OSL for Eligible
               Costs, and

         (b)   multiplying the fair market value of the Special Purpose
               Equipment on the date of the transfer to commercial production,
               transfer outside of Canada, sale, lease or other disposal by the
               ratio of the total amount of the contribution paid by the
               Minister to the total amount paid by OSL for Eligible Costs;

         but in no event shall the amount payable exceed the amount paid by the
         Minister to OSL under this Agreement.

         OSL will make such repayment within 30 days of the transfer to
         commercial production, transfer outside of Canada, sale, lease, or
         other disposition of the Special Purpose Equipment.

2.5      Transfer of Special Purpose Equipment to Production

         If the estimated cost as set out in the Statement of Work of all of the
         items of Special Purpose Equipment, other than prototypes and pilot
         plants, is 30% or less of the total estimated Eligible Costs of the
         Project, OSL will not be obligated to repay the Minister for those
         items of Special Purpose Equipment which are transferred to commercial
         production in Canada by OSL.

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                                       -7-

 3.0     The Contribution

 3.1     Sharing Ratio and Contribution Ceiling

         Subject to the terms and conditions of this Agreement, the Minister
         will make a repayable contribution to OSL towards the Eligible Costs of
         the Project, of the lesser of:

         (a)   33% of the Eligible Costs, and

         (b)   $4,000,177

 3.2     Annual Contribution Disbursement Limits

         Unless the Minister agrees otherwise, the amount of the contribution
         will not exceed the following amounts in those respective government
         fiscal years ending on March 31st:

         99/00 $1,196,110
         00/01 $1,275,764
         01/02 $1,151,609
         02/03 $  376,694

         The Minister will consider any request to reprofile these funds, but
         the Minister will have no obligation to pay any greater amount in any
         government fiscal year.

 3.3     Eligible Costs Period
         Under this Agreement, the Minister will not contribute to any cost
         incurred by OSL prior to 23 December 1998 nor to any cost incurred by
         OSL after 31 March 2003, unless otherwise agreed to by the Minister,
         in writing.

 3.4     Environmental Protection Measures
         The Minister, being satisfied that any potentially adverse
         environmental effects that may be caused by each element of the Project
         is insignificant, will make the contribution to OSL only if OSL has
         incorporated and utilized environmental protection measures in relation
         to the Project that satisfy the requirements of all regulatory bodies
         having jurisdiction over OSL or the Project or both and certifies to
         the Minister that it has done so, which certification will be provided
         with the first claim for payment under this Agreement.

 3.5     Set-Off Rights of Minister
         The Minister will have the right to set-off against amounts payable
         under this Agreement any amounts owed by OSL under other agreements for
         which the Minister is responsible or under the Defence Industry
         Productivity Program.

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4.0   Other Government Assistance

4.1   Disclosure
      OSL hereby acknowledges that for the purposes of this Agreement, except
      for scientific research and experimental development tax credits, no other
      federal, provincial or municipal government assistance other than that
      described below has been requested or received by OSL for the Eligible
      Costs of this Project.

                Federal                 $00
                Provincial              $00
                Municipal               $00

                Total                   $00

4.2   Continuing Disclosure Obligation
      OSL will inform the Minister promptly in writing of any other federal,
      provincial or municipal government assistance to be received for costs
      covered by the Minister under this Project and the Minister will have the
      right to reduce the contribution under this Agreement to the extent of any
      such assistance except for scientific research and experimental
      development tax credits,

5.0   Claims for Payment

5.1   Claim Procedures
      The Minister will pay the contribution to OSL, in respect of Eligible
      Costs incurred, on the basis of claims which claims will be:

      (a)  submitted in writing not more frequently than monthly;

      (b)  accompanied by details of all costs being claimed, which will be
           substantiated by such documents as may be required by the Minister
           and presented, in accordance with the structure and the milestones
           contained in the Statement of Work;

      (c)  certified by an officer of OSL or other person satisfactory to the
           Minister; and

      (d)  accompanied by a report of the work completed indicating which
           milestones, if any, were achieved during the period of the claim.

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5.2   Hold-Back Rights
      (a)  Subject to 5.2(b), the Minister will pay 100% of the claims until
           such time as 90% of the contribution has been disbursed. Following
           disbursement of the 90% of the contribution, the Minister will have
           the right to audit the claims before making any further payments. The
           Minister will pay the remaining 10% of the contribution by paying
           100% of each claim until 90% of that 10% has been disbursed. The
           balance of the contribution will be released upon completion of the
           final audit if required by the Minister. The final audit will take
           place no later than eighteen months after receipt of the final claim.

      (b)  The Minister and OSL will, during the term of this Agreement, conduct
           periodic audits or cost reviews in conjunction with the semi-annual
           progress report described in section 7.5, and if during the periodic
           audits or cost reviews no significant difficulty is identified (or if
           identified, is remedied to the satisfaction of the Minister) with
           respect to the claims that have been paid, then the Minister agrees
           that the remaining claims will be paid, without any holdback. However
           the Minister reserves the right following the final payment to audit
           all claims.

5.3   Final Claim
      Within one year of completion of the Project or of 31 March 2003,
      whichever is earlier, the final claim for payment will be submitted by OSL
      and will be accompanied by an itemized statement, certified by OSL's
      senior financial officer or an auditor approved by the Minister, attesting
      to the Eligible Costs having been incurred in the Project.

5.4   Certification of Claims
      The Minister may require that any claim submitted for payment of the
      contribution be certified by OSL's senior financial officer or by an
      auditor approved by the Minister.

5.5   Overpayment by Minister
      If the Minister, acting reasonably, determines that the amount paid to OSL
      exceeds the amount to which OSL is entitled pursuant to this Agreement,
      the amount of the excess, together with interest thereon from the date of
      the notice of the excess to OSL, a copy of which will also be faxed to
      OSL, to the day of repayment by OSL to the Minister in full, is a debt due
      and payable forthwith to the Minister. Interest will be calculated at the
      Bank Rate, as defined in the Interest And Administrative Charges
      Regulations in effect as of the date of the notice of the excess to OSL
      plus 3% per annum, compounded monthly.

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6.0  Royalty Payments
6.1  Date of Commencement of Gross Revenues
     OSL will notify the Minister of the date of commencement of Gross Revenues
     by OSL.

6.2  Royalty Rate
     OSL will pay a 3% royalty on all Gross Revenues from 1 December 1999 to 30
     November 2008. If the total cumulative royalties paid and payable as of 30
     November 2008 does not equal or exceed $7,810,230 then OSL will continue to
     pay royalties on Gross Revenues generated after 30 November 2008 until
     total cumulative royalties paid or payable reach $7,810,230 or until 30
     November 2014, whichever comes first.

6.3  Royalty Due Date
     OSL will pay the Minister a royalty on or before 1 February of each year
     following the calendar year in which the amount of the royalty was
     calculated. The first royalty payment is due 1 February 2001.

6.4  Royalty Statements and Payment
     OSL will, with each royalty payment specified in section 6.3, provide to
     the Minister a statement certified by its senior financial officer of Gross
     Revenues for the calendar year preceding the payment. The statement will
     include the calculation of the royalty due.

6.5  Dividend Payment Restriction
     OSL will not make any dividend payment that would prevent it from
     implementing the Project or that would prevent it from making the royalty
     payments called for in this Agreement.

6.6  Payment Date
     Whenever any payment date under this section 6.0 occurs on a Saturday,
     Sunday or statutory holiday, such payment shall be made on the next day
     following which is not a Saturday, Sunday or holiday.

7.0  Monitoring and Reporting

7.1  Annual Financial Statements
     OSL will provide the Minister with a copy of its annual unaudited financial
     statements within one hundred and twenty (120) days of the end of each of
     OSL's fiscal years.

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7.2  Access to Accounts and Records
     OSL will at its own expense preserve and make available for audit and
     examination by the Minister or his representatives the books, accounts and
     records of the Project and of the information necessary to calculate any
     amount owing to the Minister under this Agreement. The Minister will have
     the right to conduct such additional audits, at his expense, as he may
     consider necessary using the audit staff of the Minister, the Audit
     Services Group of Consulting and Audit Canada, an independent auditing firm
     or OSL's external auditors. Any licence agreement for the production of
     the electronic chart display and information system - paramilitary\military
     between OSL and a third party will contain similar provisions to permit the
     Minister to audit the calculation of the royalty.

7.3  Access to Project
     OSL will provide the representatives of the Minister reasonable access to
     OSL's premises to inspect and assess the progress of the Project or any
     element thereof and supply promptly on request such data as the Minister
     may reasonably require for statistical or project evaluation purposes.

7.4  Access to Third-Party Information
     OSL will, to the extent practicable, assist the Minister with the
     implementation of this Agreement and facilitate access by the Minister to
     information from third parties engaged in the performance of the Statement
     of Work.

7.5  Project Progress Reports
     OSL will provide the Minister with semi-annual progress reports commencing
     on 30 January 2000. The reports will include:

     (a)  a description of the progress in performance of the Statement of Work
          in comparison with the milestones contained in the Statement of Work;

     (b)  an update of the Project cost estimates;

     (c)  an indication of any delay in completing the Project;

     (d)  a cumulative list summarizing any acquisition and current holdings of
          Special Purpose Equipment, as per Schedule "A1";

     (e)  an indication of any planned transfer to commercial production,
          transfer outside of Canada, sale, lease or other disposition of
          Special Purpose Equipment.

     (f)  sufficient information to enable the Minister to assess the Project's
          contribution to jobs and economic growth, as per Schedule "B", and

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                                      -12-

        (g)  an update of the projected market, as per Schedule "C".

 7.6    Commercial Exploitation Reports
        OSL will continue to provide reports to the Minister on an annual basis
        from 31 March 2003 until the end of the Term of the Agreement which
        will indicate whether the Project is achieving its projected commercial
        and economic objectives, including job creation, as per Schedules "B"
        and "C".

 8.0    Special Conditions

 8.1    Other Agreements
        Neither OSL nor OSI have entered into contracts that would prevent the
        full implementation of this Agreement and undertake not to enter into
        any contracts that would prevent the full implementation of this
        Agreement without the prior written consent of the Minister.

 8.2    Background Technology
        OSI represents that it holds all the requisite intellectual property
        rights to fully implement the Project and undertakes to maintain all
        such rights.

 8.3    OSI Benefit
        OSI hereby declares that it benefits from this Agreement through OSL, a
        wholly owned subsidiary, and through the value added to the electronic
        chart display and information system technology, as further described in
        Schedule A, Statement of Work.

 8.4    Financial Support
        OSI hereby undertakes, for the duration of this Agreement, to provide
        OSL with all the necessary financial support in order to fully implement
        the Project in a timely fashion, including the marketing and
        commercialisation of the Project results.

 8.5    Articles Applicable to OSI
        The following sections and articles apply to the Intervenor, and any
        reference to the Recipient or OSL also applies to OSI: sections
        6.5, 7.1, 7.2, 7.3, 7.4 and articles 10, 11, 13, 14, and 16.

 8.6    OSL support
        When providing the financial statements provided under section "7.1," to
        the Minister, OSL will at the same time provide annually to the Minister
        a report of financial arrangements in place to support their share of
        the Project.

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 8.7 Annual Financial Statements
     OSI will provide the Minister with a copy of its annual audited financial
     statements within one hundred and twenty (120) days of the end of each of
     OSI's fiscal years.

9.0  Intellectual Property

9.1  Ownership of Technology
     Legal title to any Intellectual Property which may be created, generated or
     produced during or as a result of the performance of the Project by OSL is
     to be vested with OSL.

9.2  Commitment to Exploitation in Canada
     OSL will exploit the Intellectual Property developed under this Project
     through the manufacture of the electronic chart display and information
     system - paramilitary\military in Canada. OSL will ensure that follow-on
     production of the electronic chart display and information system -
     paramilitary\military and its variants and derivatives occurs within Canada
     unless the Minister agrees in advance in writing to the contrary.

9.3  Limitation on Transfer of Technology
     OSL will not, without the prior written consent of the Minister, grant any
     right to the manufacture of the electronic chart display and information
     system - paramilitary\military or transfer title to any of the Intellectual
     Property outside of Canada, except the licence or sublicence for use in
     conjunction with the sale of products developed as a result of the Project,
     and will impose the same restriction on all transferees.

10.0 Default and Recovery

10.1 Events of Default
     The Minister may declare an event of default has occurred if:

     (a) OSL is adjudged or declared bankrupt or if it goes into receivership
         or takes the benefit of any statute from time to time in force relating
         to bankrupt or insolvent debtors;

     (b) an order for dissolution of OSL is made which is not being contested or
         appealed by OSL or a resolution is passed for the winding-up of OSL or
         it is dissolved;

     (c) OSL has intentionally submitted false or misleading information to the
         Minister or intentionally made a false or misleading representation;

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                                      -14-

      (d)  any material term, condition or undertaking required under this
           Agreement is not complied with, in any material respect; or

      (e)  OSL neglects or fails to pay the Minister, in accordance with this
           Agreement;

      provided that the Minister will not declare an event of default has
      occurred by reason of paragraphs (c), (d) or (e) unless the Minister has
      given notice to OSL of the condition or event which, in his opinion,
      constitutes an event of default and OSL has failed, within 30 days of
      receipt of such notice, either to correct the condition or event
      complained of or to demonstrate, to the satisfaction of the Minister, that
      it has taken such steps, as are necessary to correct the condition, and
      notify the Minister of rectification.

10.2 Remedies on Default
      If the Minister declares that an event of default has occurred, the
      Minister may exercise one or more of the following remedies:

      (a)  suspend any obligation by the Minister to contribute or continue to
           contribute to the costs of the Project including any obligation to
           pay any amount owing prior to the date of such suspension;

      (b)  terminate any obligation by the Minister to contribute or continue to
           contribute to the costs of the Project, including any obligation to
           pay any amount owing prior to the date of such termination;

      (c)  require OSL to repay to the Minister all or part of the contribution
           disbursed and pay the Minister any amounts due under this Agreement,
           together with interest from the date of demand compounded monthly at
           the interest rate, as set out in section 5.5.

      If an event of default has occurred in relation to paragraph 10.1(a) or
      (b), or as a result of the failure of OSL to comply with the provisions of
      section 2.4, 6.0 or 9.0, the Minister may direct OSL to transfer and
      deliver to the Minister title to, possession of and all rights of OSL in
      the Intellectual Property, and OSL will immediately comply.

      If, in the opinion of the Minister, acting reasonably, that an event of
      default is likely to occur, the Minister may suspend any obligation to
      contribute upon giving notice of the likely event of default or alteration
      and if OSL fails to cure or demonstrate to the satisfaction of the
      Minister that it has taken such steps as are necessary to correct the

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                                      -15-

       condition within ten days of receipt of such notice, the Minister may
       utilise any other remedy set out in this section 10.2.

10.3   Remedies Fair and Reasonable
       OSL acknowledges that the policy objectives served by the Minister's
       agreement to make the contribution, that the contribution comes from
       public monies, that the amount of damages sustained by the Minister in an
       event of default is difficult to ascertain, and therefore that it is fair
       and reasonable that the Minister be entitled to exercise any or all of
       the remedies provided for in section 10.0 and to do so in the manner
       provided for in that section if an event of default occurs; provided that
       in exercising any remedy in accordance with paragraph 10.2(c) other than
       for a breach of paragraph 10.1(e), the Minister will credit OSL for any
       royalties paid to the Minister under this Agreement.

20.4   No Waiver
       The fact that the Minister refrains from exercising a remedy he is
       entitled to exercise under this Agreement will not constitute a waiver of
       such right and any partial exercise of a right will not prevent the
       Minister in any way from later exercising any other right or remedy under
       this Agreement or other applicable law.

11.0   Force Majeure

1l.2   No Default for Force Majeure
       OSL will not be in default by reason only of any failure in performance
       of the Project in accordance with the Statement of Work if such failure
       arises without the fault or negligence of OSL and is caused by any other
       event of force majeure.

11.2   Definition of Force Majeure
       Force majeure means any cause which is unavoidable or beyond the
       reasonable control of OSL, including war, riot, insurrection, orders of
       government, strikes or any Act of God or other similar circumstance which
       is beyond OSL's control, and which could not have been reasonably
       circumvented by OSL without incurring unreasonable cost.

12.0   Representations, Warranties and Undertakings

12.1   Power and Authority of the Recipient
       OSL is duly incorporated and validly existing and in good standing under
       the laws of British Columbia and has the power and authority to carry on
       its business, to hold property and to enter into this Agreement and
       undertakes to take all necessary action to maintain itself in good
       standing and to preserve its legal capacity.

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                                      -16-

12.2    Authorised Signatories
        OSL represents and warrants that the signatories to this Agreement have
        been duly authorized to execute and deliver this Agreement on its
        behalf.

12.3    Binding Obligations
        OSL represents and warrants that the execution, delivery and performance
        of this Agreement have been duly and validly authorized and when
        executed and delivered will constitute a legal, valid and binding
        obligation of OSL enforceable in accordance with its terms.

12.4    No Pending Suit or Action
        OSL warrants that it is under no obligation or prohibition, nor is it
        subject to or threatened by any actions, suits or proceedings which
        could or would prevent compliance with the Agreement.

12.5    No Gifts or Inducements
        OSL represents and warrants that it has not, nor has any person offered
        or promised to any official or employee of the Minister for or with a
        view to obtaining this Agreement any bribe, gift or other inducement,
        and it has not nor has any person on its behalf employed any person to
        solicit this Agreement for a commission, contingency fee or any other
        consideration dependant upon the execution of this Agreement.

12.6    Compliance with Environmental Protection Requirements
        OSL warrants and undertakes that it will maintain environmental
        protection measures in relation to the Project that satisfy the
        requirements of all regulatory bodies having jurisdiction over OSL or
        the Project and certify to the Minister annually its compliance with
        such requirements.

13.0    General Conditions

13.1    Members of the House of Commons or the Senate
        No member of the House of Commons or the Senate, either directly nor
        indirectly, shall be admitted to any share or part of this Agreement or
        to any benefit to arise therefrom.

<PAGE>

                                      -17-

13.2    Annual Appropriations
        Any payment by the Minister under this Agreement is subject to there
        being an appropriation in accordance with section 40 of the Financial
        Administration Act for the fiscal year in which the payment is to be
        made.

13.3    Confidentiality
        Subject to Section 12 and the Access to Information Act the parties will
        keep confidential and will not disclose the contents of this Agreement
        nor the transactions contemplated hereby without the consent of all
        parties.

13.4    No Assignment of Agreement
        Neither this Agreement, nor any part thereof nor any amount thereunder
        will be assigned by OSL without the prior written consent of the
        Minister.

13.5    Compliance with Post-Employment Provisions
        OSL confirms that no individual for whom the post-employment provisions
        of the Conflict of Interest and Post-Employment Code for Public Office
        Holders or the Conflict of Interest and Post-Employment Code for the
        Public Service apply, will derive a direct benefit from this Agreement
        unless that individual is in compliance with the applicable
        post-employment provisions.

14.0    Announcements

i4.1    Consent to Public Announcements
        OSL hereby consents to public announcements by or on behalf of the
        Minister containing any of the information in the documents attached
        hereto as Schedule "E".

14.2    Confidentiality Obligation
        The Minister will inform OSL of the date on which the public
        announcement is to be made and OSL will not disclose the existence of
        this Agreement until such date.

15.0    Notice

15.1    Form and Timing of Notice
        Any notice, information or document provided for under this Agreement
        will be effectively given if delivered or sent by letter or facsimile,
        postage or other charges

<PAGE>
                                      -18-

        prepaid. Any notice that is delivered will have been received on
        delivery; any notice sent by facsimile will be deemed to have been
        received one working day after having been sent, and any notice mailed
        will be deemed to have been received eight (8) calendar days after being
        mailed.

15.2    Change of Address
        OSL or the Minister may change the address which they have stipulated in
        this Agreement by notifying the other of the new address.

 15.3   Addresses
        Any notice to the Minister will be addressed to:

             Director, Aerospace and Defence
             Technology Partnerships Canada
             10th Floor
             300 Slater Street
             Ottawa, Ontario K1A OC8
             Fax No: (613) 954-9117

        Any notice to OSL will be addressed to:

             Director of Operations
             Offshore Systems Ltd.
             107-930 West 1st Street
             North Vancouver, B.C.
             V7P 3N4
             Fax No: (604) 987-2555

        Any notice to OS1 will be addressed to:

             President and Chief Executive Officer
             Offshore Systems International Ltd.
             107-930 West 1st Street
             North Vancouver, B.C.
             V7P 3N4
             Fax No: (604) 987-2555

<PAGE>
                                      -19-

16.0    Other Provisions

16.1    No Partnership Created
        The parties declare that nothing in this Agreement will be construed as
        creating a partnership, joint venture or agency relationship between the
        Minister and OSL.

16.2    Binding Agreement
        This Agreement is binding on the parties and their successors and
        permitted assigns.

16.3    Signature in Counterparts
        This Agreement may be signed in counterparts, each of which when taken
        together, will constitute an original Agreement.

16.4    Governing Laws
        This Agreement will be governed by the laws in force in the province of
        British Columbia.

<PAGE>

                                      -20-

16.5    Term of Agreement

        This Agreement will terminate on the earlier date of the following:

        (a)  payment to the Minister by OSL of all amounts due pursuant to this
             Agreement; and

        (b)  31 March 2015.

16.6    Deadline for Signature
        This Agreement must be signed by Offshore and received by the Minister
        on or before 17 November 1999 failing which it will be null and void.

        IN WITNESS WHEREOF the parties hereto have executed this Agreement as of
the date first above written.

                                   HER MAJESTY THE QUEEN IN RIGHT
                                   OF CANADA, as represented by the
                                   Minister of Industry

                                   By: /s/[ILLEGIBLE]
                                       -----------------------------------------
                                   Technology Partnerships Canada 15/11/99

                                   Offshore Systems Ltd.

                                   By: /s/ John Jackson
                                       -----------------------------------------
                                   By: John Jackson, President & CEO

                                   Offshore Systems International Ltd.

                                   By: John Jackson
                                       -----------------------------------------
                                   By: John Jackson, President & CEO.

<PAGE>
                                       A-l

                                                                     SCHEDULE A

                                STATEMENT OF WORK

                                      for

                ELECTRONIC CHART DISPLAY AND INFORMATION SYSTEM -
                              PARAMILITARY\MILITARY

<PAGE>

                                      A-2

                               Statement Of Work

1.   General

The project will build upon OSL's 22 years of experience in the design and
development of ship navigation systems and position the firm for the next
generation of electronic chart technology. The project upgrades key elements of
software and hardware technology that increase the functionality of electronic
chart systems.

2.   Project Description

The purpose of this project is to design and develop an integrated ship
navigation system which combines Offshore's existing technology, Electronic
Chart Precise Integrated Navigation System, (ECPINS) with new technology that
meets the standards of the International Maritime Organization (IMO) and
additional requirements of paramilitary and military customers. The resulting
product will be a qualified Electronic Chart Display and Information System
(ECDIS) with additional functionality for paramilitary and military markets. The
project will complete the early stages of a full Warship ECDIS (WECDIS)
specification.

3.   Key Activities

The project is divided into three Key Activities.

1.   ECDIS Functionality

The design and development of core ECDIS and enhanced ECDIS features, including:
     1.1.   Development of IMO compliant ECPINS and standard back-up systems.
            1.l.l. Project Management
            1.1.2. Requirements Analysis and Design
            1.1.3. Coding
            1.1.4. Testing
            1.1.5. User Documentation
            1.1.6. IMO Type Approval Certification
            1.1.7. In-Field Beta Testing
            1.1.8. Product Release

<PAGE>

                                       A-3

    1.2.      Addition of DNC/VPF Functionality

      1.2.1.  Project Management
      1.2.2.  Engineering Analysis and liaison with NIMA/DND
      1.2.3.  System Hardware Design
      1.2.4.  Coding
      1.2.5.  Fabrication and Assembly
      1.2.6.  Testing
      1.2.7.  User Documentation
      1.2.8.  In-Field Beta Testing
      1.2.9.  Product Release

    1.3.      Addition of Enhanced ECDIS Functionality

      1.3.1.  Project Management
      1.3.2.  Requirements Analysis and Design
      1.3.3.  System Hardware Design
      1.3.4.  Coding
      1.3.5.  Fabrication and Assembly
      1.3.6.  Testing
      1.3.7.  User Documentation
      1.3.8.  In-Field Beta Testing
      1.3.9.  Product Release

2.  Military Enhancements

The design and development of Military and Paramilitary specific additions,
including:
    2.1.      Harbour Defence Functionality
      2.1.1.  Project Management and Reporting
      2.1.2.  Requirements Analysis and Design
      2.1.3.  System Hardware Design
      2.1.4.  Coding
      2.1.5.  Fabrication and Assembly
      2.1.6.  Testing
      2.1.7.  User Documentation
      2.1.8.  In-Field Beta Testing
      2.1.9.  Product Release

<PAGE>

                                       A-4

    2.2.      Sonar and Surface Search Radar Integration

      2.2.1.  Project Management and Reporting
      2.2.2.  Requirements Analysis and Design
      2.2.3.  System Hardware Design
      2.2.4.  Coding
      2.2.5.  Fabrication and Assembly
      2.2.6.  Testing
      2.2.7.  User Documentation
      2.2.8.  In-Field Beta Testing
      2.2.9.  Product Release

    2.3.      Military Hardware Platform Standardization

      2.3.1.  Project Management and Reporting
      2.3.2.  Requirements Analysis and Design
      2.3.3.  System Hardware Design
      2.3.4.  Coding
      2.3.5.  Fabrication and Assembly
      2.3.6.  Testing
      2.3.7.  User Documentation
      2.3.8.  In-Field Beta Testing
      2.3.9.  Product Release

    2.4.      Search and Rescue Functionality

      2.4.1.  Project Management and Reporting
      2.4.2.  Requirements Analysis and Design
      2.4.3.  System Hardware Design
      2.4.4.  Coding
      2.4.5.  Fabrication and Assembly
      2.4.6.  Testing
      2.4.7.  User Documentation
      2.4.8.  In-Field Beta Testing
      2.4.9.  Product Release

<PAGE>

                                       A-5

    2.5.      Partial Additional Military Layer (AML) Functionality
      2.5.1.  Project Management and Reporting
      2.5.2.  Requirements Analysis and Design
      2.5.3.  System Hardware Design
      2.5.4.  Coding
      2.5.5.  Fabrication and Assembly
      2.5.6.  Testing
      2.5.7.  User Documentation
      2.5.8.  In-Field Beta Testing
      2.5.9.  Product Release

3.  Black Box Radar

The design and development of a multi-platform, fully integrated radar interface
unit for use in military, paramilitary and commercial markets.
    3.1.      Phase 1 - Black Box Preliminary Release
      3.1.1.  Project Management and Reporting
      3.1.2.  Requirements Analysis and Design
      3.1.3.  System Hardware Design
      3.1.4.  Coding
      3.1.5.  Fabrication and Assembly
      3.1.6.  Integration and Testing
      3.1.7.  User Documentation
      3.1.8.  In-Field Beta Testing
      3.1.9.  Product Release

    3.2.      Phase 2 - Radar Image Enhancement
      3.2.1.  Project Management and Reporting
      3.2.2.  Requirements Analysis and Design
      3.2.3.  System Hardware Design
      3.2.4.  Coding
      3.2.5.  Fabrication and Assembly
      3.2.6.  Integration and Testing
      3.2.7.  User Documentation
      3.2.8.  In-Field Beta Testing
      3.2.9.  Product Release

<PAGE>

                                       A-6

    3.3.      Phase 3 - Black Box Feature Enhancement
      3.3.1.  Project Management and Reporting
      3.3.2.  Requirements Analysis and Design
      3.3.3.  System Hardware Design
      3.3.4.  Coding
      3.3.5.  Fabrication and Assembly
      3.3.6.  Integration and Testing
      3.3.7.  User Documentation
      3.3.8.  In-Field Beta Testing
      3.3.9.  Product Release

Each Key Activity is broken down into a number of defined milestones. Section 6
outlines the milestones for each Key Activity.

<PAGE>

                                       A-7

4. Cost Breakdown

<TABLE>
<CAPTION>
Cost Breakdown by key tasks
----------------------------------------------------------------------------------------------------------
        Tasks                  Project Schedule                           Project Costs
                           -------------------------------------------------------------------------------
                            Start           End                          Labour (note 1)
                                                       ---------------------------------------------------
                                                       Engineering    Technical   Management      Total
----------------------------------------------------------------------------------------------------------
<S>                        <C>            <C>          <C>            <C>         <C>          <C>
ECDIS Functionality        Dec 1996       Dec 2000       3,350,133      781,216      966,083     5,177,432
----------------------------------------------------------------------------------------------------------
Military Functionality     Jan 1999       June 2002      2,588,802    1,248,172      693,429     4,530,403
----------------------------------------------------------------------------------------------------------
Black Box(TM) Radar        Jan 2000       June 2002        640,348      308,739      171,522  +  1,120,609
----------------------------------------------------------------------------------------------------------
      Total                                              6,579,283    2,338,127    1,851,034   -10,768,444
----------------------------------------------------------------------------------------------------------

<CAPTION>
-----------------------------------------------------------------------------
        Tasks                                Project Costs
                          ---------------------------------------------------
                          Material                 Other Direct      Total
                          (note 2)  Sub-contract  (travel, etc.)
-----------------------------------------------------------------------------
<S>                       <C>       <C>           <C>              <C>
ECDIS Functionality        380,000     245,000         131,478      5,873,910
-----------------------------------------------------------------------------
Military Functionality     200,000     100,000          92,457      4,922,860
-----------------------------------------------------------------------------
Black Box(TM) Radar         81,500     100,000          22,870      1,324,979
-----------------------------------------------------------------------------
      Total                661,500     445,000         246,805     12,121,749
-----------------------------------------------------------------------------
</TABLE>

Cost Breakdown By Fiscal Year (ending March 31):

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
        Year                                   Project Costs                       Total
                           ----------------------------------------------------------------
                           Labour     Material
                          (note 1)    (note 2)    Sub-contract   Other Direct
-------------------------------------------------------------------------------------------
<S>                     <C>         <C>          <C>            <C>              <C>
        99-00            3,207,025     199,352         144,983         73,216     3,624,576
-------------------------------------------------------------------------------------------
        00-01            3,443,788     212,627         131,442         78,092     3,865,950
-------------------------------------------------------------------------------------------
        01-02            3,103,063     188,445         126,677         71,539     3,489,724
-------------------------------------------------------------------------------------------
        02-03            1,015,020      61,070          41,436         23,971     1,141,498
-------------------------------------------------------------------------------------------
        Total           10,768,896     661,494         444,538        246,819    12,121,748
-------------------------------------------------------------------------------------------
</TABLE>

Note 1: Includes overhead and G&A (ref. PWGSC neg. rate)
Note 2: Includes material and handling (ref. PWGSC neg. rate)

<PAGE>

                                      A-8

5. List of Special Equipment

This is not applicable to the ECDIS-PM project.

6. Milestones

Each Key Activity is broken down into defined milestones, which are based on
scheduled software and/or hardware release dates. Each release will be followed
by several months of Beta Testing and Sea Trials. The folIowing table summarizes
the milestones for each Key Activity.

<TABLE>
<CAPTION>
Key Activity                 Milestone  Description-                            Release
                                                                                 Date
----------------------------------------------------------------------------------------
<S>                          <C>        <C>                                     <C>
ECDIS Functionality             1       PC Baseline Release 3.11                July `99
                                2       PC Baseline Release 3.2A                Nov. `99
                                3       PC Baseline Release 3.2                 May  `00
                                4       PC Baseline Release 3.5                 Dec. `00
                                5       Enhanced Functionality                  Ongoing

Military Functionality          1       VME Baseline Release 2.03               July `99
                                2       VME Baseline Release 1.7x               Nov. `99
                                3       VME Baseline Release 2.1                Feb. `00
                                4       Hardware Baseline                       Dec. `00
                                        Standardization
                                5       Enhanced Military Functionality         Dec. `01
                                6       Partial AML                             Mar. `02

"Black Box" Radar               1       Radar "Black Bos" Phase 1               May  `01
                                2       Radar "Black Box" Phase 2               Dec. `01
                                3       Radar "Black Box" Part Phase 3          Mar. `02
</TABLE>

<PAGE>

                                       A-9

                              Project Grantt Chart

<PAGE>

                                      A-10

COST ESTIMATES
The values in the Statement of Work/cost breakdown as previously presented are
estimates only.

The cost breakdown includes all estimated direct costs and associated overhead
costs for the Project. For claim purposes, these costs will be determined using
the applicable Public Works and Government Services Canada (PWGSC) costing rates
negotiated with the Recipient in accordance with the PWGSC 103l-2 Contract Cost
Principles. For any period where the PWGSC rate negotiations have not been
completed at the time of claim submission for this period, the previous year's
negotiated PWGSC rates will be used in the interim.

The allowable amount which may be claimed is shown in the main body of the
Contract under Article 3.1 titled "Sharing Ratio and Contribution Ceiling".

<PAGE>
                                     A1 - 1

RECIPIENT NAME:OSL

PROJECT TITLE: Development of An Electronic Chart Display and Information System
- Paramilitary\Military

SPECIAL PURPOSE EQUIPMENT LIST - EXCLUSIVE OF PROTOTYPES AND PILOT PLANTS

[THIS LIST IS FOR PAYMENT OF CLAIMS AND FOR PROJECT MONITORING PURPOSES]

     GENERAL: This list will include all items of Special Purpose Equipment(SPE)
     purchased by the Recipient, at a cost exceeding $250,OOO or any other limit
     specified in the Agreement.

     MECHANISM: In accordance with the requirements of paragraph 7.5(d) of this
     Agreement, the Recipient agrees to provide an up-to-date copy of this list,
     with every claim that modifies its content, specifying and describing the
     new items for which payment of the TPC contribution is being claimed. The
     Recipient also agrees to monitor the location and use of all the items of
     Equipment that will eventually appear on the list.

                                LIST OF EQUIPMENT
    ----------------------------------------------------------------------------
     1           2               3            4              5           6
    ----------------------------------------------------------------------------
    ITEM    DESCRIPTION &       QTY      COST OF THE       "TPC"       "TPC"
     NO     SERIAL NUMBER                ITEM TO FIRM     SHARING   CONTRIBUTION
                                         (Cdn Funds)     RATIO (%)   (Cdn Funds)
    ----------------------------------------------------------------------------

     1.
    ----------------------------------------------------------------------------

     2.
    ----------------------------------------------------------------------------

     3.
    ----------------------------------------------------------------------------

     4.
    ----------------------------------------------------------------------------

     5.
    ----------------------------------------------------------------------------

    At the time of signing of the Agreement the above list was not applicable.

<PAGE>

                                      B - 1

                                                RECIPIENT NAME: OSL SCHEDULE - B

PROJECT TITLE: Development of An Electronic Chart Display and Information System
- Paramilitary\Military

            REPORT ON ESTIMATED & ACTUAL PROJECT BENEFITS AND RESULTS
  PART A - JOB CREATION

  DEFINITIONS-one Person-Year (P-Y) is equal to 1950 hours of work paid.
  -----------

  1.  Data to be provided based on a 52-week year and should be expressed in P-Y
      units, with one decimal only.

  2.  Personnel changes-entry or exit from a cell within a year -should follow
      the same fundamental principle whereby the clock is stopped for the
      outgoing element and started for the incoming one.

  3.  Very simply, the intent of this schedule is to identify the number of P-Ys
      expended on the Project activities during any one year of the Project
      duration, according to one characteristic: category of employment. Both
      part-time and full-time employees working on the Project should be
      claimed, as employment of all types represents a Project benefit.
      Part-time work on the Project should be transposed into P-Y units on the
      basis of one P-Y equals 1950 hours of work paid in a given year.

      PART A-1 PROJECT WORK PHASE
  [REPORTING FREQUENCY: ANNUAL WITH ALL DATA COMPILED AS OF 31 DECEMBER OF
   APPLICABLE YEAR]

  year 1=1999, year 2=2000, year 3=2001, year 4=2002, year 5=2003

================================================================================
                                                    TOTAL NUMBER OF PERSON-YEARS
                                               ---------------------------------
               CATEGORY OF EMPLOYMENT              PROJECT            PROJECT
                                                  ESTIMATE            ACTUAL
--------------------------------------------------------------------------------
  A]      SCIENCE & ENGINEERING
                                       - year 1      3
                                       - year 2      5
                                       - year 3      5
                                       - year 4      6
                                       - year 5      3
--------------------------------------------------------------------------------
  B]      TECHNICAL & SKILLED LABOUR
                                       - year 1      4
                                       - year 2     12
                                       - year 3     18
                                       - year 4     12
                                       - year 5      3
--------------------------------------------------------------------------------
  C]      MANAGEMENT & ADMINISTRATION
                                       - year 1      1
                                       - year 2      2
                                       - year 3      2
                                       - year 4      1
                                       - year 5      1
--------------------------------------------------------------------------------
  D]      SUB-CONTRACTED WORK
                                       - year 1      2
                                       - year 2      3
                                       - year 3      3
                                       - year 4      3
                                       - year 5      1
--------------------------------------------------------------------------------
          TOTAL
                                       - year 1     10
                                       - year 2     22
                                       - year 3     28
                                       - year 4     22
                                       - year 5      8
--------------------------------------------------------------------------------

<PAGE>
                                      B - 2

RECIPIENT NAME: OSL

PROJECT TITLE: Development of An Electronic Chart Display and Information System
- Paramilitary\Military

 PART A-2 COMMERCIAL EXPLOITATION PHASE
 [REPORTING FREQUENCY: ANNUAL WITH ALL DATA COMPILED AS OF 31 DECEMBER OF
  APPLICABLE YEAR]

 year 1=2000, year 2=2001, year 3=2002, year 4=2003, year 5=2004, year 6=2005,
 year 7=2006, year 8=2007, year 9=2008
--------------------------------------------------------------------------------
                                                  TOTAL NUMBER OF PERSON-YEARS
                                                --------------------------------
                     CATEGORY OF EMPLOYMENT        PROJECT           PROJECT
                                                  ESTIMATE           ACTUAL
--------------------------------------------------------------------------------
A]         SCIENCE & ENGINEERING
                                       - year 1      6
                                       - year 2      6
                                       - year 3      7
                                       - year 4     10
                                       - year 5     10
                                         year 6     10
                                         year 7     10
                                         year 8     10
                                         year 9     10
--------------------------------------------------------------------------------
B]         TECHNICAL & SKILLED LABOUR
                                       - year 1     10
                                       - year 2     12
                                       - year 3     22
                                       - year 4     27
                                       - year 5     27
                                         year 6     30
                                         year 7     30
                                         year 8     30
                                         year 9     30
--------------------------------------------------------------------------------

<PAGE>

                                       B-3

RECIPIENT NAME: QSL
PROJECT TITLE: Development of An Electronic Chart Display and Information
System - Paramilitary\Military

 PART A-2 COMMERCIAL EXPLOITATION PHASE
 [REPORTING FREQUENCY: ANNUAL WITH ALL DATA COMPILED AS OF 31 DECEMBER OF
 APPLICABLE YEAR]

 year 1=2000, year 2=2001, year 3=2002, year 4=2003, year 5=1004, year 6=2005,
 year 7=2006, year 8=2007, year 9=2008

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
                                                   TOTAL NUMBER OF PERSON-YEARS
             CATEGORY OF EMPLOYMENT               ------------------------------
                                                      PROJECT         PROJECT
                                                      ESTIMATE        ACTUAL
--------------------------------------------------------------------------------
<S>      <C>                                          <C>             <C>
 C]      GENERAL PRODUCTION
                                    -year 1(2000)        10
                                          -year 2        12
                                          -year 3        22
                                          -year 4        50
                                          -Year 5        53
                                           year 6        59
                                           year 7        59
                                           year 8        59
                                           year 9        59
--------------------------------------------------------------------------------
         MARKETING, SALES & SUPPORT
                                          -year 1         1
                                          -year 2         2
                                          -year 3         3
                                          -year 4         3
                                          -year 5         3
                                           year 6         2
                                           year 7         2
                                           year 8         2
                                           year 9         2
--------------------------------------------------------------------------------
 D]      MANAGEMENT & ADMINISTRATION
                                          -year 1         3
                                          -year 2         4
                                          -year 3         5
                                          -year 4         5
                                          -year 5         5
                                           year 6         5
                                           year 7         4
                                           year 8         4
                                           year 9         4
--------------------------------------------------------------------------------
         TOTAL
                                          -year 1        30
                                          -year 2        36
                                          -year 3        59
                                          -year 4        95
                                          -year 5        98
                                           year 6       105
                                           year 7       105
                                           year 8       105
                                           year 9       105
--------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                      B-4

       RECIPIENT NAME: OSL
       PROJECT TITLE: Development of An Electronic Chart Display and Information
       System - Paramilitary\Military

PART B - REPRESENTATIONS & EXPECTED RESULTS [other than Job Creation and Sales]
--------------------------------------------------------------------------------
  [REPORTING FREQUENCY: ANNUAL WITH ALL DATA COMPILED AS OF 31 DECEMBER OF
   APPLICABLE YEAR]

  1. PATENTS: [are there any patents that are expected to result from the
     development work of the Project]

  2. ACQUISITION OF TECHNOLOGY: [is the Recipient planning to obtain
     technology/know-how essential to the success of the Project and/or the
     commercialisation of its results]

  3. WORLD PRODUCT MANDATE: [specify any representation to that effect and
     indicate clearly to which defined system that mandate applies.)

  4. OTHER SIGNIFICANT EXPECTED RESULTS/REPRESENTATIONS:
  NOTE: any representation or expected result appearing above should be
  transposed into the table hereunder and should be reported on, once a year.
--------------------------------------------------------------------------------
  DESCRIPTION OF EXPECTED RESULT/       PLANNED / REVISED     STATUS / ACTUAL
  REPRESENTATION                        IMPLEMENTATION        IMPLEMENTATION
                                        DATE                  DATE
--------------------------------------------------------------------------------
  1.

  2.

  3.

  4.

  5.

--------------------------------------------------------------------------------
At the time of signing of the Agreement the above list was not applicable.

CERTIFICATION OF SCHEDULE "B" CONTENTS:

*AUTHORIZED SIGNATORY:__________________________ REPORT DATE:____________

The Recipient certifies that the data - representations/expected results -
summarized at the time of Project definition and as amended from time to time -
represents a valid estimate of the benefits, that the Minister could expect from
this Project and the exploitation of its results, as they could be determined at
any particular time. The Minister recognizes that those estimates will
inevitably vary through time, according to market requirements and other
factors, on which the Recipient has little or no control.

REPORTING: In order to allow the Minister to fulfill his mandate in the
monitoring of the Project's contribution to the Jobs and Growth Objective of the
Government, the Recipient hereby agrees to report, annually, on actual results
in comparison to the estimates that will appear in the report at any one time.
This process shall be in accordance with and in response to the requirements of
paragraphs 7.5 (f) and of sub-article 7.6 of the Agreement and no other report
mentioned therein shall be requested from the Recipient, by the Minister, in
support of the determination and monitoring of the contribution of the Project
to the Jobs and Growth Objective of the Government of Canada, except as per
Schedule C, next.

<PAGE>

                                     C - 1

  RECIPIENT NAME: OSL                                                 SCHEDULE C

  PROJECT TITLE: Development of An Electronic Chart Display and Information
  System - Paramilitary\Military

  REPORT ON ESTIMATED & ACTUAL SALES AND ROYALTIES [REPORTING FREQUENCY:
                                     ANNUAL]

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
    1         2          3         4           5             6                 7
-----------------------------------------------------------------------------------------
 ROYALTY   YEAR OR    ROYALTY     TOTAL    ESTIMATED       TOTAL         ACTUAL ROYALTY
  YEAR     PERIOD      RATE     ESTIMATED   ROYALTY     ACTUAL SALES       (in $,000)
 NUMBER    ending      (in %)     SALES    (in $,000)    (in $,000)
           30 Nov              (in $,000)
-----------------------------------------------------------------------------------------
<S>        <C>        <C>      <C>         <C>          <C>              <C>
    1       2000        3.0       8,080       242.4
-----------------------------------------------------------------------------------------
    2       2001        3.0      10,574      317.22
-----------------------------------------------------------------------------------------
    3       2002        3.0      19,585      587.55
-----------------------------------------------------------------------------------------
    4       2003        3.0      22,706      681.18
-----------------------------------------------------------------------------------------
    5       2004        3.0      26,269      788.07
-----------------------------------------------------------------------------------------
    6       2005        3.0      31,112      933.36
-----------------------------------------------------------------------------------------
    7       2006        3.0      37,821     1134.63
-----------------------------------------------------------------------------------------
    8       2007        3.0      43,467     1394.01
-----------------------------------------------------------------------------------------
    9       2008        3.0      57,727     1731.81
-----------------------------------------------------------------------------------------
   10
-----------------------------------------------------------------------------------------
   11
-----------------------------------------------------------------------------------------
   12
-----------------------------------------------------------------------------------------
   13
-----------------------------------------------------------------------------------------
</TABLE>

  SIGNATURE OF CHIEF FINANCIAL OFFICER:_____________________________

  REPORT DATE:_________________

  The Recipient certifies that the initial data summarized at the time of
  Project definition, and as amended from time to time, represents a valid
  estimate of the benefits, that the Minister can expect from this Project and
  the exploitation of its results, as they could be determined at any particular
  time. The Minister recognizes that those estimates will inevitably vary
  through time, according to market requirements and other factors, on which the
  Recipient has little or no control.

  REPORTING: In order to allow the Minister to fullfil his mandate in the
  monitoring of the Project's contribution to the Jobs and Growth objective
  of the Government, the Recipient hereby agrees to report, annually, on actual
  results in comparison to the estimates mentioned in this Schedule C. This
  process shall be in accordance with and in response to the requirements
  of sub-sections 6.4,7.5 (f) and 7.6 of the Agreement and, no other report
  mentioned therein shall be requested from the Recipient, by the Minister, in
  support of the determination and monitoring of the contribution of the Project
  to the Jobs and Growth Objective of the Government of Canada, except as per
  Schedule B, previous.

<PAGE>

                                                                      SCHEDULE D

                                       D-1

TPC PROJECT COST PRINCIPLES

1. GENERAL PRINCIPLE

The total Eligible Costs of the Project shall be the sum of the applicable
direct and indirect costs which are, or are to be reasonably and properly
incurred and/or allocated, in the performance of the Project, less any
applicable credits. These costs shall be determined in accordance with the
Recipient's cost accounting system as accepted by the Minister and applied
consistently over time.

2. DEFINITION OF REASONABLE COST

   (1)  A cost is reasonable if, in nature and amount, it does not exceed that
        which would be incurred by an ordinary prudent person in the conduct of
        a competitive business.

   (2)  In determining the reasonableness of a particular cost, consideration
        shall be given to:

        (a)  whether the cost is of a type generally recognized as normal and
             necessary for the conduct of the Recipient's business or
             performance of the Project;

        (b)  the restraints and requirements by such factors as generally
             accepted sound business practices, arm's length bargaining,
             federal, provincial and local laws and regulations, and Agreement
             terms;

        (c)  the action that prudent business persons would take in the
             circumstances, considering their responsibilities to the owners of
             the business, their employees, customers, the Government and public
             at large;

        (d)  significant deviations from the established practices of the
             Recipient which may unjustifiably increase the Eligible
             Costs of the Project; and

        (e)  the specifications, delivery schedule and quality requirements of
             the particular Project as they affect costs.

3. DIRECT COSTS
   There are three categories of direct costs:

        (a)  Direct Material Cost meaning the cost of materials which can be
             specifically identified and measured as having been used or to be
             used for the performance of the Project and which are so identified
             and measured consistently by the Recipient's cost accounting system
             as accepted by the Crown.

             (i)   These materials may include, in addition to materials
                   purchased solely for the Project and processed by the
                   Recipient, or obtained from subcontractors, any other
                   materials issued from the Recipient's general stocks.

             (ii)  Materials purchased solely for the Project or subcontracts
                   shall be charged to the Project at the net laid-down cost to
                   the Recipient before cash discounts for prompt payment.

             (iii) Materials issued from the Recipient's general stocks shall be
                   charged to the Project in accordance with the method as used
                   consistently by the Recipient in pricing material
                   inventories.

        (b)  Direct Labour Cost meaning that portion of gross wages or salaries
             incurred for activities which can be specifically identified and
             measured as having been performed or to be performed on the Project
             and which is so identified and measured consistently by the
             Recipient's cost accounting system as accepted by the Minister.

<PAGE>

                                      D-2

        (c)  Other Direct Costs meaning those applicable costs, not falling
             within the categories of direct material or direct labour, but
             which can be specifically identified and measured as having been
             incurred or to be incurred in performance of Project activities and
             which are so identified and measured consistently by the
             Recipient's costing system as accepted by the Minister.

4. INDIRECT COSTS

   (1)  Indirect Costs (overhead) meaning those costs which, though necessarily
        having been incurred during the period of the performance of the Project
        activities for the conduct of the Recipient's business in general,
        cannot be identified and measured as directly applicable to the Project.

   (2)  These Indirect Costs may include, but are not necessarily restricted
        to, such items as:

        (a)  indirect materials and supplies (*);

        (b)  indirect labour;

        (c)  fringe benefits (the Recipient's contribution only);

        (d)  service expenses: expenses of a general nature such as power, heat,
             light, operation and maintenance of general assets and facilities;

        (e)  fixed/period charges: recurring charges such as property taxes,
             rentals and reasonable provision for depreciation;

        (f)  general and administrative expenses: including remuneration of
             executive and corporate officers, office wages and salaries and
             expenses such as stationery, office supplies, postage and other
             necessary administration and management expenses;

        (g)  selling and marketing expenses associated with the products or
             services being acquired under the Agreement;

        (h)  general research and development expenses as considered applicable
             by the Minister.

*  For supplies of similar low-value, high-usage items the costs of which meet
   the above definition of Direct Material Costs but for which it is
   economically expensive to account for these costs in the manner prescribed
   for direct costs, then they may be deemed to be indirect costs for the
   purposes of the Project.

5. ALLOCATION OF INDIRECT COSTS

   Indirect costs shall be accumulated in appropriate indirect cost pools,
   reflecting the Recipient's organizational or operational lines and these
   pools subsequently allocated to the Project or contracts, in accordance with
   the following two principles:

        (a)  the costs included in a particular indirect cost pool should have a
             similarity of relationship with the Project or contracts, as
             applicable, to which that indirect cost pool is subsequently
             distributed; further, the costs included in an indirect cost pool
             should be similar enough in their relationship to each other that
             the allocation of the total costs in the pool provides a result
             which would be similar to that achieved if each cost within that
             pool were separately distributed;

        (b)  the allocation basis for each indirect cost pool should reflect, as
             far as possible, the casual relationship of the pooled costs to the
             Project to which these costs are distributed.

<PAGE>

                                      D-3

6. CREDITS

   The applicable portion of any income, rebate, allowance, or any other credit
   relating to any applicable direct or indirect costs, received by or accruing
   to the Recipient, shall be credited to the Eligible Costs of the Project.

7. NON-APPLICABLE COSTS

   Notwithstanding that the following costs may have been or may be reasonably
   and properly incurred by the Recipient during the performance of Project
   activities, they are considered non-applicable costs to the Project:

       (a)  allowance for interest on invested capital, bonds, debentures, bank
            or other loans together with related bond discounts and finance
            charges;

       (b)  legal, accounting and consulting fees in connection with financial
            reorganization, security issues, capital stock issues, obtaining of
            patents and licenses and prosecution of claims against the Minister;

       (c)  losses on investments, bad debts and expenses for the collection
            thereof;

       (d)  losses on other projects or contracts;

       (e)  federal and provincial income taxes, excess profit taxes or surtaxes
            and/or special expenses in connection therewith;

       (f)  provisions for contingencies;

       (g)  premiums for life insurance on the lives of officers and/or
            directors where proceeds accrue to the Recipient;

       (h)  amortization of unrealized appreciation of assets;

       (i)  depreciation of assets paid for by the Minister;

       (j)  fines and penalties;

       (k)  expenses and depreciation of excess facilities;

       (l)  unreasonable compensation for officers and employees;

       (m)  product development or improvement expenses not associated with the
            product being acquired under the Project;

       (n)  advertising, except reasonable advertising of an industrial or
            institutional character placed in trade, technical or professional
            journals for the dissemination of information for the industry or
            institution;

       (o)  entertainment expenses;

       (p)  donations except those to charities registered under the Income Tax
            Act;

       (q)  due and other memberships other than regular trade and professional
            associations;

       (r)  fees, extraordinary or abnormal for professional advice in regard to
            technical, administrative or accounting matters, unless approval
            from the Minister is obtained.

<PAGE>

                                      D-4

ADDENDUM TO THE "TPC" PROJECT COST PRINCIPLES

A] SPECIAL PURPOSE EQUIPMENT AND OTHER ITEMS OF MACHINERY & EQUIPMENT

   (1)  To be an Eligible Cost, the Special Purpose Equipment and any item of
        machinery and equipment must be necessary for the performance of the
        Project, be described in sufficient detail in the Statement of Work, so
        as to be readily identifiable, along with the cost related thereto.

   (2)  If a Pilot Plant is developed, constructed or integrated, by the
        Recipient or by approved subcontractors for the purposes of the Project,
        the costs related thereto will be eligible, only if those costs are
        specifically identified in the Statement of Work, in accordance with the
        provisions of sub-section (5) of this section.

   (3)  Eligible Costs related to Special Purpose Equipment and to any item of
        machinery and equipment shall reflect the net laid-down cost to the
        Recipient, after deducting trade discounts and cash discounts for prompt
        payment.

   (4)  Where applicable, periodic payments under a capital lease for Special
        Purpose Equipment or for any other significant items of machinery and
        equipment represent Eligible Costs, up to a maximum not exceeding the
        price of the item involved, if it were purchased at the commencement of
        the lease period; all interest and carrying charges are to be excluded.
        For operating leases, the Eligible Cost is the actual lease payments
        incurred during the performance of the Project activities.

   (5)  Where applicable, labour and material costs required in the modification
        or adaptation of the Special Purpose Equipment, machinery and other
        items of equipment, for the purposes of the Project, are eligible
        provided such cost elements are specifically identified in the Statement
        of Work.

   (6)  Unless such is otherwise allowed in the Statement of Work, costs of
        construction or alteration of plant facilities to accommodate the
        Special Purpose Equipment or any other item of machinery and equipment,
        and any profit, fees, general and administrative overhead expenses
        related thereto, are not eligible.

B] SUBCONTRACTS

   (1)  For subcontracting costs that are not specifically mentioned in the
        Statement of Work, the Recipient shall obtain the consent of the
        Minister, in writing, prior to subcontracting or permitting the
        subcontracting of any portion of the Project work at any tier. The
        Minister shall not unreasonably withhold consent.

   (2)  Notwithstanding subsection (1), and provided labour-intensive R&D and
        engineering services subcontracts are performed in Canada, the Recipient
        may without the prior written consent of the Minister:

        (a)  purchase off-the-self items and software and such standard articles
             and materials as are ordinarily produced by manufacturers in the
             normal course of business and subcontract for the provision of such
             incidental services as might ordinarily be subcontracted in
             performing the Project activities;

        (b)  subcontract any of the Project activity to one or more
             Subcontractors, up to a total value of:

             (i)   for Agreements valued up to $1.0 M[one million] in total
                   Project Eligible Costs *25% of the Project Eligible Costs,

             (ii)  for Agreements valued over $1.0M[one million] in total
                   Project Eligible Costs, *$250,000 plus 10% of the total
                   Project Eligible Costs in excess of $1.0M, up to a total
                   value of $1.0M.

        (c)  authorise its subcontractors at any tier to make purchases or
             subcontract as permitted in subparagraph (a) and (b).

<PAGE>

                                      D-5

   A subcontract at any tier may not be let without consent under paragraphs (b)
   or (c) where the Subcontractor would obtain title to any Intellectual
   Property developed as part of the Project activities.

   (3)  In any subcontract other than a subcontract referred to in paragraph
        2(a), the Recipient shall, unless the Minister otherwise consents in
        writing, ensure that the Subcontractor is bound by terms and conditions
        compatible with and, in the opinion of the Minister, not less favourable
        to Canada than the terms and conditions of the Agreement. Deviations
        from the terms of the Agreement shall be entirely at the risk of the
        Recipient.

   (4)  The Recipient is not obliged to seek consent to subcontracts
        specifically authorised in the Statement of Work or in any Cost
        Breakdown matrix appended thereto.

   (5)  Any consent to a subcontract shall not relieve the Recipient from its
        obligations under the agreement or be construed as authorising any
        liability on the part of the Minister to a Subcontractor.

C] PATENTS AND LICENSES

   Eligible patent and copyright costs include relevant searches and filing
   fees related to obtaining North American rights. World rights may be
   considered only if such costs were specifically identified in the Statement
   of Work. Maintenance fees and all expenses incurred protecting a patent or
   copyright are not eligible.

D] LICENCE PURCHASE

   Costs associated with the purchase of a single-use license for special
   software, networking other specialised computer boards, and/or equipment, as
   well as the one-time purchase of a licence, registered industrial design,
   trademark, copyright work, trade secret, other intellectual property right,
   as well as any other related data right, that is fundamental to the conduct
   of the Project activities and/or the commercial exploitation of its results,
   will be eligible, provided such costs are specifically identified in the
   Statement of Work, or otherwise approved by the Minister, in writing, prior
   to being incurred.

<PAGE>

                                      E-l                             SCHEDULE E

PROJECT FACT SHEET FOR NEWS RELEASE

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
 Program: Technology Partnerships Canada        Project No.: 710-465430
--------------------------------------------------------------------------------------------------
<S>                                             <C>
 Name & Address of Recipient:                   Recipient Contact:

        Offshore Systems Ltd.                   Name: Andrew Carniel, Director, Operations
        107-930 West 1st Street
        North Vancouver                         Telephone: (604) 904-4690
        British Columbia                        Fax: (604) 987-2555
        V7P 3N4

--------------------------------------------------------------------------------------------------
 Project Location:                              Project Type:

 North Vancouver, B.C.                          Development

--------------------------------------------------------------------------------------------------
 Industrial Sector:                             Product/Service:

 Aerospace and Defence\Navigation               Electronic Chart Display and Information System -
                                                Paramilitary\Military
--------------------------------------------------------------------------------------------------
 Project Description and Anticipated Results:

 The project will develop an advanced electronic chart display and information
 system with additional layers of military information.

--------------------------------------------------------------------------------------------------
Authorized Assistance:   $4,000,177
--------------------------------------------------------------------------------------------------
Project Start Date: 1 July 1999.                Project Completion Date: 31 March 2003.
--------------------------------------------------------------------------------------------------
</TABLE><PAGE>

                                                                     EXHIBIT 4.7
<TABLE>
<S>                                                                                                            <C>
--------------------------------------------------------------------------------------------------------------------
                        ORDER FOR SUPPLIES AND SERVICES                                    PAGE OF PAGE
--------------------------------------------------------------------------------
IMPORTANT: Mark all packages and papers with contract and/or                                 1       2
order numbers
--------------------------------------------------------------------------------------------------------------------
1. DATE OF ORDER        2. CONTRACT NO. (if any)                              6. SHIP TO:
                                                     ---------------------------------------------------------------
     6/14/02               GS-35F-0211L              a. NAME OF CONSIGNEE
----------------------------------------------------        CG C2CEN
3. ORDER NO.            4. REQUISITION/REFERENCE NO. ---------------------------------------------------------------

   DTCG23-02-F-AWL029      24-02-232AWL029           b. STREET ADDRESS
----------------------------------------------------    4000 Coast Guard Blvd
5. ISSUING OFFICE (Address correspondence to)        ---------------------------------------------------------------

   Commandant (G-ACS-4), U.S. Coast Guard            c. CITY            d. STATE    e. ZIP CODE
   2100 Second St, S.W.                                 Portsmouth          VA         23703-2199
   Washington DC 20593-0001                          ---------------------------------------------------------------
----------------------------------------------------
                       7 TO:                         f. SHIP VIA
----------------------------------------------------
a. NAME OF CONTRACTOR                                    Mr. Robert Feather
                                                     ---------------------------------------------------------------
   Mr. Wayne Hoyle                                                            8. TYPE OF ORDER
--------------------------------------------------------------------------------------------------------------------
b. COMPANY NAME

   Offshore Systems Ltd.                             [_] a. PURCHASE                [X] b. DELIVERY - Except for
----------------------------------------------------                                    billing instructions on the
c. STREET ADDRESS                                    REFERENCE YOUR: ___________        reverse, this delivery order
                                                     Please furnish the following       is subject to instructions
   107-930 West 1st Street, North Vancouver          on the terms and conditions        contained on this side only
---------------------------------------------------- specified on both sides of         of this form and is issued
d. CITY                 e. STATE       f. ZIP CODE   this order and on the attached     subject to the terms and
                                                     sheet, if any, including           conditions of the
   British Columbia         CA            V7P 3N4    delivery as indicated.             above-numbered contract.
--------------------------------------------------------------------------------------------------------------------
9. ACCOUNTING AND APPROPRIATION DATA                 10. REQUISITIONING OFFICE

          SEE PAGE 2                                     G-AWL
--------------------------------------------------------------------------------------------------------------------
11. BUSINESS CLASSIFICATION (Check appropriate box(es))

[_] a. SMALL         [X] b. OTHER THAN          [_] c. DISADVANTAGED         [_] D. WOMEN-OWNED
--------------------------------------------------------------------------------------------------------------------
12. F.O.B. POINT                 14. GOVERNMENT B/L NO.     15. DELIVER TO F.O.B POINT    16. DISCOUNT TERMS
                                                            ON OR BEFORE (Date)
    Destination
------------------------------
        13. PLACE OF
------------------------------
a. INSPECTION    b. ACCEPTANCE                                    31 Mar 2003                  1% - 20 days
   Destination      Destination
--------------------------------------------------------------------------------------------------------------------
                                      17. SCHEDULE (See reverse for Rejections)
--------------------------------------------------------------------------------------------------------------------
ITEM                                 QUANTITY                                                    QUANTITY
NO.        SUPPLIES OR SERVICES      ORDERED        UNIT       UNIT PRICE        AMOUNT          ACCEPTED
(a)                (b)                 (c)           (d)          (e)             (f)              (g)
--------------------------------------------------------------------------------------------------------------------
           See Pages 2 and 3

           Contractor DUNS NO.:
           245365127

           CAGE Code: #2C063

--------------------------------------------------------------------------------------------------------------------
                  18. SHIPPING POINT      19. GROSS SHIPPING     20. INVOICE NO.
                                              WEIGHT
                  --------------------------------------------------------------                  17(h) TOT.
                                        21. MAIL INVOICE TO:                                          (Cont.
                  -------------------------------------------------------------- $1,353,574.00        pages

SEE BILLING       a. NAME
INSTRUCTIONS         COMMANDANT (G-ACS-4/LLB)
ON REVERSE        --------------------------------------------------------------------------------------------------
                  b. STREET ADDRESS ( or P.O. Box)

                     2100 SECOND STREET, SW                                                       17(i)
                  --------------------------------------------------------------                  GRAND
                  c. CITY                  d. STATE          e. ZIP CODE         $1,353,574.000   TOTAL

                     WASHINGTON               DC                20593
--------------------------------------------------------------------------------------------------------------------
22. UNITED STATES OF                                            23. NAME (Typed)
    AMERICA BY (Signature)     /s/ Linda L Bonham                   Linda Bonham
                                                                TITLE: CONTRACTING/ORDERING OFFICER
--------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

  US Coast Guard Deliver Order No. DTCG23-02-F-AWL029
  GSA Contract No. GS-35F-021 1L

                                                                     Page 2 of 3

  Section B - Supplies Or Services And Prices/Costs

  Item                                                     UNIT       TOTAL
  NO.          SUPPLIES OR SERVICES            AMT UNIT    PRICE      PRICE
--------------------------------------------------------------------------------

       The Contractor shall deliver the
       following supplies in accordance with
       the attached Statement of Work and
       Functional Requirement

  0001 Vessel Licenses for ECPINS-M Software   34  EA   $30,000.00 $1,020,000.00
       including customization of ECPINS 4.1

  0002 VME to PC Upgrade Kits                  34  EA   $9,611.00  $  333,574.00

       TOTAL CONTRACT PRICE                                        $1,353,574.00

  Section C - Description/Specifications/Work Statement

  See Attachment 1 and 2.

  Section D - Packaging and Marking

  No additional clauses.

  Section E - Inspection and Acceptance

  US Coast Guard acceptance of the deliverables to be furnished hereunder shall
  be made at destination by the Contracting Officer's Technical Representative
  (COTR).

  Section F -Deliveries or Performance

  F.1 - 52,252-2 - Clauses Incorporated by Reference(Feb 1998)

  This delivery order incorporates one or more clauses by reference, with the
  same force and effect as if they were given in full text. Upon request, the
  Contracting Officer will make their full text available. Also, the full text
  of a clause may be accessed electronically at this/these address(es):
  http://www.arnet.gov/far/

       FEDERAL ACQUISITON REGULATION (48 CFR CHAPTER 1) CLAUSES

       52.247-35      F.O.B. DESTINATION, WITHIN CONSIGNEE'S PREMISES (APR 1984)

  F.2 - Time of Delivery

  Item 0001: 60 days AR0 with final acceptance by the USCG in March 2003.

  Item 0002: 60 days AR0

  F.3 - Place of Delivery - Destination

  All deliverables shall be sent to the COTR at the address in Block 6 on page
  one of this delivery order.

  Section G - Contract Administration Data

  G.1 - ACCOUNTING AND APPROPRIATION DATA

       2/A/6B/099/00/0/160201/70372/3109          $796,220,00 INCREASE

       2/A/2F/099/00/0/120301/70372/3109          $557,354.00 INCREASE

<PAGE>

  US Coast Guard Delivery Order No. DTCG23-02-F-AWL029
  GSA Contract No. GS-35F-0211L

                                                                     Page 3 of 3

  G.2 - Government Contacts

        COTR: Mr. Robert Feather, (757) 686-2123, is hereby designated as the
        COTR for this Delivery Order. Mr Feather's address is in Block 6, page
        one of this Order.

        Contracting Point of Contact: MS Linda Bonham is the Contracting Officer
        for this Delivery Order. Please contact Ms. Bonham at (202) 267-2480, or
        via e-mail at Ibonham@comdt.uscg.mil for any contractual issues/concerns
        regarding this Delivery Order.

  G.3 - Invoicing Requirements

      (a)     In addition to the requirements of Section 1 clause 52.232-25,
              Prompt Payment, the requisition/purchase request number found in
              Block 4 on page one must be included on an invoice for it to
              constitute a proper request for contract payment. An original and
              two copies shall be submitted to the Contracting Officer at the
              address in Block 21, page one, of the Delivery Order. Failure to
              submit your invoice directly to the Contracting Officer will delay
              prompt payment.

      (b)     Payment terms for Item 1:

              The contractor shall invoice 90% of the total price for Item 0001
              upon delivery of the ECPINS 4.1 licenses at the USCG delivery
              address (Block 6, page one) and the remainder upon USCG final
              acceptance by the appointed COTR.

      (c)     Payment terms for Item 2:

              Net 30 days

  SECTION I - Contract Clauses

  I.1 -52.252-2 - Clauses Incorporated by Reference (Feb 1998)

  This delivery order incorporates one or more clauses by reference, with the
  same force and effect as if they were given in full text. Upon request, the
  Contracting Officer will make their full text available. Also, the full text
  of a clause may be accessed electronically at this/these address(es):
  http://www.arnet.gov/far/

        FEDERAL ACQUISITON REGULATION (48 CFR CHAPTER 1) CLAUSES

        52.232-1       PAYMENTS (APR 1984)
        52.232-25      PROMPT PAYMENT (FEB 2002)
        52.232-33      PAYMENT BY ELECTRONIC FUNDS TRANSFER-CENTRAL CONTRACTOR
                       REGISTRATION (MAY 1999)

        TRANSPORTATION ACQUISITION REGULATION (TAR) CLAUSES

        1252-242-73 CONTRACTING OFFICER'S TECHNICAL REPRESENTATIVE (OCT 1994)

 SECTION J - List of Attachments

Attachment 1 -Statement of Work for ECPINS Chart Engine Upgrade
Attachment 2 - ECPINS CG Functional Requirements

<PAGE>

                                                                         4/12/02
                                                           ECPINS4.x Upgrade SOW

                          UNITED STATES COAST GUARD
                 COMMAND AND CONTROL ENGINEERING CENTER (C2CEN)
                             PORTSMOUTH, VIG1NIA

               STATEMENT OF WORK for ECPINS CHART ENGINE UPGRADE

Part I: General information

A. Introduction
The U.S. Coast Guard will upgrade the primary navigation system on JUNIPER
(WLB) and KEEPER (WLM) class buoy tenders. This effort will consist of upgrading
software and replacing equipment that is no longer supportable or available.

B. Background

The Coast Guard began replacing its fleet of buoy tenders in 1995. Under this
project, ECPINS (Electronic Chart Precision Integrated Navigation System),
developed by Offshore Systems Ltd., was installed as the primary navigation
system. ECPINS is a commercial product that has been modified to support the
Coast Guard's Aids-to-Navigation (ATON) mission. A second ECPINS system, based
on the commercial version of ECPINS, was installed on each ship as a back-up
navigation system in 1999. A key feature of the back-up system is a chart engine
capable of displaying all available electronic chart formats.

Coast Guard policy changes, based on advances in electronic chart technology,
require upgrading the primary navigation system with a new chart engine. To
support the new chart engine, the VME processors in the existing system must
also be upgraded. VME processor boards that currently exist will be made
equivilent to the installed back-up system.

C. Scope of Work
The ECPINS baseline with the chart engine upgrade will be modified to support
ATON operations on 30 buoy tenders and two ship simulators. This modification
will re-use mission specific software enhancements and interface specifications
currently available in ECPlNS version 1.73. This upgrade will be fully
compatable with the existing backup system to reduce operating, training, and
support costs.

D. Applicable Documents
1.    ECPINS 4.x Functional Requirements Document. Provided as enclosure (1).
2.    ECPINS 4.x upgrade kit parts list. Provided as enclosure (2).

Part II:
A. Work Requirements
1.    The contractor shall provide materials required to upgrade ECPINS systems
      on thirty (30) ships and two ship simulators.
2.    Hardware, software, and documentation necessary to upgrade each system
      shall be assembled and delivered as an upgrade kit.
3.    All parts included in the upgrade kit shall be bench tested at the vendor
      facility to verify proper operation prior to delivery.

<PAGE>

                                                                         4/12/02
                                                           ECPINS4.x Upgrade SOW

B. Technical Requirements

1.   The upgraded system must be capable of rendering electronic charts in the
     following formats:
     a. International Hydrographic Office (IHO) S-57 format as specificed by the
        National Oceanic and Atmospheric Administration (NOAA).
     b. DNC format as specified by the National Imaging Management Agency of
        DoD.
     c. EN3 format as specified by the National Oceanic and Atmospheric
        Administration (NOAA)
     d. NTX format, Offshore Systems Ltd.
2.   The upgraded system must be compatable with the existing back-up system.
3.   The upgraded system must be able to re-use existing data (ie. Routes,
     markers, mariners notes and chart corrections) and support the electronic
     transfer of data between the primary and backup navigation systems.
4.   The upgraded system must limit any impact to training by reusing the
     existing user interface.
5.   Operator and maintenance manuals affected by changes to the system must be
     updated.
6.   Each ECPINS upgrade kit shall include a printed and electronic copy of
     documentation.

C. Deliverables

1.   Hardware. The contractor shall provide the hardware required to support the
     ECPINS chart engine upgrade on thirty (30) buoy tenders and two ship
     simulators.
2.   Materials required to upgrade each system shall be assembled and delivered
     in a separate upgrade kit.
3.   Software. Each upgrade kit shall include software necessary to upgrade
     existing ECPINS systems to the new baseline. An installation disk shall be
     provided with each upgrade kit Software will be delivered in two phases.
     Phase one will include critical functionality identified by the Coast Guard
     in the software requirements specificiation; Phase two will be a final
     delivery of software functions as identified by the Coast Guard in the
     software requirements specification.
4.   Documentation. Operations and technical or maintenance manuals shall be
     included in each upgrade kit.

Part III: Supporting Information

A- Place of Performance
1.   ECPINS upgrade kits shall be tested and assembled at the vendor facility.
     Delivery of kits shall be FOB, to USCG vessels designated by U. S. Coast
     Guard Command and Control Engineering Center (C2CEN), Portsmouth VA

B. Contractor Furnished Items.
1.   The contractor shall provide al1 facilities, personnel, and materials
     required to assemble, test, and ship upgrade kits for this contract except
     for Government furnished items stated below.

<PAGE>

C. Period of Performance
1.     Hardware upgrade kits shall be available 60 days from date of contract
       award.
2.     Software modifications shall be tested and delivered 1 year from contract
       award.

D. Special Conditions
1.     CG vessels may not be in home port. Delivery directions will be provided
       30 days in advance of scheduled installation date.

E. Government Furnished Property and Services
1.     The government will provide delivery directions and an installation
       schedule.
2.     The government will perform actual installation of the ECPINS upgrade
       kits.

F. Acceptance criteria
1.     Acceptance of the upgrade kits will be based on actual delivery of the
       kits and inspection of contents by Coast Guard.
2.     Software acceptance will be based on the results of qualification testing
       by government personnel.

<PAGE>

    WLM/WLB IPT   ECPINS-CG Functional Requirements   C2CEN Engineering
    -------------------------------------------------------------------

                                  ECPINS CG RFQ

     Contractor shall provide an Electronic Chart system with the following
     functionality:

    ----------------------------------------------------------------------------
     1. Offshore Systems Ltd. ECPINS v 4.1 software functionality
    ----------------------------------------------------------------------------
     The ECPINS product modified in accordance with the requirements listed
     herein shall be referred to as ECPINS-CG. IAW COMTINST 3530.24 1. e-f,
     ECPINS is defined as a United States Coast Guard (USCG) ECINS (Electronic
     Charting and Integrated Navigation System), not an ECDIS (Electronic Chart
     Display and Information System). The following are approved chart types for
     use with USCG ECINS and ECPINS-CG shall comply with these chart format and
     related USCG requirements:

       1.  S-57 charts issued on the authority of a government hydrographic
           office (i.e., NOAA, Canadian Hydrographic Service).
       2.  Digital Nautical Charts(R)(DNCs) issued by NIMA.
       3.  Commercial vector charts that have been procured under contract with
           a source approved by USCG Headquarters.
       4.  In addition, if vector charts meeting standards above are not
           available for a particular geographic area, then raster charts issued
           on the authority of a government hydrographic office or procured from
           a source approved by USCG Headquarters are authorized.
    ----------------------------------------------------------------------------
     2. Critical Capabilities to be added to the ECPINS v 4.1 Baseline prior to
     initial deployment of the first ECPINS-CG Baseline.
    ----------------------------------------------------------------------------
     2.1 ECPINS-CG shall carry forward the form, fit, and function of ECPINS
     1.73.3 To include:
    ----------------------------------------------------------------------------
     2.1.1 ECPINS 1.73.3 I/O Interfaces, Functionality, and redesigned MPP.
    ----------------------------------------------------------------------------

     ECPINS-CG shall carry forward from ECPINS 1.73.3 all User and
     Administrative functionality, system serial interface, and Ethernet
     connections. Unless otherwise specified by the USCG, all WLM/WLB
     configurations and customized USCG display formats shall be brought forward
     from ECPINS 1.73.3 for each new release of ECPINS-CG. Appendix A contains a
     minimum list of ECPINS 1.73.3 functions to be carried forward with the
     ECPINS-CG upgrade. Any additional ECPINS functions available with ECPINS
     1.73.3 not listed in Appendix A shall also be delivered.

     In addition, the ECPINS 1.73.3 Most Probable Position (MPP) functionality
     shall be upgraded to meet the following new ECPINS-CG MPP requirements:

     The ECPINS-CG Most Probable Position (MPP) processing shall be designed to
     provide the ISCS with a stable, non-erratic position for ownship. The MPP
     shall be designed to reject ownship positions received from GPS, DGPS, or
     Loran-C sensors that are determined by the MPP to be outside of a maximum
     distance allowed for next reported ownship position. "Maximum distance
     allowed" is determined by the MPP smoothing window calculated to improve
     the accuracy of ownship's next displayed and logged position. It is
     calculated based on the time elapsed since the last quality fix was
     accepted by MPP and the greatest distance ownship could have traveled since
     receiving the last quality fix. This shall prevent erratic maneuvering of
     ownship due to erroneous sensor data received whenever transiting in either
     the Follow Track or Hold Position modes.

     The boundaries of ownship's MPP smoothing window shall be determined based
     on ownship's track history and the resulting computed averaged course, as
     well as the maximum distance ownship could have traveled based on ownship's
     heading and speed (CMG and SMG if available, otherwise Ordered Course and
     Speed) since the last smoothed position used by the MPP that was determined
     to be acceptable for use as ownship's position by ECPINS CG and the DPS.

     MPP shall be available as an operator selectable primary or secondary
     sensor source for ECPINS CG ownship's position. In the event of a
     continuous loss of reliable DGPS or GPS data for more than 10 seconds, and
     if the secondary sensor source selected is not Loran-C, the MPP shall be
     capable of accurately predicting ownship's position for a minimum of 2
     minutes. It is anticipated that ownship's ECPINS CG shall switch to either
     Visual Fixing or Loran-C as the Primary Sensor Source for ownship's
    ----------------------------------------------------------------------------

     --------------------------------------------------------------
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WLM/WLB IPT         ECPINS-CG Functional Requirements       C2CEN Engineering
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--------------------------------------------------------------------------------
position whenever GPS or DGPS data is lost for more than 10 seconds. Accuracy
required for the MPP computed position for ownship shall result in no more than
16 meters of deviation from ownship's true position after the continuous loss of
DGPS or GPS for two minutes or less.

MPP shall not be required for use as a long term Sensor Source in the event of
the loss of acceptable quality GPS or DGPS data. "Long term' in this regard is
defined as being greater than two minutes in either the Hold Position or Follow
Track mode of operation.

ECPINS-CG shall provide the same or better stability for DPS as was provided for
the ISCS when using the ECPINS 1.73.3.3 system delivered to the US Coast Guard.
Notes:
     1.  ISCS = Integrated Ship Control System
     2.  DPS = Dynamic Positioning System
     3.  DGPS = Differential Global Positioning System
     4.  CMG = Course Made Good
     5.  SMG = Speed Made Good
--------------------------------------------------------------------------------
2.1.2 USCG Specific Screen Layouts (including new Large Screen Layout)

ECPINS-CG shall include the delivery of all ECPINS Configuration Files that
maintain customization such that the newly installed ECPINS-CG electronic
navigation software shall continue to support the "look and feel" customization
required by the USCG for the ECPINS 1.73.3 Baseline.
--------------------------------------------------------------------------------
2.1.3 Xycom SCS Monitor

ECPINS-CG shall display the following data on the Xycom Helm Display:
     1.  Port Z-Drive Direction [nnn degrees]
     2.  Port Prop RPMs
     3.  Starboard Z-Drive Direction [nnn degrees]
     4.  Starboard Prop RPMs
     5.  Helm Angle [nnn degrees]
     6.  Ship's Heading [nnn.n degrees]
     7.  Ship's Speed [nn.n knots]
     8.  Water Depth [feet]

Note: This requirement only applies to the WLM Class Buoy Tenders.
--------------------------------------------------------------------------------
2.1.4 Turn Radius as a leg property display

ECPINS-CG shall display and communicate the following as properties of a leg
contained in a route created using ECPINS-CG Route Planning:
     1.  Display Turn Radius data
     2.  Transmit Turn Radius data to DPS
     3.  Ensure that the Leg Property menu contains Turn Radius data
--------------------------------------------------------------------------------
2.1.5 Multiple Sensor Management

ECPINS-CG shall maintain the same capabilities as ECPINS l.73.3 regarding the
user's ability to select from menus containing multiple sensor selection
options. These menus shall be included within the Sensor Set Up menu. ECPINS-CG
shall continue to offer the user with a Primary and Secondary source option.
--------------------------------------------------------------------------------
2.1.6 MPCMS Alarms and related Status Pages and data

ECPINS-CG and beyond is required to process MPCMS Alarms and related Status
Pages and their data (WLB A/B, WLM). Appendix M contains a list of the minimum
MPCMS Status Pages supported with ECPINS 1.73.3.
--------------------------------------------------------------------------------
2.1.7 LIU/GPS Settings

ECPINS-CG Invicta initialization setting shall be IAW C2CEN instructions.
--------------------------------------------------------------------------------
3 The following requirements are in addition to the first ECPINS-CG baseline.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
March 15/th/, 2002                                                             2

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

--------------------------------------------------------------------------------
 3.1 Dual Radar/ARPA Capability

 ECPINS-CG shall support a dual Radar and ARPA data capability for the WLB class
 Buoy Tenders.
--------------------------------------------------------------------------------
 3.2 Deleted.
--------------------------------------------------------------------------------
 3.3 Display Buoy AP Approach and Arrival Alerts

 ECPINS-CG shall display the following Alerts:
     1. Approach Alert
     2. Arrival Alert

 Note: ECPINS 1.73.3 uses the terms "Alarm" and "Warning" rather than the term
 "Alert". ECPINS CG shall use the term "Alert".
--------------------------------------------------------------------------------
 3.4 Display Set and Drift

 ECPINS-CG shall calculate and display the following information:
      1. Set
      2. Drift

 Set and Drift may be derived from ship's sensors whenever ownship is in water
 lock. Set and Drift may be dead reckoned whenever selected by the operator. Set
 and Drift calculated using dead reckoning shall use Ordered Speed to calculate
 Set and Drift.
--------------------------------------------------------------------------------
 3.5 Display Compass Rose

 ECPINS-CG shall display a Compass Rose that has the same look and feel as the
 Compass Rose Display available with ECPINS 1.73.3.
--------------------------------------------------------------------------------
 3.6 Turn Bearing features changed to read "Range and Bearing Line"

 The ECPINS 1.73.3 Baseline contains a feature labeled "Turn Bearing". Future
 ECPINS release of ECPIN-CG shall rename this label to read "RBL".
--------------------------------------------------------------------------------
 3.7 Range Rings for the Chart Window Feature

 ECPINS-CG shall display Range Rings superimposed on the Chart Window Display
 in the same manner as the ECPINS 1.73.3 baseline. The ECPINS-CG Range Ring
 display shall include range labels.
--------------------------------------------------------------------------------
 3.8 True Motion for the Chart Window Feature

 ECPINS-CG shall provide the operator with the ability to specify the display of
 True Motion on the Chart Window Display.
--------------------------------------------------------------------------------
 3.9 Center on a Fixed Position for the Chart Window Feature

 ECPINS-CG shall provide the operator with the ability to center the display of
 the Chart Window Display on a fixed position by entering a latitude and
 longitude.
--------------------------------------------------------------------------------
 3.10 Select Orientation for the Chart Window Feature

 ECPINS-CG shall provide the operator with the ability to select a chart
 orientation for the Chart Window Display.
--------------------------------------------------------------------------------
 3.11 Search By Route Name for Route Planning

 ECPINS-CG shall enable the operator to enter a route name to select a route.
 This capability shall be in addition to the ability to select a route from a
 scroll list of all routes contained within the route list.
--------------------------------------------------------------------------------
 3.12 Calculate Leg(s) Length for Route Planning

 ECPINS-CG shall enable the operator to specify two or more contiguous route
 segments (legs) within a route and then display the combined distance of the
 selected segments (legs).
--------------------------------------------------------------------------------
 3.13 Pop Up Keyboard

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

--------------------------------------------------------------------------------
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WLM/WLB IPT         ECPINS-CG Functional Requirements          C2CEN Engineering
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
ECPINS-CG shall enable the operator to display and enter data using a pop up
keyboard display similar to the capability available in the ECPINS 1.73.3
Baseline. This feature shall be available at all locations with ECPINS-CG
displays. This includes the ECPINS-CG displays located at each SCS.
--------------------------------------------------------------------------------
3.14 Guard Zone Alarms

ECPINS-CG shall provide the operator with the same Guard Zone capability
available in the ECPINS 1.73.3 Baseline.
--------------------------------------------------------------------------------
3.15 Anchor Watch Alarms

ECPINS-CG shall provide the operator with Anchor Watch capability including
swing and drag circle alarms.
--------------------------------------------------------------------------------
3.16 Turn Off Sound

ECPINS-CG shall provide the operator with the ability to disable all sound and
to restore it at a later time.
--------------------------------------------------------------------------------
3.17 ECPINS-CG user can modify APs received from APPS/ATONIS

ECPINS-CG shall enable the user to modify the AP of any Aid displayed as a
result of processing an electronic file containing a list of APs extracted from
the USCG APPS/ATONIS database application.

Notes:
     1.  "APs" are "Assigned Positions" for ATON (Buoys). This may be a
         different position that the "CP", or "Charted Position".
     2.  ATONIS is the USCG Aids to Navigation Information System.
     3.  APPS is the USCG Automated Aid Positioning System.
--------------------------------------------------------------------------------
3.18 Continuous EBL to selected AP display

ECPINS-CG shall enable the user to display a continuously updated Range and
Bearing from a user designated point of origin on ownship to a user designated
AP.

The user shall be able to modify the default setting and the change shall remain
until changed by the user. At a minimum this data shall be recalculated and
displayed once a second.
--------------------------------------------------------------------------------
3.19 Data Logging - All USCG specific sensor related data and complete
documentation for data log contents and format. Minimum data logging shall
comply with IMO A.861 data logging requirements.

ECPINS-CG shall log data as required by IMO A.861 Performance standard for
shipborne voyage data recorders (VDR's). ECPINS-CG shall have a position up-date
time no greater than one second and have selectable scaling features. The system
shall be capable of record and playback of all tracks and voyages, per WLB COR
requirement 490 2.2.1.
--------------------------------------------------------------------------------
3.20 Provide sensor and data logging support for MPCMS Shaft RPM, Prop Pitch and
Rudder Angle and Z-drive Shaft speed and orientation.

At a minimum ECPINS-CG shall provide data logging for:
     1.  MPCMS Shaft RPM
     2.  Propeller Pitch
     3.  Rudder Angle [WLB Only]
     4.  Z-Drive Shaft Speed [WLM Only]
     5.  Z-Drive Orientation [WLM Only]
--------------------------------------------------------------------------------
3.21.025 NM (50 yard) Zoom

ECPINS-CG shall enable the user to increase the ability to zoom a display from
..05 NM (100 yards) to .025 NM (50 yards).
--------------------------------------------------------------------------------
3.22 Weather Summary Display

This capability shall log true wind direction and speed, temperature, relative
humidity, and barometric pressure. It shall enable the operator to enter the
following:
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
March 15/th/, 2002                                                             4

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WLM/WLB IPT           ECPINS-CG Functional Requirements        C2CEN Engineering
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
     1.  Height of sea waves
     2.  Direction of sea waves
     3.  Height of sea swells
     4.  Direction of sea swells
     5.  Visibility
     6.  Cloud type
     7.  Cloud cover in tenths
     8.  Hourly Mileage

ECPINS-CG shall enable the user to print a USCG Standard Log-Weather Sheet IAW
DOT USCG form CG 4308B (Rev. 9-01). With one entry per hour. Appendix W contains
the required format. The required data fields and labels are listed below:
     (a) Vessel [name of ship such as "USCGC Frank Drew (WLM 557)]
     (b) Day [day of the week such as "Tuesday"]
     (c) Date (DDMMYY) [ddmmyy]
     (d) Zone Description [such as +5 Romeo]
     (e) Time [01 to 24 - hours of the day]
     (f) Distance Traveled [miles, tenths]
     (g) Winds If Estimated [Direction (true), Force (knots)]
     (h) Visibility [miles]
     (i) Barometer Sea Level (inches)
     (j) Temperature Dry Bulb
     (k) Temperature Wet Bulb
     (l) Clouds Amount (tenths)
     (m) Clouds Type
     (n) Sea Water Temp (degrees)
     (o) Ice Condition Amount (tenths)
     (p) Ice Condition Type
     (q) Ice Condition Ice Thickness (feet)
     (r) Sea Waves Direction (true)
     (s) Sea Waves Height (feet)
     (t) Swell Waves Direction (true)
     (u) Swell Waves Height (feet)
     (v) Total (distance traveled in 24 hours)
--------------------------------------------------------------------------------
3.23 Crosstrack Distance Graphic Display

ECPINS-CG shall provide a visual representation of Crosstrack Alarms for the
active leg. The display shall present the user with lines displayed on the main
route display. The user shall have the ability to enable and disable the display
of Crosstrack Distance graphics.
--------------------------------------------------------------------------------
3.24 Polygonal Exclusion Zones for ARPA Targets

ECPINS-CG shall provide Polygonal Exclusion Zones capability for ARPA Targets.
This capability shall increase the Polygonal Exclusion Zones available with
ECPINS 1.73.3 from one zone to the ability for the operator to enter a minimum
of up to 6 zones.

The Polygonal Exclusion Zone Alarms generated shall be visually displayed. This
feature shall allow for reshaping of the zones.

This capability shall comply with IMO standards for polygon alarming and warning
areas.
--------------------------------------------------------------------------------
3.25 Visual Fixes

ECPINS CG shall provide the operator with Visual Fixing capabilities that are
enhanced from the ECPINS-CG 4.1 Baseline Visual Fixing capabilities. Visual
fixes shall be incorporated into DR mode but there must be a position source
override such that when in DR Mode, ECPINS-CG does not default to the MPP
hierarchy.

In addition, the following new capabilities are also required for this feature:
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
March 15/th/, 2002                                                             5

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 WLM/WLB IPT             ECPINS-CG Functional Requirements   C2CEN Engineering
 -----------------------------------------------------------------------------

--------------------------------------------------------------------------------
    l-  Computed Reckoning
    2-  Dead Reckoning

 Notes:
    (a) When taking a Visual Fix, USCG navigation teams would not be in MPP
        Mode.
    (b) "Computed Reckoning" is applied SMG/SOG and CMG/Heading to a last
        known position.

    (c) "Dead Reckoning" is applied ordered speed and ordered course to a last
        known position.
--------------------------------------------------------------------------------
 3.26 Markers / Hazards

 ECPINS CG shall offer another Marker / Hazard capability in addition to the
 Event Marker capability available in the ECPINS-CG 4.1 Baseline. ECPINS CG
 shall have a submenu that enables the operator to mark a position and get a
 constantly updating range and bearing.
--------------------------------------------------------------------------------
 3.27 Tides & Currents Graphical Display

 ECPINS-CG shall provide the operator with a Tides & Currents Graphical Display.
--------------------------------------------------------------------------------
 3.28 Exclusion Zone Alarms

 Unless otherwise specified, ECPINS-CG shall provide the operator with the same
 Exclusion Zone capability available in the ECPINS 1.73.3 Baseline.
--------------------------------------------------------------------------------
 3.29 Clearing Line

 ECPINS-CG shall provide the operator with clearing line capability per IMO
 specification.
--------------------------------------------------------------------------------
 3.30 ECPINS-CG ATON display of APs sent by ATONIS/APPS in a file.

 ECPINS-CG software delivery shall process a file generated by the ATONIS
 database application software. This file shall contain a list of APs (Assigned
 Positions) for Aids To Navigation (ATON). Each ATON in the file shall contain
 the name of the Buoy and the latitude and longitude of the AP.

 ECPINS-CG shall display each ATON at the latitude and longitude of the AP
 contained within the ATONIS file. The display shall be superimposed on the
 electronic chart currently being displayed each ECPINS-CG monitor.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
March 15/th/, 2002                                                             6

<PAGE>

 WLM/WLB IPT             ECPINS-CG Functional Requirements   C2CEN Engineering
 -----------------------------------------------------------------------------

 Appendix A
 List of ECPINS 1.73.3 functions to be carried forward.

     1.  ECPINS File Utilities: supports Mass Storage Assemblies using a DVD-ROM
         for loading data, charting, and program files
     2.  ECPINS File Utilities: supports Mass Storage Assemblies using a SCSI
         hard drive for holding the Operating System, chart database,
         configuration files, and data files.
     3.  ECPINS File Utilities: supports Mass Storage Assemblies using a 3.5
         inch 1.44 MB floppy drive for loading or exporting files. These files
         include the export of route files, marker files, OSL Chart Corrections,
         screen-capture bitmaps, and data logs. ECPINS can load the following
         files from a floppy disk; route files, marker files, OSL Chart
         Corrections.
     4.  ECPINS File Utilities: supports Video Graphics capable of supporting up
         to 1280 x 1024 at 16-bit color.
     5.  ECPINS File Utilities: supports Ethernet communications between
         ECPINS-CG and the SafeNet LAN. ECPINS can transfer Chart Corrections to
         the back up System using the network. Field updates to Aids can be
         transferred across the network. So too can route data from the primary
         ECINS to the Back Up ECINS (ECPINS-NG).
     6.  ECPINS File Utilities: supports Translating Routes between USCG SAR
         patterns and the Main ECPINS system
     7.  ECPINS Program Capabilities: Independent Activities: such than an
         operator can select between route monitoring or route planning. Each
         mode of operation can display different charts. The Navigator Console
         (NC) remains independent of the Route Monitoring System, meaning, in
         part, that the NC operator can change chart scale, orientation, or
         display different chart features. Typically the NC is used for Route
         Planning.
     8.  ECPINS Program Capabilities: Screen Layout: The ECPINS screen display
         can display up to two different user selectable views of chart windows.
         Each view can have the same or different magnification or orientation.
     9.  ECPINS Program Capabilities: Radar Overlay: The Route Monitoring and
         Route Planning systems can display different radar overlays.
     10. ECPINS Program Capabilities: ARPA Contacts: ECPINS can display up to 20
         ARPA contacts and will generate alarms for each contact that becomes a
         threat. Audible and Visual alarms are generated for each ARPA contact
         entering an operator-defined guard zone or exclusion zone. ARPA
         contacts with the guard zone are displayed in RED and have a letter
         "G" appended to their ID. When a RED ARPA contact leaves a guard zone
         it returns to its previous color. Similarly ARPA contacts in an
         exclusion zone change color to RED but they have a letter "E" appended
         to their ID.
     11. ECPINS Program Capabilities: Anti Grounding Function: ECPINS
         automatically scans an operator-defined cone for unsafe depth (as
         defined by depths shallower than the sum of the ownship draft and
         under-keel clearance). ECPINS detects charted hazards to navigation and
         unsafe depths that trigger audible warnings. ECPINS displays an
         anti-grounding "cone" when activated. The "cone" looks ahead using
         either SMG or a fixed distance selected by the operator.
     12. ECPINS Program Capabilities: Unsafe Soundings: ECPINS alerts the
         operator whenever ownship is heading into water that is too shallow for
         safe navigation. The Operator has a choice of IHO or OSL color schemes.
     13. ECPINS Program Capabilities: Trackball Positioning: The operator can
         obtain a readout of the cursor's position when the cursor is placed on
         top of the display of a chart.
     14. ECPINS Program Capabilities: Route Planning: Lines and waypoints for
         route planning can be overlaid on the display and removed at will.
         Routes can be named, saved, and retrieved for use later. Routes are
         communicated to the DPS subsystem for auto piloting.
     15. ECPINS Program Capabilities: Chart Base: The operator can add or remove
         data from the chart display. For example, text, symbols, or sounding
         values can be turned off to

--------------------------------------------------------------------------------
March 15/th/, 2002                                                             7

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WLM/WLB IPT         ECPINS-CG Functional Requirements       C2CEN Engineering
--------------------------------------------------------------------------------

     avoid clutter. Text, symbols, or sounding remain at a constant size
     regardless of the scale of the chart displayed.
16.  ECPINS Program Capabilities: Warnings and Alarms: ECPINS provides warnings
     and alarms to alert the operator of potentially hazardous conditions such
     as depth of the water is less than the set safe soundings
17.  ECPINS Program Capabilities: Warnings and Alarms: ECPINS provides
     warnings and alarms to alert the operator of potentially hazardous
     conditions such as cross-track distance exceeds the acceptable distance
     defined and entered in the system by the operator,
18.  ECPINS Program Capabilities: Warnings and Alarms: ECPINS provides warnings
     and alarms to alert the operator of potentially hazardous conditions such
     as whenever an ARPA contact enters the operator-defined guard zone or
     exclusion area.
19.  ECPINS Program Capabilities: Warnings and Alarms: ECPINS provides warnings
     and alarms to alert the operator of potentially hazardous conditions such
     as whenever any portion of ownship drifts outside the anchor watch circle.
20.  ECPINS Program Capabilities: Warnings and Alarms: ECPINS provides warnings
     and alarms to alert the operator of potentially hazardous conditions such
     as whenever ownship enters an operator -defined exclusion zone.
21.  ECPINS Program Capabilities: Warnings and Alarms: ECPINS provides warnings
     and alarms to alert the operator of potentially hazardous conditions such
     as poor, degraded, or lost navigational data inputs.
22.  ECPINS Program Capabilities: Warnings and Alarms: ECPINS provides warnings
     and alarms to alert the operator of potentially hazardous conditions such
     as failure of any of the navigational devices, e.g., gyro speed log, DGPS,
     or depth sounder.
23.  ECPINS Program Capabilities: Warnings and Alarms: ECPINS provides warnings
     and alarms to alert the operator of potentially hazardous conditions such
     as failure of any meleorological sensors.
24.  ECPINS Program Capabilities: Warnings and Alarms: ECPINS provides warnings
     and alarms to alert the operator of potentially hazardous conditions such
     as failure of the MPCMS sensors. ECPINS functions as a monitoring system
     for MPCMS and only a visual alarm is generated and logged.
25.  ECPINS Navigational Aids Overview: ARPA Radar: ECPINS time tags data and
     monitors active ARPA radar for indications of threats from targets. ECPINS
     displays data from only one of two ARPA radars at a time. Each display
     contains data from up to 20 targets. The decision to define a target as a
     threat or as a lost contact is a feature of the ARPA radar subsystem.
26.  ECPINS Navigational Aids Overview: Shallow Water Sounder (SWS): ECPINS time
     tags data and displays SWS data.
27.  ECPINS Navigational Aids Overview: Dual DGPS: ECPINS time tags data and
     displays data from the selected DGPS subsystems.
28.  ECPINS Navigational Aids Overview: Doppler Speed Log (DSL): ECPINS time
     tags data and displays DSL data. One output is for depth (DDL) and the
     other is for speed (DSL). The DSL is a dual axis speed log. The speed log
     can also be referenced to "Bottom Lock" (BL) or "Water Lock" (WL) modes. In
     BL mode shallow waters (under 600 feet) are read directly from the bottom.
     The reading approximates SOG. In WL mode speed is estimated through water.
     The DSL can also be set manually to this mode. For speed through water, the
     data allows ECPINS to calculate the current, set, and drift of ownship. BL
     and WL are in fore and aft and across ownship direction. Depth data is also
     available from the Doppler Speed Log in shallow range.
29.  ECPINS Navigational Aids Overview: Deep Water Sounder (DWS): ECPINS time
     tags data and displays DWS data.
30.  ECPINS Navigational Aids Overviews: Fluxgate Compass: ECPINS time bags data
     and displays Fluxgate Compass data.
31.  ECPINS Navigational Aids Overview: Gyro Compass: ECPINS time tags data and
     displays Gyro Compass data.

--------------------------------------------------------------------------------
March 15/th/, 2002                                                             8

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32.  ECPINS Navigational Aids Overview; Loran C: ECPINS time tags data and
     displays Loran C data.
33.  ECPINS Navigational Aids Overview: Ownship Positioning: ECPINS time tags
     data and displays ownship position data. ECPINS uses position data received
     from selected sensor sources to calculate and display the position of
     ownship every second. If a position message is not received, ECPINS dead
     reckons ownship's position based on last known speed, heading, and
     position. ECPINS overlays an ownship symbol in the last received position
     on the chart at every position fix. Since these updates are at one-second
     intervals, ownship is tracked on the electronic chart in real-time. A
     position plot is placed on the chart at every position fix. The plot
     originates at the location of the currently active positioning device. The
     result of these plots is a visible plot of ownship's track history. The
     real-time nature of the display allows the navigator to perform the
     functions necessary for safe navigation. Examples of these functions are,
     grounding avoidance, collision avoidance, and route monitoring.
34.  ECPINS Sensor Interface Overview: Dynamic Positioning System (DPS): ECPINS
     time tags data and logs DPS data. ECPINS communicates all data required for
     the DPS to maintain safe and accurate navigation when maneuvering ownship.
     ECPINS RTMON is the controlling system for communicating Most Probable
     Position (MPP) output to the DPS. ECPINS also outputs waypoint data and
     offset data output to DPS.
35.  ECPINS File Printing Capability: ECPINS File Utility: ECPINS File Utility
     can print the following types of files; OSL Chart Report, Chart-correction
     Report, Route Reports, Marker Reports, and screen captures. The OSL Chart
     Summary report shall be in accordance with section 3.15.1 of the ECPINS
     ATON Technical Manual, 1.73.3 V 2.0 dated February 2001. The OSL Chart
     Corrections report shall be in accordance with section 3.15.2 of the ECPINS
     ATON Technical Manual, 1.73.3 V 2.0 dated February 2001. The Markers report
     shall be in accordance with section 3.15.3 of the ECPINS ATON Technical
     Manual, 1.73.3 V 2.0 dated February 2001.
36.  ECPINS Operations: The ECPINS User Interface shall be in accordance with
     Chapter 4 of the ECPINS ATON Technical Manual, 1.73.3 V 2.0 dated February
     2001. With the consent of the USCG some menu functions may be located using
     a different menu structure.

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March 15/th/, 2002                                                             9

<PAGE>

WLM/WLB IPT         ECPINS-CG Functional Requirements       C2CEN Engineering
--------------------------------------------------------------------------------

Appendix M
List of ECPINS 1.73.3 MPCMS Status Pages to be carried forward with ECPINS-CG

ECPINS-CG shall carry forward all MPCMS data that is displayed in response to
the selection of the following list of ECPINS 1.73.3 Menu options when using the
various Status Board submenus for MPCMS Displays when operating in the Route
Monitoring Subsystem (listed on page 4.1-22 of the ECPINS-ATON V 2.0 Technical
Manual dated February, 2001 and verified by using the ECPINS 7.73.3 software
installed in the WLB ISCTS at C2CEN):
     1.  Alarm Summary Menu: Page Alarms Down
     2.  Alarm Summary Menu: Page Alarms Up
     3.  Alarm Summary Menu: Acknowledge Alarm
     4.  Main Propulsion Menu: Reduction Gear & CPP 1/2
     5.  Main Propulsion Menu: Reduction Gear & CPP 2/7
     6.  Main Propulsion Menu: Port Main Engine
     7.  Main Propulsion Menu: Starboard Main Engine
     8.  Main Propulsion Menu: Acknowledge Alarm
     9.  Electric Plant Menu: Switchboard
     10. Electric Plant Menu: Ship Service Generator 1
     11. Electric Plant Menu: Ship Service Generator 2
     12. Electric Plant Menu: Emergency Generator
     13. Electric Plant Menu: Acknowledge Alarm
     14. Fire Fighting And Alarm Systems Menu: FFS-Fire Pumps & Firemain (ECCC
         Page 8)
     15. Fire Fighting And Alarm Systems Menu: FFS-AFT AFFF Page 1 of 2 (ECCC
         Page 9)
     16. Fire Fighting And Alarm Systems Menu: FFS-AFT AFFF Page 2 of 2 (ECCC
         Page 10)
     17. Fire Fighting And Alarm Systems Menu: FFS_FWD AFFF (ECCC Page 11)
     18. Fire Fighting And Alarm Systems Menu: FFFS_Fire Alarms (ECCC Page 12)
     19. Fire Fighting And Alarm Systems Menu: Acknowledge Alarm
     20. Remaining ECCC Pages Menu: Thruster Generator & Swithboard (ECCC Page
         13)
     21. Remaining ECCC Pages Menu: Bow & Stern Thruster (ECCC Page 14)
     22. Remaining ECCC Pages Menu: Bilge & Blst-Bilge Eductor (ECCC Page 15)
     23. Remaining ECCC Pages Menu: Ballast Tanks/Bilge Flooding Fr 0-50 (ECCC
         Page 16)
     24. Remaining ECCC Pages Menu: Bilge Flooding - Fr 5-- 110 (ECCC Page 16)
     25. Remaining ECCC Pages Menu: Deck Machinery - HPU (ECCC Page 17)
     26. Remaining ECCC Pages Menu: Auxiliary Systems - Water (ECCC Page 18)
     27. Remaining ECCC Pages Menu: Auxiliary Systems - Compressors, Waste
         Systems (ECCC Page 18)
     28. Remaining ECCC Pages Menu: Auxiliary Systems Page 2 of 3 (ECCC Page 19)
     29. Remaining ECCC Pages Menu: Auxiliary Systems Page 3 of 3 (ECCC Page 20)
     30. Remaining ECCC Pages Menu: Lube Oil System (ECCC Page 21)
     31. Remaining ECCC Pages Menu: Fuel Oil System (ECCC Page 22)
     32. Remaining ECCC Pages Menu: Spilled Oil Recovery System (ECCC Page 23)
     33. Remaining ECCC Pages Menu: Subsystem Frame Failure Page 1 of 2 (ECCC
         Page 24)
     34. Remaining ECCC Pages Menu: Subsystem Frame Failure Page 2 of 2 (ECCC
         Page 25)
     35. Remaining ECCC Pages Menu: RTU/Frame Failure Page 1 of 2 (ECCC Page 26)
     36. Remaining ECCC Pages Menu: RTU/Frame Failure Page 2 of 2 (ECCC Page 27)
     37. Remaining ECCC Pages Menu: Power Supplies Computer Throttles (ECCC Page
         28)
     38. Remaining ECCC Pages Menu: Subsystem Communication Alarms (ECCC Page
         29)
         Remaining ECCC Pages Menu: Acknowledge Alarm

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March 15/th/, 2002                                                            10

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