DOMICILATION AGREEMENT

The undersigned declare that:

CAP Maritime Services
"Villa Vent d'Est"
14, Chemin des Sables
Domaine des Muriers
06600 - Antibes - France,
represented by Mr Alain Pelletier

hereafter referred to as the "Hosting Company"

AND

Mr/Mrs/Ms..........................
Owner of the ship (name and reference):
French Flag Registry:
Navigation Enrolment/Registration Number:

hereafter referred to as the "Customer"

have agreed to the following terms of the present Domiciliation Agreement

1) Commercial Terms:

The Customer agrees to comply with the rules and regulations of the Hosting Company. These rules and regulations stipulate that the Customer shall electdomicile at the following address:

M/S
c/o CAP Maritime Services
"Villa Vent d'Est"
14, Chemin des Sables
Domaine des Muriers
06600 Antibes
France

starting on the first day of the agreement and ending the last day of the civil year.

On January 1st of the following year, the agreement will be renewed by tacit agreement for a period of twelve months, unless otherwise stated at least one month before termination of the current agreement, i.e. latest 1st December of current year.

The Customer agrees to duly inform the Hosting Company of any change occurring in the ship's status or specifications, and particularly where the following points are concerned:

- change of ship name
- change of home port
- alterations in technical specifications
- change of ownership

2) Customs/French Flag Duties:

All ships with a French Flag are liable to French Annual Customs Duties. Customs Duties ("Droits de Francisation et de Navigation") are to be paid by the Owner of the ship.

Each year, a payment notice is sent to the Hosting Company. Taxation depends on the registered tonnage of the ship and official overall power of the ship's engine(s). An obsolescence clause is included.

The Customer irrevocably agrees to pay the above duties to the Hosting Company, before 1st April of each year. Payment is carried out:

- either, by cheque to the order of "Tresor Public" in the annual fee's full amount sent to the Hosting Company,
- or, by bank transfer to the account of the Hosting Company.

A penalty will be enforced by French Customs Authorities in the case of late or non-payment of the fees.

Only after all current formalities have been completed will the Hosting Company be held responsible for sending the annual Customs Receipt, which must be affixed in the appropriate place as described in the "Acte de Francisation" (i.e. French Certificate of Registry).

The Hosting Company will in no way be held responsible for the non-payment or late payment of Customs Duties to the Hosting Company. The Hosting Company is entitled to carry out the necessary formalities if the Customer fails to settle the payment of the above duties.

3) Hosting Company Fees and French Flag Duties:

In the first year of the agreement, the Domiciliation Agreement is enforceable from the first day of its existence, and the annual fee is to be
paid immediately in proportion to the number of months remaining in the civil year.

After the first year, the Hosting Company fees, together with the annual Customs Duties, will be payable in full by the Customer, at the beginning of each year. The Hosting Company will inform the Customer prior to the due date, of the exact amount to be paid.

With regard to refunds, a year is taken as a whole, and payable as such, regardless of any changes in the Customer's or ship's status during that year. This applies equally to the first year of the agreement, which may not be a full year. There is no case in which a refund of fees from the Hosting Company may arise.

4) Litigation:

Litigation will be dealt with under the jurisdiction of the "Tribunal de Commerce d'Antibes" (i.e. Commercial Court of Antibes)

Signed at Antibes the ...........th day of ........................., 2003


Customer:...........................

Witness:.............................

Number 1 of 3


Alain Pelletier Consultant Maritime en Gestion de Navires.
Villa ”Vent d’Est” 14, Chemin des Sables - Domaine des Mûriers. 06600 Antibes
N° Siret: 4292329500011 Téléphone: 0 609.535.210 Fax: 0 493.679.568
www.capmaritimeservices.com E-mail: info@capmaritimeservices.com


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