Document:

Exhibit 10(c)

Exhibit 10(c)
NEXTERA ENERGY, INC. 
AMENDED AND RESTATED
2011 LONG TERM INCENTIVE PLAN 
(AMENDED AND RESTATED MARCH 16, 2012]
NextEra Energy, Inc., a Florida corporation (the “Company”), sets forth herein the terms of its 2011 Long Term Incentive Plan, as amended and restated March 16, 2012 (the “Plan”), as follows: 
		
	1.
	PURPOSE 

The Plan is intended to (a) provide eligible persons with an incentive to contribute to the success of the Company and to operate and manage the Company's business in a manner that will provide for the Company's long-term growth and profitability to benefit its shareholders and other important stakeholders, including its employees and customers, and (b) provide a means of obtaining, rewarding and retaining key personnel. To this end, the Plan provides for the grant of awards of stock options, stock appreciation rights, restricted stock, deferred stock units, unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, and other equity-based awards. Any of these awards may, but need not, be made as performance incentives to reward the holders of such awards for the achievement of performance goals in accordance with the terms of the Plan. Stock options granted under the Plan may be non-qualified stock options or incentive stock options, as provided herein. 
		
	2.
	DEFINITIONS 

For purposes of interpreting the Plan documents (including the Plan and Award Agreements), the following definitions shall apply: 
2.1 “Affiliate” means any company or other entity that controls, is controlled by or is under common control with the Company within the meaning of Rule 405 of Regulation C under the Securities Act, including any Subsidiary. For purposes of grants of Options or Stock Appreciation Rights, an entity may not be considered an Affiliate unless the Company holds a “controlling interest” in such entity within the meaning of Treasury Regulation Section 1.414(c)-2(b)(2)(i), provided that (a) except as specified in clause (b) below, an interest of “at least 50 percent” shall be used instead of an interest of “at least 80 percent” in each case where “at least 80 percent” appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i) and (b) where the grant of Options or Stock Appreciation Rights is based upon a legitimate business criterion, an interest of “at least 20 percent” shall be used instead of an interest of “at least 80 percent” in each case where “at least 80 percent” appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i). 
2.2 “Applicable Laws” means the legal requirements relating to the Plan and the Awards under (a) applicable provisions of the corporate, securities, tax and other laws, rules, regulations and government orders of any jurisdiction applicable to Awards granted to residents therein and (b) the rules of any Stock Exchange on which the Stock is listed. 
2.3 “Award” means a grant under the Plan of an Option, a Stock Appreciation Right, Restricted Stock, a Deferred Stock Unit, Unrestricted Stock, a Dividend Equivalent Right, a Performance Share or other Performance-Based Award, or an Other Equity-Based Award. 
2.4 “Award Agreement” means the agreement between the Company and a Grantee that evidences and sets out the terms and conditions of an Award. 
2.5 “Award Stock” shall have the meaning set forth in Section 17.3(a)(ii). 
2.6 “Benefit Arrangement” shall have the meaning set forth in Section 15. 
 
2.7 “Board” means the Board of Directors of the Company. 
2.8 “Cause” means, with respect to any Grantee, as determined by the Committee and unless otherwise provided in an applicable agreement between such Grantee and the Company or an Affiliate, (a) repeated violations by such Grantee of such Grantee's obligations to the Company or such Affiliate (other than as a result of incapacity due to physical or mental illness) which are demonstrably willful and deliberate on such Grantee's part, which are committed in bad faith or without reasonable belief that such violations are in the best interests of the Company or such Affiliate and which are not remedied within a reasonable period of time after such Grantee's receipt of written notice from the Company specifying such violations, (b) the conviction of such Grantee of a felony involving an act of dishonesty intended to result in substantial personal enrichment of such Grantee at the expense of the Company or an Affiliate, or (c) prior to a Change in Control, such other events as shall be determined by the 

Committee in its sole discretion. Any determination by the Committee whether an event constituting Cause shall have occurred shall be final, binding and conclusive. 
2.9 “Change in Control” means: 
(1) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of either (x) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions (collectively, the “Excluded Acquisitions”) shall not constitute a Change in Control (it being understood that shares acquired in an Excluded Acquisition may nevertheless be considered in determining whether any subsequent acquisition by such individual, entity or group (other than an Excluded Acquisition) constitutes a Change in Control): (i) any acquisition directly from the Company or any Subsidiary; (ii) any acquisition by the Company or any Subsidiary; (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary; (iv) any acquisition by an underwriter temporarily holding Company securities pursuant to an offering of such securities; (v) any acquisition in connection with which, pursuant to Rule 13d-1 promulgated pursuant to the Exchange Act, the individual, entity or group is permitted to, and actually does, report its beneficial ownership on Schedule 13G (or any successor Schedule); provided that, if any such individual, entity or group subsequently becomes required to or does report its beneficial ownership on Schedule 13D (or any successor Schedule), then, for purposes of this paragraph, such individual, entity or group shall be deemed to have first acquired, on the first date on which such individual, entity or group becomes required to or does so report, beneficial ownership of all of the Outstanding Company Common Stock and/or Outstanding Company Voting Securities beneficially owned by it on such date; or (vi) any acquisition in connection with a Business Combination (as hereinafter defined) which, pursuant to subparagraph (3) below, does not constitute a Change in Control; or 
(2) Individuals who as of December 10, 2010 constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to such date whose election, or nomination for election by the Company's shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of an individual, entity or group other than the Board; or 
(3) Consummation of a reorganization, merger, consolidation or other business combination (any of the foregoing, a “Business Combination”) of the Company or any Subsidiary with any other corporation, in any case with respect to which: 
(a) the Outstanding Company Voting Securities outstanding immediately prior to such Business Combination do not, immediately following such Business Combination, continue to represent (either by remaining outstanding or being converted into voting securities of the resulting or surviving entity or any ultimate parent thereof) more than fifty-five percent (55%) of the outstanding common stock and of the then outstanding voting securities entitled to vote generally in the election of directors of the resulting or surviving entity (or any ultimate parent thereof); or 
(b) less than a majority of the members of the board of directors of the resulting or surviving entity (or any ultimate parent thereof) in such Business Combination (the “New Board”) consists of individuals (“Continuing Directors”) who were members of the Incumbent Board (as defined in subparagraph (2) above) immediately prior to consummation of such Business Combination (excluding from Continuing Directors for this purpose, however, any individual whose election or appointment to the Board was at the request, directly or indirectly, of the entity which entered into the definitive agreement with the Company or any Subsidiary providing for such Business Combination); or 
(4)(a) Consummation of a sale or other disposition of all or substantially all of the assets of the Company, other than to a corporation with respect to which, following such sale or other disposition, more than fifty-five percent (55%) of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Company Common Stock and Outstanding Company Voting Securities as the case may be; or 
(b) shareholder approval of a complete liquidation or dissolution of the Company. 
The term “the sale or disposition by the Company of all or substantially all of the assets of the Company” shall mean 

a sale or other disposition transaction or series of related transactions involving assets of the Company or of any Subsidiary (including the stock of any Subsidiary) in which the value of the assets or stock being sold or otherwise disposed of (as measured by the purchase price being paid therefor or by such other method as the Board determines is appropriate in a case where there is no readily ascertainable purchase price) constitutes more than two-thirds of the fair market value of the Company (as hereinafter defined). The “fair market value of the Company” shall be the aggregate market value of the then Outstanding Company Common Stock (on a fully diluted basis) plus the aggregate market value of the Company's other outstanding equity securities. The aggregate market value of the shares of Outstanding Company Common Stock shall be determined by multiplying the number of shares of Outstanding Company Common Stock (on a fully diluted basis) outstanding on the date of the execution and delivery of a definitive agreement with respect to the transaction or series of related transactions (the “Transaction Date”) by the average closing price of the shares of Outstanding Company Common Stock for the ten trading days immediately preceding the Transaction Date. The aggregate market value of any other equity securities of the Company shall be determined in a manner similar to that prescribed in the immediately preceding sentence for determining the aggregate market value of the shares of Outstanding Company Common Stock or by such other method as the Board shall determine is appropriate. 
2.10 “Code” means the Internal Revenue Code of 1986, as amended, as now in effect or as hereafter amended, and any successor thereto. 
2.11 “Committee” means a committee of, and designated from time to time by resolution of, the Board, which shall be constituted as provided in Section 3.1.2 and Section 3.1.3 (or, if no Committee has been so designated, the Board). The Delegated Officer shall be deemed to constitute a Committee, and references in the Plan to “Committee” shall mean the Delegated Officer to the extent consistent with the powers and authorities given to the Delegated Officer in Section 3.1.3. 
2.12 “Company” means NextEra Energy, Inc., a Florida corporation. 
 
2.13 “Covered Employee” means a Grantee who is a “covered employee” within the meaning of Code Section 162(m)(3). 
2.14 “Deferred Stock Unit” means a bookkeeping entry representing the equivalent of one (1) share of Stock awarded to a Grantee pursuant to Section 10 that (a) is not subject to vesting, or (b) is subject to time-based vesting, but not to performance-based vesting. A Deferred Stock Unit may also be referred to as a restricted stock unit. 
2.15 “Delegated Officer” shall have the meaning set forth in Section 3.1.3. 
2.16 “Determination Date” means the Grant Date or such other date as of which the Fair Market Value of a share of Stock is required to be established for purposes of the Plan. 
2.17 “Disability” means any condition as a result of which a Grantee is determined to be totally disabled for purposes of (a) the Company's executive long-term disability plan, for Grantees who participate in such plan, or (b) the Company's long-term disability plan, for Grantees who do not participate in the Company's executive long-term disability plan. 
2.18 “Dividend Equivalent Right” means a right, granted to a Grantee pursuant to Section 13, to receive cash, Stock, other Awards or other property equal in value to dividends or other periodic payments paid or made with respect to a specified number of shares of Stock. 
2.19 “Employee” means, as of any date of determination, an employee (including an officer) of the Company or an Affiliate. 
2.20 “Effective Date” means May 20, 2011, the date on which the original Plan was approved by the Company's shareholders.  The effective date of the amendment and restatement of the Plan means March 16, 2012, the date the amendment and restatement was approved by the Board.
2.21 “Exchange Act” means the Securities Exchange Act of 1934, as amended, as now in effect or as hereafter amended. 
2.22 “Fair Market Value” means the fair market value of a share of Stock for purposes of the Plan, which shall be determined as of any Determination Date as follows: 
(a) If on such Determination Date the shares of Stock are listed on a Stock Exchange, or are publicly traded on another established securities market (a “Securities Market”), the Fair Market Value of a share of Stock shall be the closing price of the Stock on such Determination Date as reported on such Stock Exchange or such Securities Market (provided that, if there is more than one such Stock Exchange or Securities Market, the Committee shall designate the appropriate Stock Exchange or Securities Market for purposes of the Fair Market Value determination). If there is no such reported closing price on such Determination Date, the Fair Market Value of a share of Stock shall be the closing price of the Stock on the next preceding day on which any sale of Stock shall have been reported on such Stock Exchange or such Securities Market. 

(b) If on such Determination Date the shares of Stock are not listed on a Stock Exchange or publicly traded on a Securities Market, the Fair Market Value of a share of Stock shall be the value of the Stock on such Determination Date as determined by the Committee by the reasonable application of a reasonable valuation method, in a manner consistent with Code Section 409A. 
Notwithstanding this Section 2.22 or Section 18.3, for purposes of determining taxable income and the amount of the related tax withholding obligation pursuant to Section 18.3, for any shares of Stock subject to an Award that are sold by or on behalf of a Grantee on the same date on which such shares may first be sold pursuant to the terms of the related Award Agreement, the Fair Market Value of such shares shall be the sale price of such shares on such date (or if sales of such shares are effectuated at more than one sale price, the weighted average sale price of such shares on such date).
 
2.23 “Grant Date” means, as determined by the Committee, (a) the date as of which the Committee completes the corporate action constituting the Award or (b) such date subsequent to the date specified in clause (a) above as may be specified by the Committee. 
2.24 “Grantee” means a person who receives or holds an Award under the Plan. 
2.25 “Incentive Stock Option” means an “incentive stock option” within the meaning of Code Section 422, or the corresponding provision of any subsequently enacted tax statute, as amended from time to time. 
2.26 “Non-qualified Stock Option” means an Option that is not an Incentive Stock Option. 
2.27 “Option” means an option to purchase one or more shares of Stock pursuant to the Plan. 
2.28 “Option Price” means the exercise price for each share of Stock subject to an Option. 
2.29 “Other Agreement” shall have the meaning set forth in Section 15. 
2.30 “Outside Director” means a member of the Board who is not an Employee. 
2.31 “Other Equity-Based Award” means an Award representing a right or other interest that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock, other than an Option, a Stock Appreciation Right, Restricted Stock, a Deferred Stock Unit, Unrestricted Stock, a Dividend Equivalent Right or a Performance Share. 
2.32 “Performance-Based Compensation” means compensation under an Award that is intended to satisfy the requirements of Code Section 162(m) for “qualified performance-based compensation” paid to Covered Employees. Notwithstanding the foregoing, nothing in the Plan shall be construed to mean that an Award which does not satisfy the requirements for “qualified performance-based compensation” within the meaning of and pursuant to Code Section 162(m) does not constitute performance-based compensation for other purposes, including the purposes of Code Section 409A. 
2.33 “Performance-Based Award” means an Award of Options, Stock Appreciation Rights, Restricted Stock, Deferred Stock Units, Performance Shares or Other Equity-Based Awards made subject to the achievement of performance goals (as provided in Section 14) over a Performance Period specified by the Committee. 
2.34 “Performance Measures” means measures as specified in Section 14 on which the performance goals under Performance-Based Awards are based and which are approved by the Company's shareholders pursuant to, and to the extent required by, the Plan in order to qualify such Performance-Based Awards as Performance-Based Compensation. 
2.35 “Performance Period” means the period of time during which the performance goals under Performance-Based Awards must be met in order to determine the degree of payout and/or vesting with respect to any such Performance-Based Awards. 
2.36 “Performance Shares” means a Performance-Based Award representing a right or other interest that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock, made subject to the achievement of performance goals (as provided in Section 14) over a Performance Period of up to ten (10) years. 
2.37 “Plan” means this NextEra Energy, Inc. 2011 Long Term Incentive Plan, as amended from time to time. 
 
2.38 “Prior Plan” means the NextEra Energy, Inc. Amended and Restated Long Term Incentive Plan. 
2.39 “Reporting Person” means a person who is required to file reports under Section 16(a) of the Exchange Act, or any successor provision. 

2.40 “Restricted Period” shall have the meaning set forth in Section 10.2. 
2.41 “Restricted Stock” means shares of Stock awarded to a Grantee pursuant to Section 10. 
2.42 “SAR Price” shall have the meaning set forth in Section 9.1. 
2.43 “Securities Act” means the Securities Act of 1933, as amended, as now in effect or as hereafter amended. 
2.44 “Service” means service of a Grantee as an Employee or, following termination of such Grantee's service as an Employee, service of such Grantee as a member of the Board or of the board of directors or similar governing body of any Affiliate. Unless otherwise provided in the applicable Award Agreement, in another agreement with the Grantee or otherwise in writing, such Grantee's change in position or duties with the Company or any Affiliate shall not result in interrupted or terminated Service, so long as the Grantee continues to be an Employee or, if such Grantee ceases to be an Employee, continues to serve as a member of the Board or of the board of directors or similar governing body of any Affiliate. Any determination by the Committee whether a termination of Service shall have occurred for purposes of the Plan shall be final, binding and conclusive. 
2.45 “Stock” means the common stock, par value $0.01 per share, of the Company, or any security which shares of Stock may be changed into or for which shares of Stock may be exchanged as provided in Section 17.1. 
2.46 “Stock Appreciation Right” or “SAR” means a right granted to a Grantee pursuant to Section 9. 
2.47 “Stock Exchange” means the New York Stock Exchange or another established national or regional stock exchange. 
2.48 “Subsidiary” means any corporation (other than the Company) or non-corporate entity with respect to which the Company owns, directly or indirectly, fifty percent (50%) or more of the total combined voting power of all classes of stock, membership interests or other ownership interests of any class or kind ordinarily having the power to vote for the directors, managers or other voting members of the governing body of such corporation or non-corporate entity. In addition, any other entity may be designated by the Committee as a Subsidiary, provided that (a) such entity could be considered as a subsidiary according to generally accepted accounting principles in the United States of America, and (b) in the case of an Award of Options or Stock Appreciation Rights, such Award would be considered to be granted in respect of “service recipient stock” under Code Section 409A. 
2.49 “Substitute Award” means an Award granted upon assumption of, or in substitution for, outstanding awards previously granted under a compensatory plan by a business entity acquired or to be acquired by the Company or an Affiliate or with which the Company or an Affiliate has combined or will combine. 
2.50 “Ten Percent Shareholder” means a natural person who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding voting securities of the Company, the Company's parent (if any) or any of the Company's Subsidiaries. In determining stock ownership, the attribution rules of Code Section 424(d) shall be applied. 
2.51 “Unrestricted Stock” shall have the meaning set forth in Section 11. 
 
Unless the context otherwise requires, all references in the Plan to “including” shall mean “including without limitation.” 
References in the Plan to any Code Section shall be deemed to include, as applicable, regulations promulgated under such Code Section. 
		
	3.
	ADMINISTRATION OF THE PLAN 

		
	3.1.
	Committee. 

		
	3.1.1.
	Powers and Authorities. 

The Committee shall administer the Plan and shall have such powers and authorities related to the administration of the Plan as are consistent with the Company's restated articles of incorporation and bylaws and Applicable Laws. Without limiting the generality of the foregoing, the Committee shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan, any Award or any Award Agreement, and shall have full power and authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan which the Committee deems to be necessary or appropriate to the administration of the Plan, any Award or any Award Agreement. All such actions and determinations shall be made by (a) the affirmative vote of a majority of the members of the Committee present at a meeting at which a quorum is present, or (b) the unanimous consent of the members of the Committee executed in writing in accordance with the Company's restated articles of incorporation and bylaws and Applicable Laws. Unless otherwise expressly determined by the Board, the Committee shall have the authority to interpret and construe all provisions of the Plan, any Award and any Award Agreement, and any such interpretation or construction, and any other determination contemplated to be made 

under the Plan or any Award Agreement, by the Committee shall be final, binding and conclusive whether or not expressly provided for in any provision of the Plan, such Award or such Award Agreement. 
In the event that the Plan, any Award or any Award Agreement provides for any action to be taken by the Board or any determination to be made by the Board, such action may be taken or such determination may be made by the Committee (including the Delegated Officer) constituted in accordance with this Section 3.1 if the Board has delegated the power and authority to do so to such Committee (including the Delegated Officer). 
		
	3.1.2.
	Composition of Committee. 

The Committee shall be a committee composed of not fewer than two directors of the Company designated by the Board to administer the Plan. Each member of the Committee shall be a “Non-Employee Director” within the meaning of Rule 16b-3 under the Exchange Act, an “outside director” within the meaning of Code Section 162(m)(4)(C)(i) and, for so long as the Stock is listed on the New York Stock Exchange, an “independent director” within the meaning of Section 303A of the New York Stock Exchange Listed Company Manual (or, in each case, any successor term or provision); provided, that any action taken by the Committee shall be valid and effective whether or not members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership set forth in this Section 3.1.2 or otherwise provided in any charter of the Committee. Without limiting the generality of the foregoing, the Committee may be the Compensation Committee of the Board or a subcommittee thereof if the Compensation Committee of the Board or such subcommittee satisfies the foregoing requirements. 
		
	3.1.3.
	Other Committees. 

The Board also may appoint one or more committees of the Board, each composed of two or more directors of the Company who need not be Outside Directors, which may administer the Plan with respect to Employees who are not “executive officers” as defined in Rule 3b-7 under the Exchange Act or directors of the Company, may grant Awards under the Plan to such Employees, and may determine all terms of such Awards, subject to the requirements of Rule 16b-3 under the Exchange Act, Code Section 162(m) and, for so long as the Stock is listed on the New York Stock Exchange, the rules of the New York Stock Exchange. The Board also may appoint (a) a committee, composed of two or more directors of the Company or (b) a senior executive officer of the Company (the “Delegated Officer”) (as contemplated by Florida Statutes section 607.0825(1)(e) or any successor statute thereto), which may administer the Plan with respect to Employees who are not subject to either the reporting requirements of Section 16(a) of the Exchange Act or the short-swing trading provisions of Section 16(b) of the Exchange Act and are not Covered Employees, including making grants of Awards under the Plan to such Employees and determining all terms of such Awards. 
		
	3.2.
	Board. 

The Board from time to time may exercise any or all of the powers and authorities related to the administration and implementation of the Plan, as set forth in Section 3.1 and other applicable provisions of the Plan, as the Board shall determine, consistent with the Company's restated articles of incorporation and bylaws and Applicable Laws. 
		
	3.3.
	Terms of Awards. 

		
	3.3.1.
	Committee Authority. 

Subject to the other terms and conditions of the Plan, the Committee shall have full and final authority to: 
(a) designate Grantees; 
(b) determine the type or types of Awards to be made to a Grantee; 
(c) determine the number of shares of Stock to be subject to an Award; 
(d) establish the terms and conditions of each Award (including the Option Price of any Option), the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the shares of Stock subject thereto, the treatment of an Award in the event of a Change in Control (subject to applicable agreements), and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options; 
(e) prescribe the form of each Award Agreement evidencing an Award; and 
(f) subject to the limitation on repricing in Section 3.4, amend, modify or supplement the terms of any outstanding Award, which authority shall include the authority, in order to effectuate the purposes of the Plan but without amending the Plan, to make Awards or to modify outstanding Awards made to eligible natural persons who are foreign nationals or are natural persons who are employed outside the United States to reflect differences in local law, tax policy, or custom, provided that, notwithstanding the foregoing, no amendment, modification or supplement of the terms of any outstanding Award shall, without the consent of the 

Grantee thereof, impair the Grantee's rights under such Award. 
The Committee shall have the right, in its discretion, to make Awards in substitution or exchange for any award granted under another compensatory plan of the Company, any Affiliate, or any business entity acquired or to be acquired by the Company or an Affiliate or with which the Company or an Affiliate has combined or will combine. 
		
	3.3.2.
	Forfeiture; Recoupment. 

The Committee may reserve the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee with respect to an Award thereunder on account of actions taken by, or failed to be taken by, such Grantee in violation or breach of or in conflict with any (a) employment agreement, (b) non-competition agreement, (c) agreement prohibiting solicitation of Employees or clients of the Company or any Affiliate, (d) confidentiality obligation with respect to the Company or any Affiliate, (e) Company policy or procedure (including the Code of Business Conduct & Ethics and the Code of Ethics for Senior Executive & Financial Officers), (f) other agreement or (g) any other obligation of such Grantee to the Company or any Affiliate, as and to the extent specified in such Award Agreement. The Committee may annul an outstanding Award if the Grantee thereof is an Employee and is terminated for Cause as defined in the Plan or the applicable Award Agreement or for “cause” as defined in any other agreement between the Company or such Affiliate and such Grantee, as applicable. 
Any Award granted pursuant to the Plan shall be subject to mandatory repayment by the Grantee to the Company to the extent the Grantee is, or in the future becomes, subject to (a) any Company “clawback” or recoupment policy that is adopted to comply with the requirements of any applicable law, rule or regulation, or otherwise, or (b) any law, rule or regulation which imposes mandatory recoupment under circumstances set forth in such law, rule or regulation. 
		
	3.4.
	No Repricing. 

Except in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, distribution (whether in the form of cash, shares of Stock, other securities or other property), stock split, extraordinary cash dividend, recapitalization, change in control, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares of Stock or other securities or similar transaction), the Company may not, without obtaining stockholder approval: (a) amend the terms of outstanding Options or SARs to reduce the exercise price of such outstanding Options or SARs; (b) cancel outstanding Options or SARs in exchange for Options or SARs with an exercise price that is less than the exercise price of the original Options or SARs; or (c) cancel outstanding Options or SARs with an exercise price above the current stock price in exchange for cash or other securities. 
		
	3.5.
	Deferral Arrangement. 

The Committee may permit or require the deferral of any payment pursuant to any Award into a deferred compensation arrangement, subject to such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest or Dividend Equivalent Rights and, in connection therewith, provisions for converting such credits into Deferred Stock Units and for restricting deferrals to comply with hardship distribution rules affecting tax-qualified retirement plans subject to Code Section 401(k)(2)(B)(IV), provided that no Dividend Equivalent Rights may be granted in connection with, or related to, an Award of Options or SARs. Any such deferrals shall be made in a manner that complies with Code Section 409A. 
		
	3.6.
	No Liability. 

No member of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award or Award Agreement. 
		
	3.7.
	Registration; Share Certificates. 

Notwithstanding any provision of the Plan to the contrary, the ownership of the shares of Stock issued under the Plan may be evidenced in such a manner as the Committee, in its sole discretion, deems appropriate, including by book-entry or direct registration (including transaction advices) or the issuance of one or more share certificates. 
		
	4.
	STOCK SUBJECT TO THE PLAN 

		
	4.1.
	Number of Shares of Stock Available for Awards. 

(a) Subject to such additional shares of Stock as shall be available for issuance under the Plan pursuant to Section 4.2, and subject to adjustment pursuant to Section 17, the maximum number of shares of Stock available for issuance under the Plan shall be equal to 14 million shares, plus the number of shares of Stock subject to awards outstanding under the Prior Plan as of the Effective Date which thereafter terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such shares. 

(b) The maximum number of shares of Stock available for issuance pursuant to Incentive Stock Options shall be the same as the maximum number of shares available for issuance under the Plan pursuant to Section 4.1(a). 
(c) Shares of Stock to be issued under the Plan shall be authorized but unissued shares, or, to the extent permitted by Applicable Laws, shares of treasury stock or issued shares that have been reacquired by the Company. 
		
	4.2.
	Adjustments in Authorized Shares of Stock. 

In connection with mergers, reorganizations, separations, or other transactions to which Code Section 424(a) applies, the Committee shall have the right to cause the Company to assume awards previously granted under a compensatory plan by another business entity that is a party to such transaction and to substitute Awards under the Plan for such awards. The number of shares of Stock available for issuance under the Plan pursuant to Section 4.1(a) shall be increased by the number of shares of Stock subject to any such assumed awards and substitute Awards. Shares available for issuance under a shareholder-approved plan of a business entity that is a party to such transaction (as appropriately adjusted, if necessary, to reflect such transaction) may be used for Awards under the Plan and shall not reduce the number of shares of Stock otherwise available for issuance under the Plan, subject to applicable rules of any Stock Exchange on which the Stock is listed. 
		
	4.3.
	Share Usage. 

(a) Shares of Stock subject to an Award shall be counted as used as of the Grant Date. 
(b) Any shares of Stock that are subject to Awards, including shares of Stock acquired through dividend reinvestment pursuant to Section 10.4, shall be counted against the share issuance limit set forth in Section 4.1(a) as one (1) share of Stock for every one (1) share of Stock subject to an Award.  With respect to SARs, the number of shares subject to an Award of SARs will be counted against the aggregate number of shares of Stock available for issuance under the Plan regardless of the number of shares actually issued to settle the SAR upon exercise.  The target number of shares issuable under a Performance Share grant shall be counted against the share issuance limit set forth in Section 4.1(a) as of the Grant Date, but such number shall be adjusted to equal the actual number of shares issued upon settlement of the Performance Shares to the extent different from such target number of shares. 
(c) Notwithstanding anything to the contrary in Section 4.3(a) or Section 4.3(b), any shares of Stock subject to Awards under the Plan which thereafter terminate by expiration, forfeiture, cancellation, or otherwise, without the issuance of such shares, shall be available again for issuance under the Plan. 
(d) Notwithstanding anything to the contrary in this Section 4, the number of shares of Stock (i) tendered or withheld or subject to an Award surrendered in connection with the purchase of shares of Stock upon exercise of an Option as provided in Section 12.2, (ii) deducted or delivered from payment of an Award in connection with the Company's tax withholding obligations as provided in Section 18.3 or (iii) purchased by the Company with proceeds from Option exercises will not increase the number of shares available for issuance under the Plan. 
		
	5.
	EFFECTIVE DATE; TERM; AMENDMENT AND TERMINATION 

		
	5.1.
	Effective Date. 

The Plan shall be effective as of the Effective Date, except that the Plan as amended and restated shall be effective as of March 16, 2012.  Following the Effective Date, no awards shall be made under the Prior Plan. Notwithstanding the foregoing, shares of Stock reserved under the Prior Plan to settle awards, including performance-based awards, which are made under the Prior Plan prior to the Effective Date may be issued and delivered following the Effective Date to settle such awards. 
		
	5.2.
	Term. 

The Plan shall terminate automatically ten (10) years after the Effective Date and may be terminated on any earlier date as provided in Section 5.3. 
		
	5.3.
	Amendment and Termination. 

The Board may, at any time and from time to time, amend, suspend or terminate the Plan as to any shares of Stock as to which Awards have not been made. The effectiveness of any amendment to the Plan shall be contingent on approval of such amendment by the Company's shareholders to the extent provided by the Board or required by Applicable Laws (including the rules of any Stock Exchange on which the Stock is then listed), provided that no amendment shall be made to the no-repricing provisions of Section 3.4 or the Option pricing provisions of Section 8.1 without the approval of the Company's shareholders. No amendment, suspension or termination of the Plan shall impair rights or obligations under any Award theretofore made under the Plan without the consent of the Grantee thereof. 

		
	6.
	AWARD ELIGIBILITY AND LIMITATIONS 

		
	6.1.
	Eligible Employees. 

Subject to this Section 6, Awards may be made under the Plan to any Employee, as the Committee shall determine and designate from time to time. 
		
	6.2.
	Limitation on Shares of Stock Subject to Awards. 

During any time when the Company has a class of equity securities registered under Section 12 of the Exchange Act: 
(a) the maximum number of shares of Stock subject to Options or SARs that may be granted under the Plan in a calendar year to any person eligible for an Award under Section 6 is 4.66 million shares; and 
(b) the maximum number of shares of Stock that may be granted under the Plan, other than pursuant to Options or SARs, in a calendar year to any person eligible for an Award under Section 6 is 2.33 million shares. 
The preceding limitations in this Section 6.2 are subject to adjustment as provided in Section 17. 
		
	6.3.
	Stand-Alone, Additional, Tandem and Substitute Awards. 

Subject to Section 3.4, Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution or exchange for, (a) any other Award, (b) any award granted under another plan of the Company, any Affiliate, or any business entity that has been a party to a transaction with the Company or any Affiliate, or (c) any other right of a Grantee to receive payment from the Company or any Affiliate. Such additional, tandem and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award, or for an award granted under another plan of the Company, any Affiliate, or any business entity that has been a party to a transaction with the Company or any Affiliate, the Committee shall require the surrender of such other Award or award under such other plan in consideration for the grant of such substitute or exchange Award. In addition, Awards may be granted in lieu of cash compensation, including in lieu of cash payments under other plans of the Company or any Affiliate. Notwithstanding Section 8.1 and Section 9.1, but subject to Section 3.4, the Option Price of an Option or the grant price of an SAR that is a Substitute Award may be less than one hundred percent (100%) of the Fair Market Value of a share of Stock on the original Grant Date; provided that the Option Price or grant price is determined in accordance with the principles of Code Section 424 for any Incentive Stock Option and consistent with Code Section 409A for any other Option or SAR. 
		
	7.
	AWARD AGREEMENT 

Each Award granted pursuant to the Plan shall be evidenced by an Award Agreement, which shall be in such form or forms as the Committee shall from time to time determine. Award Agreements employed under the Plan from time to time or at the same time need not contain similar provisions, but shall be consistent with the terms of the Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-qualified Stock Options or Incentive Stock Options, and, in the absence of such specification, such Options shall be deemed to constitute Non-qualified Stock Options. 
		
	8.
	TERMS AND CONDITIONS OF OPTIONS 

		
	8.1.
	Option Price. 

The Option Price of each Option shall be fixed by the Committee and stated in the Award Agreement evidencing such Option. Except in the case of Substitute Awards, the Option Price of each Option shall be at least the Fair Market Value of one (1) share of Stock on the Grant Date; provided that in the event that a Grantee is a Ten Percent Shareholder, the Option Price of an Option granted to such Grantee that is intended to be an Incentive Stock Option shall be not less than one hundred ten percent (110%) of the Fair Market Value of one (1) share of Stock on the Grant Date. In no case shall the Option Price of any Option be less than the par value of a share of Stock. 
		
	8.2.
	Vesting. 

Subject to Sections 8.3 and 17.3, each Option granted under the Plan shall become exercisable at such times and under such conditions as shall be determined by the Committee and stated in the Award Agreement, in another agreement with the Grantee or otherwise in writing.  Notwithstanding the foregoing, Awards of Options that vest solely by the passage of time shall not vest in full in less than three (3) years from the Grant Date (but may vest pro-rata during such period on a daily, monthly, annual or other basis); provided, that up to five percent (5%) of the maximum number of shares of Stock available for issuance under the Plan may be granted pursuant to the Plan without being subject to the foregoing restrictions and the restrictions set forth in Sections 9.2 and 10.2.  The foregoing five percent (5%) share issuance limit shall be subject to adjustment consistent with the adjustment provisions of Section 17 and the share usage rules of Section 4.3. 

		
	8.3.
	Term.

Each Option granted under the Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten (10) years from the Grant Date of such Option, or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Committee and stated in the Award Agreement relating to such Option; provided, that in the event that the Grantee is a Ten Percent Shareholder, an Option granted to such Grantee that is intended to be an Incentive Stock Option shall not be exercisable after the expiration of five (5) years from its Grant Date. 
		
	8.4.
	Termination of Service. 

Each Award Agreement with respect to the grant of an Option shall set forth the extent to which the Grantee thereof, if at all, shall have the right to exercise such Option following termination of such Grantee's Service.  If the Committee accelerates vesting of an Option, except (a) in the case of a Grantee's death or disability, (b) acceleration required by binding commitments or agreements entered into by the Company prior to March 16, 2012, the effective date of the amendment and restatement of the Plan or (c) as specified in Section 17.3, the shares of Stock subject to such Option shall be deducted from the five percent (5%) share issuance limit set forth in Sections 8.2, 9.2, and 10.2.
 
		
	8.5.
	Limitations on Exercise of Option. 

Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in whole or in part, after the occurrence of an event referred to in Section 17 which results in the termination of such Option. 
		
	8.6.
	Method of Exercise. 

Subject to the terms of Section 12 and Section 18.3, an Option that is exercisable may be exercised by the Grantee's delivery to the Company or its designee or agent of notice of exercise on any business day, at the Company's principal office or the office of such designee or agent, on the form specified by the Company and in accordance with any additional procedures specified by the Committee. Such notice shall specify the number of shares of Stock with respect to which such Option is being exercised and shall be accompanied by payment in full of the Option Price of the shares of Stock for which such Option is being exercised plus the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold with respect to the exercise of such Option. 
		
	8.7.
	Rights of Holders of Options. 

Unless otherwise stated in the applicable Award Agreement, a Grantee or other person holding or exercising an Option shall have none of the rights of a shareholder of the Company (for example, the right to receive cash or dividend payments or distributions attributable to the shares of Stock subject to such Option, to direct the voting of the shares of Stock subject to such Option, or to receive notice of any meeting of the Company's shareholders) until the shares of Stock subject thereto are fully paid and issued to such Grantee or other person. Except as provided in Section 17, no adjustment shall be made for dividends, distributions or other rights with respect to any shares of Stock subject to an Option for which the record date is prior to the date of issuance of such shares of Stock. 
		
	8.8.
	Delivery of Stock. 

Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price with respect thereto, such Grantee shall be entitled to receive such evidence of such Grantee's ownership of the shares of Stock subject to such Option as shall be consistent with Section 3.7. 
		
	8.9.
	Transferability of Options. 

During the lifetime of a Grantee of an Option, only such Grantee (or, in the event of such Grantee's legal incapacity or incompetency, such Grantee's guardian or legal representative) may exercise such Option. No Option shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution. 
		
	8.10.
	Limitations on Incentive Stock Options. 

An Option shall constitute an Incentive Stock Option only (a) if the Grantee of such Option is an Employee of the Company or any corporate Subsidiary, (b) to the extent specifically provided in the related Award Agreement and (c) to the extent that the aggregate Fair Market Value (determined at the time such Option is granted) of the shares of Stock with respect to which all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Company and its Affiliates) does not exceed $100,000. Except to the extent provided in the regulations under Code Section 422, this limitation shall be applied by taking Options into account in the order in which they were granted. 

		
	8.11.
	Notice of Disqualifying Disposition. 

If any Grantee shall make any disposition of shares of Stock issued pursuant to the exercise of an Incentive Stock Option under the circumstances provided in Code Section 421(b) (relating to certain disqualifying dispositions), such Grantee shall notify the Company of such disposition within ten (10) days thereof. 
 
		
	9.
	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS 

		
	9.1.
	Right to Payment and Grant Price. 

A SAR shall confer on the Grantee to whom it is granted a right to receive, upon exercise thereof, the excess of (x) the Fair Market Value of one (1) share of Stock on the date of exercise over (y) the per share exercise price of such SAR (the “SAR Price”) as determined by the Committee. The Award Agreement for a SAR shall specify the SAR Price, which shall be no less than the Fair Market Value of one (1) share of Stock on the Grant Date of such SAR. SARs may be granted in tandem with all or part of an Option granted under the Plan or at any subsequent time during the term of such Option, in combination with all or any part of any other Award or without regard to any Option or other Award; provided that a SAR that is granted subsequent to the Grant Date of a related Option must have a SAR Price that is no less than the Fair Market Value of one (1) share of Stock on the Grant Date of such SAR. 
		
	9.2.
	Other Terms. 

The Committee shall determine, on the Grant Date or thereafter, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future Service requirements), the time or times at which SARs shall cease to be or become exercisable following termination of Service or upon other conditions, the method of exercise, method of settlement, form of consideration payable in settlement, method by or forms in which shares of Stock shall be delivered or deemed to be delivered to Grantees, whether or not a SAR shall be granted in tandem or in combination with any other Award, and any and all other terms and conditions of any SAR. Notwithstanding the foregoing, Awards of SARs that vest solely by the passage of time shall not vest in full in less than three (3) years from the Grant Date (but may vest pro-rata during such period on a daily, monthly, annual or other basis); provided, that up to five percent (5%) of the maximum number of shares of Stock available for issuance under the Plan may be granted pursuant to the Plan without being subject to the foregoing restrictions and the restrictions set forth in Sections 8.2 and 10.2.  The foregoing five percent (5%) share issuance limit shall be subject to adjustment consistent with the adjustment provisions of Section 17 and the share usage rules of Section 4.3. If the Committee accelerates vesting of a SAR, except (a) in the case of a Grantee's death or disability, (b) acceleration required by binding commitments or agreements entered into by the Company prior to March 16, 2012, the effective date of the amendment and restatement of the Plan or (c) as specified in Section 17.3, the shares of Stock subject to such SAR shall be deducted from the five percent (5%) share issuance limit set forth in Sections 8.2, 9.2, and 10.2.
		
	9.3.
	Term. 

Each SAR granted under the Plan shall terminate, and all rights thereunder shall cease, upon the expiration of ten (10) years from the Grant Date of such SAR or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Committee and stated in the Award Agreement relating to such SAR. 
		
	9.4.
	Transferability of SARS. 

During the lifetime of a Grantee of a SAR, only the Grantee (or, in the event of such Grantee's legal incapacity or incompetency, such Grantee's guardian or legal representative) may exercise such SAR. No SAR shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution. 
		
	10.
	TERMS AND CONDITIONS OF RESTRICTED STOCK AND DEFERRED STOCK UNITS 

		
	10.1.
	Grant of Restricted Stock or Deferred Stock Units. 

Awards of Restricted Stock and Deferred Stock Units may be made for consideration or for no consideration, other than the par value of the shares of Stock, which shall be deemed paid by past Service or, if so provided in the related Award Agreement or a separate agreement, the promise by the Grantee to perform future Service to the Company or an Affiliate. 
		
	10.2.
	Restrictions. 

At the time a grant of Restricted Stock or Deferred Stock Units is made, the Committee may, in its sole discretion, (a) establish a period of time (a “Restricted Period”) applicable to such Restricted Stock or Deferred Stock Units and (b) prescribe restrictions in addition to or other than the expiration of the Restricted Period, including the satisfaction of corporate or individual performance goals, which may be applicable to all or any portion of such Restricted Stock or Deferred Stock Units as provided in Section 14. 

Notwithstanding the foregoing, Awards of Restricted Stock and Deferred Stock Units that vest solely by the passage of time shall not vest in full in less than three (3) years from the Grant Date (but may vest pro-rata during such period on a daily, monthly, annual or other basis), and Restricted Stock and Deferred Stock Units that vest upon achievement of performance goals shall not vest in full in less than one (1) year from the Grant Date; provided, that (i) up to five percent (5%) of the maximum number of shares of Stock available for issuance under the Plan may be granted pursuant to the Plan without being subject to the foregoing restrictions and the restrictions set forth in Sections 8.2 and 9.2, and (ii) any dividends or Dividend Equivalent Rights, or other distributions, issued in connection with any Award granted at any time under the Plan shall not be subject to or counted for either such restrictions or such five percent (5%) share issuance limit. The foregoing five percent (5%) share issuance limit shall be subject to adjustment consistent with the adjustment provisions of Section 17.2 and the share usage rules of Section 4.3. Awards of Restricted Stock and Deferred Stock Units may not be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted Period or prior to the satisfaction of any other restrictions prescribed by the Committee with respect to such Awards. 
		
	10.3.
	Registration; Restricted Share Certificates. 

Pursuant to Section 3.7, to the extent that ownership of Restricted Stock is evidenced by a book-entry registration or direct registration (including transaction advices), such registration shall be notated to evidence the restrictions imposed on such Award of Restricted Stock under the Plan and the applicable Award Agreement. Subject to Section 3.7 and the immediately following sentence, the Company may issue, in the name of each Grantee to whom Restricted Stock has been granted, share certificates representing the total number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date of such Restricted Stock. The Committee may provide in an Award Agreement that either (a) the Secretary of the Company shall hold such certificates for such Grantee's benefit until such time as such shares of Restricted Stock are forfeited to the Company or the restrictions applicable thereto lapse and such Grantee shall deliver a stock power to the Company with respect to each certificate, or (b) such certificates shall be delivered to such Grantee, provided that such certificates shall bear legends that comply with applicable securities laws and regulations and make appropriate reference to the restrictions imposed on such Award of Restricted Stock under the Plan and such Award Agreement. 
		
	10.4.
	Rights of Holders of Restricted Stock. 

Unless the Committee otherwise provides in an Award Agreement, holders of Restricted Stock shall have the right to vote such shares of Restricted Stock and the right to receive any dividends declared or paid with respect to such shares of Restricted Stock. The Committee may provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock, which may or may not be subject to the same vesting conditions and restrictions as the vesting conditions and restrictions applicable to such Restricted Stock. Dividends paid on Restricted Stock which vests or is earned based upon the achievement of performance goals shall not vest unless such performance goals for such Restricted Stock are achieved, and if such performance goals are not achieved, the Grantee of such Restricted Stock shall promptly forfeit and repay to the Company such dividend payments. All stock distributions, if any, received by a Grantee with respect to Restricted Stock as a result of any stock split, stock dividend, combination of stock, or other similar transaction shall be subject to the vesting conditions and restrictions applicable to such Restricted Stock. 
		
	10.5.
	Rights of Holders of Deferred Stock Units. 

		
	10.5.1.
	Voting and Dividend Rights. 

Holders of Deferred Stock Units shall have no rights as shareholders of the Company (for example, the right to receive cash or dividend payments or distributions attributable to the shares of Stock subject to such Deferred Stock Units, to direct the voting of the shares of Stock subject to such Deferred Stock Units, or to receive notice of any meeting of the Company's shareholders). The Committee may provide in an Award Agreement evidencing a grant of Deferred Stock Units that the holder of such Deferred Stock Units shall be entitled to receive, upon the Company's payment of a cash dividend on its outstanding shares of Stock, a cash payment for each such Deferred Stock Unit which is equal to the per-share dividend paid on such shares of Stock. Such Award Agreement also may provide that such cash payment shall be deemed reinvested in additional Deferred Stock Units at a price per unit equal to the Fair Market Value of a share of Stock on the date that such cash dividend is paid. Such cash payments paid in connection with Deferred Stock Units which vest or are earned based upon the achievement of performance goals shall not vest unless such performance goals for such Deferred Stock Units are achieved, and if such performance goals are not achieved, the Grantee of such Deferred Stock Units shall promptly forfeit and repay to the Company such cash payments. Notwithstanding the foregoing, if a grantor trust is established in connection with the Awards of Deferred Stock Units and shares of Stock are held in the grantor trust for purposes of satisfying the Company's obligation to deliver shares of Stock in connection with such Deferred Stock Units, the Award Agreement for such Deferred Stock Units may provide that such cash payment shall be deemed reinvested in additional Deferred Stock Units at a price per unit equal to the actual price paid for each share of Stock by the trustee of the grantor trust upon such trustee's reinvestment of the cash dividend received. 
		
	10.5.2.
	Creditor's Rights. 

A holder of Deferred Stock Units shall have no rights other than those of a general unsecured creditor of the Company. Deferred Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement. 
		
	10.6.
	Termination of Service. 

Unless the Committee otherwise provides in an Award Agreement, in another agreement with the Grantee or otherwise in writing after such Award Agreement is entered into, but prior to termination of Grantee's Service, upon the termination of such Grantee's Service, any Restricted Stock or Deferred Stock Units held by such Grantee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited. Upon forfeiture of such Restricted Stock or Deferred Stock Units, the Grantee thereof shall have no further rights with respect thereto, including any right to vote such Restricted Stock or any right to receive dividends with respect to such Restricted Stock or Deferred Stock Units. If the Committee accelerates vesting of Restricted Stock or Deferred Stock Units, except (a) in the case of a Grantee's death or disability, (b) acceleration required by binding commitments or agreements entered into by the Company prior to the Effective Date or (c) as specified in Section 17.3, the shares of Stock subject to such Restricted Stock or Deferred Stock Units shall be deducted from the five percent (5%) share issuance limit set forth in Section 10.2. 
		
	10.7.
	Delivery of Shares of Stock. 

Upon the expiration or termination of any Restricted Period and the satisfaction of any other conditions prescribed by the Committee, the restrictions applicable to Restricted Stock or Deferred Stock Units settled in shares of Stock shall lapse, and, unless otherwise provided in the applicable Award Agreement, a book-entry or direct registration (including transaction advices) or a share certificate evidencing ownership of such shares of Stock shall, consistent with Section 3.7, be issued, free of all such restrictions, to the Grantee thereof or such Grantee's beneficiary or estate, as the case may be. Neither the Grantee, nor the Grantee's beneficiary or estate, shall have any further rights with regard to a Deferred Stock Unit once the shares of Stock represented by such Deferred Stock Unit have been delivered in accordance with this Section 10.7. 
		
	11.
	TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS 

		
	11.1.
	Unrestricted Stock Awards. 

The Committee may, in its sole discretion, grant an Award to any Grantee pursuant to which such Grantee may receive shares of Stock free of any restrictions (“Unrestricted Stock”) under the Plan, subject to the five percent (5%) share issuance limit set forth in Sections 8.2, 9.2 and 10.2. Unrestricted Stock Awards may be granted or sold to any Grantee as provided in the immediately preceding sentence in respect of past or, if so provided in the related Award Agreement or a separate agreement, the promise by the Grantee to perform future Service to the Company or an Affiliate or other valid consideration, or in lieu of, or in addition to, any cash compensation due to such Grantee. 
		
	11.2.
	Other Equity-Based Awards. 

The Committee may, in its sole discretion, grant Awards in the form of Other Equity-Based Awards, as deemed by the Committee to be consistent with the purposes of the Plan. Awards granted pursuant to this Section 11.2 may be granted with vesting, value and/or payment contingent upon the achievement of one or more performance goals. The Committee shall determine the terms and conditions of Other Equity-Based Awards at the Grant Date or thereafter. Unless the Committee otherwise provides in an Award Agreement, in another agreement with the Grantee, or otherwise in writing after such Award Agreement is issued, upon the termination of a Grantee's Service, any Other Equity-Based Awards held by such Grantee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited. Upon forfeiture of any Other Equity-Based Award, the Grantee thereof shall have no further rights with respect to such Other Equity-Based Award. 
		
	12.
	FORM OF PAYMENT FOR OPTIONS 

		
	12.1.
	General Rule. 

Payment of the Option Price for the shares of Stock purchased pursuant to the exercise of an Option shall be made in cash or in cash equivalents acceptable to the Company. 
		
	12.2.
	Surrender of Shares of Stock. 

To the extent that the applicable Award Agreement so provides, payment of the Option Price for shares of Stock purchased pursuant to the exercise of an Option may be made all or in part through the tender or attestation to the Company of shares of Stock, which shall be valued, for purposes of determining the extent to which such Option Price has been paid thereby, at their Fair Market Value on the date of exercise. 

		
	12.3.
	Cashless Exercise. 

To the extent permitted by Applicable Laws and to the extent the Award Agreement so provides, payment of the Option Price for shares of Stock purchased pursuant to the exercise of an Option may be made all or in part by delivery (on a form acceptable to the Committee) of an irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Stock and to deliver all or part of the proceeds of such sale to the Company in payment of such Option Price and any withholding taxes described in Section 18.3, or, with the consent of the Company, by issuing the number of shares of Stock equal in value to the difference between such Option Price and the Fair Market Value of the shares of Stock subject to the portion of such Option being exercised. 
		
	13.
	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS 

		
	13.1.
	Dividend Equivalent Rights. 

A Dividend Equivalent Right is an Award entitling the recipient thereof to receive credits based on cash distributions that would have been paid on the shares of Stock specified in such Dividend Equivalent Right (or other Award to which such Dividend Equivalent Right relates) if such shares of Stock had been issued to and held by the recipient of such Dividend Equivalent Right as of the record date. A Dividend Equivalent Right may be granted hereunder to any Grantee; provided that no Dividend Equivalent Right may be granted in connection with, or related to, an Award of Options or SARs. The terms and conditions of Dividend Equivalent Rights shall be specified in the Award Agreement therefor. Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid currently (with or without being subject to forfeiture or a repayment obligation) or may be deemed to be reinvested in additional shares of Stock, which may thereafter accrue additional Dividend Equivalent Rights (with or without being subject to forfeiture or a repayment obligation). Any such reinvestment shall be at the Fair Market Value thereof on the date of such reinvestment. Dividend Equivalent Rights may be settled in cash or shares of Stock or a combination thereof, in a single installment or in multiple installments, all as determined in the sole discretion of the Committee. A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other Award. A Dividend Equivalent Right granted as a component of another Award also may contain terms and conditions which are different from the terms and conditions of such other Award, provided that Dividend Equivalent Rights credited pursuant to a Dividend Equivalent Right granted as a component of another Award which vests or is earned based upon the achievement of performance goals shall not vest unless such performance goals for such underlying Award are achieved, and if such performance goals are not achieved, the Grantee of such Dividend Equivalent Rights shall promptly forfeit and repay to the Company payments made in connection with such Dividend Equivalent Rights. 
		
	13.2.
	Termination of Service. 

Unless the Committee otherwise provides in an Award Agreement, in another agreement with the Grantee, or otherwise in writing after such Award Agreement is issued, a Grantee's rights in all Dividend Equivalent Rights shall automatically terminate upon the Grantee's termination of Service for any reason. 
		
	14.
	TERMS AND CONDITIONS OF PERFORMANCE-BASED AWARDS 

		
	14.1.
	Grant of Performance-Based Awards. 

Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Performance-Based Awards to a Plan participant in such amounts and upon such terms as the Committee shall determine. 
		
	14.2.
	Value of Performance-Based Awards. 

Each grant of a Performance-Based Award shall have an initial value or target number of shares of Stock that is established by the Committee at the time of grant. The Committee shall set performance goals in its discretion which, depending on the extent to which they are achieved, shall determine the value and/or number of shares subject to a Performance-Based Award that will be paid out to the Grantee thereof. 
		
	14.3.
	Earning of Performance-Based Awards. 

Subject to the terms of the Plan, after the applicable Performance Period has ended, the Grantee of Performance-Based Awards shall be entitled to receive a payout on the value or number of the Performance-Based Awards earned by such Grantee over such Performance Period. 
		
	14.4.
	Form and Timing of Payment of Performance-Based Awards. 

Payment of earned Performance-Based Awards shall be as determined by the Committee and as evidenced in the applicable 

Award Agreement. Subject to the terms of the Plan, the Committee, in its sole discretion, may pay earned Performance-Based Awards in shares of Stock and shall pay the Awards that have been earned at the close of the applicable Performance Period, or as soon as reasonably practicable after the Committee has determined that the performance goal or goals have been achieved; provided that, unless specifically provided in the Award Agreement for such Awards, such payment shall occur no later than the 15th day of the third month following the end of the calendar year in which such Performance Period ends. Any shares of Stock paid out under such Awards may be granted subject to any restrictions deemed appropriate by the Committee. The determination of the Committee with respect to the form of payout of such Awards shall be set forth in the Award Agreement for the Awards. 
		
	14.5.
	Performance Conditions. 

The right of a Grantee to exercise or receive a grant or settlement of any Performance-Based Award, and the timing thereof, may be subject to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions. If and to the extent required under Code Section 162(m), any power or authority relating to an Award intended to qualify under Code Section 162(m) shall be exercised by the Committee and not by the Board. 
		
	14.6.
	Performance-Based Awards Granted to Designated Covered Employees. 

If and to the extent that the Committee determines that a Performance-Based Award to be granted to a Grantee should constitute “qualified performance-based compensation” for purposes of Code Section 162(m), the grant, exercise and/or settlement of such Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 14.6. 
		
	14.6.1.
	Performance Goals Generally. 

The performance goals for Performance-Based Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each such criteria, as specified by the Committee consistent with this Section 14.6. Performance goals shall be objective and shall otherwise meet the requirements of Code Section 162(m), including the requirement that the level or levels of performance targeted by the Committee result in the achievement of performance goals being “substantially uncertain.” The Committee may determine that such Awards shall be granted, exercised and/or settled upon achievement of any single performance goal or that two (2) or more of the performance goals must be achieved as a condition to grant, exercise and/or settlement of such Awards. Performance goals may differ for Awards granted to any one Grantee or to different Grantees. 
		
	14.6.2.
	Timing For Establishing Performance Goals. 

Performance goals for any Performance-Based Award shall be established not later than the earlier of (a) 90 days after the beginning of any Performance Period applicable to such Award, and (b) the date on which twenty-five percent (25%) of any Performance Period applicable to such Award has expired, or at such other date as may be required or permitted for compensation payable to a Covered Employee to constitute Performance-Based Compensation. 
		
	14.6.3.
	Settlement of Awards; Other Terms. 

Settlement of Performance-Based Awards shall be in shares of Stock, other Awards or other property, as determined in the sole discretion of the Committee. The Committee may, in its sole discretion, reduce the amount of a settlement otherwise to be made in connection with such Awards. The Committee shall specify the circumstances in which such Performance-Based Awards shall be paid or forfeited in the event of termination of Service by the Grantee prior to the end of a Performance Period or settlement of such Awards. 
		
	14.6.4.
	Performance Measures. 

The performance goals upon which the payment or vesting of a Performance-Based Award to a Covered Employee that is intended to qualify as Performance-Based Compensation may be conditioned shall be limited to the following Performance Measures, with or without adjustment: 
		
	(a)
	adjusted earnings; 

 
		
	(b)
	return on equity (which includes adjusted return on equity); 

		
	(c)
	earnings per share growth (which includes adjusted earnings per share growth); 

		
	(d)
	basic earnings per common share; 

		
	(e)
	diluted earnings per common share; 

		
	(f)
	adjusted earnings per common share; 

		
	(g)
	net income; 

		
	(h)
	adjusted earnings before interest and taxes; 

		
	(i)
	earnings before interest, taxes, depreciation and amortization; 

		
	(j)
	operating cash flow; 

		
	(k)
	operations and maintenance expense; 

		
	(l)
	total shareholder return; 

		
	(m)
	operating income; 

		
	(n)
	strategic business objectives, consisting of one or more objectives based upon meeting specified cost targets, business expansion goals, new growth opportunities, market penetration, and goals relating to the acquisitions or divestitures, or goals relating to capital-raising and capital management; 

		
	(o)
	customer satisfaction, as measured by, among other things, one or more of service cost, service levels, responsiveness, business value, and residential value; 

		
	(p)
	environmental, including, among other things, one or more of improvement in, or attainment of, emissions levels, project completion milestones, and prevention of significant environmental violations; 

		
	(q)
	common share price; 

		
	(r)
	production measures, consisting of, among other things, one or more of capacity utilization, generating equivalent availability, production cost, fossil generation activity, generating capacity factor, Institute of Nuclear Power Operations (INPO) Index performance, and World Association of Nuclear Power Operators (WANO) Index performance; 

		
	(s)
	bad debt expense; 

		
	(t)
	service reliability; 

		
	(u)
	service quality; 

		
	(v)
	improvement in, or attainment of, expense levels, including, among other things, one or more of operations and maintenance expense, capital expenditures and total expenditures; 

		
	(w)
	budget achievement; 

		
	(x)
	health and safety, as measured by, among other things, one or more of recordable case rate and severity rate; 

		
	(y)
	reliability, as measured by, among other things, one or more of outage frequency, outage duration, frequency of momentary interruptions, average frequency of customer interruptions, and average number of momentary interruptions per customer; 

		
	(z)
	ethics and compliance with applicable laws, regulations and professional standards; 

		
	(aa)
	risk management; 

 
		
	(bb)
	workforce quality, as measured by, among other things, one or more of diversity measures, talent and leadership development, workforce hiring, and employee satisfaction; 

		
	(cc)
	cost recovery; and 

		
	(dd)
	any combination of the foregoing. 

Performance under any of the foregoing Performance Measures (a) may be used to measure the performance of (i) the Company and its Subsidiaries and other Affiliates as a whole, (ii) the Company, any Subsidiary, and/or any other Affiliate or any combination thereof, or (iii) any one or more business units of the Company, any Subsidiary, and/or any other Affiliate, as the Committee, in its sole discretion, deems appropriate and (b) may be compared to the performance of one or more other companies or one or more published or special indices designated or approved by the Committee for such comparison, as the Committee, in its sole discretion, deems appropriate. In addition, the Committee, in its sole discretion, may select performance under Performance Measure clause (q) above (common share price) for comparison to performance under one or more stock market indices designated or approved by the Committee. The Committee also shall have the authority to provide for accelerated vesting of any Performance-Based Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Section 14. 
		
	14.6.5.
	Evaluation of Performance. 

The Committee may provide in any Performance-Based Award that any evaluation of performance may include or exclude any of the following events that occur during a Performance Period: (a) a Change in Control; (b) a declaration and distribution of stock dividends or stock splits; (c) mergers, consolidations or reorganizations; (d) acquisitions or dispositions of material business 

units; (e) extraordinary, non-core, non-operating or non-recurring items; and (f) infrequently occurring or extraordinary gains or losses. To the extent such inclusions or exclusions affect Awards to Covered Employees that are intended to qualify as Performance-Based Compensation, such inclusions or exclusions shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility. 
		
	14.6.6.
	Adjustment of Performance-Based Compensation. 

The Committee shall have the sole discretion to adjust Awards that are intended to qualify as Performance-Based Compensation, either on a formula or discretionary basis, or on any combination thereof, as the Committee determines consistent with the requirements of Code Section 162(m) for deductibility. 
		
	14.6.7.
	Committee Discretion. 

In the event that Applicable Laws change to permit Committee discretion to alter the governing Performance Measures without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining shareholder approval, provided that the exercise of such discretion shall not be inconsistent with the requirements of Code Section 162(m). In addition, in the event that the Committee determines that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base vesting on Performance Measures other than those set forth in Section 14.6.4. 
		
	14.7.
	Status of Awards Under Code Section 162(m). 

It is the intent of the Company that Awards under Section 14.6 granted to persons who are designated by the Committee as likely to be Covered Employees within the meaning of Code Section 162(m) and the regulations promulgated thereunder shall, if so designated by the Committee, constitute “qualified performance-based compensation” within the meaning of Code Section 162(m). Accordingly, the terms of Section 14.6, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with Code Section 162(m). If any provision of the Plan or any agreement relating to any such Award does not comply or is inconsistent with the requirements of Code Section 162(m), such provision shall be construed or deemed amended to the extent necessary to conform to such requirements. 
 
		
	15.
	PARACHUTE LIMITATIONS 

If any Grantee is a “disqualified individual,” as defined in Code Section 280G(c), then, notwithstanding any other provision of the Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by such Grantee with the Company or an Affiliate, except an agreement, contract, or understanding that expressly addresses Code Section 280G or Code Section 4999 (an “Other Agreement”), and notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries of which the Grantee is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Grantee (a “Benefit Arrangement”), any right of the Grantee to any exercise, vesting, payment or benefit under the Plan shall be reduced or eliminated: 
(a) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights, payments, or benefits to or for the Grantee under the Plan, all Other Agreements, and all Benefit Arrangements, would cause any exercise, vesting, payment, or benefit to the Grantee under the Plan to be considered a “parachute payment” within the meaning of Code Section 280G(b)(2) as then in effect (a “Parachute Payment”); and 
(b) if, as a result of receiving such Parachute Payment, the aggregate after-tax amounts received by the Grantee from the Company under the Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Grantee without causing any such payment or benefit to be considered a Parachute Payment. 
The Company shall accomplish such reduction by first reducing or eliminating any cash payments (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating any accelerated vesting of Performance-Based Awards, then by reducing or eliminating any accelerated vesting of Options or SARs, then by reducing or eliminating any accelerated vesting of Restricted Stock or Deferred Stock Units, then by reducing or eliminating any other remaining Parachute Payments. 
		
	16.
	REQUIREMENTS OF LAW 

		
	16.1.
	General. 

The Company shall not be required to offer, sell or issue any shares of Stock under any Award, whether pursuant to the exercise of an Option or SAR or otherwise, if the offer, sale or issuance of such shares of Stock would constitute a violation by the Grantee, the Company or an Affiliate, or any other person, of any provision of Applicable Laws, including any federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares of Stock subject to an Award upon any securities exchange or under any governmental regulatory body 

is necessary or desirable as a condition of, or in connection with, the offering, issuance, sale or purchase of shares of Stock in connection with any Award, no shares of Stock may be offered, issued or sold to the Grantee or any other person under such Award, whether pursuant to the exercise of an Option or SAR or otherwise, unless such listing, registration or qualification shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of such Award. Without limiting the generality of the foregoing, upon the exercise of any Option or any SAR that may be settled in shares of Stock or the delivery of any shares of Stock underlying an Award, unless a registration statement under the Securities Act is in effect with respect to the shares of Stock subject to such Award, the Company shall not be required to offer, sell or issue such shares of Stock unless the Committee shall have received evidence satisfactory to it that the Grantee or any other person exercising such Option or SAR or accepting delivery of such shares may acquire such shares of Stock pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Committee shall be final, binding, and conclusive. The Company may register, but shall in no event be obligated to register, any shares of Stock or other securities issuable pursuant to the Plan pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the exercise of an Option or a SAR or the issuance of shares of Stock or other securities issuable pursuant to the Plan or any Award to comply with any Applicable Laws. As to any jurisdiction that expressly imposes the requirement that an Option or SAR that may be settled in shares of Stock shall not be exercisable until the shares of Stock subject to such Option or SAR are registered under the securities laws thereof or are exempt from such registration, the exercise of such Option or SAR under circumstances in which the laws of such jurisdiction apply shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 
		
	16.2.
	Rule 16b-3. 

During any time when the Company has a class of equity security registered under Section 12 of the Exchange Act, it is the intention of the Company that Awards pursuant to the Plan and the exercise of Options and SARs granted hereunder that would otherwise be subject to Section 16(b) of the Exchange Act shall qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the Committee does not comply with the requirements of such Rule 16b-3, such provision or action shall be deemed inoperative with respect to such Awards to the extent permitted by Applicable Laws and deemed advisable by the Committee, and shall not affect the validity of the Plan. In the event that such Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify the Plan in any respect necessary or advisable in its judgment to satisfy the requirements of, or to permit the Company to avail itself of the benefits of, the revised exemption or its replacement. 
		
	17.
	EFFECT OF CHANGES IN CAPITALIZATION 

		
	17.1.
	Changes in Stock. 

If the number of outstanding shares of Stock is increased or decreased or the shares of Stock are changed into or exchanged for a different number of shares or kind of capital stock or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse stock split, spin-off, combination of stock, exchange of stock, stock dividend or other distribution payable in capital stock, or other increase or decrease in shares of Stock effected without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of shares of stock for which grants of Options and other Awards may be made under the Plan, including the share limits set forth in Section 6.2, shall be adjusted proportionately and accordingly by the Committee. In addition, the number and kind of shares of stock for which Awards are outstanding shall be adjusted proportionately and accordingly by the Committee so that the proportionate interest of the Grantee therein immediately following such event shall, to the extent practicable, be the same as immediately before such event. Any such adjustment in outstanding Options or SARs shall not change the aggregate Option Price or SAR Price payable with respect to shares that are subject to the unexercised portion of such outstanding Options or SARs, as applicable, but shall include a corresponding proportionate adjustment in the per share Option Price or SAR Price, as the case may be. The conversion of any convertible securities of the Company shall not be treated as an increase in shares effected without receipt of consideration. Notwithstanding the foregoing, in the event of any distribution to the Company's shareholders of securities of any other entity or other assets (including an extraordinary dividend, but excluding a non-extraordinary dividend, declared and paid by the Company) without receipt of consideration by the Company, the Board or the Committee constituted pursuant to Section 3.1.2 shall, in such manner as the Board or the Committee deems appropriate, adjust (a) the number and kind of shares of stock subject to outstanding Awards and/or (b) the aggregate and per share Option Price of outstanding Options and the aggregate and per share SAR Price of outstanding Stock Appreciation Rights as required to reflect such distribution. 
		
	17.2.
	Reorganization in Which the Company Is the Surviving Entity Which Does not Constitute a Change in Control. 

Subject to Section 17.3, if the Company shall be the surviving entity in any reorganization, merger or consolidation of the Company with one or more other entities which does not constitute a Change in Control, any Option or SAR theretofore granted pursuant to the Plan shall pertain to and apply to the securities to which a holder of the number of shares of Stock subject to such Option or SAR would have been entitled immediately following such reorganization, merger or consolidation, with a corresponding 

proportionate adjustment of the per share Option Price or SAR Price so that the aggregate Option Price or SAR Price thereafter shall be the same as the aggregate Option Price or SAR Price of the shares of Stock remaining subject to the Option or SAR as in effect immediately prior to such reorganization, merger, or consolidation. Subject to any contrary language in an Award Agreement or in another agreement with the Grantee, or otherwise set forth in writing, any restrictions applicable to such Award shall apply as well to any replacement shares received by the Grantee as a result of such reorganization, merger or consolidation. In the event of any reorganization, merger or consolidation of the Company referred to in this Section 17.2, Performance-Based Awards shall be adjusted (including any adjustment to the Performance Measures applicable to such Awards deemed appropriate by the Committee) so as to apply to the securities that a holder of the number of shares of Stock subject to the Performance-Based Awards would have been entitled to receive immediately following such reorganization, merger or consolidation. 
17.3.    Change in Control in which Awards are not Assumed. 
Except as otherwise provided in the applicable Award Agreement or in another agreement with the Grantee, or as otherwise set forth in writing, upon the occurrence of a Change in Control in which outstanding Options, SARs, Restricted Stock, Deferred Stock Units, Dividend Equivalent Rights or Other Equity-Based Awards are not being assumed or continued, the following provisions shall apply to such Award, to the extent not assumed or continued: 
(a) in each case with the exception of Performance-Based Awards, 
(i) all outstanding Restricted Stock shall be deemed to have vested, all Deferred Stock Units shall be deemed to have vested and the shares of Stock subject thereto shall be delivered, and all Dividend Equivalent Rights shall be deemed to have vested and the shares of Stock subject thereto shall be delivered, immediately prior to the occurrence of such Change in Control, and fifteen (15) days prior to the scheduled consummation of such Change in Control, all Options and SARs outstanding hereunder shall become immediately exercisable and shall remain exercisable for a period of fifteen (15) days; or 
(ii) the Committee may elect, in its sole discretion, to cancel any outstanding Awards of Options, Restricted Stock, Deferred Stock Units, Dividend Equivalent Rights and/or SARs and pay or deliver, or cause to be paid or delivered, to the holder thereof an amount in cash or securities having a value (as determined by the Committee acting in good faith), in the case of Restricted Stock, Deferred Stock Units and Dividend Equivalent Rights (for shares of Stock subject thereto) equal to the formula or fixed price per share paid to holders of shares of Stock pursuant to such Change in Control and, in the case of Options or SARs, equal to the product of the number of shares of Stock subject to such Options or SARs (the “Award Stock”) multiplied by the amount, if any, by which (x) the formula or fixed price per share paid to holders of shares of Stock pursuant to such transaction exceeds (y) the Option Price or SAR Price applicable to such Award Stock. 
(b) For Performance-Based Awards denominated in Stock, if less than half of the Performance Period has lapsed, such Performance-Based Awards shall be converted into Restricted Stock or Performance Shares assuming target performance has been achieved (or into Unrestricted Stock if no further restrictions apply). If at least half the Performance Period has lapsed, such Performance-Based Awards shall be converted into Restricted Stock or Performance Shares based on actual performance to date (or into Unrestricted Stock if no further restrictions apply). If actual performance is not determinable, such Performance-Based Awards shall be converted into Restricted Stock or Performance Shares assuming target performance has been achieved, based on the discretion of the Committee (or into Unrestricted Stock if no further restrictions apply). 
(c) Other Equity-Based Awards shall be governed by the terms of the applicable Award Agreement. 
With respect to the Company's establishment of an exercise window, (A) any exercise of an Option or SAR during the fifteen (15)-day period referred to above shall be conditioned upon the consummation of the applicable Change in Control and shall be effective only immediately before the consummation thereof, and (B) upon consummation of any Change in Control, the Plan and all outstanding but unexercised Options and SARs shall terminate. The Committee shall send notice of an event that shall result in such a termination to all natural persons and entities who hold Options and SARs not later than the time at which the Company gives notice thereof to its shareholders. 
		
	17.4.
	Change in Control in which Awards are Assumed. 

Except as otherwise provided in the applicable Award Agreement or in another agreement with the Grantee, or as otherwise set forth in writing, upon the occurrence of a Change in Control in which outstanding Options, SARs, Restricted Stock, Deferred Stock Units, Dividend Equivalent Rights or Other Equity-Based Awards are being assumed or continued, the following provisions shall apply to such Award, to the extent assumed or continued: 
The Plan and the Options, SARs, Restricted Stock, Deferred Stock Units, Dividend Equivalent Rights and Other Equity-Based Awards granted under the Plan shall continue in the manner and under the terms so provided in the event of any Change in Control to the extent that provision is made in writing in connection with such Change in Control for the assumption or continuation of such Options, SARs, Restricted Stock, Deferred Stock Units, Dividend Equivalent Rights and Other Equity-Based Awards, or for the substitution for such Options, SARs, Restricted Stock, Deferred Stock Units, Dividend Equivalent Rights and Other Equity-

Based Awards of new common stock options, stock appreciation rights, restricted stock, common stock units, dividend equivalent rights and other equity-based awards relating to the stock of a successor entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number of shares (disregarding any consideration that is not common stock) and option and stock appreciation rights exercise prices. 
17.5.    Adjustments. 
Adjustments under this Section 17 related to shares of Stock or other securities of the Company shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share. The Committee may provide in the applicable Award Agreement at the time of grant, in another agreement with the Grantee, or otherwise in writing at any time thereafter with the consent of the Grantee, for different provisions to apply to an Award in place of those provided in Sections 17.1, 17.2, 17.3 and 17.4. This Section 17 shall not limit the Committee's ability to provide for alternative treatment of Awards outstanding under the Plan in the event of a change in control event that is not a Change in Control. 
		
	17.6.
	No Limitations on Company. 

The making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets (including all or any part of the business or assets of any Subsidiary or other Affiliate) or engage in any other transaction or activity. 
		
	18.
	GENERAL PROVISIONS 

		
	18.1.
	Disclaimer of Rights. 

No provision in the Plan or in any Award or Award Agreement shall be construed to confer upon any individual the right to remain in the employ or Service of the Company or an Affiliate, or to interfere in any way with any contractual or other right or authority of the Company or an Affiliate either to increase or decrease the compensation or other payments to any natural person or entity at any time, or to terminate any employment or other relationship between any natural person or entity and the Company or an Affiliate. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, in another agreement with the Grantee, or otherwise in writing, no Award granted under the Plan shall be affected by any change of duties or position of the Grantee thereof, so long as such Grantee continues to provide Service. The obligation of the Company to pay any benefits pursuant to the Plan shall be interpreted as a contractual obligation to pay only those amounts provided herein, in the manner and under the conditions prescribed herein. The Plan and Awards shall in no way be interpreted to require the Company to transfer any amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan. 
		
	18.2.
	Nonexclusivity of the Plan. 

Neither the adoption of the Plan nor the submission of the Plan to the shareholders of the Company for approval shall be construed as creating any limitations upon the right and authority of the Board to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual or particular individuals) as the Board in its discretion determines desirable. 
		
	18.3.
	Withholding Taxes. 

The Company or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any federal, state, or local taxes of any kind required by law to be withheld with respect to the vesting of or other lapse of restrictions applicable to an Award or upon the issuance of any shares of Stock upon the exercise of an Option or pursuant to any other Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay in cash to the Company or an Affiliate, as the case may be, any amount that the Company or such Affiliate may reasonably determine to be necessary to satisfy such withholding obligation; provided that if there is a same-day sale of shares of Stock subject to an Award, the Grantee shall pay such withholding obligation on the day on which such same-day sale is completed. Subject to the prior approval of the Company or an Affiliate, which may be withheld by the Company or such Affiliate, as the case may be, in its sole discretion, the Grantee may elect to satisfy such withholding obligation, in whole or in part, (a) by causing the Company or such Affiliate to withhold shares of Stock otherwise issuable to the Grantee or (b) by delivering to the Company or such Affiliate shares of Stock already owned by the Grantee. The shares of Stock so withheld or delivered shall have an aggregate Fair Market Value equal to such withholding obligation. The Fair Market Value of the shares of Stock used to satisfy such withholding obligation shall be determined by the Company or such Affiliate as of the date on which the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant to this Section 18.3 may satisfy such Grantee's withholding obligation only with shares of Stock that are not 

subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. The maximum number of shares of Stock that may be withheld from any Award to satisfy any federal, state or local tax withholding requirements upon the exercise, vesting, or lapse of restrictions applicable to any Award or payment of shares of Stock pursuant to such Award, as applicable, may not exceed such number of shares of Stock having a Fair Market Value equal to the minimum statutory amount required by the Company or the applicable Affiliate to be withheld and paid to any such federal, state or local taxing authority with respect to such exercise, vesting, lapse of restrictions or payment of shares of Stock. Notwithstanding Section 2.22 or this Section 18.3, for purposes of determining taxable income and the amount of the related tax withholding obligation pursuant to this Section 18.3, for any shares of Stock subject to an Award that are sold by or on behalf of a Grantee on the same date on which such shares may first be sold pursuant to the terms of the related Award Agreement, the Fair Market Value of such shares shall be the sale price of such shares on such date (or if sales of such shares are effectuated at more than one sale price, the weighted average sale price of such shares on such date), so long as such Grantee has provided the Company, or its designee or agent, with advance written notice of such sale. 

 
		
	18.4.
	Captions. 

The use of captions in the Plan or any Award Agreement is for convenience of reference only and shall not affect the meaning of any provision of the Plan or such Award Agreement. 
		
	18.5.
	Other Provisions. 

Each Award granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Committee, in its sole discretion. 
		
	18.6.
	Number and Gender. 

With respect to words used in the Plan, the singular form shall include the plural form and the masculine gender shall include the feminine gender, as the context requires. 
		
	18.7.
	Severability. 

If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction. 
		
	18.8.
	Governing Law. 

The validity and construction of the Plan and the instruments evidencing the Awards hereunder shall be governed by, and construed and interpreted in accordance with, the laws of the State of Florida, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan and the instruments evidencing the Awards granted hereunder to the substantive laws of any other jurisdiction. 
		
	18.9.
	Section 409A of the Code. 

The Company intends to comply with Code Section 409A, or an exemption to Code Section 409A, with regard to Awards hereunder that constitute nonqualified deferred compensation within the meaning of Code Section 409A. To the extent that the Company determines that a Grantee would be subject to the additional twenty percent (20%) tax imposed on certain nonqualified deferred compensation plans pursuant to Code Section 409A as a result of any provision of any Award granted under the Plan, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax. The nature of any such amendment shall be determined by the Committee. 
* * * 
To record adoption of the Plan by the Board as of December 10, 2010, approval of the Plan by the shareholders on May 20, 2011, and the amendment and restatement of the Plan by the Board as of March 16, 2012, the Company has caused its authorized officer to execute the Plan. 

	
		
	NEXTERA ENERGY, INC.

	By:
	SHAUN J. FRANCIS

	 
	 

	Title:
	Executive Vice President, Human Resourcesexh10-1.htm

  

  

  

 

EXHIBIT 10.1

 

SECTION 1                      SUMMARY OF AGREEMENT

 

 

	
BUILDER:

 

Jurong Shipyard Pte Ltd

No. 29 Tanjong Kling Road

Singapore 628054

 

 

 

hereinafter referred to as Builder

	
OWNERS:

 

Helix Energy Solutions Group, Inc.

400 North Sam Houston Pkwy East

Houston, TX 77060

USA

 

 

hereinafter referred to as Owners

 

 

WHEREAS, Owners wish to construct a well intervention semi-submersible to be known as the GOM unit (herein defined as the Vessel) bearing JSPL Hull No. 11-1111 and Builder is willing to perform the Work on the terms and conditions hereinafter set forth,

 

NOW THEREFORE, the Parties hereby agree as follows:

 

	
1.

	
Builder shall construct the Vessel in accordance with the Contract, and Amendments and Variation Order thereto;

 

	
2.

	
The Contract shall consist of, and in the event of conflict, discrepancies or inconsistencies the following order of precedence shall apply:

 

SECTION 1                      SUMMARY OF AGREEMENT;

SECTION 2                      TERMS AND CONDITIONS OF CONTRACT;

SECTION 3                      SCHEDULE OF PRICES;

SECTION 4                      PROGRAMME;

SECTION 5                      ADMINISTRATION INSTRUCTIONS;

SECTION 6                      TECHNICAL SPECIFICATIONS;

SECTION 7                      DRAWINGS; and

SECTION 8                      FACILITIES FOR OWNERS.

 

	
3.

	
Owners shall pay to Builder the Contract Price determined in accordance with the terms and conditions of Contract;

 

	
4.

	
The Contract is between Builder and Owners and nothing herein shall entitle Builder to commence proceedings against its parents or any affiliate, holding, subsidiary or associated company of Owners;

 

	
5.

	
The Contract constitutes the entire agreement between the Parties and supersedes all previous negotiations, representations or agreements either written or oral preceding the Contract.

  

  

  

 

This Contract is entered into in duplicate original and shall become effective upon the signature by the Parties, and upon receipt by Builder of the first milestone payment from the Owners.

 

 

For and on behalf of BUILDER:                                                                                     For and on behalf of OWNERS:

 

 

 

Signed   /s/ Don F.K. Lee  :                                                      Signed         /s/ Owen Kratz :

 

Name  Don F.K. Lee          :                                                      Name    Owen Kratz :

 

Position   SNR General Manager:                                            Position   CEO :

 

Date   12 March 2012        :                                                      Date   March 12, 2012                   :

 

  

  

  

 

 

 

	
Section 2

	
TERMS AND CONDITIONS

 

 

	
Article

	
Heading

 

 

	
1  

	
Definitions

 

 

	
2  

	
Interpretation

 

 

	
3  

	
Construction and Parties representatives

 

 

	
4  

	
Design responsibility

 

 

	
5  

	
Review of drawings and documentation

 

 

	
6  

	
Permits, laws, regulations and classification

 

 

	
7  

	
OFE

 

 

	
8  

	
Information supplied by Owners

 

 

	
9  

	
The Work

 

 

	
10  

	
Builder's representations

 

 

	
11  

	
Subcontracts

 

 

	
12  

	
Work Schedule and Programme

 

 

	
13  

	
Inspection

 

 

	
14  

	
Cooperation with Others

 

 

	
15  

	
Facilities for Owners

 

 

	
16  

	
Variations

 

 

	
17  

	
[Not Used]

 

 

	
18  

	
[Not Used]

 

 

	
19  

	
Force Majeure

 

 

	
20  

	
Tests and sea trials

 

 

	
21  

	
Delivery and Acceptance

 

 

	
22  

	
Contract Price and terms of payment

 

 

	
23  

	
Guarantee

 

 

	
24  

	
Indemnities

 

 

	
25  

	
Insurance by Builder

 

 

	
26  

	
Taxation

 

 

	
27  

	
Audit rights of Owners

 

 

	
28  

	
Patents and Proprietary Information

 

 

	
29  

	
Liens

 

 

	
30  

	
Ownership

 

 

	
31  

	
Commencement, completion, liquidated damages and incentives

 

 

	
32  

	
[Not Used]

 

 

	
33  

	
Termination for Builder's default

 

 

	
34  

	
Remedies for Owners’ default

 

 

	
35  

	
Conflict of interest

 

 

	
36  

	
Independent Contractor

 

 

	
37  

	
Confidentiality

 

 

	
38  

	
Consequential damages and exclusion of liability

 

 

	
39  

	
Amendments and Contract changes

 

 

	
40  

	
Waiver

 

 

	
41  

	
Assignment

 

 

	
42  

	
Notices

 

 

	
43  

	
Performance bond/Refund Guarantees

 

 

	
44  

	
Governing law and disputes

 

 

	
45  

	
Business practices

 

 

  

  

  

 

 

Article 1                                Definitions

 

 

For the purposes of this Contract the following terms shall have the following meanings:

 

 

	
1.1  

	
Amendment shall mean a duly authorised and signed amendment to the Contract.

 

 

	
1.2  

	
Authorities shall mean all National and International Regulatory Bodies as listed in Section 6 - Technical Specifications (including the Classification Society).

 

 

	
1.3  

	
Banking Day shall mean a day that Owners’ bank (that provides Owner with financing for the Vessel) and Builder's bank are open and are in every respect able to perform banking functions between themselves, including the transfer of funds.

 

 

	
1.4  

	
BFE shall mean the items of material and equipment provided by Builder or Subcontractors, including without limitation the items set forth in Section 6 – Technical Specifications.

 

 

	
1.5  

	
BFE Commissioning Procedures shall mean the documents and procedures jointly agreed by Builder and Owners with procedures and acceptance criteria for commissioning the BFE prior to Delivery.

 

 

	
1.6  

	
Bridging Agreement means the Exclusive Bridging Agreement dated 28 June, 2011 between Builder and Owners.  As at the Effective Date the Bridging Agreement shall automatically terminate and shall be considered null and void without further reference and any and all rights and liabilities which so arise under the Bridging Agreement in respect of work performed thereunder shall be transferred to the Contract and for all intents and purposes be regarded as Work performed under the Contract.  Any claims either Party has in respect of the work performed under the Bridging Agreement shall only be made under the Contract.

 

 

	
1.7  

	
Builder shall mean Jurong Shipyard Pte Ltd and its permitted assigns.

 

 

	
1.8  

	
Builder Group shall mean Builder and its subsidiaries, affiliated and associated companies including Subcontractors of any tier and their agents, servants, consultants, directors, officers and employees and Invitees.

 

 

	
1.9  

	
Classification Society means American Bureau of Shipping (“ABS”).

 

 

	
1.10  

	
Contract shall mean the agreement between the Parties dated on the date of signing hereof consisting of the following:

 

Section 1                                Summary of Agreement;

Section 2                                Terms and Conditions of Contract;

Section 3                                Schedule of Prices;

Section 4                                Programme;

Section 5                                Administration Instructions;

Section 6                                Technical Specifications;

Section 7                                Drawings; and

Section 8                                Facilities for Owners.

 

	
1.11  

	
[Not Used].

 

 

	
1.12  

	
Contract Price shall mean the sum or sums stated in Section 3 - Schedule of Prices, together with any Variation or Amendment thereof.

 

 

	
1.13  

	
[Not used]

 

 

	
1.14  

	
Day shall mean a calendar day.

 

 

	
1.15  

	
Delivery shall mean the completion of all the obligations as stated in Articles 20 and 21.

 

 

	
1.16  

	
Delivery Date shall mean the date stated in the Programme for the Delivery to take place as adjusted from time to time by Permissible Delays, or by Variation Orders, Owners’ opinion on a Disputed Variation Order or Amendment.

 

 

	
1.17  

	
Drawings means those drawings contained in Section 7 of the Contract.

 

 

	
1.18  

	
Disputed Variation Order shall mean a document issued by Owners, signifying Owners’ approval for the Work described by Owners thereon or other changes to the Work, Contract Price or the Programme, which is to be executed by Builder; provided that the Parties are in disagreement as to the validity and/or effects associated therewith on the scope of the Work, the Contract Price or associated changes in the Programme.

 

 

	
1.19  

	
DP System means the dynamic positioning system manufactured by KongsbergAS to be installed in the Vessel.

 

 

	
1.20  

	
Effective Date shall mean the date on which the Construction Contract becomes binding on the Parties in accordance with Section 1 - Summary of Agreement;

 

 

	
1.21  

	
Guarantee shall mean all warranties and guarantees provided by Builder under Article 23 of this Contract.

 

 

	
1.22  

	
Guarantee Period shall mean the period commencing on the date of actual Delivery of the Vessel to Owners and ending on the first anniversary thereof, subject to extension under Article 23.

 

 

	
1.23  

	
Instruction shall mean any instruction issued by Owners for Builder to execute Work described in the Instruction forthwith prior to the issuance of a Variation Order.

 

 

	
1.24  

	
Interface Information shall mean the information regarding the interconnection or interaction between (a) an item of equipment or machinery or attachment, including BFE and OFE, and (b) the Vessel or other item of equipment or machinery or attachment, including BFE and OFE.  Such information may include, without limitation, foundation templates, coupling templates, drawings, design, calculation, sizes, diagrams, signal information, forces, reactions, weights, movements, noise, vibration and performance data.

 

 

	
1.25  

	
Invitee shall mean any person not a party to the Contract or any Subcontract whose presence at the Worksite is at the invitation of a Party to the Contract.

 

 

	
1.26  

	
Key Personnel shall mean Builder's representative, deputy representative, supervisors, the lead engineer of each discipline and the corresponding personnel of Subcontractors.

 

 

	
1.27  

	
Milestone shall mean the total amount of Work required to be completed by Builder as of the corresponding date in the Programme for such Milestone.  The descriptions appended to the Milestones in Section 3 - Schedule of Prices and Section 4 - Programme are not to be construed as defining or in a way limiting the Work to be performed by Builder within a Milestone or the date thereof.

 

 

	
1.28  

	
Milestone Completion Certificate shall mean a certificate issued by Owners under Article 31.3.

 

 

	
1.29  

	
Notice shall mean any Contractual Notice required to be given by either Party to the other under the Contract which meets the requirements set forth in Article 42.

 

 

	
1.30  

	
OFE means the items of material and equipment provided by Owners or Vendors as more fully set forth in Section 6 – Technical Specifications; provided that any OFE or contracts for acquisition of OFE are transferred by Owners to Builder, such OFE shall upon such transfer be deemed to be BFE.

 

 

	
1.31  

	
OFE Commissioning Procedures shall mean the documents and procedures jointly agreed by Builder and Owners with procedures and acceptance criteria for commissioning the OFE prior to Delivery.

 

 

	
1.32  

	
ONE shall mean Owner Nominated Equipment as described in Article 7A.

 

 

	
1.33  

	
Owners means Helix Energy Solutions Group, Inc. and its permitted assigns.

 

 

	
1.34  

	
Owners Group shall mean Owners and their parent, holding, subsidiaries, affiliated and associated companies including their Vendors, contractors, subcontractors, agents, consultants, servants, directors, officers, employees and Invitees.

 

 

	
1.35  

	
Parties shall mean Builder and Owners.

 

 

	
1.36  

	
Permissible Delays shall mean delays to the Delivery Date on account of (i) such causes specified in the Contract which under the terms of this Contract  permits the postponement of the Delivery Date, (ii) delays and disruptions in the Work caused by Owner and (iii) payment delays caused by Owner for undisputed amounts.

 

 

	
1.37  

	
Programme shall mean the dates or sequence of dates for the Contract performance as stated in Section 4 - Programme together with any Variation or Amendment thereof.

 

 

	
1.38  

	
Proprietary Information shall mean any information passed to Builder by Owners or Vendors or any information generated by Builder or its Subcontractors in connection with the Contract.

 

 

	
1.39  

	
Sea Trials Procedures shall mean the documents and procedures jointly agreed by Builder and Owners with procedures and acceptance criteria for commissioning the Vessel at sea prior to Delivery.

 

 

	
1.40  

	
Shipyard shall mean the principal facility where the Work is from time to time being performed including all adjacent and associated facilities.

 

 

	
1.41  

	
Specifications shall mean the Technical Specifications contained in Section 6 of the Contract.

 

 

	
1.42  

	
Subcontract shall mean any agreement between Builder and a Subcontractor respecting the Work or the Vessel.

 

 

	
1.43  

	
Subcontractor shall mean any legal entity (other than employees) engaged by Builder for the execution of any part of the Work or the supply of materials, parts, components or machinery for the Vessel and shall include Builder's sub-suppliers.

 

 

	
1.44  

	
Temporary Works shall mean all scaffolding, staging, weather proofing and all temporary works of any kind required in connection with the Work.

 

 

	
1.45  

	
Third Party shall mean any person or entity other than Builder Group or Owner Group.

 

 

	
1.46  

	
Variation shall mean any alteration to the Contract and/or to the Specifications, including without limitation any changes to the Programme, made by or approved by Owners in accordance with Article 16 and confirmed by a Variation Order.

 

 

	
1.47  

	
Variation Order shall mean a document issued by Owners signifying Owners’ approval of a Variation and the Parties’ agreement as to the effect of such Variation, if any, on the Programme or the Contract Price.

 

 

	
1.48  

	
Vendor/s shall mean the supplier of services, goods, equipment, parts or components, under a purchase order or Contract with Owners, where such goods, equipment, parts or components are to be incorporated into the Vessel by Builder.

 

 

	
1.49  

	
Vessel or Unit shall mean the Well Intervention Semisubmersible Unit throughout all stages of the Work, together with all its equipment, machinery, spare parts, and any other attachments or appurtenances.

 

 

	
1.50  

	
Work shall mean all the work, supplies and services to be performed or provided by Builder in accordance with the Contract, subject to any Variation Order or Amendment.

 

 

	
1.51  

	
Worksite shall mean the locations and the facilities used for the performance of the Work, or any part thereof, including but not limited to the Shipyard, fabrication yards, Subcontractor premises, testing facilities, offices, warehouses, storage and handling areas.

 

 

 

 

 

Article 2                      Interpretation

 

 

	
2.1  

	
No index, title, subtitle, subheading, marginal note, singular or plural of the Contract shall limit, alter or affect the meaning or operation of the Contract.

 

 

	
2.2  

	
All correspondence, documentation and discussions shall be in the English language. Only clearly legible documents in the English language and transferred between the Parties in accordance with the instructions given in Section 5 - Administration Instructions, or in the event of Notices as specified in Article 42, shall be recognised as valid communications under the Contract.

 

 

	
2.3  

	
Any review, inspection, approval, expression of satisfaction, acceptance, payment, attendance of tests, acknowledgement, or otherwise, by Owners or Authorities, whether written or otherwise shall not relieve Builder from any liability or obligation under the Contract and shall be without prejudice to the Contractual and legal rights of Owners.

 

 

	
2.4  

	
The use of words such as provide, supply, require, perform, undertake, oblige, obligation, warrant, represents, responsible and guarantee shall be deemed to be a Contractual obligation and/or liability on the part of the Party referred to and shall imply that the said Party shall bear the cost of performing the obligation and/or bear the risks of undertaking the liability, except specified elsewhere or agreed by both Parties in writing.

 

 

Notwithstanding the above, the use of the words mentioned therein shall not be considered as limiting Builder’s scope of Work and/or the obligations and duties of Builder or Owner under the Contract.

 

 

 

 

 

Article 3                                Construction and Parties Representatives

 

	
3.1  

	
Builder undertakes to build at the Shipyard and to deliver to Owners, who order and undertake to accept delivery of, the Vessel, subject to and in accordance with this Contract and the Specifications. In the event of any conflict between this Contract and the Specifications the provisions of this Contract shall prevail. In the event of any conflict between the Specifications and the Drawings, the provisions of the Specifications shall prevail.

 

Notwithstanding the above, it is understood that the Specifications and Drawings are complementary and that everything contained in the Drawings and not mentioned in the Specifications and vice versa is to be understood as included in both the foregoing documents. The Vessel shall have the dimensions and characteristics stated in the Specifications.

 

	
3.2  

	
The Vessel shall, for the purpose of identification only, be known as Hull number 11-1111. Builder shall at all times identify parts, spares, equipment and materials for the Contract by affixing the hull number thereto and placing or storing such spares, parts, equipment and materials in a segregated area at the Shipyard specifically designated for the Vessel and identified by the hull number, free from exposure to precipitation, excessive heat or excessive cold and, if needed, from exposure to oxygen.

 

	
3.3  

	
The Vessel shall comply with the laws, rules, regulations and enactments published and in force in the United States of America and in the country of the Vessel’s proposed registration on the date of signing this Contract as stated in the Specifications.

 

Subject to Article 6.5, the Vessel shall be built under the survey of the Classification Society to the classification listed in Section G8 of Section 6 – Technical Specifications and in accordance with normal offshore vessel construction practices in Singapore for new vessels of the type and general characteristics of the Vessel. The Vessel shall also comply with the rules, regulations and requirements of other relevant Authorities as set out in the Specifications. Classification, survey and testing charges relating to Builder's obligations and items of supply under this Contract shall be for the account of Builder. The registration of the Vessel shall be carried out by Owners and the costs and expenses thereof shall be for Owners’ account.

 

 

	
3.4  

	
Each Party shall appoint, in writing on the Effective Date, a representative who shall be available and be legally empowered, as a company officer or through a power of attorney, to accept, commit and act on behalf of the respective Party with such authority as may be specified by the Parties in matters arising in connection with the Contract.

 

 

	
3.5  

	
Builder's representative shall be available and assigned full time to the Work.

 

 

	
3.6  

	
Owners' representative or any person authorised by Owners' representative, shall have access at all times to the Vessel, the Work and the Worksite.

 

 

	
3.7  

	
Not used.

 

 

	
3.8  

	
Owners may change their representative at any time upon giving Builder seven days prior written Notice thereof.

 

 

	
3.9  

	
Builder shall use its best efforts to maintain its Key Personnel in their respective positions and functions through the Delivery Date.  In the event that it should be necessary to substitute Key Personnel, Builder shall be responsible for providing an adequate period for the hand-over of the activity concerned, such period shall be at least ten (10) Days.  Prior to the appointment of a substitute, Owners shall be allowed the opportunity to approve the selection of personnel intended as a substitute.  The substitute shall have an equivalent level of qualification and experience.  All Key Personnel shall be fluent in written and spoken English.

 

 

	
3.10  

	
Owners may, upon Notice to Builder, require that Builder remove any Key Personnel from the Work in the event of any misconduct, inadequacy, inability to perform, or other reasonable cause of dissatisfaction that materially affects the quality of workmanship, the safety of personnel or property or the schedule. Builder shall address Owners’ concern and if unable to satisfy Owners’ concerns within a reasonable time, Builder shall effect the removal of such Key Personnel immediately.  The requirement for removal or such personnel shall be without liability on the part of Owners and shall not of itself be cause for any disciplinary action against such personnel.

 

 

All costs incurred in the removal and replacement of any personnel shall be for the account of Builder.

 

 

 

 

 

Article 4                                Design responsibility

 

 

	
4.1  

	
Owner shall be responsible for the design as set out in Section 6 Annex 11A of the Contract.

 

 

	
4.2  

	
The  drawings produced by Builder under the Bridging Agreement is set out in Section 6 Annex 11B of the Contract and further  drawings listed in Section 6 Annex 11C shall be produced by Builder in accordance with the Programme.

 

 

	
4.3  

	
Builder shall develop and keep fully updated at all times a matrix of all permits, law, legislation, rules, regulations and guidelines applicable to the Work, which shall include a description of their specific application to the Work, and timetable of action taken and still to be taken by Builder to ensure compliance therewith.  Copies of such matrix shall be provided to Owners as part of Builder’s progress reports pursuant to the Contract.

 

 

 

 

 

Article 5                                Review of drawings and documentation

 

	
5.1

	
The Builder shall produce the remaining detailed plans and drawings required under Section 6 Annex 11C of the Contract. In respect of all plans, drawings and documentation, the same shall be submitted to the Owners in three (3) copies as soon as possible following their production.  The Owners shall, within fourteen (14) Days after receipt thereof, return to the Builder one copy of such drawings and documentation with the Owners' final remarks and amendments (if any) written thereon.

 

	
  

	
5.2.      In the event that the Owners shall fail to return the plans, drawings and documentation to the Builder within the time limit as hereinabove provided, such plans, drawings and documentation shall be deemed to have been approved by the Owners provided always that the Owners is provided with such plans, drawings and documentation at regular intervals and not all plans, drawings and documentation simultaneously.

 

	
5.3

	
The Builder shall take due note of the Owners' remarks and amendments (if any) on plans, drawings and documentation submitted pursuant to this Article and, if such remarks or amendments are not of such a nature or extent as to constitute variations of the Specifications within the meaning of Article 16 Variations hereof, and subject to Classification Society’s approval, then the Builder shall commence or continue construction of the Vessel  in accordance with the corrected or amended drawings and documentation.  If such remarks or amendments are not clearly specified or detailed, the Builder shall in all cases seek clarification of the same from the Owners before implementing the same provided Work on other unaffected parts of the Vessel shall continue.

 

	
5.4

	
Copies of all correspondence to and from the Classification Society and the regulatory authorities referred to in the Specifications, together with all drawings and documentation approved by the Classification Society, shall be furnished to the Owners by the Builder as soon as practicable upon dispatch and receipt save for correspondence and drawings and documentation which contain proprietary or confidential information relating to the design. Builder will promptly inform Owners if any shortcomings or deficiencies in the design are brought to its attention.

 

 

 

 

Article 6                                Permits, laws, regulations and classification

 

 

	
6.1  

	
Builder shall be responsible for ensuring that the Work complies with the rules, regulations and requirements of Authorities and for obtaining all documents relating thereto to enable Owners to obtain any necessary certificates. Subject to Article 6.5, the aforementioned rules, regulations and requirements including all alterations, modifications and additional requirements published on or before the actual date of the Delivery of the Vessel, shall be incorporated within the Work.

 

 

	
6.2  

	
Builder shall at its cost secure the approval of Authorities for welding procedure qualifications, welding qualification and certification of Subcontracted Work.  Other attendant costs levied by Authorities shall be for the account of Owners.

 

 

	
6.3  

	
Builder shall provide Owners with copies of all correspondence, minutes of meetings and documents exchanged between Authorities and Builder.  Builder shall provide Owners three (3) Days prior Notice of any meetings with Authorities and will allow Owners to attend and participate in such meetings.  Copies of all minutes, notes and correspondence shall be forwarded to Owners at the time of creation or receipt by Builder.

 

 

	
6.4  

	
If after the Effective Date and prior to the Delivery Date any requirements, with which the Vessel or the Work is required to conform, are altered or changed by Authorities (or the bodies authorised to make such alterations or changes) and the Parties are unable to obtain a dispensation therefor or waiver of compliance therewith, Builder shall comply with such alteration or changes.

 

 

	
6.5  

	
Builder may deliver a request to Owners for a Variation Order if Builder can adequately demonstrate that Builder has suffered or will suffer delays or additional costs as a direct result of such alterations or changes and has taken all reasonable steps to mitigate the impact of such alternation or changes.

 

 

	
6.6  

	
Builder shall obtain, at its own costs, all licences, permits, authorizations, including any overtime working permits, necessary for the performance of the Work on the Worksite, and shall comply with all laws, rules and regulations or any other applicable requirements of the Work and shall be responsible for ensuring compliance by its Subcontractors therewith.  Builder shall notify Owners of any non-compliance by Vendors with such regulations of which Builder becomes aware.

 

 

 

 

 

Article 7                                OFE

 

	
7.1  

	
Owners shall at their own risk and cost deliver the OFE to the Shipyard or other places as may be agreed by Owners, together with any special attachments necessary for safe off-loading, in a condition ready for installation in or on the Vessel in accordance with the Programme. Any protective materials furnished by the manufacturer or shipper of the OFE shall remain in place until the relevant OFE is safely installed on the Vessel.

 

	
7.2  

	
Builder shall be responsible for receiving, off-loading, handling, joint visual inspection with Owners, safe storage, maintenance and preservation of OFE expressly specified in the Specifications.  Builder shall not be responsible for defects that would not be reasonably discoverable upon a visual inspection thereof.  Safe storage shall include the preservation of OFE free from exposure to precipitation, excessive heat or excessive cold and, if needed, from exposure to oxygen.The risk of loss of any item of OFE shall remain with Owners until such item of OFE is offloaded into the possession of Builder.

 

 

	
7.3  

	
Builder shall promptly notify Owners of any discrepancy, loss or damage to the OFE of which it becomes aware.Owners shall be liable for the cost incurred by Builder in the repair of the OFE occasioned by their defective material or poor workmanship or failure to perform, or by damage caused to them during transportation to the Shipyard or otherwise prior to delivery to Builder.

 

 

	
7.4  

	
Owners shall take responsibility and liability for the correctness, or otherwise of markings, including weight marking, adequacy of slings, and lifting locations, as may be indicated on any materials and equipment provided by a Vendor.

 

	
  

	
Builder shall assist to secure all the customs formalities for the importation of the OFE to the Shipyard, provided that markings with respect thereto have been correctly prepared by Owners or Vendors.  Custom duties for OFE, and other related charges, if any, shall be for Owners’ account.

 

	
7.5  

	
Builder shall be responsible for the safe custody of and for the correct installation of the OFE, which shall be effected in accordance with accompanying manuals with the instructions of Owners or Vendors.

 

In order to facilitate the installation of the OFE in or on the Vessel by Builder, Owners shall at their own expense furnish Builder with the necessary specifications, drawings, manuals, plans, instruction books, test reports and certificates required by applicable rules or regulations, and if requested by Builder, shall, at the expense of Owners and in accordance with the Programme, cause the manufacturers of the OFE to assist Builder in the installation thereof or to make any necessary adjustment thereto at the Shipyard at the cost of Owners.

 

	
7.6  

	
[Not Used.]

 

 

	
7.7  

	
Builder shall also be responsible to assist Owners with the co-ordination of commissioning of OFE, which commissioning shall be conducted by Owners in accordance with the OFE Commissioning Procedures.

 

 

	
7.8  

	
Mobilisation and demobilisation of Vendor’s technicians shall be mutually agreed in advance between Owners and Builder.

 

 

	
7.9  

	
The assistance of such technicians will be provided in accordance with Vendor’s requirements at no cost to Builder for a reasonable period of time to allow installation and commissioning to be carried out in accordance with the OFE Commissioning Procedures.

 

 

	
7.10  

	
The dates for delivery of OFE to the Shipyard shall be in accordance with Section 6 – Technical Specifications and the Programme.

 

	
7.11  

	
If there is a delay in the Work as a consequence of the defect or late delivery of OFE, Builder shall be entitled to extend the Delivery Date by such time as Builder can demonstrate that the Programme is actually affected by such delay in delivery, and the adjustment to the Contract Price.

 

 

 

Article 7A                      Owner Nominated Equipment (“ONE”)

 

	
7A.1

	
The Owner has negotiated, assessed and selected the Drilling Package and Huisman Cranes, both of which shall be regarded as “ONE” for the purposes of this Contract.  The Owner and the Builder agree that the contracts for the ONE entered into by the Owner with the ONE Vendors shall be novated to the Builder at which time the ONE Vendors shall be Subcontractors of Builder, subject to this Article 7A.The contracts for the ONE shall be referred to as "ONE Contract" individually or "ONE Contracts" collectively in this Contract.

 

	
7A.2

	
Subject to Clause 7A.3, Builder shall be responsible for the safe custody of and for the installation, design interface, mechanical completion and assistance in commissioning of the ONE, which shall be effected in accordance with accompanying manuals with the instructions of the ONE Vendors, and for managing the manufacturing process of the ONE.

 

	
7A.3  

	
The Owner assumes all responsibility and all risks in respect of design, design engineering, specification, suitability and fitness for purpose of ONE for its intended use or to meet the Specifications of this Contract. Any delays  caused by this shall be counted as Permissible Delay and any costs arising shall be borne by the Owner.

 

	
7A.4  

	
If any or all of ONE are unsuitable or not in a fit condition for incorporation into the Works due to its design and/or engineering and/or other reasons, the Owner may nevertheless require the Builder to proceed to install such ONE for the Works and the Owner shall be deemed to have assumed all risk of and liability for any loss, damage or liability that may result from the Works hereunder by reason of failure or defects in such ONE. The Builder may, if so requested by the Owner, repair or adjust ONE subject to agreement of a Variation Order.

 

	
7A.5  

	
Builder does not warrant that the ONE is compatible with BFE, OFE or the Vessel. Builder shall perform and procure the performance of the ONE contracts pursuant the terms and conditions of the ONE contracts but under no circumstances (notwithstanding anything to the contrary in the Contract) shall Builder:

 

	
(i)  

	
assume any greater liability or responsibility in respect of ONE equipment to the Owner than what the ONE vendors are liable to the Builder under the ONE Contracts, 

 

	
(ii)  

	
have any liabilities to the Owner in respect of matters set out in Articles 7A.3 and 7A.4, and

 

	
(iii)  

	
have greater liabilities whatsoever (in nature or quantum) to the ONE vendors under the ONE contracts than what the Builder has to the Owner under this Contract, and the Owner shall indemnify and hold harmless the Builder for any such liabilities.

 

	
(iv)  

	
Owner shall indemnify, defend and hold the Builder harmless against any and all claims, damages, expenses and liabilities of every kind and nature that may arise in the event any ONE contract is terminated, which shall include an indemnity against ONE contractors claims for costs arising out of the termination and claims for compensation arising out of the termination. This indemnity shall not apply if the ONE contract is terminated by the ONE vendor as a result of the sole default of the Builder.

 

	
  

	
7A.6    Builder shall not be obliged to pursue any Claims (as defined below) against any ONE contractor under any ONE contracts on behalf of Owner.  If so requested by Owner, Builder shall assign absolutely and unconditionally to Owner all its rights, title and interest in respect of any and all Claims (as defined below) it may have arising out of, or in connection with, any ONE contract. Owner shall, irrevocably, unconditionally, regardless of cause or default (including negligence), be solely responsible for and shall defend, protect, indemnify and hold harmless Builder from and against any liabilities, losses, charges, costs (including legal costs), expenses or claims whatsoever arising out of, or in connection with, the Owner’s claim against the ONE vendors.  If the Builder unjustifiably refuses to assign any Claim to the Owner, the Builder shall be responsible to the Owner for that Claim.

 

"Claim" means any claim, action or other proceeding for damages, costs, demands, losses, delays, liabilities, expenses of any kind or nature (including legal costs on a full indemnity basis and penalties or fines) or any other obligations of whatever nature.

 

 

Article 8                                Information supplied by Owners

 

	
8.1  

	
Builder shall check all information supplied by Owners or Vendors relating to the OFE for any omission, conflict, discrepancy or inconsistency and shall report any such omission, conflict discrepancy or inconsistency to Owners immediately in writing.

 

 

	
8.2  

	
Owners shall notify Builder of Owner’s decision on the resolution of any such omission, conflict, discrepancy, or inconsistency within fourteen (14) Days. In case Owners fail to reply in such fourteen (14) Day period, or if Builder is of the opinion that such decision constitutes a Variation, it shall issue a request for a Variation Order in accordance with Article 16.6.

 

 

 

 

 

	
Article 9

	
The Work

 

 

9.1           Without limiting any other undertakings contained herein, Builder shall:

 

	
a)  

	
Carry out the Work in accordance with the Contract, Authorities’ requirements, and good safety practices;

	
b)  

	
execute workshop design and engineering based upon basic and detailed design included in the Contract and shall engineer, construct, commission, test and deliver the Work in accordance with the Contract in a timely manner; and

	
c)  

	
provide all materials, equipment, Temporary Works, tools, facilities, labour, personnel, supplies, test and inspection equipment, and all other services required or necessary for the completion of the Work satisfactory to Owners and in accordance with the Contract. Builder shall ensure that all such material and/or equipment to be incorporated into the Work is fully certified to allow full traceability of all components;

	
d)  

	
not use any materials, parts or equipment, nor permit anything to be used in the performance of the Work which will not conform with the Specifications;

	
e)  

	
furnish efficient business administration, management, supervision and expertise and furnish an adequate supply of materials, parts, equipment and labour to perform the Work in the most expeditious and economical manner consistent with the interests of Owners;

	
f)  

	
continuously and diligently perform or cause the performance of the Work in accordance with the Contract; and

	
g)  

	
provide and maintain a complete record, with daily entries to Owners, of the lightship weights (including without limitation structures, outfitting, equipment) that are and are to be permanently installed on the Vessel.

 

	
9.2  

	
Where Work is necessary for the performance and completion of the construction but such Work is not specifically mentioned, described or identified in the Contract, such Work shall nevertheless be part of the overall scope of Work to be performed and completed by Builder under the Contract and any applicable Variation Order.

 

 

	
9.3  

	
Builder shall not alter the scantlings of the structural members of the Vessel as shown on the Approved for Construction drawings without the prior written consent of Owner and the Classification Society.

 

 

	
9.4  

	
Weight Control:

 

 

	
a)  

	
Builder shall provide a detailed weight control procedure for Owner’s approval within thirty (30) days after execution of this Contract. Builder is responsible to maintain and provide an accurate weight data base for all weight groups during the design and construction period. Weight certificates shall be provided from the Vendors for the items including steel plates, stiffeners, and equipment. For outfitting items purchased in bulk material, the data in weight per unit length or weight per unit area must be provided to Owners by the Builder as they are acquired.

	
b)  

	
Large construction blocks are to be weighed prior to erection on the Vessel. The associated outfitting and pre-installed equipment weights shall be surveyed as the accompanied weights in the block. A trend of weight variation against the calculated weight for the blocks shall be presented by Builder to Owner on monthly basis.

	
c)  

	
Builder is responsible to accomplish the design LUW (Light Unit Weight) and the VDL (Variable Deck Load) of the Vessel. In the event overweight is found in the construction process, Builder shall notify Owners immediately and promptly present a remedial solution to Owner for approval.

	
d)  

	
Builder shall not be permitted to change the scantling of the structures prior to or during fabrication.  Any changes of the scantling must be subject to approval by the classification society and Owner before fabrication commences. Any unauthorised changes of the scantling shall be a material default of this Contract.

 

 

 

 

Article 10                                Builder's representations

 

 

	
  

	
Builder represents and undertakes that it:

 

 

	
g)  

	
has the necessary skills, knowledge and experience to perform the Work;

 

 

	
h)  

	
has the necessary suitably qualified and in every respect competent personnel to perform the Work;

 

 

	
i)  

	
has the necessary industry standard software provisions, fully verified to perform the Work;

 

 

	
j)  

	
has the necessary industry standard tools and equipment, properly calibrated to perform the Work;

 

 

	
k)  

	
is familiar with, and has knowledge of the engineering standards, recommendations, laws, regulations, certifying and Authorities’ requirements and codes of practise relating to the Work;

 

 

	
l)  

	
shall perform the Work to the professional and trade standards with all due diligence, safeguards and care;

 

 

	
m)  

	
shall only use materials and provide equipment which are new and/or the suitable types available at the time;

 

 

	
n)  

	
shall ensure compatibility between materials and/or equipment; and

 

 

	
o)  

	
shall undertake a check of locational dimensions and weights relevant to the Work.

 

 

 

 

 

Article 11                                Subcontracts

 

 

	
11.1  

	
Builder shall not Subcontract any part of the Work without the express prior approval of Owners in writing except those listed and agreed in Section 6 – Technical Specifications.  Such approval shall not unreasonably be withheld.

 

 

	
11.2  

	
Prior to entering into a Subcontract, Builder shall submit to Owners and receive Owners’ approval of the proposed Subcontract except those listed and agreed in Section 6 – Technical Specifications. Such approval shall not unreasonably be withheld.

 

 

	
11.3  

	
No Subcontract shall suggest the existence of any form of Contractual relationship between Owners and the Subcontractor. The Subcontract shall not contain any conditions attaching to the payment provisions whereby payment of the Subcontractor is linked or conditional upon receipt of payment by Builder under the Contract.

 

 

Builder shall use reasonable efforts to procure that each Subcontractor waives any liens and rights of action in rem against the Vessel or any part thereof that such Subcontractor may have by operation of law or otherwise.

 

 

	
11.4  

	
Where Builder is responsible for the supply of running equipment, Builder shall arrange, at its own cost, the attendance of the Subcontractor's representatives at all commissioning tests.  On no account shall such equipment be operated without the attendance of the Subcontractor's representatives.

 

 

	
11.5  

	
Where Owners are responsible for the supply of running equipment, Owners shall be responsible for arranging, at their own costs, the attendance of the Vendor's representatives at all commissioning tests.  On no account shall such equipment be operated without the attendance of the Vendor's representatives.

 

 

	
11.6  

	
No Subcontract shall relieve or diminish the obligations or liabilities of Builder under the Contract and Builder shall be responsible for the acts, omissions and defaults of its Subcontractors and the respective officers, directors, employees, servants and agents as though they were the acts, omissions and defaults of Builder, its officers, directors, employees, servants and agents.

 

 

	
11.7  

	
Builder shall use its reasonable efforts to ensure that each Subcontract permits Builder to assign any warranties thereunder to Owners.  Builder shall indemnify and hold Owners harmless for any inability by Owners to assert warranty claims against any Subcontractor, where the inability to assert a warranty claim is based on the Subcontractor’s claim that it is immune from suit or liability on the basis of sovereign immunity.

 

 

 

 

 

	
Article 12

	
Work schedule and Programme

 

 

	
12.1  

	
Builder shall be responsible for scheduling, progress reporting and achieving performance of the Work in accordance with the Programme.  Builder shall monitor and report actual progress within Builder’s progress reports to Owners including the effects of any Variation Orders or Disputed Variation Orders and decisions to be made by Authorities.

 

 

	
12.2  

	
Builder shall provide progress reports to Owners in form and at such times as are set forth in Section 5 – Administration Instructions.

 

 

	
12.3  

	
If, in the opinion of Owners' representative, the progress of the Work with respect to any item on critical path is too slow to ensure completion of the Work in accordance with the Programme, unless the cause thereof is solely for reasons outside of Builder’s control or for which Builder could not reasonably plan, Builder shall prepare and submit to Owners a proposal for recovery of the Programme to Owners for review. Subject to Owners' comments, and unless the delay in the progress was Permissible Delays Builder shall take all necessary steps to expedite the rate of progress of the Work, including but not limited to re-scheduling activities, additional shifts, overtime working and supplying additional manpower, tools, equipment, resources and facilities as may be required to complete the Work in accordance with the Programme, at no cost to Owners.

 

 

 

 

 

Article 13                                Inspection

 

 

	
13.1  

	
Owners, Authorities and all persons authorised by Owners shall have the right of access at all times to the Vessel and the Worksite and may inspect or witness the performance of the Work or testing activities.

 

 

	
13.2  

	
Builder shall not make any part of the Vessel inaccessible prior to giving notice to Owners and allowing Owners the opportunity to inspect or witness any test.

 

 

	
13.3  

	
Builder shall make provision and allow reasonable time for Owners and Vendors to perform testing and inspection activities within the Programme as they may require.

 

	
13.4  

	
The Owner’s representative shall carry out his duties hereunder in accordance with good rig building practice and in such a way as to avoid any unnecessary increase in building cost or delay in the Programme.

 

 

Article 14                                Cooperation with others

 

 

	
14.1  

	
Builder shall fully cooperate with and shall allow access to the Vessel and Worksite to:

 

 

	
a)  

	
 a party having a contract for the use of the Vessel;

 

 

	
b)  

	
Invitees, directors and employees of Owners Group; and

 

 

	
c)  

	
the representatives and surveyors of the Authorities and any other regulatory bodies; and

 

 

	
d)  

	
Vendors, Owners' personnel or Owners' other Contractors to carry out activities which are associated with the Work and Builder’s performance of the Work or to carry out activities which are not within Builder's scope of Work, provided that Owners personnel and other Contractors and all persons mentioned above must comply with all reasonable requirements of Builder.

 

 

	
14.2  

	
Builder, shall provide, receive and exchange Interface Information in accordance with the dates stated in the Programme or where no date is stated in a prompt, timely and sufficient manner.

 

 

	
14.3  

	
Builder shall co-operate with Vendors and Owners' other contractors whose activities interface directly or indirectly with the Work, including without limitation Bassoe Technology and shall develop, and keep fully updated at all times, an interface matrix to define all interfaces between Builder, the Work and the activities of Vendors.  Copies of such matrix shall be provided to Owners as part of Builder’s progress reporting pursuant to the Contract.  Builder shall develop for review and agreement by Owners, and keep fully updated at all times, all necessary procedures to regulate interface activities between Builder and Vendors.

 

 

 

 

 

Article 15                                Facilities for Owners

 

 

	
15.1  

	
Builder shall provide facilities to Owners, including office facilities inclusive of office equipment, power supplies, communications equipment and car parking as specified in Section 8 - Facilities for Owners for the use of Owners Group.

 

 

 

 

 

Article 16                                Variations

 

 

	
16.1  

	
Owners may, in accordance with Section 5 - Administration Instructions, order any Variation to any part of the Work by issuing a Variation Order to Builder.  Such Variations may include additions, omissions, substitutions, alterations, changes in quality or character, kind, position, dimension, level or line and changes in the specified sequence, method or timing of construction.

 

 

	
16.2  

	
The Contract Price, and/or the Programme shall only be subject to adjustment as a result of a Variation Order or a Disputed Variation Order signed by Owners’ representative.  Builder shall countersign each Variation Order, notwithstanding which Builder shall proceed with the work as proposed to be modified immediately upon receipt of the Variation Order.

 

 

	
16.3  

	
A Variation Order shall not affect the rights or obligations of the Parties except as expressly provided in that Variation Order. A Variation Order shall be governed by all the provisions of the Contract.

 

 

	
16.4  

	
The effect of a Variation Order on the Contract Price shall be determined on the basis of the rates provided in Section 3 - Schedule of Prices, or as the Parties may agree.

 

	
16.5  

	
A Variation Order will not be issued for variations that are caused by Builder’s default.

 

	
16.6  

	
Builder may, upon receipt of information from Owners or the identification of an event which Builder believes may constitute a Variation to the Work (such identification shall be at anytime prior to the Delivery of the Vessel), submit a request for a Variation Order to Owners in accordance with Section 5 - Administration Instructions.

 

 

Builder shall not proceed with the subject work until Owners have issued a Variation Order or a Disputed Variation Order.

 

 

	
16.7  

	
In the event that Builder does not submit a request for a Variation Order within thirty (30) days or such longer period as may be agreed by the Owners Builder shall forfeit any right to claim a Variation Order. This clause shall not apply to Variations requested by Owner.

 

 

	
16.8  

	
In the event of disagreement between the Parties as to:

 

 

	
a)  

	
what is or is not a Variation requiring a Variation Order;

 

 

	
b)  

	
the valuation of a Variation;

 

 

	
c)  

	
the effect of the Variation upon the Programme; or

 

 

	
d)  

	
any other matter appertaining to the Variation,

 

 

	
  

	
Owners shall issue a Disputed Variation Order in accordance with Section 5 – Administration Instructions. Builder shall countersign each Disputed Variation Order.

 

 

	
16.9  

	
A Disputed Variation Order shall be considered equal in all respects to a Variation Order until such time as agreement is reached on the Variation or the matter is finally determined in accordance with Article 44.

 

 

	
16.10  

	
Builder shall proceed immediately to execute the Work described in a Disputed Variation Order as though it were contained in a Variation Order.  The following principles shall apply subject to Article 16.12 below:

 

 

	
a.  

	
The Contract Price shall be the basis for any payments until the dispute is agreed or the matter is finally resolved; and

 

 

	
b.  

	
The Programme shall be the basis for all matters concerning Programme and Delivery in respect of all applications of such matters to provisions within the Contract; and

 

 

	
c.  

	
Notwithstanding a) and b) above, Builder shall schedule the Work based on its own opinions of the effects of Disputed Variation Orders as is considered necessary by Builder to diligently complete the Work.

 

 

	
16.11  

	
  Not used

 

 

	
16.12  

	
The Owner will not be entitled to require the Builder to proceed with any work covered by a Disputed Variation Order to the extent that the amount claimed in good faith by Builder and disputed by Owner in relation to such work exceeds USD 500,000 (United States Dollars Five Hundred Thousand) per Disputed Variation Order or US$1,500,000 (United States Dollars One and a Half Million Dollars) in aggregate Disputed Variation Orders.

 

 

 

 

 

Article 17                                [Not Used]

 

 

Article 18                                [Not Used]

 

 

 

 

 

Article 19                                Force Majeure

 

 

	
19.1  

	
Notwithstanding anything else contained in this Contract no Party to the Contract shall be held to be in breach of contract for any failure to perform its obligations to the extent that such failure is due to Force Majeure. To the extent that delays resulting from the occurrence of any Force Majeure event shall count as Permissible Delay.

 

 

	
19.2  

	
For the purposes of this Contract, Force Majeure shall mean a circumstance or event beyond the reasonable control and contemplation of the Party affected, which affects the performance of the Contract and which could not have been prevented or avoided by the exercise of due diligence or other prudent precautions. Force Majeure shall include acts of God, accidents, epidemic, disasters, earthquake, typhoon, hurricane, abnormal weather conditions, nationwide strikes, sabotage, riot, war and terrorist activities, whether real or threatened, lockouts or other work stoppage ordered by governmental authorities for reasons outside of Builder’s reasonable control and any other cause whatsoever beyond the reasonable control of Builder or its Subcontractors whenever or wherever occurring.

 

 

	
19.3  

	
The Parties agree that the following events shall not be considered as Force Majeure under this Contract:

 

 

	
a)  

	
other strikes, lock-outs or labour disputes not specified in 19.2 and labour or labour skills shortages;

 

 

	
b)  

	
material, power, energy and fuel shortages;

 

 

	
c)  

	
breakdown of any tools, machinery, equipment or facilities;

 

	
d)  

	
weather cause, regardless of severity not specified in Article 19.2;

 

	
e)  

	
delays caused by Builder's or its Subcontractor's commitments to others, which cause a delay in the performance of the Work or a delay in the commencement of the Work, or delays in delivery of BFE;

 

 

	
f)  

	
fire, except when caused by lightning, acts of war, terrorism or sabotage; and/or

 

 

g)   defects in material, parts or equipment provided by Subcontractors.

 

 

	
19.4  

	
Builder shall not be relieved of the consequences of any default by Builder hereunder by reason of the subsequent occurrence of a Force Majeure event.  Likewise, Owner shall not be relieved of the consequences of any default by Owner hereunder by reason of the subsequent occurrence of a Force Majeure event.

 

 

	
19.5  

	
The Party claiming Force Majeure shall notify the other Party immediately and shall subsequently provide sufficient particulars thereof, including its intended actions to resolve the event. The Party shall be obliged to use its reasonable endeavours to mitigate the effect of the Force Majeure event, at its own cost.

 

 

	
19.6  

	
In the event that:

 

 

	
a)  

	
the effects of the Force Majeure event cannot be overcome; or

 

 

	
b)  

	
the Force Majeure event cannot be reasonably expected to be overcome within ninety (90) Days of the date of its first occurrence; or

 

 

	
c)  

	
a time period of ninety (90) Days, either consecutively or cumulatively, has passed from the Day of the first occurrence of Force Majeure and Builder has been unable to re-commence the Work;

 

 

	
  

	
Owners shall be entitled to terminate the Contract and Builder shall provide every assistance, at its own costs, to effect removal of the Vessel and all of its associated machinery, equipment and material from the Shipyard.  Owners shall ensure that Builder is fully paid for the Work completed up to the date of the intervening Force Majeure occurrence.

 

 

	
19.7  

	
If in Builder’s opinion, the Force Majeure is likely to cause an extension of the Delivery Date, Builder may submit a request for a Variation Order to Owners, requesting an extension of time equal to the length of delay caused to the Delivery Date directly attributable to the Force Majeure.

 

 

 

 

 

Article 20                                Tests and sea trials

 

 

	
20.1  

	
Builder and Owners shall jointly prepare the BFE Commissioning Procedures, ONE Commissioning Procedures, the OFE Commissioning Procedures and the Sea Trials Procedures, setting forth the proposed sea trials of the Vessel and testing of the BFE and OFE to be conducted prior to Delivery.  Such documents shall be prepared no less than three (3) months prior to the expected Delivery Date, and shall include, without limitation, the procedures and tests set forth in Section 1.15 of Section 6 – Technical Specifications.  Builder and Owners shall agree to the scope of testing and the weather conditions needed to complete testing of the DP System.  Builder and Owners shall jointly determine the personnel from each Party that is to be present at each stage of tests and sea trials.

 

Builder shall provide no less than fourteen (14) Days prior written Notice to Owners of the time and place for the sea trials of the Vessel.  Owners shall have the right to have its representative and all necessary personnel from Vendors or Subcontractors on board the Vessel to perform the sea trials.

 

Builder shall be responsible for rendering assistance and support to Owners and Vendors for the performance of the sea trials.  Builder shall have the right to have representatives present on the Vessel during the performance of the trials, provided that the number of such representatives shall be subject to the prior approval of Owners.

 

 

Builder may Subcontract nautical instrument calibration, speed measurement, power measurement, and tests on the global positioning system to an independent specialist company, provided that such company is acceptable to Owners in their reasonable discretion.

 

 

	
20.2  

	
Builder shall make available to Owners, without charge, any of Builder’s tools or equipment available at the Worksite that may be necessary to perform any tests or inspections at any time during construction.

 

 

	
20.3  

	
Any test or trial of the Vessel shall be carried out in the presence of representatives from the Classification Society and/or other Authorities, and shall be conducted in a manner and to an extent prescribed in the Specifications and shall prove the Vessel's proper functioning and fulfilment of the performance requirements for the trials set forth in this Contract and the Specifications. The sea trials shall test, at a minimum, the items set forth in Section 6 – Technical Specifications, Section G15.

 

	
20.4  

	
All expenses except those of Owners’ representative and its assistant(s) and the staff of Vendors in connection with the sea trials shall be for the account of Builder, including without limitation all necessary crew. Builder shall also be responsible for providing the transportation to and from the Vessel, provisions, consumables such as fuel, lube oil, water, etc., during the dockside commissioning and sea trials.

 

	
20.5  

	
Upon completion of the trial run and when the trial results are available, and if the results thereof demonstrate that the Vessel conforms to the Specifications, Builder shall promptly give Owners a written notice of completion stating that the Vessel is ready for Delivery.  Owners shall upon receipt of such notice and the test results notify Builder in writing of Owners’ acceptance or rejection of the Vessel as being in conformity with the Contract.

 

	
20.6  

	
If the results of the trial run demonstrate that the Vessel or any part or equipment thereof does not conform to the requirements of the Contract, Builder shall promptly take all necessary steps to rectify such nonconformity (save that in respect of ONE equipment, Builder's obligation to do so shall be determined in accordance with the risk agreed in Article 7A). If necessary, Builder shall for its own account carry out a further trial run to ascertain that the Vessel conforms to the terms of the Contract; provided that if the non-conformity relates to the DP System, thrusters or power management system, Builder shall carry out an additional trial run. Upon demonstration by Builder that any such deficiencies have been corrected, Builder shall notify Owners that the Vessel is ready for Delivery.

 

	
20.7  

	
Owners shall in any notice of rejection give reasonably detailed particulars of the reasons for Owners’ rejection of the Vessel.  Owners shall take delivery of the Vessel if it is in conformity with the Contract, unless there are any deficiencies or conditions or recommendations imposed by the Classification Society or other Authorities preventing the Vessel to carry out its intended operation. If the deficiencies, conditions and recommendations are of minor importance and failure to immediately correct the same would not prevent safe operation of the Vessel, Builder may require Owners to take delivery of the Vessel provided Builder undertakes for its own account to remedy the deficiency or satisfy the recommendation as soon as possible, in no event later than the end of the Guarantee Period; provided that where at all possible, Builder shall at its cost travel to the location of the Vessel to remedy such deficiency.

 

The repair or remediation of defects in any OFE that are not attributable to Builder shall be for the account of Owners.

 

 

Article 21                                Delivery and Acceptance

 

 

	
21.1  

	
Delivery shall take place at the Shipyard and shall be effective once both Parties have executed and delivered to each other a Protocol of Delivery and Acceptance.

 

 

	
21.2  

	
Delivery shall be conditional on receipt of all the necessary documentation, licences, export clearances, or permits required by Builder and the country in which the Shipyard is located.  Upon acceptance of the Vessel by Owners, Builder shall deliver to Owners the following documents:

 

	
1)  

	
a Protocol of Inventory of the equipment of the Vessel, including spare parts and the like, all as specified in the Specifications;

 

	
2)  

	
a Protocol of Stores of consumable nature;

 

	
3)  

	
All Certificates, including the Builder's Certificate required to be furnished upon delivery of the Vessel pursuant to this Contract and the Specifications. It is agreed that if the Classification Certificate and/or other Certificates are not available at the time of delivery of the Vessel, provisional Certificates shall be accepted by Owners. Builder shall provide Owners with permanent Certificates as promptly as possible after such formal Certificates have been issued;

 

	
4)  

	
a Bill of Sale including a Declaration of Warranty of Builder that the Vessel is delivered to Owners free and clear of any and all liens and other encumbrances upon the Vessel and Owners’ title thereto, and in particular, that the Vessel is absolutely free of the burdens, in the nature of imposts, taxes or charges imposed by the city, state or country of the part of delivery, as well as of all liabilities arising from the construction or operation of the Vessel or trial runs or otherwise prior to delivery and acceptance;

 

	
5)  

	
a Protocol of Final Documentation together with agreed resolution of punch list items from construction and commissioning;

 

	
6)  

	
a Protocol of Commissioning and Sea Trials documents made pursuant to agreed acceptance criteria;

 

	
7)  

	
Drawings and Plans pertaining to the Vessel as stipulated in the Specifications; and

 

	
8)  

	
a Commercial Invoice for any unpaid amount of the Contract Price.

 

	
21.3  

	
Owners and Builder shall agree to a protocol of commissioning for BFE, with a punch list of items that may be required for Delivery with respect to such equipment.  Acceptance by Owners following commissioning of such equipment shall preclude Owners from refusing Delivery of the Vessel on the basis of any alleged deficiency in such commissioned equipment.

 

	
21.4  

	
Not used.

 

	
21.5  

	
Owners and Builder shall agree to a protocol of tests and sea trials, with a punch list of items that may be required for Delivery respecting items tested in the tests and sea trials. Acceptance by Owners of the Vessel shall preclude Owners from refusing Delivery of the Vessel on the basis of any alleged deficiency in any parts of the Vessel which were tested during the trial runs, provided all other procedural requirements for Delivery have been met.

 

	
21.6  

	
Owners and Builder may agree to a punch list of items that Builder shall be required to resolve or perform, notwithstanding Delivery and Acceptance of the Vessel.

 

	
21.7  

	
Any fuel oil, lubricating oil, grease, fresh water or other consumable stores furnished by Builder for the trial run, remaining on board the Vessel at the time of Delivery, shall be purchased by Owners from Builder at Builder’s original purchase price thereof.

 

 

Article 22                                Contract Price and terms of payment

 

 

	
22.1  

	
The Contract Price shall be specified in Section 3 - Schedule of Prices.  Builder warrants that it has fully considered all of its obligations hereunder with respect to the Work and the Programme in establishing the Contract Price.

 

 

	
22.2  

	
Upon receipt of a Milestone Completion Certificate, Builder shall invoice Owners for payment of that portion of Contract Price indicated in the payment schedule contained within Section 3 - Schedule of Prices with respect to such completed Milestone.  Each such invoice shall describe the Milestone completed in sufficient detail, with accompanying documentation substantiating the Work performed for which such invoice is issued.

 

 

	
22.3  

	
Owners shall pay Builder’s invoice with respect to a completed Milestone within thirty (30) Days of receipt from Builder of such invoice. Builder shall not be entitled to receive payment for partially completed Milestones or for other interim payments unless stated on a Variation Order. Payment by Owners of an invoice shall not prejudice Owners right to dispute the amounts paid or to make a claim under the Guarantee with respect to defects in the Work or the Vessel. In the event Owners dispute any amount of an invoice, Owners shall pay any amounts of such invoice that are not in dispute.

 

 

	
22.4  

	
In the event there is any dispute between the parties under this Contract for variations under Article 16 hereof, the Owner shall pay to Builder all undisputed amounts due to the Builder.  The Parties will negotiate in good faith to resolve any such dispute. If the parties are unable to resolve the dispute within thirty (30) days before the Delivery of the Vessel, Owner shall, prior to taking Delivery of the Vessel, provide a letter of credit or similar security acceptable to the Builder in the amount of the disputed portion of the Contract Price exceeding US$2,500,000 until the resolution of such dispute in accordance with Clause 44 hereof, the proceeds of which will be available to Builder upon a final unappealable award or judgment, or on the final resolution of the dispute.

 

 

	
22.5  

	
Payment shall be effected by wire transfer on a Banking Day to the bank and in the currency specified in Section 3 - Schedule of Prices.

 

 

Builder shall designate in writing an account to which all payments under this Contract due to Builder shall be paid. Owners’ sole duty with respect to payments shall be to transfer amounts due under the Contract to such account, irrespective of whether the amounts are due to Builder or to any party to which Builder has assigned the Contract or has granted a security interest in the Contract. This provision shall be binding on any assignee of Builder, whether by an assignment, novation or collateral assignment.

 

 

In the event of late payment of undisputed amount caused by Owners, Builder shall be entitled to charge interest on the unpaid amount from the due date at a rate of 6% per annum until paid.

 

 

	
22.6  

	
Any amounts payable herein shall be paid without set off, deductions or counterclaims except where otherwise provided in this Contract.

 

 

	
22.7  

	
Subject to Article 22.8, In the event Owner fails to pay undisputed sums in the aggregate of USD 2,500,000 or more due to Builder under or in connection with this Contract by due date, Builder shall have the right, upon giving written notice to Owner to cease work on the Vessel and following a period of suspension of thirty (30) days from the date of the notice, be entitled to terminate this Contract. Without prejudice to all its rights and remedies available at law or in equity, Builder shall be entitled to claim as Permissible Delay any period of time during which the construction or completion of the Vessel has been delayed in consequence of Owner's default, or Builder’s cessation of work, as aforesaid, and in any event all costs incurred during such time of cessation of work shall be paid by Owner to Builder whether or not this Contract is terminated.

 

 

	
22.8  

	
If Owner notifies Builder that they require extension of time to pay any Milestone under the Contract as a result of:

 

 

	
i.  

	
global shortage of liquidity resulting in financing difficulties for Owner,  and

 

 

	
ii.  

	
as a result Owner requires time to procure or source financing for the payment of the Milestone that is then due,

 

 

Then Owners and Builder shall have thirty (30) days from the date of the notice from the Owner within which to reach an agreement on revised payment schedule for the Milestones. If the Parties are unable to reach an agreement on the revised payment schedule for the Milestones after good faith efforts, Builder may at its sole discretion extend the time for payment of the affected Milestone up to a period of no more than 30 days (save that the Delivery Date as set out by Owner in a Disputed Variation Order shall not apply to the determination of the scheduled Delivery Date under this Article 22.8).  The period for the Parties to reach an agreement, and extension granted by Builder under this provision shall be a Permissible Delay.  During the period of extension, Builder at its discretion may opt to cease work on the Vessel and interest on the unpaid amount as set out in Article 22.5 above shall continue to accrue and be payable up until such time that Milestone is paid. In the event that Milestone is not paid within the period for the Parties to reach an agreement and any extension granted by Builder, Builder shall be entitled to terminate this Contract in accordance with Article 34.1.

 

 

 

 

 

Article 23                                Guarantee

 

	
23.1  

	
Builder agrees to build the Vessel in a good and workmanlike manner, in accordance with that degree of skill, care and diligence in accordance with internationally acceptable standards, free from defects in detailed design, material and workmanship ("Defects"), and shall exclude defects in the basic design, OFE or matters under Articles 7A.3 and 7A.4.  This Guarantee shall extend to Builder’s installation of the OFE and any paint or coatings applied to the Vessel by Builder.  This Guarantee shall remain in force through the Guarantee Period. Any ONE guarantees under the ONE contracts shall be assigned by Builder to Owner upon Owner’s written request to Builder.

 

	
23.2  

	
In the event of the occurrence of any Defects covered by the above warranties, Builder shall undertake to repair or replace the Defects. Any parts replaced shall on their removal become the property of and shall be at the risk of the Builder whilst the replacement parts fitted to the Vessel shall upon fitting become the property of the Owner.

 

	
23.3  

	
The Owner shall notify the Builder in writing as soon as reasonably possible and in any event within fourteen (14) days after discovery of any Defect and the Builder shall only be liable to the Owner hereunder where this requirement has been satisfied.  The Owner's notice shall include such particulars as can reasonably be given as to the nature of such Defect, the date of discovery and the place at which the Vessel can be made available for earliest inspection by or on behalf of the Builder.  The Owner shall furnish to the Builder as soon as practicable copies of any relevant survey or inspection reports.

 

	
23.4  

	
In the event that the Builder is unable to make good any Defect at the Shipyard, it shall forthwith nominate a yard suitable for such purpose for the Owner’s approval (which approval shall not be unreasonably withheld or delayed), and should the Owner consider such yard acceptable the Builder shall arrange for the making good of the Defect and the carrying out of any essential dismantling and reassembling at its own expense. Alternatively, and providing adequate and permanent repairs can be so effected, the Builder shall have the option of carrying out all such repairs on board the Vessel at sea or on location, providing such repairs do not interfere with the operation of the Vessel. It shall in all cases be the Owner’s responsibility and expense to take the Vessel to the place where any work under this Clause is to be carried out, ready in all respects for the work to be carried out.

 

	
23.5  

	
Should the Owner not approve (in a case where it is entitled to withhold approval under Clause 23.4) the yard nominated by the Builder the Owner may elect to have the work referred to above carried out elsewhere than at the Shipyard, the Owner shall nominate a yard acceptable to the Builder, such acceptance not to be unreasonably withheld. In such case the Builder shall pay to the Owner for repairs and/or replacements such sum as would equate to the costs of effecting such repairs at the Builder’s yard based on Builder’s tariff rate for time and material. The Builder may, at its own expense, have its representative in attendance during execution of the work.  The Owner shall ensure that any parts replaced under this sub-clause are returned to the Builder (if required by the Builder) at the Builder's expenses, and in such case those parts returned shall on their replacement become the property of and shall be at the risk of the Builder.

 

 

	
23.6  

	
Any remedial measures undertaken and the associated Work shall be subject to a one (1) year Guarantee from the date such measures are completed; provided the Guarantee Period will not extend beyond two (2) years after the Delivery Date.

 

 

	
23.7  

	
Builder hereby assigns to Owners, to the extent permitted under Contract or applicable law, all guarantees and warranties of each Subcontractor with respect to goods and services provided to the Work or the Vessel by such Subcontractor which extend beyond the Guarantee Period.

 

	
23.8  

	
The Builder shall not be obligated to repair, or to be liable for, damages to the Vessel, or to any part of the equipment thereof, due to ordinary wear and tear or caused by defects, nor shall there be any Builder's liability hereunder for defects in the Vessel, or any part of the equipment thereof, caused by fire or accidents at sea or elsewhere, or mismanagement, accidents, negligence, or willful neglect, on the part of Owners, their employees or agents, including the Vessel’s officers, crew and passengers, or any persons on or doing work on the Vessel other than Builder, its employees, agents or Subcontractors. Likewise, Builder shall not be liable for defects in the Vessel, or the equipment or any part thereof, due to repairs or replacement which were made by those other than Builder and/or its Subcontractors.

 

	
23.9  

	
Builder would not be liable for the following in remedying defects:

 

	
(i)  

	
Costs of heavy lift operations offshore or organizing the same;

	
(ii)  

	
The costs of routine maintenance of the Vessel;

	
(iii)  

	
The costs of repairing damage to the Vessel or of correcting any such defects which result from or are due to actual operating conditions being different from those specified in this Contract or any Variation Orders; and

	
(iv)  

	
Any OFE or materials or equipment supplied by Owners or for any damage caused by any defect in such materials or equipment not attributable to the Builder.

 

In addition to the above, if the remedial work requires the Builder to complete work offshore and/or such work requires work below the waterline and/or is required to be completed in dry dock, the Owner shall make all necessary arrangements at their own costs to procure such facilities for the remedial work to be performed.   In no event shall the Builder be responsible for any delay or time taken or lost, or off-hire or related costs, for events arising out of this Article 23.

 

	
23.10  

	
The warranty provided in this Article 23 and the obligations and the liabilities of Builder hereunder are exclusive and Owners hereby waive all other remedies, warranties, guarantees or liabilities, express or implied, arising by law or otherwise (including without limitation any obligations of Builder with respect to fitness, merchantability and consequential damages) or whether or not occasioned by Builder's negligence or default. This Guarantee shall not be extended, altered or varied except by a written instrument signed by the duly authorized representatives of Builder and Owners.

 

 

Article 24                                Indemnities

 

 

	
24.1  

	
Builder shall indemnify, defend and hold harmless Owners Group in respect of any loss or damage to the property, equipment or facilities of Builder Group, whether owned, leased, rented or hired and howsoever caused (subject always to Article 24.7).

 

 

	
24.2  

	
Builder shall indemnify, defend and hold harmless Owners Group from and against any and all claims, damages and expenses of every kind and nature resulting from personal injury, including fatal injury and disease, to the Builder Group, howsoever caused (subject always to Article 24.7).

 

 

	
24.3  

	
Owners shall indemnify, defend and hold harmless Builder Group in respect of any loss of or damage to the property (other than the Vessel and ONE while in the possession of Builder and caused by Builder), equipment or facilities of Owners Group, whether owned, leased, rented or hired howsoever caused (subject always to Article 24.7).

 

 

	
24.4  

	
Owner shall indemnify, defend and hold harmless Builders Group from and against any and all claims, damages and expenses of every kind and nature resulting from personal injury, including fatal injury and disease, to the Owner Group, howsoever caused, or brought by Owner’s underwriters, whether by subrogation or otherwise (subject always to Article 24.7).

 

 

	
24.5  

	
Prior to Delivery of the Vessel, Builder shall defend, indemnify and hold the Owner Group harmless against any and all claims, damages and expenses of every kind and nature to the Owner Group resulting from loss of or damage to the property, equipment or facilities of Third Parties or personal injury, including fatal injury and disease of Third Parties arising out of the performance of the Contract for which the Builder Group is responsible.

 

 

	
24.6  

	
Owner shall defend, indemnify and hold the Builder Group harmless against any and all claims, damages and expenses of every kind and nature to the Builder Group resulting from loss of or damage to the property, equipment or facilities of Third Parties or personal injury, including fatal injury and disease of Third Parties arising out of the performance of the Contract for which the Owner Group is responsible.

 

 

	
24.7  

	
After Delivery of the Vessel, the Owner shall further defend, indemnify and hold the Builder Group harmless against any and all claims, damages and expenses of every kind and nature to the Builder Group resulting from the ONE Contracts (including any indemnification obligations arising under the ONE Contracts), loss of or damage to the property, equipment or facilities of Third Parties or personal injury, including fatal injury and disease of Third Parties arising out of the use, operation or maintenance of the Vessel and/or the equipment therein.

 

 

	
24.8  

	
ALL INDEMNITIES UNDER THIS ARTICLE 24 SHALL INCLUDE INDEMNITY FOR CLAIMS, DAMAGES AND LOSSES CAUSED BY THE NEGLIGENCE OF THE INDEMNIFIED PARTY OR ANY MEMBER OF ITS GROUP, BUT SHALL NOT INCLUDE CLAIMS, DAMAGES AND LOSSES CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE INDEMNIFIED PARTY OR ANY MEMBER OF ITS GROUP.

 

 

 

 

 

	
Article 25

	
Insurance by Builder

 

 

	
25.1  

	
Builder shall, at its own costs and expense, maintain for the duration of the Contract the following insurances in the name of Builder Group. The insurances maintained by Builder shall at all times be primary to any insurance maintained by Owners for the duration of the Work.

 

 

	
a)  

	
Employer's liability insurance/workmen's compensation with unlimited and/or as may be required by statute or similar regulation in the country or countries of the Shipyard covering personal injury to, or death of, employees of Builder engaged in the performance of the Contract, and shall ensure Subcontractors maintain such insurance in respect of their employees.

 

 

	
b)  

	
Public liability insurance with an indemnity of USD 5,000,000 (five million US dollars) for any one incident or series of incidents arising from each and every event, unlimited in the aggregate, covering all operations of Builder.

 

 

	
c)  

	
Construction All-risk insurance covering the Works for an amount equivalent to the Contract Price and OFE, provided that Owners shall reimburse Builder for the extra premiums incurred by Builder to insure the OFE.

 

 

	
25.2  

	
Builder shall furnish to Owners certificates and renewal certificates of the insurance required by this Article evidencing the type and scope of each insurance coverage and an endorsement from the insurers that no insurance shall be cancelled during the term of the Contract without thirty (30) Days prior written notice to Owners.  Builder, unless Owners are the sole cause of the loss, or the loss arises solely from defects in OFE, shall be responsible for the payment of any deductibles under its insurances.

 

	
25.3

	
Should the Vessel or any items insured pursuant to the provisions of Article 25.1(c) sustain loss or damage prior to Delivery and should such loss or damage not make the Vessel a total loss, actual, constructive, arranged or compromised, the Builder shall use all proceeds of insurance received for the damage, with all due despatch, to make good such damage in accordance with the provisions of this Contract and the Specifications.

 

	
25.4  

	
Should the Vessel sustain loss or damage prior to Delivery hereunder such that it is either conceded by the insurers liable therefore, or determined by a court of competent jurisdiction, that the Vessel has become a total loss, actual, constructive, arranged or compromised, then the Builder and the Owner shall within twenty-one (21) Working Days thereof decide whether to continue with the construction of the Vessel or to cancel the Contract.  In the event that the parties are unable to agree within such time scale terms on which to continue with construction of the Vessel, the same shall be deemed cancelled.  If the Contract is cancelled the Builder shall:-

 

	
a.  

	
refund promptly to the Owner in full the aggregate amount of Milestone payments of the Contract Price already paid by the Owner; and

 

	
b.  

	
return to the Owner all OFE which have not been lost.

 

	
25.5  

	
Save as specifically provided to the contrary in this Contract, the Parties' obligations under this Contract shall thereupon cease and terminate.

 

 

Article 26                      Taxation

 

	
26.1  

	
Except as otherwise specifically provided for in Section 3 - Schedule of Prices, Builder shall be fully and exclusively liable for the payment of all tax assessments, levies, social burdens, duties, allegations, impositions, and contributions including, but not limited to, unemployment insurances, national insurances, social security benefits, and corporate and income taxes as may be imposed by any local or national government or agency in the country of the Worksite and arising out of or in connection with the Work, the Vessel or the Contract except for taxes on the income of the Owners or taxes arising on the Vessel after acceptance by Owners.

 

 

	
26.2  

	
Builder agrees to indemnify, defend and hold harmless Owners Group from all claims, suits, costs, expenses, liabilities, fines, judgments and demands as may be incurred, resulting from or connected with, any tax assessment, levy, social burden, duty, allegation or imposition on the Work, Builder, or any of its Subcontractors of any tier, agents or employees, howsoever arising in the country or countries of the Worksite, for which Builder is responsible under Article 26.1.

 

 

	
26.3  

	
Owner agrees to indemnify, defend and hold harmless Builder Group from all claims, suits, costs, expenses, liabilities, fines, judgments and demands as may be incurred, resulting from or connected with any tax assessment, levy, social burden, duty, allegation or imposition on the taxes on the income of the Owners or taxes arising on the Vessel after acceptance by Owners.

 

 

 

 

 

	
Article 27

	
Audit rights of Owners

 

 

	
27.1  

	
Builder shall allow Owners or their appointed representatives reasonable access to the Shipyard and documentation relating to the Work for audit purposes provided that the Owner shall not be entitled to inspect or audit any document which relates to the profits, unit rates or mark up of the Builder, or which is confidential or privileged. Where activities are performed in connection with government guaranteed loans or similar programs, audit access shall also be available to the party providing the loans or guarantees. No charges shall be made by Builder for audit access.

 

 

	
27.2  

	
Builder shall maintain all records respecting the Work for a period of three (3) years after the date of actual Delivery or the date of termination, whichever is the earlier.

 

 

 

 

 

Article 28                                Patents and Proprietary Information

 

 

	
28.1  

	
The intellectual property rights in the drawings, designs, plans, reports, specifications, calculations, detailed design documents and/or other documents produced by Builder or procured by Builder (other than from Owner Group) shall at all times belong to and vest in the Builder provided that Builder shall provide a royalty-free irrevocable license to Owner for the use thereof, transferable to a transferee of the Vessel. The information, calculations, specifications and reports provided by Owner to Builder shall at all times belong to and vest in the Owner.

 

 

	
28.2  

	
Each Party shall indemnify and hold harmless the other Party from and against all claims, losses, damages, costs and liabilities of every kind and nature associated with, related to, or arising out of, or in connection with any actual or alleged infringement of any patent or proprietary or protected right used in the performance of the Contract, including without limitation the use of drawings respecting the scope of Work, if such infringement is caused by the indemnifying Party.

 

 

	
28.3  

	
Each Party shall notify the other Party of any infringement of any patent or proprietary or protected right promptly after the Party becomes aware of such infringement.

 

 

	
28.4  

	
In the event of Owner’s termination of the Contract under Article 33.1 and election to take a refund under Article 33.3 or the Builder’s termination of the Contract under Article 34.2, Owner agrees to provide a royalty-free license to Builder for the use of Owner’s intellectual property (including rights under the contract with Bassoe Technology) for the construction, sale and use of the Vessel and OFE (to the extent of the transfer of OFE to Builder), transferable to a transferee of the Vessel.

 

 

 

 

 

	
Article 29

	
Liens

 

 

	
29.1  

	
Builder shall indemnify and hold harmless Owners Group from and against all claims, losses, damages, costs and liabilities of every kind and nature associated with, or arising from, or in connection with liens, charges, attachments, seizures, injunctions or other encumbrances placed on the property of Owners or Owners Group by Builder or any Subcontractor or creditor of Builder.

 

	
29.2  

	
In the event of any lien, charge, attachments, seizures, injunctions or other encumbrances ascribed against the property of Owners or Owners Group as described for in Article 29.1, Owners may, at their absolute discretion, cause the removal of the lien, charge, attachments, seizures, injunction or other encumbrance and Owners may at their absolute discretion set-off the undisputed amounts owed by the Builder to the Subcontractor against payments due to Builder.

 

 

 

 

 

	
Article 30

	
Ownership

 

 

	
30.1

	
Title to such portion of the Vessel as is completed with each Milestone (including ONE and BFE equipment) shall pass to Owners immediately upon payment of the corresponding amounts payable for completion of such Milestone. Title to OFE and other materials and the equipment supplied by Owners, shall at all times remain vested in Owners.

 

 

	
30.2

	
Not Used.

 

 

	
30.3

	
Builder shall provide upon Delivery a Bill of Sale and Builders Certificate, in form and substance satisfactory to Owners, transferring title and ownership of the Vessel to Owners, free of all liens and encumbrances.

 

 

 

 

 

	
Article 31

	
Commencement, completion, liquidated damages and incentives

 

 

	
31.1  

	
Builder shall commence the Work upon execution by both Parties of Contract and shall proceed with the same in accordance with the Programme.

 

 

	
31.2  

	
The Vessel shall be delivered to Owners on the Delivery Date.

 

 

	
31.3  

	
When Builder determines that it has completed a Milestone as described in Section 4 – Programme, Builder shall notify Owners thereof in writing.

 

 

	
  

	
Upon receipt of Notice of completion of a Milestone, Owners shall within five (5) Days, either:

 

 

	
a)  

	
issue a Milestone Completion Certificate stating that the Milestone works are complete and the date upon which they were completed; or

 

 

	
b)  

	
give instructions to Builder specifying the Work that is required to be done prior to the issuance of a Milestone Completion Certificate.

 

 

	
31.4  

	
If Builder fails to deliver the Vessel by the Delivery Date or any extension thereof granted by Owners, Builder shall pay liquidated damages to Owners for such default as follows:

 

 

	
a)  

	
For the first fifteen (15) Days of delay, Builder shall not be required to pay liquidated damages; and

 

 

	
b)  

	
For a delay of 16 to 315 Days, a rate of US$50,000 per day will apply;

 

 

	
  

	
Delay for the purposes of this Article shall mean the period which elapses between the Delivery Date set forth in the Programme (as extended by a Variation Order or Force Majeure) and the actual date of the Delivery of the Vessel.

 

 

	
  

	
This Article 31.4 will not apply to any delay caused by the commissioning and testing of OFE. For delays arising from ONE, Builder shall only be liable to pay liquidated damages to the extent recoverable under the ONE contracts and not the amount set out in this Article.

 

 

	
31.5  

	
Builder shall not be liable for liquidated damages for periods covered by any settlement of Disputed Variation Orders, pursuant to which Owners have granted an extension of time for delivery.

 

 

	
  

	
Any sums in respect of such period which may have been recovered pursuant to Article 31.4 shall be reimbursable to Builder.

 

 

	
31.6  

	
The total liquidated damages recoverable from Builder shall not exceed Fifteen Million United States Dollars (US $15,000,000).

 

 

	
31.7  

	
Builder's payment of liquidated damages shall be Owner’s sole financial remedy in respect of Builder’s failure to deliver the Vessel on the Delivery Date. The Owner shall be entitled to set off from amounts payable to the Builder the liquidated damages so accrued under this Article.

 

	
31.8  

	
Builder agrees that the period(s) applicable to liquidated damages shall not in any way be considered or construed as additional period(s) available to Builder for the performance of the Work.  Owners may, at any time after maximum liquidated damages are reached, elect to terminate the Contract pursuant to Article 33.

 

Article 32                                [Not Used]

 

Article 33                                Termination for Builder's default

 

	
33.1  

	
Owners shall have the right, without prejudice to any of their other rights or remedies under, or in, or arising from, or in connection with the Contract or at law, by giving Notice to Builder, to terminate the Contract if Builder:

 

 

	
a)  

	
shall become insolvent, in receivership, liquidation, bankruptcy, in administration, in composition, in arrangement with its creditors, its assets are attached or seized, voluntary liquidation, voluntary winding-up, or any equivalent act or thing; or

 

 

	
b)  

	
is in material default of the Contract, and Owner has given notice to the Builder to remedy such Default and (i) fails to provide a plan to the Owner for the remedy of such default within fourteen (14) days from the Owner’s notice, or (ii) after providing a plan to the Owner, fails to remedy such default within thirty (30) days (or such other period as may be agreed by the Parties) from the receipt of the plan by the Owner; or

 

 

	
c)  

	
If the maximum liquidated damages has accrued under Article 31.

 

	
33.2  

	
In the event of termination under Article 33.1 above, Builder and Owners shall have the following rights, obligations and duties:

 

	
33.3  

	
If the Owner serves notice to terminate this Contract under Article 33.1 above, it shall specify whether it elects for a refund under this Article 33.3 or to purchase the Vessel in its incomplete state. The Builder shall, within thirty 30 days of receipt of such notice, repay to the Owner the amount of all monies paid by the Owner on account of the Contract Price together with interest thereon at the rate of 3.5% (three and one-half per cent) above LIBOR or six percent (6%), whichever is lower, from the date when such monies were paid by the Owner to the Builder up to the date of the repayment thereof. The liabilities of Builder under this Article 33.3 shall not be limited by the provisions of Article 38.2 hereof. All title to the Vessel and Works (including but not limited to BFE and ONE) shall automatically transfer on the date of payment by Builder and Owner shall take whatever steps necessary to legally perfect such rights in Builder's favour.  Owner undertakes to execute any and all formalities and/or documents to effect the same. The Builder shall also redeliver to the Owner at the Shipyard all of the OFE delivered to the Builder that has not been installed on the Vessel at the time of the Owner’s termination.  Where the OFE has been installed on the Vessel the Builder shall be entitled either to redeliver the same to the Owner or to retain it but if it elects to retain the same shall be obliged to pay to the Owner the cost incurred by the Owner in purchasing such OFE. In such event, Owner shall take whatever steps to legally perfect such rights in OFE in Builder’s favour.  Owner undertakes to execute any and all formalities and/or documents to effect the same.

 

	
33.4  

	
Alternatively, in lieu of a refund under Article 33.3, at the Owner’s sole discretion by notice in writing to the Builder, the Owner may elect to purchase the Vessel in its incomplete condition as at the date of termination and to, remove the Vessel and complete the construction of the Vessel. In the event Owner exercises its option to purchase the incomplete Vessel it shall forfeit its right to a refund under Article 33.3, and Builder shall:

	
i.  

	
provide every assistance to Owners to recover the Vessel, including any drawings, documents, engineering, calculations, electronic files, specifications and other items relating to the Vessel and the Work, and to effect the completion of the Work including, on request of Owners, the assignment of Subcontracts and shall immediately provide Owners with available drawings, documents, engineering, calculations, electronic files, computer software, tools, instruments, labour, materials, equipment and facilities;

 

	
ii.  

	
at its own expense, shall also allow, and provide every assistance with the immediate release of all other property of Owners, as Owners may direct; and

 

	
iii.  

	
execute and deliver to Owners a bill of sale respecting the Vessel or such of the Work has been completed in favour of Owners and in form and substance satisfactory to Owners

 

	
33.5  

	
In the event the Owners elect to remove the Vessel under Article 33.4 and complete the Vessel elsewhere, Owners shall deduct the costs and expenses of completing the Works from the Contract Price, less previous payments made to Builder and, in the event of a surplus, effect payment to Builder of the surplus or, in the event of a deficit, Builder shall reimburse Owners the deficit.  The liability of the Builder under this Article 33.5 is subject to the limitations in Articles 38.1 and 38.2;

 

	
33.6  

	
The remedies set out in this Article 33 shall be the sole remedies of Owner and the sole liability of Builder in the event of termination by Owner of this Contract.

 

 

 

 

 

	
Article 34

	
Remedies upon Owners’ default

 

 

	
34.1

	
Builder shall have the right, without prejudice to any of its other rights or remedies under, or in, or arising from, or in connection with the Contract or at law, by giving Notice to Owners to terminate the Contract if Owners:

 

 

	
a)  

	
shall become insolvent or be placed in receivership, liquidation, bankruptcy, administration, or other similar arrangement with its creditors, or substantially all of its assets are attached or seized, or Owners file for voluntary liquidation, voluntary winding-up, or any reasonable equivalent act or thing; or

 

 

	
b)  

	
fail to pay any amount or instalment due to Builder on its due date as provided in this Contract and such failure continues for thirty (30) Days following written Notice to Owners from Builder unless extended pursuant to Article 22, or unless Owners are disputing such amounts in good faith and have either commenced proceedings under Article 44 or have placed adequate security with Builder in the amount in dispute; or

 

 

	
c)  

	
fail to take delivery of the Vessel within thirty (30) Days following the date that the Vessel is duly tendered for Delivery by Builder without outstanding Work to be performed by Builder.

 

 

	
34.2  

	
In the event of termination of this Contract under Article 34.1, all title to the Vessel and Works (including but not limited to OFE, BFE and ONE) shall automatically transfer on the date of termination to Builder and Owner shall take whatever steps necessary to legally perfect such rights in Builder's favour. Owner undertakes to execute any and all formalities and/or documents to effect the same. Builder shall have full right and power at its sole option either to complete or not to complete the Work as it deems fit. Builder shall have the right to sell the Vessel, or sell the Vessel in its incomplete state, or sell the Vessel materials (if Builder is unable to sell the Vessel in an incomplete state) (whether immediately or such later date as it deems fit) at a public or private sale, with fourteen (14) Days prior notice to Owners, on such terms and conditions as are reasonable under the circumstances. Builder shall not be answerable for any loss or damage, provided that Builder shall use its best efforts to sell the Vessel at a private sale for six (6) months through a vessel broker of recognized international standing. Owner undertakes to execute any and all formalities and/or documents to effect the same. If Builder is unable to sell the incomplete the Vessel or Vessel materials, it may utilise the Vessel materials as it deems fit for other projects.  The money acquired through sale of the Vessel, or the utilisation of the Vessel materials, shall first be used to compensate the sale expenses, brokerage fees, maintenance of the Vessel, insurance, reasonable legal costs and expenses, and pay the amount owed by Owners to Builder and for work done and interests accrued under Article 22.5. The surplus, if any, shall be returned to Owners within 30 days after the sale is completed provided such amount so returned shall not exceed the portion of Contract Price received by the Builder from the Owner.  If the money acquired through sale of the Vessel, or the utilisation of the Vessel materials, is insufficient to pay the amount owed by the Owners to the Builder after deduction of the aforesaid expenses, the shortfall, shall be paid by the Owner to the Builder within 30 days after the sale is completed.

 

 

 

 

 

Article 35                                Conflict of interest

 

 

	
35.1  

	
THE BUILDER GROUP SHALL NOT PAY OR PROMISE TO PAY ANY FEE, COMMISSION, REBATE OR OTHER THING OF VALUE TO THE PERSONNEL, REPRESENTATIVES AND AGENTS OF OWNERS GROUP.

 

 

 

 

 

Article 36                                Independent Contractor

 

 

	
36.1  

	
Builder shall act as an independent Contractor in the performance and its other obligations of the Contract.

 

 

Builder shall be fully responsible for, and shall have exclusive direction and control of its employees, Subcontractors of any level, agents and any other entities engaged by Builder in connection with the Contract. In no event shall the relationship between the Parties be construed as that of principal and agent or master and servant.  No personnel of Builder or any Subcontractors, agents and any other entities engaged by Builder shall be, or purport to be, employees, representatives, agents or servants of Owners.

 

 

	
36.2  

	
If, in the opinion of Builder, any requirement, or instruction, or action of Owners in any way violates or otherwise restricts the ability of Builder to perform as an independent Contractor, Builder shall immediately and in any event prior to the taking of action arising from said requirement, instruction, or action of Owners, give Notice thereof to Owners.

 

 

 

 

 

Article 37                                Confidentiality

 

 

	
37.1  

	
Builder and Owners shall continue to be subject to the terms of any confidentiality agreement executed in connection with any bid by Builder for the Work or request for tender by Owners for the Work.

 

 

	
  

	
Builder and Owners shall at no time, without the prior written approval of the other Party, disclose to any Third Party the details of the Contract or any information concerning the Work or the Vessel or make any promotional display, announcement or advertisement regarding same, except as may be required by law or the regulations of any stock exchange on which stock of a Party or any of its affiliates is traded, or as may be necessary to perform this Contract.

 

 

	
  

	
Builder shall causeits employees, Subcontractors and agents to comply with this Article.

 

 

 

 

 

Article 38                                Direct and Consequential damages and exclusion of liability

 

	
38.1

	
Save in respect of Article 24 and liquidated damages under Article 31.4, notwithstanding anything to the contrary set forth herein in this Contract, neither Builder nor the Owner shall be liable to the other by way of indemnity or by reason of any breach of this Contract or of statutory duty or by reason of tort  or otherwise, for any loss of profit, loss of use, loss of production, loss of contracts, loss or reputation or goodwill or for any indirect or consequential damage whatsoever that may be suffered by the other and howsoever the same may have been caused, including without limitation caused by negligence.

 

 

	
38.2  

	
Notwithstanding any provision herein to the contrary or inconsistent herewith (save for Articles 24.1, 24.2 and 33.3), it is expressly agreed that the Builder's liability under this Contract or arising out of or in connection with its performance or non-performance, irrespective of whether such liability arises under this Contract or in tort or under statute or is due to negligence, or pursuant to any other cause, shall not in the aggregate exceed twelve percent (12%) of the amount of the Contract Price.

 

 

	
38.3  

	
Builder shall have no responsibility or liability for any defects in the Work arising after the end of the Guarantee Period and any extensions thereof.

 

 

	
38.4  

	
Builder shall notify Owners of all the claims and causes of action that it intends, or is already, pursuing against Owners in respect of the Work performed, if any, before the actual date of Delivery.

 

 

	
38.5  

	
Owners shall notify Builder of all claims and causes of action, if any, that they intend to pursue, or, are already pursuing against Builder in respect of the Work performed, with the exception of Guarantee claims, which shall be made within the Guarantee Period, before the actual date of Delivery.

 

 

	
38.6  

	
Not used

 

 

 

 

 

Article 39                                Amendments and Contract changes

 

 

	
39.1  

	
The Contract shall only be changed or modified by a duly authorised Variation Order signed by Owners or an Amendment which shall be clearly marked as such and signed by both Parties in duplicate original. Nothing contained in any correspondence, discussions or minutes of meeting shall have any effect on the Contract unless and until subsequently incorporated in a Variation Order or Amendment.

 

 

	
39.2  

	
Each Party's representative, as expressly authorised by each Party in writing, shall be considered as authorised to sign and thereby commit the Party to a Variation or Amendment.

 

 

	
39.3  

	
Builder agrees that it will execute any Amendment that is reasonably required by any governmental agency in connection with any guaranteed financing of the Work or any security interests in the Contract granted by Owners provided such Amendment shall not affect the rights or obligations of the Builder under the Contract.

 

 

 

 

 

 

 

 

Article 40                                Waiver

 

 

	
40.1  

	
No failure or relaxation on the part of Owners at any time or from time to time to require or enforce the strict adherence and performance of the Contract shall constitute a waiver of such requirements and provisions and obligations of the Contract whether specific or general or shall prejudice the rights and remedies of Owners to require such enforcement prior to the end of the Guarantee.

 

 

 

 

 

Article 41                                Assignment

 

 

	
41.1  

	
Builder shall not assign, in part or in whole, the Contract, nor transfer the rights to receive payment to a Third Party without the prior approval of Owners; provided that such consent shall not be unreasonably withheld, including without limitation in respect of any such assignment under a national guarantee program.

 

 

	
41.2  

	
Builder will use reasonable efforts to procure that Subcontracts shall contain a provision to allow assignment to Owners in the event of termination of the Contract prior to Delivery. Such assignment shall be subject to Owners’ approval.

 

 

	
41.3  

	
Owners shall not assign, in part or in whole, the Contract nor transfer the rights to receive payment to a Third Party without the prior approval of Builder; provided that such consent shall not be unreasonably withheld, and provided further that Owners may collaterally assign this Contract as security for its senior indebtedness.  Owners may assign the Contract to its wholly owned subsidiary provided that the Owner provides the Builder with a performance guarantee described in Article 43.

 

 

 

 

 

Article 42                                Notices

 

 

	
42.1  

	
Contractual Notices shall be in writing and addressed to the addresses stated Section 1 - Summary of Agreement, by registered letter, telex or facsimile and shall be deemed served:

 

 

	
a)  

	
if by telex or facsimile on receipt if during normal business hours or the next business opportunity; and

 

 

	
b)  

	
fourteen Days after the date of registered posting (unless a known disruption exists).

 

 

	
  

	
Address for the receipt of Notices by Owners:

 

	
  

	
Helix Energy Solutions Group, Inc.

	
  

	
400 North Sam Houston Parkway East, Suite 400

	
  

	
Houston, TX 77060

	
  

	
Attention: Hin Chiu

	
  

	
Phone: (281) 618-6500

	
  

	
Fax: (281) 618-0505

	
  

	
e-mail: Hchiu@helixesg.com

 

	
  

	
With a copy to: Ajohnson@helixesg.com

 

 

 

 

	
  

	
Address for the receipt of Notices by Builder:

 

	
  

	
Jurong Shipyard Pte Ltd

	
  

	
29 Tanjong Kling Road

	
  

	
Singapore 628054

	
  

	
Attn.: Don Lee Fook Kang / Wong Weng Sun

	
  

	
Phone: (65) 6262 7007 / 6262 7088

	
  

	
Fax: (65) 6261 7243

	
  

	
e-mail: donlfk@jspl.com.sg / wswong@sembcorpmarine.com.sg

 

 

	
Article 43

	
Performance bond

 

 

	
43.1  

	
On the Effective Date, but in any case before payment of the first Milestone, (i) Builder shall provide a performance guarantee, from its parent company in the format shown in Attachment A, and (ii) in the event Owner is a subsidiary of Helix Energy Solutions Group, Inc., the Owner shall provide a performance guarantee from Helix Energy Solutions Group, Inc. in the format shown in Attachment B.

 

 

	
43.2  

	
The performance guarantee shall remain valid until the end of the Guarantee Period.

 

 

 

 

 

Article 44                                Governing law and disputes

 

 

	
44.1  

	
The Contract shall be governed by and construed in accordance with English laws.

 

 

	
44.2  

	
In the event of a dispute concerning conformity of the Vessel or its appurtenances with the rules and regulations of Authorities, the matter shall be referred to the subject Authorities and the decision of said Authorities’ head officer shall be final and binding on the Parties.  Each Party shall bear its own costs involved in the dispute, including the costs, fees and expenses of witnesses, experts and counsel.

 

 

The Party whose opinion or position on the matter is not accepted by the Authorities shall be responsible for the costs, expenses and fees of the Authorities incurred in connection with the matter, provided that each costs fees and expenses shall be equally divided between the Parties if the Authorities reach an accommodation that is not substantially in accord with either Party’s position.

 

	
44.3

	
In the event of a claim, dispute or difference arising out of or in connection with this Contract relating to the breach validity or existence of this Contract having arisen or becoming apparent, either Party may circulate to the other Party’s Chief Executive Officer a memorandum or other form of statement setting out its position on the matter in dispute and its reasons for adopting such position. Each such memorandum or statement shall be considered by the Chief Executive Officer (“CEO”) of the Parties who shall respectively use their reasonable endeavours to resolve such dispute.  A meeting date and place shall be established by mutual agreement of the CEOs, such date shall not exceed 45 days from the date of the first memorandum or statement.

 

	
44.4  

	
If the claim, dispute or difference remains unresolved seven (7) calendar days following such meeting or in the event of a the failure of the meeting to be held,  the dispute and/or disputes shall be finally settled in accordance with the rules of the Singapore Maritime Arbitration Centre. The arbitral tribunal shall be composed of three arbitrators, selected in accordance with such rules. The place of arbitration shall be London.

 

Either Party may demand arbitration by serving written Notice on the other, specifying the nature of the claim to be arbitrated.

 

 

	
44.3  

	
The proceedings of all disputes shall be held exclusively in the English language.  Should documents be in other than English, the Party producing the documents shall procure, at its own expense, a certified translation thereof.  Either Party shall be entitled to apply to any court of competent jurisdiction to obtain a judgment based upon awards of the arbitrators.

 

 

 

Article 45                                Business practices

 

	
45.1  

	
In performance of this Contract and the Work, neither Party shall pay, offer, promise to pay, or authorize the payment directly or indirectly through any other person or firm, of any monies or anything of value to (i) any person or firm employed by or acting for or in behalf of any third party, whether private or governmental, or (ii) any government official or employee or any political party or candidate for political office, for the purpose of inducing or rewarding any action by such person favorable to either Party in connection with the Work (any such act being a “Prohibited Payment”). A Prohibited Payment does not include the payment of reasonable and bona fide expenditures, such as travel and lodging expenses, which are directly related to the promotion, demonstration or explanation of products or services, or the execution or performance of a contract with a customer or government or agency thereof; provided such payments are permissible under applicable law and business guidelines.

 

 

 

	
Article 46

	
CONTRACTS (RIGHTS OF THIRD PARTIES) ACT

 

 

	
  

	
46.1    Parties intend that no provision of this Contract shall, by virtue of the Contracts (Rights of Third Parties) Act 1999 (“the Act”) confer any benefit on, nor be enforceable by any person who is not a party to this Contract.

 

 

  

  

  

 

 

ATTACHMENT A

 

PARENT COMPANY GUARANTY

 

In consideration of the performance of services related to the construction by Jurong Shipyard Pte Ltd, a Singapore corporation (“Builder”) of a well intervention semi-submersible under JSPL Hull No. 11-1111 for Helix Energy Solutions Group, Inc. (“Owner”) and in order to induce such transactions and services, the undersigned Sembcorp Marine Ltd (incorporated in Singapore; with registered address 12 Tanjung Kling Road Singapore (“Guarantor”), guarantees the prompt payment and performance of all obligations of Builder to Owner under the Agreement dated the 12 of March 2012 between Builder and Owner (the “Agreement”) upon the following terms and conditions ("the Guaranty").

 

             1.  Guaranty.

 

(a)  Guarantor hereby unconditionally and absolutely guarantees the punctual payment of all monies due by the Builder and performance when due of Builder’s obligations arising under the Agreement, as may be amended or modified from time to time, together with any interest thereon (collectively, the “Guaranteed Obligations”).   Guarantor consents to any changes in the terms of the Agreement entered into between Builder and Owner, subject always to the terms of this Guaranty.

 

(b)  Additionally, the obligations of the Guarantor hereunder are several from the Builder or any other person, and are primary obligations concerning which the Guarantor is the principal obligor.  There are no conditions precedent to the enforcement of this Guaranty, except as expressly contained herein.  It shall not be necessary for Owner, in order to enforce payment or performance by Guarantor under this Guaranty, to show any proof of Builder’s default, to exhaust its remedies against Builder, any other guarantor, or any other person liable for the payment or performance of the Guaranteed Obligations.

 

	
  

	
(c)  This Guaranty shall continue to be effective if at any time any payment or performance of any of the Guaranteed Obligations are annulled, set aside, invalidated, declared to be fraudulent or preferential, rescinded or must otherwise be returned, refunded or repaid by Owner upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of Builder or any other guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, Builder or any other guarantor or any substantial part of its property or otherwise, all as though such payment or payments or performance had not been made.

 

	
(d)

	
In no circumstances whatsoever shall the liability of the Guarantor under this Guaranty exceed the liability of the Builder arising directly from the Agreement and the Guaranty shall be limited accordingly and shall also be limited by the terms of this Guaranty.

 

2.  Waiver.

 

Guarantor hereby waives:

 

	
(a)  

	
Notice of acceptance of this Guaranty, of the creation or existence of any of the Guaranteed Obligations and of any action by Owner in reliance hereon or in connection herewith.

 

	
(b)  

	
Except as expressly set forth herein, presentment, demand for payment, notice of dishonor or nonpayment, protest and notice of protest with respect to the Guaranteed Obligations; and

 

	
(c)  

	
any requirement that suit be brought against, or any other action by Owner be taken against, or any notice of default or other notice be given to, or any demand be made on, Builder or any other person, or that any other action be taken or not taken as a condition to Guarantor’s liability for the Guaranteed Obligations under this Guaranty or as a condition to the enforcement of this Guaranty against Guarantor.

 

3.  Legal Costs.  Guarantor agrees to pay on demand any legal fees that may be awarded to the Owner by the arbitration tribunal or any court and incurred by Owner, in enforcing Guarantor’s payment and performance obligations under this Guaranty.

 

4.  Subrogation.  Guarantor shall be subrogated to all rights of Owner against Builder in respect of any amounts paid by the Guarantor pursuant to the Guaranty, provided that Guarantor waives any rights it may acquire by way of subrogation under this Guaranty, by any payment made hereunder or otherwise, until all of the Guaranteed Obligations shall have been irrevocably paid to Owner in full.  If any amount shall be paid to the Guarantor on account of such subrogation rights at any time when all the Guaranteed Obligations shall not have been paid in full, such amount shall be held in trust for the benefit of Owner and shall forthwith be paid to Owner to be applied to the Guaranteed Obligations.

 

5.  Notices.  All demands, notices and other communications provided for hereunder shall (a) be in writing addressed to the party receiving the notice at the address set forth below or at such other address as may be designated by written notice, from time to time, to the other party, and (b) be effective upon delivery, when mailed by mail, registered or certified, postage prepaid, or when personally delivered, or when sent by fax (if confirmed by written notice mailed within 48 hours after the fax notice).  Notices shall be sent to the following addresses and/or fax numbers:

 

If to Builder:

	
  

	
 Attn: Don Lee Fook Kang

	
  

	
Jurong Shipyards Ltd.

                                        29 Tanjong Kling Road

                                        Singapore 628054

 

 Fax:

 

 

If to Guarantor:

                                         Attn: Wong Weng Sun / Tan Cheng Tat

Sembcorp Marine Ltd

                                         29 Tanjong Kling Road

                                         Singapore 628054

                                         Fax: 6261 0486

 

If to Owner:

                                         Attn: General Counsel

                                         Helix Energy Solutions Group, Inc.

  400 N. Sam Houston Parkway E., Suite 400

                                         Houston, TX 77060

                                         United States of America

                                         Fax: 001 281 618 0505

 

6.  Demand and Payment.  Any demand (“Demand”) by Owner for payment hereunder shall be in writing signed by two of Owner’s directors and delivered to the Guarantor pursuant to Section 5 hereof, and shall (a) reference this Guaranty, (b) specifically identify the Builder, the Guaranteed Obligations to be paid and the amount or nature of such Guaranteed Obligations, and that Demand has been made upon the Builder for the Guaranteed Obligations and the Builder has within 30 days failed to comply with the same, and (c) set forth payment instruments.  Such Demand upon the Guarantor shall be accompanied by either (a) the Builder’s acknowledgement in writing of its liability to Owner in respect of the sum demanded or (b) a Final Judgement of a court or arbitration tribunal of competent jurisdiction in proceedings commenced pursuant to the Agreement determining the Builder’s liability to the Owner in respect of the sum demanded.  The term “Final Judgement” shall in this context mean a judgement or award in respect of which there is no right of appeal or in respect of which the time limit for submitting an application to appeal has expired without such application having been made by either party to the Agreement.

 

7.  No Waiver; Remedies.   No failure on the part of Owner to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.  In no event shall Guarantor or Builder be liable for consequential, exemplary, tort, or punitive damages.

 

8.  Term; Termination.  Subject to the paragraph below, this Guaranty shall continue in full force and effect from the date hereof until the first to occur of: (a) the expiration of the Guaranty Period as defined in the Agreement, or (b) the payment to Owner by the Builder or by Guarantor of all sums secured by this Guaranty.  On occurrence of such an event the Guarantor's obligations and liabilities under this Guaranty shall cease irrespective of whether the original Guaranty is returned to the Guarantor or not for cancellation. 

 

Notwithstanding the other terms of this Guaranty, if within twenty-eight (28) days of the Guarantor’s receipt of a Demand the Guarantor receives written notice from the Owner or from the Builder stating that Owner’s claim for payment of the sums referred to in the Demand has been disputed and that such dispute will be resolved in accordance with the Agreement, then the Guarantor shall not be obliged to make any payment to the Owner under this Guaranty until thirty (30) days after the dispute has been finally determined or in the event of an appeal from an arbitration award, until thirty (30) days after delivery of the Final Judgement; or in the event that the court remits the matter to the arbitrator, until thirty (30) days after the publication of the revised final award or in the event of an appeal from the award, until thirty (30) days after delivery of the Final Judgement.  Final Judgement shall have the meaning given to it in Clause 6 above.

 

9.  Assignment; Successors and Assigns.  Neither party may assign its rights hereunder without the prior written consent of the other party, such consent not to be unreasonably withheld.  Subject to the foregoing, this Guaranty shall be binding upon and inure to the benefit of the parties hereto and their respective successors, permitted assigns, and legal representatives.

 

10.  Amendments.  No amendment of this Guaranty shall be effective unless in writing and signed by Guarantor and Owner.  No waiver of any provision of this Guaranty nor consent to any departure by Guarantor therefrom shall in any event be effective unless such waiver shall be in writing and signed by Owner.  Any such waiver shall be effective only in the specific instance and for the specific purpose for which it was given.

 

11.  Limitation by Law.  All rights, remedies and powers provided in this Guaranty may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Guaranty are intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary so that they will not render this Guaranty invalid, unenforceable, in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable law.

 

12.  Third Party Rights.  A person who is not a party to this Guaranty shall not have any right under or in connection with it.

 

13.  Governing Law.  This Guaranty shall be governed by, and construed in accordance with, the laws of England and Wales.  All disputes arising out of or in connection with this Guaranty shall be resolved pursuant to the dispute resolution procedures and in the location provided for under the terms of the Agreement.

 

IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly executed and delivered by its duly authorized officer effective as of this 12 day of March, 2012.

 

                                                  SEMBCORP MARINE LTD

 

                                                  By: _/s/ Wong Weng Sun

                      Wong Weng Sun

                     President &  CEO

	  

                                                  Its:

 

ATTACHMENT B

 

PARENT COMPANY GUARANTY

 

In consideration of the performance of services related to the construction by Jurong Shipyard Pte Ltd, a Singapore corporation (“Builder”) of a well intervention semi-submersible under JSPL Hull No. 11-1111 for [name of subsidiary of Helix] (“Owner”) and in order to induce such transactions and services, the undersigned Helix Energy Solutions Group, Inc. (incorporated in United States; with registered address ______________, USA (“Guarantor”), guarantees the prompt payment and performance of all obligations of Owner to Builder under the Agreement dated the ___ of March 2012 between Builder and Owner (the “Agreement”) upon the following terms and conditions ("the Guaranty").

 

             1.  Guaranty.

 

(a)  Guarantor hereby unconditionally and absolutely guarantees the punctual payment of all monies due by the Owner and performance when due of Owner’s obligations arising under the Agreement, as may be amended or modified from time to time, together with any interest thereon (collectively, the “Guaranteed Obligations”).   Guarantor consents to any changes in the terms of the Agreement entered into between Builder and Owner, subject always to the terms of this Guaranty.

 

(b)  Additionally, the obligations of the Guarantor hereunder are several from the Owner or any other person, and are primary obligations concerning which the Guarantor is the principal obligor.  There are no conditions precedent to the enforcement of this Guaranty, except as expressly contained herein.  It shall not be necessary for Builder, in order to enforce payment or performance by Guarantor under this Guaranty, to show any proof of Owner’s default, to exhaust its remedies against Owner, any other guarantor, or any other person liable for the payment or performance of the Guaranteed Obligations.

 

(c)  This Guaranty shall continue to be effective if at any time any payment or performance of any of the Guaranteed Obligations are annulled, set aside, invalidated, declared to be fraudulent or preferential, rescinded or must otherwise be returned, refunded or repaid by Builder upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of Owner or any other guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, Owner or any other guarantor or any substantial part of its property or otherwise, all as though such payment or payments or performance had not been made.

 

(d)         In no circumstances whatsoever shall the liability of the Guarantor under this Guaranty exceed the liability of the Owner arising directly from the Agreement and the Guaranty shall be limited accordingly and shall also be limited by the terms of this Guaranty.

 

2.  Waiver.

 

Guarantor hereby waives:

 

	
(d)  

	
Notice of acceptance of this Guaranty, of the creation or existence of any of the Guaranteed Obligations and of any action by Builder in reliance hereon or in connection herewith.

 

	
(e)  

	
Except as expressly set forth herein, presentment, demand for payment, notice of dishonor or nonpayment, protest and notice of protest with respect to the Guaranteed Obligations; and

 

	
(f)  

	
any requirement that suit be brought against, or any other action by Builder be taken against, or any notice of default or other notice be given to, or any demand be made on, Owner or any other person, or that any other action be taken or not taken as a condition to Guarantor’s liability for the Guaranteed Obligations under this Guaranty or as a condition to the enforcement of this Guaranty against Guarantor.

 

3.  Legal Costs.  Guarantor agrees to pay on demand any legal fees that may be awarded to Builder by the arbitration tribunal or any court and incurred by Builder, in enforcing Guarantor’s payment and performance obligations under this Guaranty.

 

4.  Subrogation.  Guarantor shall be subrogated to all rights of Builder against Owner in respect of any amounts paid by the Guarantor pursuant to the Guaranty, provided that Guarantor waives any rights it may acquire by way of subrogation under this Guaranty, by any payment made hereunder or otherwise, until all of the Guaranteed Obligations shall have been irrevocably paid to Builder in full.  If any amount shall be paid to the Guarantor on account of such subrogation rights at any time when all the Guaranteed Obligations shall not have been paid in full, such amount shall be held in trust for the benefit of Builder and shall forthwith be paid to Builder to be applied to the Guaranteed Obligations.

 

5.  Notices.  All demands, notices and other communications provided for hereunder shall (a) be in writing addressed to the party receiving the notice at the address set forth below or at such other address as may be designated by written notice, from time to time, to the other party, and (b) be effective upon delivery, when mailed by mail, registered or certified, postage prepaid, or when personally delivered, or when sent by fax (if confirmed by written notice mailed within 48 hours after the fax notice).  Notices shall be sent to the following addresses and/or fax numbers:

 

If to Builder:

	
  

	
 Attn: Don Lee Fook Kang

Jurong Shipyards Ltd.

                                        29 Tanjong Kling Road

                                        Singapore 628054

 

 Fax:

 

If to Guarantor:

                                         [Attn: Helix]

 

If to Owner:

                                         Attn: General Counsel

                                         Helix Energy Solutions Group, Inc.

  400 N. Sam Houston Parkway E., Suite 400

                                         Houston, TX 77060

                                         United States of America

                                         Fax: 001 281 618 0505

 

6.  Demand and Payment.  Any demand (“Demand”) by Builder for payment hereunder shall be in writing signed by two of Builder’s directors and delivered to the Guarantor pursuant to Section 5 hereof, and shall (a) reference this Guaranty, (b) specifically identify the Owner, the Guaranteed Obligations to be paid and the amount or nature of such Guaranteed Obligations, and that Demand has been made upon the Owner for the Guaranteed Obligations and the Owner has within 30 days failed to comply with the same, and (c) set forth payment instruments.  Such Demand upon the Guarantor shall be accompanied by either (a) the Builder’s acknowledgement in writing of its liability to Owner in respect of the sum demanded or (b) a Final Judgement of a court or arbitration tribunal of competent jurisdiction in proceedings commenced pursuant to the Agreement determining the Owner’s liability to the Builder in respect of the sum demanded.  The term “Final Judgement” shall in this context mean a judgement or award in respect of which there is no right of appeal or in respect of which the time limit for submitting an application to appeal has expired without such application having been made by either party to the Agreement.

 

7.  No Waiver; Remedies.   No failure on the part of Builder to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.  In no event shall Guarantor or Owner be liable for consequential, exemplary, tort, or punitive damages.

 

8.  Term; Termination.  Subject to the paragraph below, this Guaranty shall continue in full force and effect from the date hereof until the first to occur of: (a) the expiration of the Guaranty Period as defined in the Agreement, or (b) the payment to Builder by the Owner or by Guarantor of all sums secured by this Guaranty.  On occurrence of such an event the Guarantor's obligations and liabilities under this Guaranty shall cease irrespective of whether the original Guaranty is returned to the Guarantor or not for cancellation. 

 

Notwithstanding the other terms of this Guaranty, if within twenty-eight (28) days of the Guarantor’s receipt of a Demand the Guarantor receives written notice from the Owner or from the Builder stating that Builder’s claim for payment of the sums referred to in the Demand has been disputed and that such dispute will be resolved in accordance with the Agreement, then the Guarantor shall not be obliged to make any payment to the Builder under this Guaranty until thirty (30) days after the dispute has been finally determined or in the event of an appeal from an arbitration award, until thirty (30) days after delivery of the Final Judgement; or in the event that the court remits the matter to the arbitrator, until thirty (30) days after the publication of the revised final award or in the event of an appeal from the award, until thirty (30) days after delivery of the Final Judgement.  Final Judgement shall have the meaning given to it in Clause 6 above.

 

9.  Assignment; Successors and Assigns.  Neither party may assign its rights hereunder without the prior written consent of the other party, such consent not to be unreasonably withheld.  Subject to the foregoing, this Guaranty shall be binding upon and inure to the benefit of the parties hereto and their respective successors, permitted assigns, and legal representatives.

 

10.  Amendments.  No amendment of this Guaranty shall be effective unless in writing and signed by Guarantor and Builder.  No waiver of any provision of this Guaranty nor consent to any departure by Guarantor therefrom shall in any event be effective unless such waiver shall be in writing and signed by Builder.  Any such waiver shall be effective only in the specific instance and for the specific purpose for which it was given.

 

11.  Limitation by Law.  All rights, remedies and powers provided in this Guaranty may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Guaranty are intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary so that they will not render this Guaranty invalid, unenforceable, in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable law.

 

12.  Third Party Rights.  A person who is not a party to this Guaranty shall not have any right under or in connection with it.

 

13.  Governing Law.  This Guaranty shall be governed by, and construed in accordance with, the laws of England and Wales.  All disputes arising out of or in connection with this Guaranty shall be resolved pursuant to the dispute resolution procedures and in the location provided for under the terms of the Agreement.

 

IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly executed and delivered by its duly authorized officer effective as of this _____ day of March, 2012.

 

 

                                                  HELIX ENERGY SOLUTIONS GROUP, INC

 

 

                                                  By: __________________________________

 

	  

 

                                                  Its:

 

 

 

 

	
SECTION 3

	
SCHEDULE OF PRICES

 

	
  

	
3.1

	
CONTRACT PRICE

 

	
3.1.1

	
The CONTRACT PRICE shall be comprised of the sum total of the separately identified Lump Sum Prices listed under Section 3.2.2 of this SECTION 3.  The CONTRACT PRICE shall be fixed and firm for the duration of the CONTRACT and for the execution of the WORK described in the CONTRACT, and shall be deemed to include all items necessary for the proper completion of the WORK fully in accordance with the CONTRACT, excluding only V.A.T.

 

	
3.1.2

	
The CONTRACT PRICE shall only be adjusted by VARIATION ORDERS or AMENDMENTS to the CONTRACT.  Options and additional WORK shall be incorporated into the CONTRACT PRICE by either VARIATION ORDERS or AMENDMENTS to the CONTRACT, pursuant to SECTION 2 - TERMS AND CONDITIONS OF CONTRACT - Article 16.

 

	
  

	
3.1.3   All Prices stated in this SECTION 3 are in US Dollars unless stated otherwise.

 

	
  

	
3.2

	
LUMP SUM PRICES

 

	
3.2.1

	
The descriptions given below are only brief descriptions sufficient to identify separate items of the WORK and shall not limit BUILDER's responsibility for performance and completion of the whole of the WORK as further described in SECTION 6 - TECHNICAL SPECIFICATIONS and SECTION 7 - DRAWINGS, or expressed elsewhere in the CONTRACT.

 

	
3.2.2  

	
The Contract Price shall be United States Dollars Three Hundred Eighty-Five Million and Five Hundred Thousand (US$385,500,000).The Contract Price shall comprise the following lump sums, which are fully inclusive of all items necessary to execute, test and complete the WORK and to achieve timely delivery of the VESSEL.

 

	
I.D.

	
Group

	
Subgroup

	
Labor (hours)

	
Unit price

	
Price

	
Weight

	
Unit Price

	
Price

	
Group Price

	  	  	  	
Fabrication or Installation, see note (1)

	
US$

	
US$

	
Metric Tonnes

	
US$

	
US$

	
US$

	
1.0

	
Main Steel

	  	  	  	  	  	  	  	
 Lumpsum

	
1.1

	  	
Pontoons

	  	  	  	  	  	  	
 Included

	
1.2

	  	
Columns & Braces

	  	  	  	  	  	  	
 Included

	
1.3

	  	
Deck Box

	  	  	  	  	  	  	
 Included

	
1.4

	  	
Deck Houses

	  	  	  	  	  	  	
 Included

	
1.5

	  	
Drill Floor & Substructure

	  	  	  	  	  	  	
 Included

	
2.0

	
Secondary Steel & Materials

	  	  	  	  	  	  	  	
 Lumpsum

	
2.1

	  	
Pontoons

	  	  	  	  	  	  	
 Included

	
2.2

	  	
Columns

	  	  	  	  	  	  	
 Included

	
2.3

	  	
Deck Box

	  	  	  	  	  	  	
 Included

	
2.4

	  	
Deck Houses

	  	  	  	  	  	  	
 Included

	
2.5

	  	
Drill Floor

	  	  	  	  	  	  	
 Included

	
3.0

	
Corrosion Protection

	  	  	  	  	  	  	  	
 Lumpsum

	
3.1

	  	
Pontoon & Col

	  	  	  	  	  	  	
 Included

	
3.2

	  	
Deck Box

	  	  	  	  	  	  	
 Included

	
3.3

	  	
Deck Houses

	  	  	  	  	  	  	
 Included

	
3.4

	  	
Drill Floor

	  	  	  	  	  	  	
 Included

	
4.0

	
Outfitting

	  	  	  	  	  	  	  	
 Lumpsum

	
4.1

	  	
Pontoon

	  	  	  	  	  	  	
 Included

	
4.2

	  	
Column

	  	  	  	  	  	  	
 Included

	
4.3

	  	
Deck Box

	  	  	  	  	  	  	
 Included

	
4.4

	  	
Deck Houses

	  	  	  	  	  	  	
 Included

	
4.5

	  	
Drill Floor

	  	  	  	  	  	  	
 Included

	
5.0

	
BFE Purchase Price (3)

	  	  	  	  	  	  	  	
 Lumpsum

	  	
BFE Installation(2)

	  	  	  	  	  	  	  	
 Lumpsum

	
5.1

	  	
Pontoon

	  	  	  	  	  	  	
 Included

	
5.2

	  	
Column

	  	  	  	  	  	  	
 Included

	
5.3

	  	
Deck Box

	  	  	  	  	  	  	
 Included

	
5.4

	  	
Deck Houses

	  	  	  	  	  	  	
 Included

	
5.5

	  	
Drill Floor

	  	  	  	  	  	  	
 Included

	
6.0

	
ONEInstallation (4)

	  	  	  	  	  	  	  	
 Lumpsum

	
6.1

	  	
Deck Box

	  	  	  	  	  	  	
 Included

	
6.2

	  	
Drill Floor & Substructure

	  	  	  	  	  	  	
 Included

	
7.0

	
Testing

	  	  	  	  	  	  	  	
 Lumpsum

	
8.0

	
Yard Facilities

	  	  	  	  	
NA

	
NA

	
NA

	
 Lumpsum

	
9.0

	
BFE Commissioning, Note (5)

	  	  	  	  	
NA

	
NA

	
NA

	
 Lumpsum

	
10.0

	
OFE Commissioning, Note (6)

	  	  	  	  	
NA

	
NA

	
NA

	
 Lumpsum

	
11.0

	
Sea Trials, Note  (7)

	  	  	  	  	
NA

	
NA

	
NA

	
 Lumpsum

	
12.0

	
Yard Production Engineering

	  	  	  	  	
NA

	
NA

	
NA

	
 Lumpsum

	
13.0

	
Yard Management & Supervision

	  	  	  	  	
NA

	
NA

	
NA

	
 Lumpsum

	
14.0

	
Yard HSE, Note (7)

	  	  	  	  	
NA

	
NA

	
NA

	
 Lumpsum

	
15.0

	
Facility for Owner's Construction Team

	  	
NA

	
NA

	
NA

	
NA

	
NA

	
NA

	
 Lumpsum

	  	  	  	  	  	  	  	  	  	  
	
16.0

	
Total Price $(1)

	  	  	  	  	  	  	  	
 385,500,000

 

 

 

Notes:

	
1.  

	
The above price is based on pre-selected vendors’ proposed scope of work as defined in the quotations as follows:

	
a.  

	
Kongsberg, Quotation 15170-4, dated 16 Feb 2014, Quoted NOK 49,550,000 (USD equivalent of USD8,591,970)

	
b.  

	
Wartsila, Quotation, Q02630202A04a1, dated 14 Feb 2014, Euro 16,258,500 (USD equivalent of USD21,268,394)

	
c.  

	
Siemens, Quotation 10-001588-004-001 Rev 4, dated 9 Feb 2014, Euro 14,773,960 (USD equivalent of USD19,326,408)

	
d.  

	
Aluminium Offshore, Quotation AOPL/11/05-BQ236, SGD 1,234,000 (USD Equivalent of USD976,380)

	
e.  

	
NOV, Quotation 123669 Rev 14, dated 2 Mar 12, Quoted USD 79,999,368

	
f.  

	
Huisman Cranes, Quotation A10-12460, dated 23 Feb 12, Quoted Euro 15,685,000 (USD Equivalent of USD 20,518,176)

	
2.  

	
Equipment installation includes utility hook up and mechanical completion.

	
3.  

	
BFE purchase price shall include transportation costs to the yard.

	
4.  

	
Regarding ONE installation: BUILDER shall install the equipment per OWNERS’ approved specification. The drilling derrick will be assembled and erected by the VENDOR. BUILDER shall provide labour, utility and lifting service for the installation of the derrick on the drill floor

	
5.  

	
BUILDER is responsible for commissioning of BFE and ONE. OWNERS’ role is to witness the tests and sign off on test results if they are acceptable

	
6.  

	
OWNERS are responsible for commissioning of OFE. BUILDER's role is to provide manpower and utility support during the commissioning process.

	
7.  

	
BUILDER shall be in charge of sea trials, with the exception of OFE offshore commissioning, which are the responsibility of OWNERS

	
8.  

	
HSE refers to implementation of Health, Safety, and Environment protocol including fire watch.

 

 

	
3.2.4

	
ADDITIONAL WORK

 

	
  

	
In addition to the WORK specified in the CONTRACT, OWNERS may require BUILDER to perform certain additional items. For example, the final Light Ship Weight may be greater than the initial estimate. The corresponding price increase due to additional materials and permanent equipment will be determined by the scope during the detailed design stage and the unit rates in the following Section.

 

	
3.3

	
UNIT RATES

 

	
3.3.1

	
The following unit rates shall be used for calculating the value of any VARIATION to the WORK, whether to calculate credits to OWNERS for deleted or reduced scope of WORK or to reimburse BUILDER for increased scope of WORK.

 

	
  

	
All costs related to the performance of VARIATION ORDERS or AMENDMENTS to the WORK are included in the individual unit rates corresponding to the various items below, whether separately identified or not.  The unit rates contained herein will be applied to all items of like description irrespective of the quantity or location of the item.  The unit rates shall apply equally to the performance of the work in difficult or easy situations, at any position, height or level and at any time.

 

	
  

	
Unit rates shall be based on completed part or parts of the WORK measured net. BUILDER shall not receive compensation or reimbursement for any material provided by OWNERS or BUILDER removed during fabrication, consumed through general wastage or usage of consumables.

 

	
  

	
The item descriptions herein are brief descriptions sufficient for identification of, and not exhaustive detailing of, every operation required to carry out the WORK.

 

	
  

	
The unit rates for the respective items are deemed to be the full inclusive price for the full and finished WORK as briefly described and shall include all items necessary to execute, test and complete the WORK, whether separately identified or not.

 

	
  

	
The unit rates contained herein shall be used as a basis for the calculation of new unit rates for similar work.

 

	
  

	
Unit rates shall include all engineering, revisions and/or preparation of drawings, and provision of all relevant testing and commissioning documentation and as-built documentation. No deductions shall be made for splay cuts, notches, holes, slots and voids less than 0.10 square meters.

 

	
  

	
No allowance shall be made for the weight of weld metal or consumables. The calculation of the weight of the steelwork shall be based on the measurements as presented in the approved drawings. All paint work and coatings to steelwork are measured per square meter of surface covered.

 

	
  

	
The unit rates shall be fixed and firm for the duration of the CONTRACT and any extension thereto.

 

	
3.3.2

	
All inclusive unit rates for management and supervision

 

	  	
Rates in ....

	
Total for management and supervision / per day

	
Included In Unit Price

	
Total for management and supervision / per week

	
Included In Unit Price

	
Total for management and supervision / per month

	
Included In Unit Price

 

3.3.3           All inclusive unit rates for facilities

 

	  	
Rates in ....

	
Total for facilities / per day

	
Included In Unit Price

	
Total for facilities / per week

	
Included In Unit Price

	
Total for facilities / per month

	
Included In Unit Price

 

	
3.3.4  

	
All inclusive unit rates for engineering where BUILDER receives a specific requirement of OWNERS, by VARIATION ORDER or AMENDMENT, for BUILDER to undertake isolated engineering or drafting exercise

 

	
  

	
The following all inclusive unit rates shall be applied on a day-rate basis. The rates shall include usage of all computers and software. Any premium working payments are to be included in the rates.

 

	  	
Rates in .... per hour

	
Senior engineer

	
$53/man hour

	
Engineer

	
$40/man hour

	
Senior draughtsperson

	
$30/man hour

	
Draughtsperson

	
$ 26/man hour

 

 

	
3.3.5

	
All inclusive unit rates for structural steelwork and outfitting steelwork

 

The following rates are all inclusive of all items necessary to complete the WORK in accordance with the CONTRACT provisions.  The rates shall include, but not be limited to, all procurement, materials, labour, engineering, handling, cutting, trimming, grinding, shaping, setting up, assembly, weld preparation, tacking, welding, stress relieving, NDT and installation in final position in any location by welding or bolting.

 

The rates shall apply to any item of steelwork of any grade, including but not limited to plates, rolled sections, circular and rectangular hollow sections, beams, bracings, bearers, angles, stiffeners, gussets etc. measured net as installed, with no deductions for voids of less than 0.10 m2.

 

The unit of measurement shall be per kilogram.

 

Each complete item of steelwork shall be measured separately and the rates applied in the following categories:

 

	
Category

	
Rate in .... per kilogram

	  	
Materials

	
Labour

	
Totals

	
Up to 250 kg total weight

	  	  	
$5/kg

	
251 to 500 kg total weight

	  	  	
$5/kg

	
501 to 1,000 kg total weight

	  	  	
$5/kg

	
1,000 to 5,000 kg total weight

	  	  	
$5 /kg

	
over 5,000 kg total weight

	  	  	
$5/kg

 

 

3.3.6           All inclusive unit rates for pipe work

 

The following unit rates include all items necessary to complete the WORK in accordance with the CONTRACT. The rates shall include but not be limited to all procurement, materials, labour, engineering, handling, cutting, alignment, grinding, setting up assembly, weld preparation, tacking, welding, bolting, gaskets, stress relieving NDT, testing, pre-commissioning, commissioning, and installation in final position in any location.

 

Pipework shall be measured in linear metres along the centre line of the pipe, through all fittings, but not through valves, metres, strainers and other auxiliaries which shall be measured separately.

 

Supports for pipework are to be measured as structural steel, apart from standard hangers and proprietary supports, which shall be included in the rates for pipework.

 

	
  

	
All inclusive rates for supplying and installation standard wall carbon steel pipework per meter, including all fittings:

 

	
Diameter

	
Materials

	
Labour

	
Total

	
Up to 11⁄2“

	
Included

	
Included

	
$81/m

	
2”

	
Included

	
Included

	
$141/m

	
3”

	
Included

	
Included

	
$229/m

	
4”

	
Included

	
Included

	
$268/m

	
6”

	
Included

	
Included

	
$491/m

	
8”

	
Included

	
Included

	
$755/m

	
10”

	
Included

	
Included

	
$902/m

	
12”

	
Included

	
Included

	
$1129/m

	
14”

	
Included

	
Included

	
$1366/m

	
16”

	
Included

	
Included

	
$1649/m

	
18”

	
NA

	
NA

	
$- /m

	
20”

	
NA

	
NA

	
$- /m

	
24”

	
NA

	
NA

	
$- /m

	
30”

	
NA

	
NA

	
$- /m

	
36”

	
NA

	
NA

	
$- /m

 

	
  

	
The following factors shall be applied to the rates for standard wall carbon steel pipework above for other pipe schedules:

 

	
Schedule

	
Materials

	
Labour

	
5

	
%

	
%

	
10

	
%

	
     %

	
20

	
%

	
     %

	
30

	
%

	
     %

	
40

	
100%

	
100%

	
60

	
%

	
     %

	
80

	
145%

	
145%

	
100

	
215%

	
215%

	
120

	
%

	
     %

	
140

	
%

	
     %

	
160

	
285%

	
285%

	
XS

	
%

	
     %

	
XXS

	
%

	
     %

 

 

	
3.3.7

	
All inclusive unit rates for electrical installation

 

	
  

	
The following rates include all items necessary to complete the WORK in accordance with the CONTRACT. The rates shall include but not to be limited to all procurement, materials, labour, engineering, handling, cutting, alignment, grinding, setting up, assembly, bolting, welding, NDT, testing, pre-commissioning, commissioning and installation in final position in any location.

 

Cable shall be measured net, as installed between gland/junction boxes, in linear metres.Cable support systems shall be measured in linear metres along the centre line through all fittings. Transits shall be enumerated.

 

All inclusive rates for cabling per meter, including all ties, splicing, dressing, glandingandterminating, junction boxes and other fittings:

 

	
Size of core

	
Materials

	
Labour

	
Total

	
Terminate, Glanding

	
1.0 mm

	
Included

	
Included

	
$10.72/m

	
$ 63.11/Cable

	
1.5 mm

	
Included

	
Included

	
$11.59/m

	
$ 95.40/Cable

	
2.5 mm

	
Included

	
Included

	
$12.78/m

	
$ 105.04/Cable

	
4.0 mm

	
Included

	
Included

	
$16.92/m

	
$ 105.04/Cable

	
6.0 mm

	
Included

	
Included

	
$21.39/m

	
$ 112.81/Cable

	
10 mm

	
Included

	
Included

	
$27.42/m

	
$ 112.81/Cable

	
16 mm

	
Included

	
Included

	
$33.50/m

	
$ 112.81/Cable

	
25 mm

	
Included

	
Included

	
$42.64/m

	
$ 131.63/Cable

	
35 mm

	
Included

	
Included

	
$52.13/m

	
$ 131.63/Cable

	
50 mm

	
Included

	
Included

	
$68.65/m

	
$ 163.33/Cable

	
70 mm

	
Included

	
Included

	
$83.87/m

	
$ 169.41/Cable

	
95 mm

	
Included

	
Included

	
$101.10/m

	
$ 195.55/Cable

	
120 mm

	
Included

	
Included

	
$120.27/m

	
$ 234.66/Cable

 

	
  

	
The following factors shall be applied to the above rates for the number of cores:

 

	
No. of cores

	
Material

	
Labour

	
Total

	
1

	
Included

	
Included

	
65%

	
2

	
Included

	
Included

	
86%

	
3

	
Included

	
Included

	
100%

	
4

	
Included

	
Included

	
125%

	
5

	
Included

	
Included

	
141%

	
7

	
Included

	
Included

	
160%

	
8

	
Included

	
Included

	
210%

	
10

	
Included

	
Included

	
226%

	
12

	
Included

	
Included

	
245%

	
14

	
Included

	
Included

	
253%

	
19

	
Included

	
Included

	
267%

	
21

	
Included

	
Included

	
293%

	
24

	
Included

	
Included

	
334%

	
27

	
Included

	
Included

	
369%

	
37 and over

	  	  	
500%

 

	
  

	
All inclusive rates for galvanised conduits, cable tray and ladder rack, including all fittings and supports; however, major steel supports are to be measured under steelwork.

 

	
Width

	
Material

	
Labour

	
Total

	  	  	  	  
	
Conduit

	  	  	  
	
Unistrut

	  	  	  
	
N.e.100 mm wide

	
$ 13.6/m

	
$ 24.4/m

	
$38/m

	
150 mm wide

	
$ 15.5/m

	
$ 41.5/m

	
$57/m

	
200 mm wide

	
$ 17.7/m

	
$ 51.8/m

	
$69.5/m

	
300 mm wide

	
$ 21.3/m

	
$ 60.7/m

	
$82/m

	
450 mm wide

	
$ 27.3/m

	
$ 64.7/m

	
$92/m

	
600 mm wide

	
$ 34.1/m

	
$ 79.9/m

	
$114/m

	
900 mm wide

	
$ 46.4/m

	
$ 83.2/m

	
$144/m

	
1000 mm wide

	
$ 49.8/m

	
$ 94.2/m

	
$144/m

 

The following factors shall be applied for stainless steel cable tray and ladder rack:

 

	
Width

	
Material

	
Labour

	
Total

	  	  	  	  
	
Conduit

	  	  	  
	
Unistrut

	  	  	  
	
Up to 100 mm wide

	
$ 68/m

	
$ 24.4/m

	
$92.4/m

	
150 mm wide

	
$ 77.7/m

	
$ 41.5/m

	
$119.2/m

	
200 mm wide

	
$ 88.6/m

	
$ 51.8/m

	
$140.4/m

	
300 mm wide

	
$ 106.4/m

	
$ 60.7/m

	
$167.1/m

	
450 mm wide

	
$ 136.6/m

	
$ 64.7/m

	
$201/m

	
600 mm wide

	
$ 170.4/m

	
$ 79.9/m

	
$250.3/m

	
900 mm wide

	
$ 231.9/m

	
$ 83.2/m

	
$315.1/m

	
1000 mm wide

	
$ 249/m

	
$ 94.2/m

	
$343.2/m

 

	
  

	
Cable transits if and when required are included in the rates above, which include frame installation, cutting holes, all gauge and filler blocks, plates and packing.

 

	
3.3.8

	
All inclusive rates for HVAC installation

 

	
  

	
The following rates include all items necessary to complete the WORK in accordance with the CONTRACT. The rates shall include but not be limited to all procurement, materials, labour, engineering, handling, fixing and supporting to the structure, bolting, gaskets, assembly, earth continuity, NDT, testing, pre-commissioning, commissioning and installation in final position in any location.

 

	
  

	
Ductwork shall be measured along the centre line of the duct between items of equipment and through all fittings, short running lengths, branches etc.

 

	
  

	
All inclusive unit rates for galvanised mild steel ductwork up to 2 mm thick per meter, including all fittings and supports, however, major steel supports shall be measured and included with structural steelwork:

 

	
Ductwork section

	
Materials

	
Labour

	
Total

	  	  	  	  
	
250x250mm

	
Included

	
Included

	
$109/m

	
500x500mm

	
Included

	
Included

	
$218/m

	
750x750mm

	
Included

	
Included

	
$327/m

	
1000x1000mm

	
Included

	
Included

	
$436/m

	
1250x1250mm

	
Included

	
Included

	
$545/m

	
1500x1500mm

	
Included

	
Included

	
$654/m

 

 

	
  

	
All inclusive rates for spiral ducting per meter, including all fittings and supports; however, major steel supports shall be measured and included with structural steelwork:

 

	
Diameter

	
Materials

	
Labour

	
Total

	
80mm

	
117

	
Included

	
$117/m

	
100mm

	
 -

	
 -

	
$-/m

	
125mm

	
163

	
Included

	
$163/m

	
150mm

	
185

	
Included

	
$185/m

	
200mm

	
 -

	
 -

	
$-/m

	
250mm

	
 -

	
 -

	
$-/m

	
300mm

	
 -

	
 -

	
$-/m

	
350mm

	
 -

	
 -

	
$-/m

 

	
  

	
All inclusive rates for pre-insulated spiral ducting per meter, including all fittings and supports; however, major steel supports shall be measured and included with structural steelwork.

 

	
Diameter

	
Materials

	
Labour

	
Total

	  	  	  	  
	
80mm

	
144

	
Included

	
$144/m

	
100mm

	
161

	
Included

	
$161/m

	
125mm

	
205

	
Included

	
$205/m

	
150mm

	
229

	
Included

	
$229/m

	
200mm

	
341

	
Included

	
$341/m

	
250mm

	
 -

	
 -

	
$-/m

	
300mm

	
 -

	
 -

	
$-/m

	
350mm

	
 -

	
 -

	
$-/m

 

	
3.3.9

	
All inclusive rates for painting

 

	
  

	
The following rates include all items necessary to complete the WORK in accordance with the CONTRACT. The rates shall include all procurement, materials, labour, engineering, handling, surface preparation, degreasing and cleaning, protection, painting in various colours, coding labels/stickers etc, touch up, masking, testing and inspection, working at any elevation or level and for all necessary access to work faces.

 

	
  

	
Painting to surfaces other than piping shall be measured in square metres irrespective of the girth or size of the item painted. Painting shall be measured net on the surface area covered but no deduction shall be made for voids of less than 0.10m2 in area.

 

	
  

	
The prices shown in this Section are the unit rates by which OWNERS

	
  

	
will compensate BUILDER for the following painting activities:

 

 

	  	
Unit

	
Rate/ Unit $

	
- All high pressure washing

	
m2

	
1.50

	  	  	  
	
- Sand blasting

	  	  
	
   - Accommodation, cargo hold

	
m2

	
25

	
   - Hang-Off Frame, steel structure, firing line

	
m2

	
35

	
   - Sand blasting to remove primer

	
m2

	
35

	
- Sand blasting, vacuum cleaning & painting

   and de-humidifying tanks

	
 

m2

	
58.4

 

	  	
Unit

	
Rate/ Unit $

	
- Damaged areas after installation

	  	  
	
- repair by power tool cleaning to SA-2 and touch up

   painting-cargo hold

	
 

m2

	
14

	
- repair by power tool cleaning touch up painting-

   outside structure

	
 

m2

	
14

	  	  	  
	  	  	  
	  	
Unit

	
Rate/ Unit $

	
- Paint supply per m2

	  	  
	
- Outside 3 coats - accommodation, sponsons, firing

   line shelter other structures

	
 

m2

	
4.74

	
   - Inside 2 coats - accommodation

	
m2

	
6.63

	
   - Outside 5 coats – boot top, sea chests

	
m2

	
32.07

	
   - Inside 2 coats

	
m2

	
6.63

 

	  	
Unit

	
Rate/ Unit $

	
- Painting - application per m2

	  	  
	
    - Outside 3 coats

	
m2

	
4.5

	
    - Inside 2 coats

	
m2

	
4

	
    - Outside 5 coats

	
m2

	
7.5

	
    - Inside 2 coats

	
m2

	
4

	
    - Tank coating

	
m2

	
2

 

 

 

	
3.4

	
Daywork

 

	
3.4.1

	
Where OWNERS have ordered WORK on a VARIATION ORDER based on time and material basis or a DISPUTED VARIATION ORDER to be executed on a daywork basis, the price for the WORK shall be calculated in accordance with the following rates.

 

	
3.4.2

	
Prior to commencement of any WORK on a daywork basis, BUILDER shall submit to OWNERS for approval a list of all labour, plant and materials intended to be used.

 

	
3.4.3

	
On the BUSINESS DAY prior to any daywork, BUILDER shall submit to OWNERS a list of all direct labour intended to be used, together with the names and trade of each person and the planned times of working. The list shall include the plant and materials to be used.

 

	
  

	
The VARIATION ORDER or DISPUTED VARIATION ORDER reference number shall be included on the list.

 

	
3.4.4

	
On the morning of the day following the execution of any WORK on a daywork basis, BUILDER shall submit to OWNERS for approval and signature, timesheets recording the names and trades of all direct labour and the hours worked. Plant and materials used shall be listed and the times and quantities stated.

 

	
3.4.5

	
At the end of the week in which any WORK has been executed on a daywork basis, BUILDER shall submit to OWNERS, for approval, fully priced daywork summary sheets for each separate VARIATION ORDER or DISPUTED VARIATION ORDER. The daywork summary sheets shall be priced at the rates herein and be supported by copies of the timesheet records signed by OWNERS and by invoices for any materials used.

 

	
3.4.6  

	
Rates for direct labour shall be fully inclusive and include, but are not limited to, management, supervision, engineering, indirect labour and trade tools and equipment.

 

The all inclusive rates are:

 

	  	
..... per hour

	
Normal working days

	  
	
Skilled labour

	
$18/hour

	
Semi skilledlabour

	
$12/hour

	  	  
	
Workday overtime rates

	  
	
Skilled labour

	
$27/hour

	
Semi skilledlabour

	
$18/hour

	  	  
	
Sundays and public holiday rates

	  
	
Skilled labour

	
$36/hour

	
Semi skilledlabour

	
$24/hour

	  	  
	
Shift working (second/third shifts)

	  
	
Skilled labour

	
$36/hour

	
Semi skilledlabour

	
$24/hour

 

	
3.4.7

	
Rates for the provision of assistance to OWNERS or VENDORS in the performance of VENDORS’ tests and OWNERS’ sea trials. The rates shall be fully inclusive, subject to SECTION 2 – Articles 20.1 and 20.2.

 

	  	
....... per hour

	
Assistance at the SHIPYARD

	  
	
Normal working days

	  
	
Foreman

	
$26/hour

	
Skilled labour

	
$18/hour

	
Semi skilledlabour

	
$12/hour

	
Labourer

	
$11/hour

	  	  
	
Workday overtime rates

	  
	
Foreman

	
$39/hour

	
Skilled labour

	
$27/hour

	
Semi skilledlabour

	
$18/hour

	
Labourer

	
$11/hour

	  	  
	
Sundays and public holiday rates

	  
	
Foreman

	
$52/hour

	
Skilled labour

	
$36/hour

	
Semi skilledlabour

	
$24/hour

	
Labourer

	
$22/hour

	  	  
	
Shift working (second/third shifts)

	  
	
Foreman

	
$65/hour

	
Skilled labour

	
$45/hour

	
Semi skilledlabour

	
$30/hour

	
Labourer

	
$22/hour

	
Assistance during sea trials (24hrs/7 days per week)

	  
	
Foreman

	
$65/hour

	
Skilled labour

	
$45/hour

	
Semi skilledlabour

	
$30/hour

	
Labourer

	
$27.50/hour

 

	
3.4.7  

	
All inclusive rates for transportation and lifting equipment:

 

	
  

	
All other plant, tools, equipment and deemed to be included elsewhere in the unit rates and prices.

 

	
Item

	
Rate per hour in ....

	  	  
	
Mobile cranes

	  
	
Up to 20 tonnes

	
$118/hour

	
Up to 30 tonnes

	
$118/hour

	
Up to 40 tonnes

	
$118/hour

	
Up to 50 tonnes

	
$118/hour

	
Up to 100 tonnes

	
$176/hour

	
Up to 200 tonnes

	
$588/hour

	
Up to 300 tonnes

	
$735/hour

	
Item

	
Rate per hour in ....

	  	  
	
100 T Floating crane

	
Market Price

	
1200T Floating crane

	
Market Price

	
1500T Floating crane

	
-Market Price

	  	  
	
Forklifts up to 20 tonnes

	
NA

	  	  
	
Berth cranes up to 10 tonnes

	
$250/hour

	
Berth cranes up to 20 tonnes

	
$250/hour

 

	
3.4.9

	
Material charges shall be supported with copy invoices. Only the actual materials installed shall be reimbursed. The materials shall be charged at COST plus 10% for profit, overhead, administration, etc.

 

	
3.4.10  

	
Scaffolding shall be charged at the following rates, irrespective of length of time of installation, inclusive of supply, assembly, erecting, dismantling and removal, and of any intermediate movements:

 

	  	
Rate per m3 in ....

	
2.5m Length x 0.3m width x height

	
$25 / plank

 

 

	
3.4.11

	
Where daywork ordered by OWNERS requires BUILDER to engage a specialist to undertake work, BUILDER shall be reimbursed the COST plus 10% for overhead, profit, administration etc. and special and general attendance.

 

	
3.5

	
Docking and berthing

	
  

	
The lump sums set forth in Section 3.2 above shall include any docking and berthing costs required in relation to executing the WORK under the CONTRACT. In case OWNERS require additional docking and / or berthing of the VESSEL under a VARIATION ORDER the following rates will apply.

 

	
  

	
The all inclusive rates shall include all items necessary to complete the WORK in accordance with the CONTRACT. The rates shall include but not be limited to all services and connections to the VESSEL, line handlers for mooring, unmooring, docking and undocking and all necessary plant and equipment.

 

 

	
Description

	
Rates in ....

	  	
Rate per docking

	
Drydocking/undocking incl. first 2 days in dock

	
$ 75,000

	  	
Rate per day

	
Each subsequent day or part of a day

	
$8,500/day

	  	
Rate per move

	
Pilotage/Rigger/Tuggage per docking and undocking

	
$1,125/shift

	  	
Rate per day

	
Berthing (wharf age)

	
$850/day

 

	
3.6

	
MILESTONES

 

	
  

	
Upon completion by BUILDER and acceptance by OWNERS of the scope within a MILESTONE, OWNER shall pay to BUILDER the percentage of Contract Price as set out below.  BUILDER shall invoice the proportion indicated below together with any VARIATIONS thereto in accordance with the requirements under Section 2 Terms and Conditions of the Contract.

 

	
MILESTONE

	
Description

	
Percentage

of CONTRACT PRICE

	
1

	
Upon signing of Contract

	
15%

	
2

	
Strike Steel (Month 9)

	
15%

	
3

	
Keel Lay (Month 14)

	
15%

	
4

	
Start Erection of Upper Hull Deckbox onto Column and Pontoon in Dry Dock (Month 21)

	
15%

	
5

	
Kick Off Engine& Synchronize 11kV Swbd (Month 28)

	
15%

	
6

	
Vessel Delivery (Month 35)

	
25%

 

	
  

	
Payment for Variation Orders shall be negotiated and agreed through a Change Order Process.

 

 

 

 

 

 

 

 

 

 

 

 

 

	
  

	
Appendix 1

 

 

Detailed Cost Breakdown supporting individual line items in Section 3.2.2 as prepared by BUILDER.

 

 

	
  

	
Notes:

 

	
1.  

	
Prices stated in the Detailed Cost Breakdown are lump sums and not subject to variances unless noted otherwise.

 

	
2.  

	
Steel quantities in the attachment are based on material take-off to be approved by OWNERS and will be adjusted upon completion of Detailed Engineering. Variances will be compensated at the rates stated, except for weight increase of less than 5% which are included on the lump sum price.

 

	
  

	
3.  BFE prices shall be based on the estimate of individual equipment defined in SECTION 6 –TECHNICAL SPECIFICATIONS. Variances resulting from equipment change will be compensated to BUILDER or credited to OWNERS, as the case may be, based on the variance between actual price and the estimated price for the relevant item.

 

 

 

 

 

 

 

 

 

 

 

 

 

  

  

  

 

 

	
  

	
Appendix 2

 

 

	
  

	
Bulk Cable List

 

 

	
  

	
Notes: 

 

	
1.  

	
Lengths specified in the Bulk Cable List are an estimated length from gland to gland with 1 (one) metres over length for termination at either end, total 2 (two) metres. If BUILDER requires additional length for termination, such lengths will be for BUILDER’s account.

 

	
2.  

	
Bulk Cable List must be verified by BUILDER on site and is not intended for cable cutting.

 

	
3.  

	
Bulk Cable List specifies which cables are to be supplied by BUILDER and which are to be supplied by OWNERS.

 

	
4.  

	
BUILDER will be compensated for variances in cables and cable lengths.

 

	
5.  

	
Rates specified in the Bulk Cable List include all necessary items, including but not limited to cable trays, fixings, glands, termination, cable ties, etc.

 

 

 

 

  

  

  

 

 

 

 

 

 

 

	
SECTION 4

	
PROGRAMME

 

4.1                      Key dates (MIILESTONES)

 

The MILESTONES and key dates below shall be used for planning all of the WORK under the CONTRACT:

 

KD 1             EFFECTIVE DATE                                                                         TBD

 

	
  

	
KD 2

	
First steel cutting for block fabrication

	
9months after

	
  

	
EFFECTIVE DATE

 

	
  

	
KD 3

	
Keel Lay for pontoon

	
14 months after

	
  

	
EFFECTIVE DATE

 

	
  

	
KD4

	
Completed deck and hull mating

	
23 months after

	
  

	
EFFECTIVE DATE

 

	
  

	
KD5

	
Commencement of main engine start up

	
26 months after

	
  

	
EFFECTIVE DATE

 

	
  

	
KD6

	
Completed deck house installation

	
27months after

	
  

	
EFFECTIVE DATE

 

	
  

	
KD 7

	
Commencement of commissioning process

	
27 months after

	
  

	
EFFECTIVE DATE

 

	
  

	
KD 8

	
Erection of Derrick Tower

	
30 months after

	
  

	
EFFECTIVE DATE

 

	
  

	
KD 9

	
Completed quay side trials

	
33.5 months after

	
  

	
EFFECTIVE DATE

 

	
  

	
KD 10

	
Completed sea trials

	
35 months after

	
  

	
EFFECTIVE DATE

 

	
  

	
KD 11

	
Delivery of VESSEL

	
35 months after

	
  

	
EFFECTIVE DATE

 

 

 

	
4.2

	
Detailed planning

 

	
4.2.1

	
General

 

BUILDER shall submit for approval by OWNERS, within the time scales indicated in SECTION 2, such planning documentation as is described hereunder to cover all phases of the WORK.  BUILDER shall provide and maintain an overall WORK schedule including allocated man-hour planning for the CONTRACT duration. BUILDER's schedule shall include all key dates and MILESTONES listed in within Section 4.1 above.  BUILDER shall perform the WORK according to this schedule.

 

All submissions shall be in electronic format and hard copy, together with all support information necessary for OWNERS to review the submissions.

 

4.2.2                 Levels of planning; Work Breakdown Structure (WBS)

 

BUILDER will adopt OWNERS’ Work Breakdown Structure in the preparation of the levels of planning detail to be prepared and maintained by BUILDER for all of the WORK as required by the CONTRACT.

 

Scheduling shall be provided down to level 4, being a summary programme for the WORK presented in bar chart format and shall take into consideration the project “Milestone & Key Duties” together with the information contained in the WBS.

 

The details of the WBS to be determined at the initiation of project execution phase.

 

4.2.3                 Network planning, precedence type

 

The plan will be made with either Primavera  or Microsoft Project 2007 software.

The plan will be precedence-type network planning.

 

The definition of the activities in the plan and the relationships between them must clearly demonstrate BUILDER’s intended fabrication and installation sequence, and how the overall project duration is determined.

 

	
  

	
Activities (or tasks) will feature as a minimum:

 

	
·  

	
Title – providing brief description of the work (or the item to be Purchased);

	
·  

	
Resource(s) – identifying what craft is executing the work;

	
·  

	
Planned man-hours  - identifying the volume of work;

	
·  

	
Planned Duration [hours]– identifying how much time the task is planned to consume;

	
·  

	
Early, late and scheduled starts and finishes;

	
·  

	
Float – identifying the criticality of the work;

	
·  

	
Planned fixed cost, if any – providing e.g. material cost; and

	
·  

	
Constraints, if any.

 

The network planning shall be finished within 90 days after the EFFECTIVE DATE.A preliminary schedule to be issued to Owner 60 days after EFFECTIVE DATE.

This plan shall be the baseline against which actual progress shall be measured and reported.

 

Network planning will generate all planning documentation, including:

 

	
·  

	
Man-hour histograms (and S-curves) for the various disciplines/crafts;

	
·  

	
Procurement schedule;

	
·  

	
Fabrication schedule;

	
·  

	
Installation schedule;

	
·  

	
Critical path; and

	
·  

	
4 week look-ahead.

 

4.2.4                 Network planning data supporting documents

 

BUILDER will supply to OWNERS all relevant back-up documents, including but not limited to the deliverables register, material take-off, procurement schedule, histograms, line list and equipment lists.

 

 

 

4.2.5                 Mobilisation plan

 

BUILDER shall prepare and submit to OWNERS 30 days following the EFFECTIVE DATE a mobilisation plan for individual departments. That will be undertaken prior to the time that the network planning (as per Section 4.2.3) will be effected.

 

4.2.6                 Build plan

 

BUILDER shall prepare a detailed build plan detailing the erection sequence.  The build plan shall be submitted to OWNERS for review sixty days after the EFFECTIVE DATE.

 

	
4.2.7

	
Progress measurement and monitoring

 

“Completion percentage” is defined as the percentage of physical completion of each task.

 

“Physical completion” is defined as the proportion of work completed in relation to the updated forecast total.

 

Completion percentage will be auditable.

 

BUILDER and OWNERS will mutually agree on completion percentages.

 

 

  

  

  

 

 

The following is a guideline for the assessment of completion. The details of this breakdown shall follow yard’s standard of measurement. The steps to be reviewed and approved by Owner:

 

TASK                                                                                                           COMPLETION PERCENTAGE

 

1. Engineering

 

	
  

	
Commencement of drawings5%

	
  

	
Submission of drawings to OWNERS for approval/review 60%

	
  

	
Implementation OWNERS comments / return without comments 70%

	
  

	
Approval of drawings by OWNERS 80%

	
  

	
Approval of drawings by AUTHORITIES 90%

	
  

	
Submission of drawings as approved for construction 95%

	
  

	
Completion of drawings, as-built100%

 

2. Procurement

 

	
  

	
Issuance of enquiry 20%

	
  

	
Issuance of purchase order40%

	
  

	
Delivery 70%

	
  

	
Documentation100%

 

3. Steel fabrication

 

	
  

	
Material transferred to fabrication shop 10%

	
  

	
Cut and prep 35%

	
  

	
Assembly in shop 90%

	
  

	
Inspection and NDT100%

 

4. Steel installation

 

	
  

	
Transport to VESSEL5%

	
  

	
Assembly at final location90%

	
  

	
Inspection and NDT100%

 

5. Piping

 

	
  

	
Material transferred to fabrication shop or to the VESSEL15%

	
  

	
Cut and prep in shop or on site35%

	
  

	
Set and weld butts in shop or on site60%

	
  

	
Erecting on site95%

	
  

	
Inspection/NDT100%

 

6. Mechanical

 

	
  

	
Transfer equipment to the WORKSITE15%

	
  

	
Installation on site90%

	
  

	
Commission100%

 

7. Electrical / Instrumentation

 

	
  

	
Cable tray to site5%

	
  

	
Install cable tray10%

	
  

	
Cable to site15%

	
  

	
Pull and clip cable80%

	
  

	
Gland and terminate90%

	
  

	
Loop checks and certification100%

 

 

	
  

	
8. Hydraulics

 

	
  

	
Materials to site10%

	
  

	
Install tray and supports20%

	
  

	
Install hydraulic pipe work70%

	
  

	
Clean and test pipe work90%

	
  

	
Commission100%

 

	
  

	
9. Instrumentation

 

	
  

	
Instruments to site10%

	
  

	
Install instrument90%

	
  

	
Commissioning100%

 

	
  

	
10. Insulation and panelling

 

	
  

	
Material to site15%

	
  

	
Erect and fix90%

	
  

	
Inspect and clean100%

 

	
  

	
11. Painting

 

	
  

	
Materials and equipment to site10%

	
  

	
Blasting35%

	
  

	
Painting per coat based on overall percentage

	
  

	
divided by the number of coats100%

 

	
  

	
12. Flooring

 

	
  

	
Materials and equipment to site10%

	
  

	
Floor preparation25%

	
  

	
Painting100%

 

	
4.2.8  

	
       Progress reporting

 

	
4.2.8.1  

	
       Progress report (weekly)

 

A progress report shall be issued to OWNERS every week.Each progress report shall report on matters from the period of the previous progress report through the end of the night shift on the following Sunday. The progress report shall be issued by 08h30 local time on the following Tuesday. The format of the progress report shall be agreed with OWNERS and shall contain the following documents:

 

	
1.  

	
brief narrative of engineering status;

	
2.  

	
brief narrative of procurement status;

	
3.  

	
brief narrative of construction status

	
4.  

	
brief narrative of commissioning

 

 

The report shall be supplied in both hard copy and digital format. The progress of VARIATION ORDERS and DISPUTED VARIATIONS ORDERS shall be reported separately unless OWNERS decide to incorporate them into the overall planning and scheduling.

 

VARIATION ORDERS and DISPUTED VARIATION ORDERS shall always be identified as separate items.

 

 

 

4.2.8.2    Progress report (monthly)

 

 

In addition to the reports required in Section 4.2.8.1, BUILDER shall issue a monthly progress report each month for the duration of the CONTRACT that shall contain as a minimum:

 

An overall management summary highlighting problem areas and planned solutions, together with the following:

 

	
a)

	
For construction (each activity described separately):

	
  

	
-

	
A narrative of the WORK planned for the reporting period;

	
  

	
-

	
A narrative of the WORK achieved for the reporting period;

	
  

	
-

	
A narrative of the WORK planned for the following period;

	
  

	
-

	
Status schedules/'S' Curves/Manpower histograms (planned vs. actual);

	
  

	
-

	
In case of delays the remedial action taken;

	
  

	
-

	
Actual completion percentages versus planned and the actual number of personnel deployed versus planned;

	
  

	
-

	
Overview of interface information from VENDORS and the need-by dates;

	
  

	
-

	
A set of photos demonstrating the WORK achieved.

 

	
b)  

	
Cost control:

	
-  

	
Value of the work planned to be completed for lump sum as well as VARIATIONS;

	
-  

	
Actual value of the WORK completed for lump sum as well as VARIATIONS;

	
-  

	
Summary of invoices issued for lump sum as well as VARIATIONS;

	
-  

	
Summary of payments received for lump sum as well as VARIATIONS;

	
-  

	
Forecast of invoices to be issued for lump sum as well as VARIATIONS.

 

	
c)

	
For procurement and material control:

	
  

	
-

	
Material stock/procurement status showing the progress of all bulk purchase orders against delivery dates, with late delivery items highlighted and proposed remedial actions;

	
  

	
-

	
Equipment procurement status including engineering and manufacture of equipment by suppliers with late delivery items highlighted and proposed remedial actions;

	
-  

	
Overages, storage, maintenance, damage and protection reports.

 

	
  

	
d)

	
SUBCONTRACTOR status:

	
  

	
-

	
Subcontracting schedule;

	
-  

	
Audits of SUBCONTRACTORS.

 

	
e)  

	
QHSE:

-      Report number of accidents during this period.

 

	
f)  

	
QA/QC

 

	
-  

	
Areas of concern.

 

	
g)

	
Commissioning, tests and trials

	
-  

	
Status of procedures;

	
-  

	
Detailed programme and data sheets;

	
-  

	
Reports and data processing of check records.

 

	
h)

	
VARIATION request / VARIATION ORDER/ DISPUTED VARIATION ORDER and pending/potential VARIATION request status summary schedules.

 

	
i)

	
Document control register.

 

	
j)

	
Any other business.

 

	
4.2.9

	
SUBCONTRACT schedule requirements

 

In the event that any part of the WORK is subcontracted, BUILDER shall ensure and verify that the SUBCONTRACTOR’s planning is fully consistent with BUILDER’s requirements as defined within the PROGRAMME.

 

Sect. _4 Rev.0 Programme

  

  

  

Helix WIS GOM(JSPL Hull No. 11-1111)

 

Appendix 1

Major ONE equipment Delivery Schedule at Yard:

 

Months after Effective Date:

 

1.                 Derrick-NOV                                                                                                     18

 

2.                 Top Drive                      & Travelling block - NOV                                          18

 

3.                 Pipe racker - NOV                                                                                           18

 

4.                 Driller’s cabin & Control panel- NOV                                                             18

5.                 Catwalk machines                                                                                           18

 

6.                 Riser tensioners                                                                                             27

 

7.                 Moon Pool cart                                                                                               25

 

8.                 Mud pump                                                                                                      18

 

9.                 Mud processing equipment                                                                          18

 

10.                      Knuckle boom crane                                                                              25

 

11.                      King post crane (Huisman)                                                                   23

 

12.                      Construction crane (Huisman)                                                             23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

  

  

 

 

	
  

	
Appendix 2

 

 

 

 

BFE Pre-selected By Owners

 

Delivery schedule at Yard

 

Months after Effective Date

 

1.      Main Engine and generator sets                                                                                                     19

      (Wartsila)

 

2.  Thrusters seating interface with hull                                                                                                   14

      (Wartsila)

 

3.      Thrusters                                                                                                                                          32

      (Wartsila)

 

4.  Switchgears                                                                                                                                         18

      (Siemens)

 

5.      Vessel control systems and Instrumentation                                                                                 18(Kongsberg)

 

6.  DP SYSTEM                                                                                                                                        19

     (Kongsberg)

 

7.  Navigation system                                                                                                                                23(Kongsberg)

 

8.  Helideck                                                                                                                                                18

     (Astech)

  

  

  

 

 

SECTION 5                      ADMINISTRATION INSTRUCTIONS

 

	
5.1

	
General

 

	
5.1.1

	
In this section the words and expressions established as definitions and references in SECTION 2 – TERMS AND CONDITIONS shall have the same meaning as assigned to them in SECTION 2.

 

	
5.1.2

	
It is OWNERS’ intention that, in the implementation and administration of the CONTRACT, BUILDER shall utilise its internal methods and procedures where possible.  However, in order that the required quality and safety on the project and overall project control is achieved, OWNERS’ have introduced certain requirements, which are detailed in this SECTION.

 

	
5.1.3

	
The English language shall be used for all communications, correspondence and documentation submitted by BUILDER to OWNERS during the performance of the CONTRACT.

 

	
  

	
5.2.

	
BUILDER'S personnel

 

	
5.2.1

	
For the execution of the WORK as provided by this CONTRACT, BUILDER's project organisation will include the following KEY PERSONNEL:

 

	
Name

	
Title

 

To be advised by Builder                                                      Project Director

To be advised by Builder                                                      Assistant Project Director

To be advised by Builder                                                      Project Manager

To be advised by Builder                                                      Production Manager

To be advised by Builder                                                      Commissioning Manager

 

	
  

	
5.3

	
Communications

 

	
5.3.1

	
Except where specifically stated otherwise all correspondence and communications, other than NOTICES which are mentioned in SECTION 2 - TERMS AND CONDITIONS OF CONTRACT, and invoices which shall be addressed as set forth in 5.7 herein, shall be addressed to and directed between the PARTIES’ nominated representatives.

 

	
5.3.2

	
Oral communications shall be confirmed in writing and until confirmed shall not be considered binding.

 

	
5.3.3

	
All direct communications with AUTHORITIES and OWNERS contractors or VENDORS shall be copied to OWNERS when originated/received.

 

	
  

	
5.3.4  All documents, drawings and CDs shall be dispatched with accompanying transmittal sheets.

 

	
5.3.5

	
A register of correspondence shall be maintained with suitable sequential numbering and dating, to be approved by OWNERS.

 

	
5.3.6

	
Communications may be by letter, facsimile, telex or personal delivery (e.g. memoranda) or, if specifically agreed with OWNERS, by e-mail.

	
  

	
Communication shall be deemed to be received as follows:

 

	
  

	
a)

	
Letters - 7 days after posting;

	
  

	
b)

	
Facsimile, telex, e-mail and personal delivery - at time of receipt within normal business hours, otherwise the next available business hour.

 

	
5.3.7

	
All mailing shall by first class mail, and where appropriate or necessary, by courier. Large mailings shall be split into several small packages to facilitate handling and delivery.

 

	
5.3.8

	
The performance of the CONTRACT will require frequent communication by telephone, email, fax or, if specifically agreed with OWNERS, by e-mail. All instructions transmitted by telephone shall be confirmed immediately in writing.

 

	
5.3.9

	
Correspondence headings shall be as follows:

 

	
Project

	
: Helix WISGOM

	
Job no.

	
: 11-1111

	
P.O. no.

	
: (to be advised by OWNERS)

	
Subject

	
: (as required)

 

	
5.3.10

	
All NOTICES served by BUILDER to the address as detailed in SECTION 2 - TERMS AND CONDITIONS OF CONTRACT shall simultaneously be copied by BUILDER to OWNERS’ representative.

 

	
5.3.11

	
Address of PARTIES for communications (other than NOTICES as mentioned in SECTION 2 - TERMS AND CONDITIONS OF CONTRACT and invoices as 5.7 herein).

 

	
  

	
OWNERS

	
BUILDER

 

	
  

	
Helix Energy Solutions

	
Jurong Shipyard Pte Ltd

	
  

	
 Group, Inc.

 

	
  

	
Site team

	
Project Management Team

	
  

	
(To be advised)

	
(To be advised)

 

5.4           Documentation

 

	
5.4.1

	
Format and control of documents

 

	
  

	
BUILDER shall prepare documents and drawings to the approval of OWNERS. BUILDER shall comply with OWNERS’ technical document coding system.  BUILDER may utilise its document numbering system in parallel with OWNERS' system.  BUILDER’s shop drawings and shop documentation shall not be submitted to OWNERS for review or approval.

 

Specification of deliverables formats:

 

	
  

	
a)

	
Drawings in AutoCAD 2008 in A0, A1, A3 or A4 size;

	
  

	
b)

	
Documents in MS Word in A4/A3 size;

	
c)  

	
Material take-off's and tabular calculations in MS Excel in A4 size landscape;

	
d)  

	
Databases in MS Access in A4 size landscape;

	
e)  

	
In all BUILDER's documents and drawings the SI Standard (System International) shall be adhered to;

	
f)  

	
Every document and drawing shall include the following statement on each page, "this is the property of XXXXX";

	
g)  

	
PROGRAMME and planning reports, revisions etc. are to be in electronic format and hard copy.

 

Specification of number of copies of all deliverables to OWNERS:

 

	
  

	
a)

	
Full size drawings - 3 copies (minimum);

	
  

	
b)

	
A3 reduced size drawings - 2 copies;

	
  

	
c)

	
Documents - A3 or A4, 5 copies of which one reproducible original, not stapled or bound.

 

	
  

	
BUILDER shall deliver all documents and drawings in electronic format on CD and in hard copy.

 

	
  

	
Specification of deliverables intended for submission to AUTHORITIES:

 

	
  

	
a)

	
Full size drawings:

	
  

	
6 copies for the CLASSIFICATION SOCIETY;

	
  

	
2 copies for other AUTHORITIES.

	
b)  

	
Documents:

3 copies for each AUTHORITY involved.

 

AUTHORITIES’ received and/or approved drawings shall be copied to OWNERS in the numbers as above.  The originals shall be included in the final documentation package.

 

BUILDER shall provide and maintain an electronic document and drawing control system incorporating all project related documents and drawings. This database shall be created in MS Excel and shall include at a minimum:

 

	
a)  

	
Document/drawing number;

	
b)  

	
Document/drawing description;

	
c)  

	
Document/drawing revision;

	
d)  

	
Originator;

	
e)  

	
Status;

	
f)  

	
Issue and return dates to and from OWNERS and AUTHORITIES;

	
g)  

	
Transmittal information;

	
h)  

	
Size;

	
i)  

	
Format; and

	
j)  

	
Type.

 

An electronic and hard copy of the database shall be included in the progress reports required under SECTION 4 – PROGRAMME.

 

5.4.2           Design and engineering drawings

 

	
  

	
The design and engineering drawings for the VESSEL and the WORK shall be produced in accordance with the provisions of SECTION 2 – TERMS AND CONDITIONS OF CONTRACT – Articles 4 and 5.

 

 

 

 

 

5.4.3           Transmittals

 

	
  

	
Submission of drawings and documents shall be covered at all times by a transmittal letter with the following information:

 

a)        Subject / purpose of submission;

b)        Submission date;

c)        Document / drawing number;

d)        Revision date, description and revision.

 

	
5.4.4

	
Cover letters

 

All submission packages shall include a cover letter providing information on:

 

a)        Submission purpose;

b)        Reference to possible former or future submission;

c)        Register enclosures.

 

	
5.5

	
Correspondence numbering system

 

	
5.5.1

	
All correspondence shall be limited to one subject per letter/telex/telefax/e-mail and shall be coded as follows: TBD_______/XX/YY/Z/nnn

 

	
TBD___________

	
OWNERS’ Job no.

 

	
XX

	
for OWNERS

 

	
YY

	
for BUILDER

 

	
Z

	
Identifier - F (fax) / L (letter) / T (telex or transmittal) / E (e-mail)

 

	
nnn

	
Sequential number starting with 001

 

All correspondence shall indicate to whom copies have been sent.

 

	
5.5.2

	
All transmittals of technical documentation shall be coded in accordance with OWNERS’ numbering system for correspondence.

 

5.6           Progress reports

 

	
  

	
BUILDER shall provide progress reports on the first BANKING DAY of each month during the construction period until the delivery of the UNIT.

 

	
  

	
The format of the progress reports shall be agreed with OWNERS and contain, at a minimum, the following information:

 

	
a)  

	
Safety review and HSE status;

	
b)  

	
Individual system status;

	
c)  

	
Resources and manpower allocation, planned versus actual;

	
d)  

	
Schedule, “S” curves and other data showing planned and actual progress;

	
e)  

	
Status of drawings and documentation and CLASSIFICATION SOCIETY review;

	
f)  

	
Quality control;

	
g)  

	
Weight control; and

	
h)  

	
Photos that document the progress of the WORK.

 

	
  

	
Electronic copies of the planning and progress databases document and drawing control database, weight control database and correspondence register shall be supplied in conjunction with the hard copy of the progress report.

 

	
5.7

	
Invoicing and payment

 

	
5.7.1

	
Invoices shall include the following references:

 

	
·  

	
Project                                                    :  Helix WISGOM

	
·  

	
Job no.                                                    : 11-1111

	
·  

	
CONTRACT no.                                                    : (to be advised by OWNERS)

	
·  

	
VARIATION ORDER no.                                                          : (if applicable)

	
·  

	
MILESTONE no. and description                                                          :As agreed

 

	
  

	
Invoices shall be submitted strictly in accordance with the requirements as stated in SECTION 2 - TERMS AND CONDITIONS OF CONTRACT and upon completion of the relevant MILESTONE as defined in SECTION 4 - PROGRAMME to the satisfaction of OWNERS, but in no event earlier than the date as stated in the PROGRAMME.  Invoices in respect of VARIATIONS shall be submitted as advised on the VARIATION ORDER or DISPUTED VARIATION ORDER.

 

	
  

	
Payment for Variation Orders shall be negotiated and agreed through a Change Order Process.

 

	
  

	
Each invoice shall be supported by all documents necessary for OWNERS to check and verify the correctness of the invoice.

 

5.7.2           Payment

 

	
  

	
OWNERS shall effect payment by bank transfer to BUILDER's bank at the following address:

 

	
  

	
Jurong Shipyard Pte Ltd

	
  

	
DBS Bank Ltd

	
  

	
Shenton Way Branch

	
  

	
US$A/C No, 0001-005735-01-6-022

	
  

	
Swift Code: IRVTU3N

 

 

  

  

  

 

	
5.8

	
VARIATIONS

 

5.8.1           VARIATION request (by OWNERS)

 

	
  

	
To refer to Section 2.

 

5.8.2           VARIATION request (by BUILDER)

 

	
  

	
To refer to Section 2.

 

5.8.3           DISPUTED VARIATION ORDER

 

	
  

	
In the event PARTIES are not in agreement over a VARIATION ORDER as per SECTION 2, Article 16.8, OWNERS shall raise a DISPUTED VARIATION ORDER upon which both OWNERS’ and BUILDER’s respective opinions shall be stated as to the validity or otherwise of the DISPUTED VARIATION ORDER and effects, or parts thereof. Both PARTIES can refer the DISPUTED VARIATION ORDER to arbitration under SECTION 2 – Article 44.

 

 

5.8.4           INSTRUCTIONS

 

	
  

	
 Not used.

 

5.8.5           Registers

 

	
  

	
BUILDER shall keep a register of all VARIATION requests, and shall, by issuing VARIATION request numbers to OWNERS representative upon request, and logging same, ensure that all VARIATION requests are sequentially numbered.

 

	
  

	
All VARIATION ORDERS and DISPUTED VARIATION ORDERS shall be cross-referenced to a VARIATION request.  BUILDER shall include in its monthly reports an updated register of all VARIATION requests, VARIATION ORDERS and DISPUTED VARIATION ORDERS which shall show the status of each VARIATION request, VARIATION ORDER and DISPUTED VARIATION ORDER.

 

 

	
5.9

	
Meetings

 

	
  

	
OWNERS and BUILDER shall meet regularly during the course of the WORK.  Weekly progress meetings shall be held based on mutually agreed dates and times between BUILDER and OWNERS, after the release of BUILDER’S progress report.  Any other meetings shall be called for when required and may be related to specific discipline of the personnel. The venue of meetings shall be at BUILDER’s premises and the agenda will be agreed in advance.

 

	
  

	
OWNERS shall have the right to insist that BUILDER's attendees at any meetings shall have delegated authority such that decisions and undertakings made by them are binding upon BUILDER.

 

	
  

	
Minutes of all meetings shall be prepared by a nominee of BUILDER’s representative and shall be submitted to OWNERS for approval within twoBUSINESS DAY after the meeting.  OWNERS shall within two BUSINESSDAYS of receipt of minutes of meeting either endorse the minutes or provide a statement of exceptions.  BUILDER shall incorporate OWNERS comments and re-issue the minutes one day before the next meeting.

 

	
  

	
During the commissioning of the VESSEL, BFE,ONE and OFE, and sea trials, the frequency of meetings between BUILDER and OWNERS commissioning teams will increase to once per day and six days per week. The nature of these meetings is to keep track of the daily commissioning activities and coordinate and resolve immediate technical issues.

 

5.10           Third Party Meetings

 

The OWNERS shall have the right to attend all meetings between BUILDER and the CLASSIFICATION SOCIETY and be copied on all minutes of meeting from such meeting, as well as all correspondence on technical issues between BUILDER and the CLASSIFICATION SOCIETY.

 

	
5.11

	
GUARANTEES

 

	
  

	
BUILDER shall provide the GUARANTEES as required by SECTION 2 - TERMS AND CONDITIONS OF CONTRACT.

 

	
5.12

	
AMENDMENTS

 

	
  

	
Any AMENDMENTS to the CONTRACT as agreed between OWNERS and BUILDER shall be recorded by OWNERS on the pro forma as attached hereto, which shall be signed by both PARTIES.

 

  

  

  

 

 

	
5.13

	
Tests or sea trials

 

	
  

	
BUILDER shall provide the commissioning procedures to OWNER for review 90 days prior to actual sea trials. BUILDER shall be responsible for advising OWNERS’ representative in writing one (1) month prior to the actual date on which the sea trials shall commence.

 

	
  

	
BUILDER shall provide all assistance to the crew and/or engineers of OWNERS and VENDORS and shall provide OWNERS with all information required for the safe operation of the equipment and systems supplied by BUILDER.  Upon completion of commissioning and sea trials, the PARTIES shall sign a delivery protocol document handing over responsibility for the control of the VESSEL to OWNERS.

 

5.14           Final documentation

 

The final documentation shall be supplied to OWNERS by BUILDER in accordance with SECTION 5 - ADMINISTRATION INSTRUCTIONS and shall act as record of all procurement, fabrication, testing, commissioning and inspection activities performed by BUILDER and its SUBCONTRACTORS.  This Documentation shall include but is not limited to:

 

· QA/QC procedures;

· Original QC inspection reports;

· Final release certificates;

· Original punch lists and master punch list database;

	
·  

	
As-built documentation;

· Technical Query Register

	
·  

	
Register of priced purchase orders  for Wartsila, Siemens, Kongsberg, Aluminium Offshore, Huisman and NOV Packages only;

· Manifest and register of shipped loose items;

· Mechanical completion and test packages;

· Original test and commissioning reports;

· Material specifications;

· Fabrication specifications (part of QA/QC document);

· Material test certificates(part of QA/QC document);

· Material traceability documentation;

· Survey and dimensional control reports (part of QA/QC document);

· Thickness measurement reports(part of QA/QC document);

· Inspection and test equipment calibration records;

· Structural weld/welder qualifications and register;

· Piping weld/welder qualifications and register;

· Welder identifications;

· Welding procedures;

· Heat treatment methods and records;

· Welding equipment calibration records;

· Welding oven calibration and consumable certificates;

· NDT operator qualifications and register;

· NDT equipment calibration records;

· Original of NDT reports;

· Radiographs.

 

The PARTIES, during the commissioning of the VESSEL, BFE, ONE and OFE, shall produce the following documents, which, once signed off by all parties participating in the process, become the final documentation for the VESSEL:

 

	
·  

	
BFECOMMISSIONING PROCEDURES

	
·  

	
ONE COMMISSIONING PROCEDURES

	
·  

	
OFE COMMISSIONING PROCEDURES and

	
·  

	
SEA TRIALS PROCEDURES

 

 

  

  

  

 

 

 

  

  

  

 

SECTION 8                      FACILITIES FOR OWNERS

 

	
  

	
Site Accommodation

 

The following minimum facilities are required at the WORKSITE where the WORK is performed.  The facilities shall conform to the satisfaction of OWNERS and shall be for BUILDER’s account.  The office space shall be heated/air-conditioned and have sufficient lighting and services, including cleaning and maintenance.  The facilities will be required for the duration of the CONTRACT.

 

For planning purposes, the following is the projected number of personnel at the WORKSITE.

                            Owner Construction Team                   Vendor’s Representative

 

1st to 9th month:                                                                    12                                                       0

10th to 16th month:                                                                20                                                       2

17th to 24th month:                                                                25                                                      10

24th to 32nd month:                                                                30                                                      12

 

 

 

Description                                                                                                                     Quantity

 

Office Accommodation:

 

Open office space for 12 people initially and expandable to 40 people,        1

with one desk per person

(The open office space is to be sub-divided into 3 rooms, one for document control room, one for commercial personnel and the remaining office space to be used for the rest of the personnel)

 

Office rooms, approx. size 15 m2 each, with door lock                                                   5

Conference room to accommodate 18 people                                                                1

Conference room for 8 people                                                                                         1

 

Furniture:

 

Office desks and swivel chairs                                                                                        1 per person

Office book shelf                                                                                                             10

Conference table                                                                                                              2

(1 to accommodate big meetings and another for small)

File cabinets (4 drawers each)                                                                                      22

File cabinets (2 drawers each)                                                                                        4 

Cupboard (2 doors, 4 shelves)                                                                                       4

Whiteboard                                                                                                                       3

Announcement board                                                                                                      1

 

Office Equipment:

 

Ploten for full size drawings Lan system ring main for 42 users                               1

Internet connection (for OWNERS’ site team only)                                                       1 per person

Large monitors for use with planning and CAD                                                             2

Copying machine A4                                                                                                       1

Copying machine A4 and A3                                                                                          1

Telephone Switch Board PBX                                                                                        1

Telephone lines                                                                                                               2

Telephone                                                                                                   1 per individual office

                               5 in open office space

Fax machine                                                                                               1 each for individual office

                                               1 in open office

 

Kitchen complete with washing basin, cabinet and drawers, and adequately sized Coffee Machine, Kettle, Refrigerator and Microwave and water fountains. Sufficient numbers of water fountains shall be located within the office space and the kitchen.

 

Toilet and washing facilities to accommodate 40 people within the Helix office space.

 

Transportation is to be provided based on collection and return of personnel from Hotel to WORKSITE, WORKSITE or Hotel to Airport and vice versa and to and from the various WORKSITES. Transportation shall be using either mini-bus, van, mini-van or sedan, with sufficient individual open space for briefcases and personal belongings.

 

Lunch-hour transportation on work days is to be arranged on an as-required basis.

 

 

Note: IN THE EVENT THE OWNER ISSUES CONTRACTS FOR THE SECOND UNIT, THE CONSTRUCTION PROGRAM WILL BE HANDLED BY THE SAME PROJECT TEAM WITH AN INCREASE OF 50%. THE DELIVERY TIMING OF THE SECOND UNIT WILL BE SIX MONTHS AFTER THE GOM UNIT

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