At the expiration of the Contract, the Company agrees to compensate the
Contractor for the demobilization of all equipment and personnel required to
perform the Services from the Company’s designated base to the Contractor’s
base on a lump sum basis.
Except for the above lump sum compensation, there shall not be any
compensation incurred and due to the Contractor for the demobilization of its
equipment and personnel.
1.2.2 Incident Free Operation Adjustment
(a) The Company agrees to pay a bonus, in addition to the compensation
incurred and due to the Contractor in the respective month, equal to 5
percent of the compensation incurred and due to the Contractor in the
respective month for the month that the Contractor operates without
any recordable injury and recordable oil and chemical spill to the sea
in accordance with the Occupational Safety and Health
Administration Standard.
(b) The Contractor agrees to provide a discount of 10 percent of the
compensation incurred and due to the Contractor in the respective
month for the month that the Contractor operates with any recordable
injury or recordable oil or chemical spill to the sea in accordance
with the Occupational Safety and Health Administration Standard
1.2.3 Downtime Adjustment
In the event that the Service downtime within a respective month exceeds 3
percent of the total operating time of that month, the Contractor agrees to
provide a discount equal to the downtime percentage of that respective month
to the Company for the compensation incurred and due to the Contractor in
that respective month.
For the avoidance of doubt, the Downtime Adjustment shall be applied after
the Incident Free Operation Adjustment.