09-826P Rev 1

OFFSHORE SUBSEA WORKS SDN.
BHD PROPOSAL FOR THE PROVISION OF SPECIALIST UNDERWATER ULTRASONIC INSPECTION SERVICES FUGRO-SURESPEK QUOTATION NO. 09-826P
Fugro-SureSpek Pty Ltd 30-31 Furnace Road, Welshpool, 6106 WESTERN AUSTRALIA
To
Offshore Subsea Works Sdn. Bhd. 11th Floor Bangunan Getah Asli, 148 Jalan Ampang 50450 Kuala Lumpur MALAYSIA
Prepared for: Offshore Subsea Works Sdn. Bhd. 11th Floor Bangunan Getah Asli, 148 Jalan Ampang 50450 Kuala Lumpur MALAYSIA Phone + 603 2166 5108
Prepared by: Fugro-SureSpek Pty Ltd. 30-31 Furnace Road Welshpool Western Australia 6106 Australia
Phone
+61 8 9358 4488
Fax + 603 2166 9679 Email joe@subsea.com.my
Fax +61 8 9358 4499
The following versions of this proposal have been issued:

0 REV 5th November 09 DATE Proposal Submission DESCRIPTION BLG APPROVED
COMMERCIAL SECURITY
The copyright of this document is the exclusive property of Fugro-SureSpek Pty Ltd. It has been provided for the purpose for which it is supplied and is not for general release or disclosure. The recipient of this document should take all measures to ensure that the contents are only disclosed to those persons having a legitimate right to know.
The recipient should also note that this document is provided on the express terms that it is not to be copied whole or in part or disclosed in any manner to third parties without the express authority in writing from Fugro- SureSpek Pty Ltd.
Copyright 2009 Fugro-SureSpek Pty Ltd.
Document Title: Document No: Date:
Offshore Subsea Works - Provision of Specialist Underwater Ultrasonic Inspection Services 09-826P Rev 0 5 November 2009
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TABLE OF CONTENTS COVERING LETTER ................................................................................................. 4 QUOTATION .............................................................................................................. 6 ATTACHMENT 1 ....................................................................................................... 9

TERMS & CONDITIONS PROVISION GENERAL CONTRACT SERVICES ................. 9
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COVERING LETTER
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FUGRO SURESPEK PTY LTD

30-31 Furnace Road Welshpool 6106 PO Box 251 Welshpool 6986 Western Australia Phone :61 8 9358 4488 Facsimile :61 8 9358 4499
Our Ref Your Ref:
0012-09-826P-OSW-BLG Email dated 5 November 2009

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Thursday 5th November 2009 Offshore Subsea Works Sdn. Bhd. 11th Floor Bangunan Getah Asli, 148 Jalan Ampang 50450 Kuala Lumpur Malaysia
For the attention of Mr Joe Black Re: Provision of Specialist Underwater Ultrasonic Inspection Services Dear Joe, Further to you email request, I have the pleasure of submitting our proposal for the provision of specialist subsea ultrasonic inspection services for you review.
Please feel free to contact the undersigned should you have any queries.
Yours sincerely,
Byron Geneve Operations Manager For and on behalf of SureSpek ISS Pty Ltd
Fugro SureSpek Pty Ltd ABN 61 070 727 614 A member of the Fugro group, with operating companies throughout the world
QUOTATION
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Quotation No. 09-826P Rev 0 Company: Address:

Offshore Subsea Works Sdn. Bhd. 11th Floor Bangunan Getah Asli, 148 Jalan Ampang 50450 Kuala Lumpur Malaysia Mr Joe Black BRA Jacket Inspection Provision of Specialist Underwater Ultrasonic Inspection Services
Contact: Project: Description of Services: SCHEDULE OF RATES:

Item No 1 1.1 1.2 1.3 1.4 2 2.1
Rate (GBP) Item Description Unit Offshore / Site 900.00 1,350.00 55.00 220.00 Transit / Standby 900.00 1,350.00 55.00 220.00
Personnel Ultrasonic Technician (Surface) All days Saturation Diver / Ultrasonic Technician All days Saturation Bonus All Saturation hours seal to seal UT Bonus All days Equipment Single Encapsulated Ultrasonic Repeater System comprising of: 1 x Encapsulated Transmitter 1 x Surface Receiver 1 x 200 metre Umbilical Battery Charger Standard UT Calibration Blocks (V1, V2 & IOW). Standard Probe Set (T/C 0, 45, 60 and 70) UT Plotting Boards
Day Day Hour Day
Day / unit
230.00
230.00
2.2 3 3.1
Ultrasonic Consumables Probe guides, Measuring & marking equipment etc Ultrasonic Equipment Preparation Ultrasonic equipment preparation / calibration fee (Per System) Includes shipping to manufacturer for factory calibration Miscellaneous Lump Sum / unit
Cost + 15%
1,500.00
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Item No
Rate (GBP) Item Description Miscellaneous items in addition to the items listed above that are required to execute the project scope will be charged at cost +15% against typical vendor invoices. Ultrasonic Diver Insurance Client shall ensure the Fugro-SureSpek supplied ultrasonic diver(s) has adequate diving insurance coverage for the duration of the project. Mobilisation / Demobilisation All air fares, taxis, accommodation, freight / transport and associated costs to clients account or alternatively arranged by Fugro-SureSpek and recharged at cost plus 15% Cost +15% Unit Offshore / Site Transit / Standby Cost +15%
4.1
4.2
Client to arrange
5 5.1
Terms and Conditions: Additional Notes:
As per the attached except as modified below.
a) All rates quoted are in British Pound. b) All rates are exclusive of Taxes. c) Personnel rates quoted are for all full or part days from departure / return to point of origin. d) Client is responsible for the provision of suitably qualified and experienced inspection divers as may be required to execute the works. e) Equipment rates are chargeable for all days to / from point of origin f) To ensure adequate equipment redundancy, it is recommended that 2 complete ultrasonic systems are mobilised for the project.
g) Client is responsible for the safekeeping of all equipment whilst in the direct control of its employees. i.e. Diver crew. Fugro-SureSpek reserve the right to charge for the loss or damage of equipment whilst in the direct control of Client or other Client sub-contractors personnel. h) Equipment remains the property of Fugro-SureSpek Pty Ltd at all times. i) j) Equipment requested by client not identified above will be subject to separate quotation. Mob/demob to clients account or alternatively Fugro-SureSpek will invoice these at cost +15%. Mob/demob charges to include any necessary travel, accommodation subsistence etc.
k) Payment terms are strictly 30 days from the date of invoice. Term of Agreement This proposal shall cover the described services and is valid for a period of 60 days from date of issue.
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ATTACHMENT 1
TERMS & CONDITIONS PROVISION GENERAL CONTRACT SERVICES
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FUGRO-SURESPEK PTY LTD TERMS & CONDITIONS FOR THE PROVISION OF GENERAL CONTRACT SERVICES
These terms and conditions shall apply to and govern all Contracts for the provision by the Company of general services to its clients. No variation of these terms shall be effective unless agreed in writing and signed by a Director of the Company.
Definitions 1.1 1.2 1.3 The Client shall mean yourselves. The Company shall mean Fugro-SureSpek ISS Pty Ltd. Service(s) shall mean any service or services provided by the Company to the Client other than those services specifically covered by The Provision of Temporary and Permanent Staff. The Rate shall mean the rate at which fees will be payable to the Company in respect of the services provided and/or the equipment supplied. Local shall mean a location as agreed in writing to be the point at which onshore services are normally performed. Remote shall mean a location away from the agreed Local point of service. All services performed offshore shall be deemed Remote days.
1.4
1.5
1.6
Start of Contract 2.1 The contract must be confirmed by letter or fax from the Client prior to the provision of service. The contract may start at any time dependant only on mutual agreement between the Company and the Client. For hire equipment, charges commence on departure from the Companys premises or as otherwise agreed by the Company.
2.2
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Completion of Contract 3.1 Excepting the normal conclusion of any contract, the contract may be terminated prior to completion at any time provided that either party provide in writing a minimum of 48 hours notice. For equipment hire, charges terminate on arrival of equipment to the Companys premises or as otherwise agreed by the Company. Should the Client request the termination of work prior to the completion of the report. The Company reserves the right to complete any analysis in progress such that its files may be placed in order should it be considered necessary to protect its professional reputation. A termination charge to cover the cost of completion of such tasks may, at the discretion of the Company be charged. This charge shall not exceed 25 percent of the total cost incurred up until the project was terminated.
3.2
Rates 4.1 Personnel charges commence on arrival at Clients office or Perth Airport or other mutually agreed point of departure as applicable. Delays will be charged as quoted unless stand-by rates apply. A minimum charge equivalent to 4 hours at the applicable rate will apply for all services undertaken on an hourly service agreement. Equipment hired for any day or part thereof will be charged at the full day rate. If a Client requires to reserve equipment at the Companys premises for an unspecified contract mobilisation date there will be a daily charge of 50 percent of the standard day rate unless otherwise agreed in writing. Remote and local days are for any day or part of for services as agreed between the Company and the Client. In the event of personnel being required to work in excess of the agreed daily duration, this will be charged pro-rata of the applicable day rate. Weekly Worksheets signed by the Clients on-site representative will constitute approval by the Client of hours worked. Fugro-SureSpek reserve the right to vary rates where conditions of employment are classed as exceptional or where market conditions dictate.
4.2
4.3 4.4
4.5
4.6
4.7
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Third Party Costs 5.1 All third party costs such as travel, accommodation, communications and subcontractor services will be charged to the Client at cost plus 15 percent. For equipment hire, the Company may undertake Collection & Delivery by prior arrangement. All costs will be charged at cost plus 15 percent handling charge. Costs to include, but not necessarily be limited to, transport, craneage and clearance documentation costs. Ownership of hire equipment remains the property of the Company at all times. Company vehicles used in the course of project work will be charged at a rate of $0.65 per kilometre.
5.2
5.3
Overseas Duties 6.1 Prices quoted exclude all foreign taxes, duties, fees, levies and local payments necessary to perform services as required by the Client. All such costs will be charged to the Client at cost plus 15 percent.
Permits 7.1 All and any permits and licences required for work (except those supplied under standard Company West Australian services) will be the responsibility and at the expense of the Client. For all permits, visas or licences obtained by the Company on behalf of a Client, then all such associated costs will be charged to the client at cost plus 15 percent.
Payment 8.1 The Client will be billed on a monthly cycle. In the case of projects carried out on a time and expense basis, accumulated personnel and third party expenses will be shown on our invoice. In the case of lump sum work, the Client will be billed for the portion of the work considered to have been completed at the time of billing. All monies due are liable for payment within 14 days of invoice issue. Interest may be charged on overdue accounts. Interest will be charged at a rate of 0.7% per month (but not exceeding the maximum allowed by law). Any legal fees or other costs incurred in collecting any delinquent amounts will be charged to the Client.
8.2 8.3
8.4
Other Fees
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9.1
In the event of the Client employing or engaging (whether directly or indirectly) the services of any individual supplied or introduced by the Company within a period of 3 months from the date on which the services of such Individual were last so supplied, the Client shall pay the Company a one off fee based on the scale below Fee Scale 7.5% of the Individuals annual basic salary which for this purpose shall be deemed to be the salary payable to the applicant in his or her first year of employment excluding overtime, bonus payments, travelling or other expenses, subsistence or weighting allowances. Should such engagement take place following a minimum 3-month period of Company supplied contract service, and then the fee would be reduced to 5%. Credit Scale (In the event of employee termination) 75% if employment terminated in first 4 weeks 50% if employment terminated in first 8 weeks 25% if employment terminated in first 12 weeks All credits are subject to a minimum introduction fee of 25% the salary fee.
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Ownership 10.1 Ownership of and copyright in all reports prepared by the Company will remain with the Company until such a time as the invoice relating to services provided are paid in full. Any report made available to the Client prior to the invoice being fully paid is not to be disclosed in whole or in part to any other party.
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Warranty and Liability 11.1 Fugro-SureSpek warrants that its services are performed with the usual thoroughness and competence of the consulting engineering profession. Such services are in accordance with the standard for professional services at the time that those services are delivered. No other warranty or representation, either expressed or implied is included or intended in the Companys proposals or reports.
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Insurances 12.1 During the currency of the contract the Company will arrange with its insurers that all sub-contractors and employees be included within the insurance cover provided by the public liabilities insurance policies maintained by the Company. The Companys liability for all compensation payable in respect of any one accident or series of accidents arising out of any one occurrence is limited to AUS$5 million unless otherwise agreed in writing.
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12.2
The Client is responsible for the safe keeping of the equipment and will insure it for the full replacement value against all risks for the full duration of the contract. Excepting fair wear and tear only, the Client shall be responsible for maintaining and returning the equipment in good working order. The Company reserve the right to charge for any equipment lost or damaged without direct control of Company personnel.
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Health and Safety at Work 13.1 The Client will at all times discharge all statutory and common law duties which the Client may from time to time owe to, or to which the Client may from time to time be subject in respect of the safety, health and protection from injury of the person and property of the Individual and the Client will at all times indemnify the Company and hold the Company indemnified against all claims, loss, damage, cost or expense incurred by the Company or arising otherwise in connection with any breach of any such duty performed on the Clients property.
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Use of Client Motor Vehicles 14.1 The Client shall not cause or permit Company personnel to use any Client supplied motor vehicle for any purpose in connection with the services provided, unless the Client has previously been satisfied that adequate third party insurance cover is in force in respect of any such user. The Client will at all times keep the Company indemnified against any liability (whether in respect of any insured risk or otherwise) incurred by the Company or arising in connection with the use by Company personnel of any motor vehicles for any business purpose requested by the Client.
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Governing Law 15.1 The proper law of this agreement is the law of Western Australia and the Client submits to the jurisdiction of the Courts of that state in respect of any matter arising out of this agreement.
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Validity Unless specified in the proposal or quotation as applicable, rates are applicable from the 1st January 2009 to 31st December 2009 inclusive.
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OFFSHORE SUBSEA WORKS SDN.

+61 8 9358 4488

Fax + 603 2166 9679 Email joe@subsea.com.my

Fax +61 8 9358 4499

The following versions of this proposal have been issued:

Copyright 2009 Fugro-SureSpek Pty Ltd.

Document Title: Document No: Date:

Document Title: Document No: Date:

Document Title: Document No: Date:

FUGRO SURESPEK PTY LTD

Our Ref Your Ref:

0012-09-826P-OSW-BLG Email dated 5 November 2009

Document Title: Document No: Date:

Quotation No. 09-826P Rev 0 Company: Address:

Contact: Project: Description of Services: SCHEDULE OF RATES:

Day Day Hour Day

Document Title: Document No: Date:

Terms and Conditions: Additional Notes:

As per the attached except as modified below.

Document Title: Document No: Date:

Document Title: Document No: Date:

Document Title: Document No: Date:

Document Title: Document No: Date:

Document Title: Document No: Date:

Document Title: Document No: Date:

Document Title: Document No: Date:

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