A G R E E M E N T. between THE NORWEGIAN SHIPOWNERS' ASSOCIATION (NSA) and THE NORWEGIAN UNION OF MARINE ENGINEERS (NUME) relating to FIXED WAGE FOR

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1 Effective from 01 November 2014 to 31 December 2016 A G R E E M E N T between THE NORWEGIAN SHIPOWNERS' ASSOCIATION (NSA) and THE NORWEGIAN UNION OF MARINE ENGINEERS (NUME) relating to FIXED WAGE FOR ENGINEERING OFFICERS ON OFFSHORE SERVICE VESSELS AND LIFTING VESSELS (Unofficial translation from Norwegian)

2 PART I BASIC AGREEMENT... 5 PART II GENERAL PROVISIONS... 5 SECTION 1 EMPLOYMENT AND TERMINATION EMPLOYMENT TERMINATION OF THE SERVICE RELATIONSHIP, C.F. SECTION 5 OF THE SEAMAN'S ACT THE NOTICE PERIOD, C.F. SECTION 5 OF THE SEAMAN'S ACT PANEL UPON DISMISSAL AND TERMINATION SENIORITY AND PRIORITY... 6 SECTION 2 SAILING PERIODS - ROTATION SCHEDULE SERVICE TIME - VACATION/LEISURE TIME ROTATION SCHEDULE SERVICE TIME/LEISURE TIME ACCOUNTS DEVIATION FROM ROTATION SCHEDULE COMPENSATION FOR EXTRA SERVICE... 8 SECTION 3 WAGE PROVISIONS FIXED WAGES SECOND JUNIOR ENGINEERS SPECIAL SUPPLEMENTS TO FIXED WAGE Security officer (SSO) supplement Assessor supplement Risk supplement Settlement in the event the ship is lost Supplement for anchor-handling Compressor supplement Safety representatives SECTION 4 SERVICE SUPPLEMENT NUMBER OF SUPPLEMENTS EARNING PERIOD SECTION 5 WORKING HOURS WORKING HOUR PROVISIONS DUTY TO PROVIDE INFORMATION WHEN ON SHORE LEAVE YARD STAY SECTION 6 EXPENSES DURING EMPLOYMENT AND FOR TRAVEL AND TRAVEL TIME TRAVEL EXPENSES AND TRANSPORTATION TRAVEL BY RAIL LUGGAGE VACCINATIONS MARITIME PERSONNEL CERTIFICATES CALCULATION OF SERVICE TIME WORK ON THE DAY THE EMPLOYEE TRAVELS HOME RESTING TIME SECTION 7 SAFETY EQUIPMENT, WORK CLOTHES AND UNIFORM SAFETY EQUIPMENT AND WORK CLOTHES SURVIVAL SUIT UNIFORM SECTION 8 INSURANCE AND SUPPLEMENTAL PENSION SECURITY INSURANCE SUPPLEMENTAL PENSION LIFE INSURANCE COMPENSATION FOR PERSONAL EFFECTS Size of the compensation Documentation SECTION 9 COMPASSIONATE LEAVE SECTION 10 ILLNESS... 17

3 10.1 SICK PAY NOTIFICATION/OBLIGATION TO SEE A DOCTOR ROTATION AND VACATION/TIME OFF REINSTATEMENT TERMINATION OF EMPLOYMENT FOR AN EMPLOYEE WHO IS ILL SECTION 11 COMPENSATION FOR PARTICIPATION IN COURSES, TECHNICAL COURSES, CONTINUING EDUCATION MEETINGS OBLIGATORY COURSES OBLIGATORY MEETINGS UPDATING CERTIFICATES IN ACCORDANCE WITH THE STCW CONVENTION MEETINGS CONVENED AND COVERED BY THE PRINCIPAL IF THE EMPLOYEE IS CALLED IN TO A MEETING BY THE EMPLOYER/OPERATOR DURING HIS TIME OFF, THIS SHALL BE COMPENSATED WITH 2/30 PER DAY IN ADDITION TO ACCRUED WAGES FOR EVERY MEETING DAY ATTENDED TECHNICAL COURSES/CONTINUING EDUCATION SECTION 12 WORK PLAN FOR ENGINE ROOM ON SHIPS OVER 4,000 GT SECTION 13 DEDUCTION OF DUES TO THE NORWEGIAN UNION OF MARINE ENGINEERS. 19 SECTION 14 INFORMATION AND DEVELOPMENT FUND SECTION 15 FINAL CLAUSES DURATION SECOND AGREEMENT YEAR ADDITION TO PROTOCOL: APPENDIX 1A LEISURE TIME ACCOUNTS APPENDIX 1B DEVIATION FROM ROTATION APPENDIX 1C SUPPLEMENTARY GUIDE REGARDING 2.2, 2.4 AND APPENDIX 2 POST AND CONTINUING EDUCATION... 30

4 5 PART I BASIC AGREEMENT The basic agreement is the first part of this agreement and is thereby an integral part of the agreement. This does not apply if the agreement is used on board a ship registered in a register other than the Norwegian Ship Register. Locally, by special agreement and in accordance with chapter 9 of the Basic agreement, the parties may agree that parts of the Basic agreement be used as a basis in the company. PART II GENERAL PROVISIONS The base salary table is a part of this Agreement. Placement in the salary lines is to be determined by the parties in the companies for each ship, groups of ships or all ships in total. The term "engineering officer" includes the position categories "engineer" and "electrician". The agreement applies to all engineers who are members of the Norwegian Union of Marine Engineers and who serve in those companies that are parties to this agreement. Section 1 EMPLOYMENT AND TERMINATION 1.1 Employment The employee is employed by the company pursuant to agreement between the company and the individual employee, c.f. Chapter 3 of the Ship Labour Act with regulation no of 19 August Upon employment, the employee shall be made aware of this agreement, and the employment contract shall refer to this agreement. Upon employment, 50% of fixed wage per day (0.5 /30) shall be paid (c.f. the wage tables), with the addition of the living allowances at the prevailing rates per day for the period between the employment date and commencement of service (c.f. Section 4-1 in the Ship Labour Act). This period of time is not included in the subsequent service and leisure time account that is kept. Prior to transfer from one ship to another within the company, the transfer shall be discussed with the person in question. 1.2 Termination of the service relationship, c.f. Section 5-2 of the Ship Labour Act The mutual notice period is one month, after five years' consecutive employment in the company the notice period is two months, and after ten years of employment the notice period is three months. The notice period for the Chief Engineer is three months. Notice shall be given in writing. If so requested by the employee, a reason for the notice shall be given. The vessel master can always terminate an employee's service relationship on an individual ship. Employment in the company may only be terminated by the company.

5 1.3 The notice period, c.f. Section 5-2 of the Ship Labour Act 6 The notice period is calculated from date to date so that the notice period can be effected on board and/or on land. For employees that are on land at the time they receive notice of termination, the termination notice is deemed to have been received on the same date that the Postal Service has delivered a notification that a registered dispatch may be picked up. The address last provided by the employee to the company shall be used in connection with termination/summary dismissal from the company. When notice is given by the company vacation/days off earned before the notice period has begun are not counted in the notice period. The employee shall be available to the company until the end of the notice period. Vacation/days off earned during service on board after the notice period has commenced may be included in the notice period. Vacation/days off that have not been used shall be paid in cash at the end of the notice period. 1.4 Seniority and priority In the event of termination due to curtailment of activities, consideration shall be given to seniority in the company when decisions are made regarding which employees employment shall be terminated. This also applies to lay-offs of 11 weeks or longer. Employees who are given notice due to curtailment of activities have priority for new employment in the company for a period of up to one year after the termination of employment, cf. section 3-6 and 3-7 in the Ship Labour Act. This priority applies only to employees that have been employed for a total of 12 months in the past two years. Exceptions may be made to this priority when the company must employ a person quickly, and the employee entitled to priority cannot be notified, or cannot report for duty, in time. In the event of such employment, consideration shall be given to seniority in the company. Section 2 SAILING PERIODS - ROTATION SCHEDULE 2.1 Service time - vacation/leisure time This agreement is based on the premise that six months of the service time per year shall be on board and six months shall be time taken off as vacation/leisure time on land. The time off period (six months per year) includes statutory and contractual vacation. The crew or individual employee and the company may agree on a shorter or longer service period than six months per year. 2.2 Rotation schedule A rotation schedule for service periods on board and vacation/time off on land shall be set up in consultation with the employee representatives, or crew in the absence of an employee representative on the individual ship or groups of such ships. The service period on board shall not be shorter than two weeks, nor longer than five weeks when the ship is engaged in North European waters (see note). In the

6 7 Mediterranean, the service period shall not be longer than eight weeks (six weeks during the period 1 October - 1 April). The service period shall not exceed four weeks for survey vessels, tugboats, anchorhandling and other vessels that do not normally call at ports during the service period. In other waters, the service period shall not exceed 12 weeks. The service period shall not exceed eight weeks for ships that do not normally call at ports during the service period. The company may agree with the crew a fixed worldwide rotation schedule for vessels that sail in different waters throughout the year. Permanent changes to the rotation schedule shall be discussed with the employee representative/crew no later than half way through the affected period of service. Such a permanent change made within the deadline will not give grounds for compensation for deviation from planned service, c.f. point 2.4, or similar. Those at home will receive negative days in the leisure time accounts and these shall be treated according to normal rules in Appendix 1 to the agreement. Note: The parties define North European waters as the sea areas within a line drawn from Brest in France to the south-west of Ireland, further west of Iceland to Jan Mayen and Spitsbergen 82 degrees north, and then due east to 40 degrees east, following the meridian southward to the mainland. 2.3 Service time/leisure time accounts At the end of each 12-month service period, but not until the end of a leisure period, an overview shall be prepared showing the work and leisure periods during the elapsed 12- month period. The method of settlement for surplus or deficient vacation/days off is shown in Appendix 1. Upon expiration of the service period, cash payment shall be effected for any remaining vacation/days off. 2.4 Deviation from rotation schedule Extra compensation shall be given according to the rules below if relief deviates from the agreed relief day, c.f. also Section 2.2. "Rotation schedule". Appendix 1b contains examples of how this provision shall be put into practice. a. If the relief takes place before the agreed relief day: Employees who travel on board before the agreed relief day are given the following: - Actual relief day gives 1/30 of monthly pay + service day c.f. the provision in the first sentence, first paragraph of Section 7.6.1, (relief day is service day) - All other days the employee should have free according to the rotation schedule give 1/30 of monthly pay and the days are recorded as service days. Employees who travel home before the agreed relief day are given the following:

7 8 - Actual relief days are recorded according to the second and fourth sentence, first paragraph of Section 7.6.1, (relief day is day off in lieu) - For all other days the employee should be on board according to the rotation schedule, these count as 0-days up to and including the day prior to the agreed relief day as shown in the rotation schedule. b. If the relief takes place after the agreed relief day: Employees who must stay on board after the agreed relief day are given the following: - From the agreed relief day and until the day prior to the actual relief day, 1/30 monthly pay is given for each day and the days are recorded as service days. - Actual relief days are recorded according to the second and fourth sentence, first paragraph of Section 7.6.1, (relief day is day off in lieu) Employees who are home after the agreed relief day are given the following: - Agreed relief day is normal time in lieu - The subsequent days are counted as 0-days up to and including the day prior to the actual relief day. - Actual relief days are recorded according to the first sentence, first paragraph of Section 7.6.1, (relief day is service day) Insofar as possible, a minimum of two days' notice shall be provided for all deviations. The extra compensation shall be paid with the first wage settlement, while service/free days will be entered into the leisure time accounts. Note: The rules concerning deviation from agreed rotation schedule only apply to service in northern European waters. See also Section Compensation for extra service Compensation for extra service beyond that in the rotation schedule shall be paid with the first monthly settlement. Such extra service shall be paid at 3/30 monthly pay for each such day. For relief/extra service for another employee who has been granted compassionate leave according to Section of the Ship Labour Act shall be compensated 2/30 of monthly pay for each such day. For this settlement all compensation for extra service on board will be settled. During such extended time on board monthly pay shall rotate and days off will be deducted in accordance with the rotation schedule.

8 9 Section 3 WAGE PROVISIONS 3.1 Fixed wages Fixed wage are indicated in a separate wage table and are included holiday pay. The fixed salary covering all work and working time on board. Local parties may negotiate a fixed salary agreement that is adapted to the company. The chief engineer wages are determined regard to the salary conditions in the company and conditions in general, and to the individual's competence, experience, education, employment, and field of expertice and responsibility. Salary includes legal and contractual holiday compensation. The company shall, prior to the annual salary adjustment for machine managers, discuss with their representatives or the company shop stuard the principles for adjustment. Note NSA and NUME recommend in this context to establish a minimum wage rate / table. Wages shall accrue during the service period on board and during time off for vacation/days off on land. During such time off and for any time off that is settled in cash, the prevailing free days subsistence allowance shall be paid per day in the living allowance (per diem). The wage rates are shown in appendices to this agreement. Wages are paid into a bank account in accordance with the agreement. A final settlement shall be paid upon termination of the service relationship. 3.2 Second junior engineers Wages are indicated in a separate wage table. Second junior engineers who have previously served in the company in an "adult" subordinate position shall be placed in the wage scale for "second junior engineers" on wage scale "6-12 months". 3.3 Special supplements to fixed wage Security officer (SSO) supplement In accordance with the ISPS (International Ship and Port Facilities Security) code, SSOs shall receive a monthly supplement as stipulated in the wage table Assessor supplement The appointed assessor for cadets shall be paid a supplement per month on board. The supplement is shown in the wage table Risk supplement On standby vessels, etc., a supplement of 100 % of the monthly wages shall be paid for the time during which the ship is in a hazardous area (defined by the authorities in country to which the waters belong for each case. If no such hazardous area is defined by the local continental shelf, an area defined by the operator shall apply), i.e. when

9 10 evacuation of the platform/installation has been ordered by the operator, the Petroleum Safety Authority Norway or comparable authority. The risk supplement shall also apply in connection with an uncontrolled blowout from the installation. If the uncontrolled blow out is under sea level the risk supplement shall be object of discussion between the parties. In such discussion scope, risk, ocean depth, ocean currents etc. shall be emphasized. No employees shall be transferred into service on such a vessel without receiving necessary training Settlement in the event the ship is lost In the event the ship is lost, wages shall be paid according to the rules of the Ship Labour Act, however, for at least one month. Employees who experience a loss of ship directly caused by acts of war shall receive an agreed amount in addition to compensation according to Section 8-4 of the Ship Labour Act with the regulations no. 17 of 3 February 1986, unless the incident is covered under the current agreement regarding compensation for accidents caused by war. The supplement is shown in the wage table. In addition, the rules relating to compensation for acts of war stipulated in the Norwegian Act relating to occupational injuries insurance shall apply Supplement for anchor-handling In connection with relocation of an oil drilling rig, each of the employees shall be paid a unit price per chain cable for raising and setting respectively. The same unit price shall be paid for repositioning of anchors, fishing, etc. If anchor-handling is performed for an oil drilling rig engaged in other activities, e.g. flotel, or for other ships or mobile installations, a unit price shall be paid according to the same rules, limited, however, to a maximum amount per month, calculated from date to date. The current rates are stated in the wage tables. For vessels that engage in "barge anchor-handling", the unit price payment for anchorhandling is limited as specified in the relevant wage table. "Barge anchor-handling" means continuous anchor-handling, such as on a pipelaying barge. Local parties may agree to implement this special supplement in the fixed wage Compressor supplement On seismic survey ships where the engineers are responsible for and operate the highpressure compressors, the chief engineer shall receive a supplement of 10% of the monthly wages and the other engineers shall receive a supplement of 5% of the monthly wages, unless a compressor engineer with at least a Class 4 engineer's certificate is employed. These shall report to the Chief engineer. The supplement shall be paid in the rotation period on board for the period of time during which the compressor plant is in operation.

10 Safety representatives Safety representatives elected by and among the employees shall be compensated NOK 500 per month on board. Section 4 SERVICE SUPPLEMENT 4.1 Number of supplements Service supplements may be earned in positions as engineer or electrician. Each service supplement is 2.2%. The supplements are regulated in the basic wage scales. 4.2 Earning period The earning period is counted from the date on which the person has commenced employment or has started service on board in the position of engineer or electrician, and shall last until the person resigns. When earned vacation and days off are taken, this also counts as part of the earning period, and the same applies for time spent on courses and periods of illness up to 12 months. The service supplements for engineers are only earned through service as engineers on ships owned or managed by Scandinavian companies. For electricians, only time spent in service as a ship's electrician, experience as an electrician in a land-based firm or the holding of an installer's certificate shall be included. In order to receive the correct number of service supplements, the employee is obliged to document previous service periods and other circumstances of significance for achieving service supplements while he/she is on board.

11 12 Section 5 WORKING HOURS 5.1 Working hour provisions Regardless of whether the ship is at sea or port to the working hours are to be laid up so that work and rest provisions are complied cf. section in the Ship Labour Act with regulation ( ) regarding working hours and rest periods on Norwegian passenger and cargo ships, etc. (Here abbreviated Rest Regulations). Extra Work du to security mentioned in the Rest Regulations 6 must be performed without extra compensation. For stand-by vessels in particular and other vessels with fixed, planned exercises, such exercises should not be planned in the middle of an off-duty period, rather in connection with a shift change or preferable immediately after. Crew shall be informed of such exercises beforehand. 5.2 Duty to provide information when on shore leave Employees who are off duty during the ship's stay in port are obliged, if necessary, to keep the ship informed regarding his/her location so that he/she can be recalled to service in the event of unscheduled departure, etc. 5.3 Yard stay Fixed salary shall rotate during yard stay. In a specific case or more generally it shall be discussed with the employee representatives an agreement that specifies rest time regulations and any changes in working time and resources. Other matters of importance for the yard stay can be included in the agreement if the local parties agree. Section 6 EXPENSES DURING EMPLOYMENT AND FOR TRAVEL AND TRAVEL TIME 6.1 Travel expenses and transportation Employment, reporting for duty and leaving duty shall take place at no expense to the employee. The employee shall not incur expenses in connection with travel home and return travel to the ship in connection with taking vacation/days off. Travel shall be effected using public transportation and in the quickest manner possible. Use of taxis or own car must be agreed upon with the company in advance. The employee shall not be required to pay for a passport, passport renewal and visas. During his time off, time used to obtain a visa shall be compensated for 1/30 monthly salary per day. When an employee in service cannot receive free board and/or is not able to live on board, the company shall cover the expenses.

12 13 Note 1: The company's obligation to cover travel expenses applies only in relation to the place the employee resides upon employment. In the event of the employee moving, a separate agreement for this point must be entered into. If the employee moves to another permanent place of residence in Norway, this shall be accepted as the employee's home as far as the agreement is concerned. For trips that are more expensive, this only applies when they are taken after the employer has received written notification of the move. When moving to another country, the employee will not be able to claim travel expenses beyond those he/she received to the place of residence he/she had at the time of employment, or the place of residence prior to the move. The method of travel shall be determined in an agreement between the company and the employee. Relief shall be organised so that the employee does not have unnecessary waiting time in connection with such travel. Note 2: Insofar as possible, relief shall take place in accordance with the scheduled rotation plan and shall primarily occur in port if relief cannot be effected via helicopter. If relief takes place by means of MOB boat, this shall occur in open waters. The parties acknowledge; however, that there may be operative and practical circumstances on continental shelves outside the North Sea which mean that crew changes cannot take place in accordance with the above-mentioned main rule. A risk assessment of the operation must be performed if a MOB boat, Fast Rescue Craft (FRC) or similar vessel is used. 6.2 Travel by rail Travel by rail shall be in first class. At night, the employee is entitled to sleeping accommodation when this can be obtained. 6.3 Luggage In the event of travel by plane, the employee is entitled to bring along luggage weighing up to 30 kg at the company's expense. Freight for luggage sent in some other manner shall be paid for by the company. 6.4 Vaccinations For persons appointed first aid assistants/medical responsible on board, the company shall cover expenses relating to Hepatitis A and B vaccinations. 6.5 Maritime personnel certificates Fees in connection with issuing and renewal of maritime personnel certificates shall be covered by the company. 6.6 Calculation of service time work on the day the employee travels home Time spent travelling to the ship is counted as service time on board. Homeward passage is counted as holiday/time off on shore, but if travel time entails that the person does not arrive home on the relief day, this is recored as 0-day. Compensation for work

13 14 on the day the employee travels home is implementet in the fixed wage. If relief takes place on the ship, time off starts upon arrival at port. For relief effectuated outside North European waters (see note in 2.2) the relief day and days spent travelling to the home country shall be compensated with 1/30 of monthly wage in addition to accrued wages. Use of free days begins on the relief day. Days begun are counted as complete days. This compensation shall be paid with the first wage settlement 6.7 Resting time Employees who arrive on board after travel to the ship shall be granted the necessary resting time prior to beginning his/her shift. Travel time to the ship and travel time home from the ship are counted as vacation/time off. Travel time is compensated with 1/30 monthly wage per travel day. Note: In a circular to the companies, the Norwegian Shipowners' Association has particularly noted that if the employee has had a lengthy journey out to the ship, the company must ensure that he/she has had sufficient rest before assuming his/her duties on board. Section 7 SAFETY EQUIPMENT, WORK CLOTHES AND UNIFORM 7.1 Safety equipment and work clothes Safety equipment and work clothes shall be supplied free of charge in accordance with the rules that at all times apply. The employee is under obligation to use the supplied safety equipment. 7.2 Survival suit Upon employment the employee shall receive an approved survival suit with gloves and bag. The employee shall at all times keep his survival suit in order as stipulated in the relevant regulations and shall ensure that the necessary maintenance or replacement of parts is carried out without cost to the employee. The survival suit is the property of the company and shall be returned upon termination of the service relationship. 7.3 Uniform On vessels where the company requires officers to wear uniform, this shall either be provided by the company or the officers shall be paid a uniform supplement per month as a contribution towards procuring and maintaining a uniform. The supplement is shown in the wage tables.

14 15 Section 8 INSURANCE AND SUPPLEMENTAL PENSION 8.1 Security insurance Employees covered under this agreement are covered by "safety insurance" which, among other things, covers regular accident insurance, insurance against occupational illness and loss of medical certificate. 8.2 Supplemental pension As from 1 January 1995, a supplemental pension scheme has been introduced between the ages of 60 and 67. Together with the pension from Pension Insurance for Seamen, the annual retirement pension will amount to approximately 60% of wages at the retirement date upon reaching the age of 60 after 30 years as a member of the scheme. The right to supplemental pension has no effect on the employee's right to work after reaching the age of 60. Information: For terms and conditions see NR's framework agreement with the insurance company and relevant Act of no. 16 relating to company pensions. Membership of the NSA pension plan requires mandatory membership in the Norwegian National Insurance Scheme. An employee who can not be a member (typical citizens outside the European Economic Area or EEA citizens who are granted membership in their own country's social security scheme) can be given a pension plan of equivalent value. Note: The parties agree that future cost increases will be taken into account in future collective wage settlements. 8.3 Life insurance Employees are covered by life insurance (group life insurance) which covers illness/natural death. The insurance amount is a minimum of 8 B.a. (B.a. is the basic amount in the National Insurance), and applies to death prior to the age of Compensation for personal effects Size of the compensation In the event of shipwreck, fire or other accident that may occur to the ship and whereby the employees' personal effects are damaged or lost, the company shall pay compensation up to the amount stipulated by the Ship Labour Act, currently 2/3 of the National Insurance basis amount (B.a.). The company will pay up to the same compensation amount for personal effects that the employee has suffered loss or damage to while travelling to or from the ship he/she is or was signed on to. However, this does not apply if the loss is a result of wilful intent or gross negligence on the part of the employee.

15 Documentation In order to receive compensation under the foregoing item, the employee must report the loss/damage to the representative of the relevant transportation company, hotel, etc. as soon as possible after he/she becomes aware of the situation. Reference is also made to Section 8-4 in the Ship Labour Act. 8.5 Insurance on travel to and from the ship The employer is obliged to have insurance coverage for employees that includes treatment for illness that occurs during travel to and from the ship in connection with work where relief takes place outside the EU/EEA area. Section 9 COMPASSIONATE LEAVE Compassionate leave can be granted for up to 14 days per year, if the employee is notified that his/her parent, spouse, child, sibling, parents-in-law, cohabitant, grandchild, mother/father of own children, as well as cohabitant s children (in this context, cohabitants means persons who are registered in the National Population register at the same address for a minimum of 1 year) has died or is seriously ill. The employee shall retain the fixed wage and leisure time acquisition during the compassionate leave as he/she would during service onboard. Leave of absence in accordance with section 7-3 in the Ship Labour Act entitles paid compassionate leave for until 14 days with belonging leisure time acquisition. The right to wage applies 14 days from the time of birth, alternatively from the day the employee returns from the vessel. Right to wage applies only for the days that fall within a work period. To be entitled to paid compassionate leave the employee should as soon as possible, and no later than 4 months before the expected date of delivery, inform the employer that he will avail himself of the compassionate leave clause. The notice shall be in writing and state the expected date of delivery. The employer can in such cases make necessary changes to the rotation schedule, and changes to which vessel the employee shall serve on. The right to paid leave will be reduced to the extent the employee will be entitled to benefits from the National Insurance on compassionate leave after Section 7-3 in the Ship Labour Act. Pregnant employee is entitled to the fixed monthly wage when she is granted leave in accordance with Section 7-3 in the Ship Labour Act or Chapter 22 in the Ship Safety and Security Act. The right to wages then lapses to the extent stipulated for pregnancy benefits under the National Insurance Act.

16 17 Section 10 ILLNESS 10.1 Sick pay Employees who are unable to work due to illness or injury are entitled to the fixed agreed monthly salary, c.f. Section 4-4 in the Ship Labour Act. The right to wages then lapses to the extent stipulated for sick pay in the National Insurance Act Notification/obligation to see a doctor An employee who knows that he/she is ill upon leaving service on board is obliged to give notice of this and, if requested, immediately see a doctor. The vessel master shall see to this. When requested by the vessel master or the company, employees have a duty to submit to a new medical examination. In Norway, the vessel master/ company shall refer the employee to a public physician for seamen or an authorized seaman's physician. If abroad, the employee shall be referred to a Norwegian physician's office or a physician authorized by the NAV International. If this is not possible, a physician will be designated by the Norwegian consulate. For employees who will continue to serve the company, in the event of sick leave during absence due to vacation/time off during waiting periods, the company shall be informed no later than the day after the employee goes on sick leave. If the employee's sick leave runs out during vacation time/free periods and the employee does not believe he/she is fit for work, the employee is under obligation to see a doctor to clarify whether there is a basis to extend the period of sick leave. Employees are entitled to utilize self certification according to the current rules in Sections of the National Insurance Act, with regulations. Self certification cannot be utilized if the work disability will entail a delay in travel to the ship so that the employee cannot start work immediately after a brief absence due to illness Rotation and vacation/time off For ships with fixed relief arrangements, the rotation shall proceed according to the regular plan, regardless of illness during the time when the employee should have been on board, or should have had vacation or time off on land. In the event of illness during vacation or time off on land, employees shall not be entitled to compensatory vacation or time off. In the event of illness when an employee should have been on board, the employee does not lose the right to vacation or time off on land which he/she would have earned during the period of illness. If the illness entails that employees that have been declared healthy are on land on days when they should have been on board according to the rotation, such days shall be considered to be negative days. Upon agreement, these negative days may be made up through extended sailing periods. If an employee has negative days when the leisure time account for the past 12-month period is settled, these days shall be treated according to the normal rules for settlement of negative days Reinstatement Employees who have been absent from service due to illness/injury shall have the right to rejoin the company's service in the same or equivalent position. The employee must

17 18 notify the company when he/she is declared healthy so that agreements with replacement personnel can be concluded, see below. Replacement staff that had to be employed for the employee in question shall have at least seven days' notice of resignation. This shall be stated in the replacement's contract Termination of employment for an employee who is ill Employees who are unable to work and who are entitled to sick wages/sick pay during the notice period are not entitled to wages during the notice period in addition. If the termination is issued by the employer, the employee is entitled to vacation pay on the sick wages/sick pay during the notice period. Section 11 COMPENSATION FOR PARTICIPATION IN COURSES, TECHNICAL COURSES, CONTINUING EDUCATION MEETINGS 11.1 Obligatory courses Employees who participate in courses stipulated by the company shall be paid for that portion of the course period that is taken from the vacation/time off the employee has earned through service on board, 1/30 monthly salary per course day in addition to accrued wage. Time spent on courses is considered to be time taken in lieu of vacation/time off, and is hereby settled. If the employee must travel from his/her home earlier than 18:00 hours on the day before the course, compensation shall be paid as above. This applies correspondingly if the employee returns home later than 08:00 hours on the day after the course. However, this does not apply for courses required by the government (for example STCW courses). Expenses for course feed, board, lodging, travel, etc. shall be covered in accordance with a separate agreement between the employee and the company. If the employee can live at home or has other private accommodation, a subsistence allowance as stipulated in the wage tables shall be paid. Compensation and required computer-based training during leisure time shall be agreed upon locally Obligatory meetings If the employee is called in to a meeting by the company during his time off, this shall be compensated with 1 / 30 monthly salary per day for every meeting day attended. Time spent on meeting is considered to be time taken in lieu of vacation/time off, and is hereby settled. If the employee must leave home earlier than 18:00 the day before the meeting this will be compensated as above. The same applies if the employee returns home later than 08:00 the day after the meeting. Expenses for travel, food and lodging etc. shall be covered by the company.

18 11.3 Updating certificates in accordance with the STCW convention 19 The company shall pay course fees, travel and living expenses and 1/30 of the monthly wage in addition to the accrued wage for every course day attended. All fees in connection with certificates shall be covered by the company Meetings convened and covered by the principal If the employee is called in to a meeting by the employer/operator during his time off, this shall be compensated with 2/30 per day in addition to accrued wages for every meeting day attended Technical courses/continuing education In consultation with the company, the engineering officer is entitled to take up to one week's technical course or other form of relevant continuing education for engineering officers per year. Such courses shall be compensated with 1/30 basic wage per course day in addition to accrued wages. Protocol relating to post and continuing education, see Appendix 2. Section 12 WORK PLAN FOR ENGINE ROOM ON SHIPS OVER 4,000 GT. When considering the operations plan for ships, the work plan for the engine room shall be organized so that the chief engineer will not normally need to stand watch. E0 duty shall be considered regular rotational service in this context. Section 13 DEDUCTION OF DUES TO THE NORWEGIAN UNION OF MARINE ENGINEERS See Chapter XIII of the Basic agreement. Section 14 INFORMATION AND DEVELOPMENT FUND The agreement between the Norwegian Shipowners' Association and the Norwegian Union of Marine Engineers dated 2 April 1971 with subsequent amendments relating to an information and development fund is part of this agreement. The employee's contribution shall be deducted from the wage accounts for each individual month. The current rates are stated in the wage tables. Section 15 FINAL CLAUSES 15.1 Duration This agreement shall be in effect from to and thereafter for one year at a time unless one of the parties terminates the agreement in writing with one (1) month's notice Second agreement year Prior to the expiration of the first agreement year, negotiations shall be commenced between the Norwegian Shipowners' Association and the Norwegian Union of Marine Engineers regarding possible wage adjustments for the second agreement year. The parties agree that the negotiations shall be conducted on the basis of the financial

19 20 situation at the time of the negotiations, the outlook for the second agreement year and wage and price developments in the first agreement year. Amendments to the agreements for the second agreement year shall be considered in Norwegian Union of Marine Engineers's Executive Committee and NR's Board. If the parties represented by the Norwegian Union of Marine Engineers's Executive Committee and NR's Board do not agree, the organization making the demand may, within 14 days after conclusion of the negotiations, terminate the individual agreements with 1 month's notice (however, not to expire before ).

20 21 ADDITION TO PROTOCOL: Seaman's deduction In the event of amendments to statutory rules or regulations regarding seamen's deductions such that the deduction is reduced or discontinued, full compensation will be provided to affected employees. Tax compensation If the crew on a ship is subject to foreign taxation of the income on board, tax compensation SHALL be negotiated on a case-by-case basis. MISCELLANEOUS PROVISIONS No one shall have his/her personal wage supplement reduced as a result of this agreement for as long as he/she remains in the same position. THE NORWEGIAN SHIPOWNERS' ASSOCIATION (NR) THE NORWEGIAN UNION OF MARINE ENGINEERS

21 22 Appendix 1A LEISURE TIME ACCOUNTS At the end of each 12-month service period, an overview shall be created showing the work and leisure periods during the elapsed 12-month period. The overview shall normally be created at the end of a leisure period. Credit days If it proves that the employee has credit days (has taken too little vacation/time off during the period), settlement between the employee and the company can take place in one of the following ways: a) The employee can take time off for leisure time he/she has in credit, with pay. For such settlements, a new 12-month period will start to run after the credited vacation/time off has been taken. b) The employee receives pay for so many days that he/she is paid for the number of days off that he/she should have taken. For such cash settlements, a new 12- month period will start to run immediately. Example: The agreement is based on 1-1. If an employee has seven months on board, five months vacation/time off, he/she shall have two months' wages, whereby he/she has for seven months on board received payment of a total of seven months' wages as compensation for earned vacation and time off. c) Days credited to the employee can also be settled by means of shorter sailing periods as illustrated in the following example: Example: The employee has had 190 days on board and 175 vacation days/days off, i.e. he/she has 7.5 days to many on board = 15 days at 1/30 credit days. Upon agreement, these days may be taken on a day for day basis by means of shortened sailing periods. However, the shortened number of days is counted as sailing time in the shortened period so that the current service and leisure time accounts are correct. Upon signing off, employees who have credited time off shall be paid so many days' wages that he/she receives payment for the time off that he/she has earned on the basis of the service time on board. See also the example under b) above. Negative days If it proves that the employee has negative days (i.e. he/she has taken too much vacation/time off during the period) this can be compensated for on a day for day basis by extending the sailing periods in the subsequent six month period. Any remaining negative days will be removed. The new annual period will be commenced immediately after the previous annual period, and such that the extra sailing time is calculated in line with leisure time for the next settlement. Example: If the employee has been on board for 178 days and on vacation/time off for 187

22 23 days during an annual period. He/she owes the company these nine paid days, which make up 4.5 service days on board, which he/she can be scheduled to make up through extended sailing periods on his/her "own ship" or as relief on another ship during earned time off in the subsequent six months. These sailing days are registered as time off in the accounts for the next annual period so that the current service and leisure time accounts are correct. Upon signing off, negative days that have arisen as a result of the employee's own request for extended time off home, may be deducted from his balance. Other negative days will be dropped.

23 24 Appendix 1B DEVIATION FROM ROTATION After discussion, the parties have arrived at the following compensation rules as presented below in the form of examples. Serv. Taken Service day with normal accrual of time off Normal vacation/day off 0 day Day counted as day off with pay, i.e. no time off is earned or taken. Therefore, such a day is not a day taken in lieu or a service day. Example 1 a - delayed relief one day Day M T W T F S S M Relief Relieve d (on board) Relief person (on land) Serv. Serv. Serv. +1/30 Agreed Actual Taken Taken Taken Taken Taken Taken Taken Serv. Serv. Serv. Serv. Example 1 b - delayed relief two days Day M T W T F S S M Relief Agreed Actual Relieve d (on board) Relief person (on land) Serv. Serv. Serv. +1/30 Serv. +1/30 Taken Taken Taken Taken Taken Taken 0 day Serv. Serv. Serv.

24 25 Example 1 c - delayed relief several days Day M T W T F S S M Relief Agreed Actual Relieve d (on board) Relief person (on land) Serv. Serv. +1/30 Serv. +1/30 Serv. + 1/30 Serv. + 1/30 Serv. + 1/30 Taken Taken Taken Taken 0 day 0 day 0 day 0 day Serv. Serv. Example 2 a - relief one day early Day M T W T F S S M Relief Relieve d (on board) Relief person (on land) Actual Agreed Serv Serv. Serv. Taken Taken Taken Taken Taken Taken Taken Taken Serv. + 1/30 Serv. Serv. Serv. Serv. Example 2 b - relief two days early Day M T W T F S S M Relief Actual Agreed Relieve d (on board) Relief person (on land) Serv. Serv. Taken 0 day Taken Taken Taken Taken Taken Taken Serv. +1/30 Serv. +1/30 Serv. Serv. Serv. Serv.

25 26 Example 2 c - relief several days early Day M T W T F S S M Relief Actual Agreed Relieve d (on board) Relief person (on land) Taken 0 day Serv. +1/30 Serv. + 1/30 0 day Taken Taken Taken Taken Taken Serv. +1/30 Serv. Serv. Serv. Serv. Serv. * * * * * If the shift day is not moved at the next shift following a deviation, some employees will have too few days off and some too many days off at the next crew change. These days will be recorded according to the normal rules as extra or negative days in the leisure time accounts, and shall be settled as set forth above. In other words, the leisure time accounts have nothing to do with the rules regarding extra payment.

26 Appendix 1C SUPPLEMENTARY GUIDE REGARDING 2.2, 2.4 AND This guide does not change the current established practice. The following text gives an account of discussions and clarifications the parties have done on how the rules for the rotation schedule, deviations from this and additional sailing shall be practiced (Protocol dated , supplementary protocol dated , and appendix to protocol dated ). If the actual replacement day differs from the scheduled replacement day, specified in the rotation plan or a separate agreement, the employee should be compensated, cf. the principle rule in clause 2.4. The following text includes cases of deviation from the rotation schedule, and how the parties agree the cases should be handled. There may arise cases that are not clarified below. Such cases must be resolved by the individual company. Change of rotation schedule A fixed rotation schedule may be changed according to the rules in clause 2.2. If the local parties agree by this point - and thus a new rotation plan is available - the employees will not be entitled to compensation in the transition from the old to the new rotation plan. The principle rule of deviation from scheduled rotation The principle rule is that the person who is not replaced on the scheduled replacement day according to the rotation plan, and therefore stay one or several extra days on board, is entitled to compensation. This also applies to positions that are not on board on a regular basis and the replacement by another person not occurs. Employees in such positions are also entitled to compensation if replacement day is staggered. When replacement occurs by ship, off-duty hours will start counting upon arrival in the port, and it is presumably that point of time that must be the basis when determining whether relief is offset by more than one day, cf. clause 7.6. Exceptions The rules on deviations from the scheduled rotation plan does not apply: if promoted to a new position or offered a new position on another vessel. The rules might however apply where the employee is ordered to another ship and therefore is relieved earlier than planned. In these cases it is important that the situation is clarified between the employee and the company in advance. if called out in free periods, without conjunction to ordinary schedule. Here, the provisions of paragraph 2.5, Compensation for extra service, will apply change of vessel and rotation schedule according to own wishes. Other situations in the transition from temporary to permanent position. The question of the new rotation schedule shall be discussed with the employee in connection with the appointment. Normally there will be no deviation from the scheduled rotation plan

27 28 when the employee is offered a permanent position (with an accompanying rotation schedule). with up manning of ships that have been laid up, the principle rule is that the rotation schedule prior to the down-time will apply. If the ship is laid up for an extensive period of time it will be practical in most cases to prepare a new rotation schedule cf. clause 2.2 which will apply from the time of up manning. If a new rotation plan is prepared, compensation cf. clause 2.4 will not be paid, even if the times of replacements differ from the old rotation plan. dismissals and layoffs of some duration (collective agreement clause 1.5 and Basic Agreement chapter 7) may result in change of vessel as a result of company seniority rules. The employee must be deemed to have been given a new rotation schedule, and no compensation will be paid. in the transition from construction supervision to normal operation the collective agreement requires establishment of a rotation schedule in accordance with clause 2.2., which normally will apply from the time the ship is back in normal operation. The new rotation schedule will be decisive for the rules of deviation from the rotation schedule. Clause 2.5 Extra service The parties have agreed that the provision in 2.5 is applicable for extra service beyond that in the scheduled rotation plan, and where there is no deviation from the scheduled rotation cf When the company, in advance, agrees with the individual employee to continue the period of service or to embark earlier than scheduled, the provisions in 2.5 with a payment of 3/30 of monthly salary per day can be applied. It should be allowed to set up a voluntary, individual, written, fixed-termed agreement for own employees in the company. In such agreement the compensation for sailing during vacation/leisure time will be compensated with 2/30 of monthly salary per day. It is the seafarer s decision whether he will enter upon such extra service in each case. Extra sailing to compensate for negative days shall be done according to the guidelines in appendix 1A Leisure time accounts. The company and the employee can agree upon extra sailing to compensate for negative days (after settlement of vacation/days off) cf In such cases, each day of service will be compensated with 3 days, of which 2 days shall be settled against the negative days, and one day is payable at the first monthly settlement with 1 / 30 of monthly salary. Negative days can only be settled with actual sailing unless otherwise is agreed upon in a written agreement. Clarification of the exemption clause in the NOR-Offshore service agreement deviation from the rotation schedule south of Brest The Norwegian Shipowner s Association has upon request hosted a meeting regarding the agreement for Offshore Service vessels clause 2.4 deviation from rotation schedule, and the exemption clause concerning vessels south of Brest. The parties have agreed to clarify the following through this bulletin: The agreed rotation schedule for the vessel/crew, cf. clause 2.2, shall, in principle, be applied south of Brest.