Administração da Jornada de Trabalho e eventos de alocação de horas_Rev Final ENGLISH VERSION

Sistema de Gestão Empresarial www.subsea7.com

ENTERPRISE MANAGEMENT SYSTEM

PR-BRA-HR-XXXX

Procedure for Management of Working Hours and hours allocation events for employees in onshore labor.

6 01.September.2014 Rodrigo Ribeiro Claudio Nogueira

Revision Revision Date Responsible for Document Document Approval

PR-BRA-HR-002-P Human Resources Management 01.September.2014

Revision: 6Payments and Days Off of Onshore personnel working on board Offshore and Dry-dock Page 2 of 19

REVISIONS

Revision RevisionDate Section Description of Amendment

1 - Approved for use

© Copyright Subsea 7 seabed-to-surface



CONTENTS

1. INTRODUCTION..............................................ERROR! BOOKMARK NOT DEFINED.1.1 PURPOSE...............................................................................................................41.2 SCOPE...................................................................................................................41.3 DEFINITIONS..........................................................................................................41.4 REFERENCES.........................................................................................................5

2. ONSHORE STAFF WORKING OFFSHORE........................................................52.1 APLICABILITY.........................................................................................................52.2 PAYMENT...............................................................................................................62.3 DAY OFF................................................................................................................82.4 DAY OFF CAMPENSATION......................................................................................82.5 ON-CALL PAYMENT IN CASE OF BOARDING CANCELLATION .................................92.6 RESPONSIBILITIES...............................................................................................10

3. ONSHORA STAFF WORKING DRY DOCK .....................................................103.1 ELIGIBILITY..........................................................................................................103.2 WORK REGIME.....................................................................................................113.3 PROCEDURE........................................................................................................12




1. INTRODUCTION

1.1 TARGETThis procedure aims to establish the rules and procedures for the management of working hours and other events of allocation of employees hours at Subsea 7 Brazil.

This procedure harmonizes the previously existing procedures:PR-BRA-HR-016-PPR-BRA-HR-011-PPR-BRA-HR-002-P

1.2 SCOPEThis procedure is managed by the Human Resources and applied only to Brazil Subsea 7.

It contains guidance on the payment of regular working hours and other events of allocation of employees hours in onshore work regime at Subsea 7 Brazil.

1.3 REFERENCES

CLT – Consolidation of Labor Laws;

CATS – Cross Application Time Sheet.

1.4 DEFINITIONSThe definitions and abbreviations used in this procedure can be found below:

(A) HazardDangerous activities or operations are considered, according to the regulations approved by the Ministry of Labor, those which, by their nature or work methods imply increased risk because of permanent exposure of the worker as specified in Art. 193 of CLT (Consolidation Laws Labour);

(B) On CallIt is considered On Call the period in which the employee was assigned to be available to Subsea 7, outside the workplace and in




periods of off duty or resting, waiting call to provide assistance related to their normal work or to meet occasional needs of the operation – according to Article 244 of the Labor Code;.

(C) ContainmentIt is considered CONTAINMENT the employee's permanence, due to lack and / or inability to normal access, in the workplace, not allowing his removal in the rest intervals between normal working hours..

(D) Boarding DayIt is considered Boarding Day (BD) the day on which the employee effectively boards. It is also considered the first day of work within the period onboard.

(E) Landing DayIt is the day that is performed the actual landing. It is considered the employee’s first day off regardless of the landing time.

(F) Base SalaryCorresponds to the gross salary received by the employee at the end of the month, without the inclusion of any payroll additional / event / discount.

(G) Working HoursIt is the daily schedule established for the exercise of the employee's function as defined by the company and labor law.

(H) Regular HoursAre the hours worked by the employee, corresponding to the normal working hours hired, respecting the schedule flexibility thresholds set in labor legislation.

(I) Flexible HoursIt is a mode of working hours in which the manager allows, in agreement with his subordinate, to choosing one, among some proposed schedules for entering and leaving the company.

(J) OvertimeAre the hours worked by the employee




beyond the normal working hours.

(K) Night Shift PremiumIt is the period worked by the employee between the hours of 22: 00hs to 05: 00hs. During this period the employee shall be entitled to night shift premium, whose value corresponds to 20% of the hour worked, according to current law - Article 73 of the Labor Code.;

(L) Work AbsenceIt is the employee's absence with regard to compliance of their working day established in the employment contract.

(M) Legal Work AbsenceIt is the absence of the employee on justified grounds by law or collective agreement and not subject to disciplinary action and / or discounts:

• Justified Work Absence: It is the absence of the employee for reasons deemed justified by their direct manager, not subject to disciplinary action;

Non Justified Work Absence: It is the absence of the employee for reasons not foreseen by law, the Company's internal policy or not accepted as justified by the direct manager. The employee is subject to laid down deductions, including holidays, in addition to disciplinary measures.

(N) LatenessIt is the time between the start time of the regular working hours and the actual time of arrival of the employee to the workplace:

Justified Lateness: It is the delay accepted by the direct manager as justified and is not subject to disciplinary action and / or discounts;

Non Justified Lateness: It is the




delay not accepted as justified by the direct manager. The employee is subject to disciplinary action and deductions laid down by law.

Tolerance to Lateness: It is the limit of 10 minutes set by Art. 58 of the Labor Code without the discount and / or payment of time.

(O) Early Clock OutIt is the employee's departure before the scheduled completion of normal working hours:

Justified Early Clock Out: It is employee's departure accepted as justified by the direct manager, it is not subject to disciplinary action and / or discounts;

Non Justified Early Clock Out: It is the employee's departure not accepted as justified by the direct manager. The employee is subject to disciplinary measures, in addition to deductions laid down by law.

(P) External ServicesIt is the absence of the employee to be providing services in another location authorized by the direct manager.

(Q) Dry Dock WorkIt is the job during the maintenance period of a ship when it is in the yard, completely without water for repairs, refit and inspection.

(R) Port Call WorkIt is the work during the period in which the ship touches the dock for the shift change, and is stocked with the material required for the job.

2. WORKING HOURSThe onshore Working hours is eight (08)

hours per day and forty (40) hours per week, Monday through Friday.




2.1 WORKING TIMEThe working hours for employees under the Onshore work regime will be as follows:

BASE CLOCK IN CLOCK OUT

Porto do Rio Office

08:00 hs 17:00 hs

Niterói 08:00 hs 17:00 hsMacaé 07:30 hs 17:00 hsRio das Ostras 07:30 hs 17:00 hs

The employee must meet the meal break, totaled at 01:00 (one) hour to Niterói and Port do Rio Office and 1:30 (one hour and thirty minutes) to Macaé and Rio das Ostras. For this interval will not be done the registration of the time of entry and the exit at the company, but requested the correct fulfillment of this period.

2.2 FLEXIBLE HOURSThe established flextime should be met with the same rigidity with which conventional working hours are completed because the total daily hours will be controlled in any of the selected times.

The entry time for all employees, that in agreement with the manager change their fixed working hours for flexible, will be from 07: 30h to 09: 30h, at 30-minute intervals, and the exit time will be from 16 : 30h to 18: 30h, as shown in the following table.

The employee may elect to convert their fixed hours for flexible, since in accordance with the manager and is therefore not mandatory adherence to new periods of flexitime. The manager is the holder of the final decision for the members of your team, within the parameters set forth herein.




If employees and managers to agree on a flexible schedule, the employee shall be responsible for the transportation work x home and home x work, once the chartered bus line follows the standard time.

Critérios de Horários

Clock In Clock Out07:30 h 16:30 h08:00 h 17:00 h08:30 h 17:30 h09:00 h 18:00 h09:30 h 18:30 h

2.3 WORK ABSENCE AND LATENESSAbsences and early clock out can only be justified in the occurrence of the following reasons:

Conducting external work; Work travel; Participation in courses, seminars

and related activities, as long as previously authorized by the manager;

bonus provided by law, with proper document presentation;

Exceptional bonus granted by the immediate superior and management;

disease proven by Medical Certificate.

2.4 ABSENCE FROM WORK PERMITTED BY LAWWork absences will be allowed for legal reasons as listed in Art. 473 of the Labor Code (duly supported), as described below. To this end, supporting documents must be submitted to the Personnel Department:




Death: spouse, children, siblings, partner, father and mother, or person duly registered as a dependent - absence of up to 02 days from the date of death;

Marriage: 03 calendar days of the event;

Offspring Birth: Paternity Leave - 05 calendar days after the birth of the child;

Blood donation: absence of 01 day, every 12 months of work;

Electoral Enlistment: absence of up to 02 calendar days;

Police investigation or judicial procedure testimony; Call for the jury; Functions of Elections, Military presentation and other legally mandatory services - for as long as necessary;

Days of conducting entrance examination for admission in higher education institute;

• Participation, when acting as a labor union representative, of international official meeting of which Brazil is a member - for as long as necessary.

2.5 OVERTIMEWill be considered "overtime", that limited to the exception proven necessary and urgent, or where activity that, by its nature, can not be performed within the normal working hours, according to Art. 59 of the Labor Code

Overtime will be ascertained the day 01 of this month to the 30th day of this month and the actual payment the following month, plus the due paid weekly rest.

It is the responsibility of each Board the approval via CATS of their overtime of employees linked to it, indicating for each employee, one responsible time approver.

For performing overtime, shall be observed




the following:

• The extension of the normal working hours shall not exceed two (02) hours per working day. In case of extra work on Saturday, Sunday or holidays, that extra day may not exceed ten (10) hours of work;

2.5.1 OVERTIME APPROVALIn the case of need for overtime, for control purposes, these should be previously negotiated by the employee with the Manager, and the registration and approval thereof shall be made via CATS.

2.5.2 OVERTIME ELEGIBILITY Are eligible to receive overtime employees in onshore regime at Subsea 7. Not being applicable to those working under the offshore regime, employees of the Bands J and above, and those with positions of trust of the bands I and below: Managers, Engineering Discipline Leaders and Coordinators.

2.5.3 RemunerationThe company will guarantee the payment of overtime, paid at the rate of 50% (fifty percent) of the value of the normal hour for overtime during weekdays (Monday through Friday) and 100% (one hundred percent) of the normal time value for weekends (Saturdays and Sundays) and holidays considering the value of the base salary perceived by the employee. The payment does not apply to those who work under the offshore regime, employees of the Bands J and above, and those with positions of trust of the bands I and below: Managers, Engineering Discipline Leaders and Coordinators.

2.6 ON CALL WORK2.6.1 CRITERIA




On Call work regime is applied to employees in onshore regime at Subsea 7. It is considered that the employee will be performing activities in on call regime, when the same is determined by Subsea 7, is scheduled to await the company call on duty regimen, outside office hours.

The Board will disclose the duty scale with at least 24 hours in advance where the employee may be summoned to appear at the premises of Subsea 7 for the provision of services or provide the services requested remotely (for example, by phone) as the case. The notification of the duty scale should be made via email to the employee involved

During the on call period, the employee scheduled should remain accessible and near the site of Subsea 7, as well as with cell phone coverage.

The on call scale will be a maximum of 24 hours. If the employee's function requires a different treatment, the Department of Human Resources shall be started.

2.6.2 REMUNERATIONThe company will guarantee the payment of the hours on standby, paid at the rate of one third (1/3) of the amount of normal time, considering the value of the base salary perceived by the employee. The payment does not apply to those who work under the offshore regime, employees of the Bands J and above, and those with positions of trust of the bands I and below: Managers, Engineering Discipline Leaders and Coordinators.

In the event “called for effective work”, even remotely, the working period will be paid as overtime under the same conditions under which Subsea 7 pays the extra hours worked on




other occasions for its employees, in compliance with the established in the agreement or collective agreement of work. The overtime pay, if applicable, shall not be cumulative to the payment of the amounts paid as on call bonus and is due to eligible employees mentioned in 2.5.2.

3. ONSHORE PERSONNEL WORKING OFFSHORE

3.1 ELIGIBILITYApplicable to employees of all onshore sectors of Subsea 7 Brazil, except for those that are included in the bands "K" and above this, of Subsea 7 positions structure.

3.1.1 Band J onshore employees when in offshore boarding regime will receive a corresponding boarding bonus to 50% of the working day of the amount in proportion to the onboard period, as per item 3.2.1.

3.1.2 Onshore employees in Band I positions and below this will receive the expected salary premiums in item 3.2 of this procedure.

3.1.3 In all the above cases, these extra will not be due in the case of visits, meetings and any stays lasting less than or equal to a day's work.

3.2 PAYMENTS AND FORMULASSubsea 7 secures the payment of additional listed below, according to the eligibility defined in item 3 above:

(A) HAZARD PREMIUM




The Hazard Premium will be paid at the rate of 30% (thirty percent) calculated on the monthly basic salary received by the employee, regardless of the number of days onboard. If the employee embarking on a period covering two months, will be due the payment of 30% relative to two months.Cálculo:Premium = (base salary x 30%)

(B) BOARDING BONUSThe Boarding Bonus will be due to onshore employees who board to conduct offshore activity in the proportion of onboard days.

The bonus will be in the order of 35%.Calculation:Boarding Bonus = (base salary/30) x 35% x nº of days onboard

3.2.1 FORMULA FOR BOARDING BONUS PAYMENT TO BAND J EMPLOYEES

The boarding bonus ( including the hazard) referred to in Item 3.1.2 of this procedure shall be paid in accordance with the formula below, always proportional to the days onboard:

Band J Boarding Bonus = (Base Salary/30) x 50% x nº of days onboard

3.3 DAY OFF

3.3.1 For each departing day, employees listed in item 3.1.3 above, shall be entitled to enjoy one (01) day off.

3.3.2 The days off may be taken immediately after each landing in consecutive days, or may be accumulated to be enjoyed in a maximum period of 180 days (one hundred and eighty days) from the date of landing. If the day off is not taken during this period, shall be paid by the company as day off worked.




3.3.3 The day of the landing is considered the first day of the employee's day off, regardless of the time it is performed.

3.3.4 For employees detailed in item 3.1.2 above, the boarding bonus may be converted on a 1 day off for each day onboard. There will be no cumulative effect in this particular case, i.e., the employee will choose to receive the boarding bonus described in item 3.2.1, or the days off proportional to days onboard.

3.4 PAYMENT OF DAY OFF WORKED

(A) As provided in Section 3.3.2, the days off that are not taken within 180 (one hundred eighty) days shall be paid by the Company to the employee, as day off worked at the rate of one (1) working day

Day Off Worked: (Base Salary)/30 * nº of days off purchased

(B) Will be entitled to the payment in this item, only the employees listed in item 3.1.3 of this Procedure.

2.5 ON CALL PAYMENTIN CASE OF BOARDING CANCELLATIONIn situations where the employee has moved onshore to board and that for some unintentional reason to the employee the boarding is canceled, the company will guarantee the payment of the hours on standby, paid at the rate of one third (1/3) of the amount of normal time considering the value of the base salary perceived by the employee as follows and respecting the rules and eligibility treated in item 2.6.ON CALL = (Base Salary/200) / 3 x Standby Hours




4. ONSHORE PERSONELL WORKING IN DRY DOCK / PORT CALL REGIME

The onshore employees required to work in Dry-dock / Port Call regime (ship stopped at the port / Docking), shall comply with the following criteria:

4.1 ELEGIBILITY4.1.1 Employees members of the Bands "K" and above, of Subsea 7 positions structure are not eligible for bonus described herein. The remaining onshore positions will follow the criteria below:4.1.2 BOARDING BONUS

The activity of Dry Dock / Port Call will be analyzed case by case. The payment of possible bonus during the 8 hours of normal working hours depends on the existence of risks to which the employee is perhaps exposed, regardless of the employee stays overnight or not on the vessel. If the employee declines the hotel offered by the company and decides, at its option, to sleep in the vessel, the same must sign a declaration to that effect (Appendix 1).

4.1.3 OVERTIMEIn case of overtime (hours exceeding 08 hours per day from Monday to Friday), they shall be paid in accordance with current legislation. Eligible to receive overtime are described in item 2.5.

4.1.4 DRY-DOCK / PORT CALL BONUSEmployees below the band K and who are not eligible to receive the Overtime, will receive bonus in the order of 50% of the monthly salary, as follows:The bonus will be calculated on the value of normal working hours, and will be incident on the hours that exceed the normal working regime (08 hours per day from Monday to Friday), and on hours worked on Saturdays,




Sundays and holidays.In these cases, shall not apply to overtime pay, only the bonus above, which may be converted into days off proportional to the days / hours worked, with the approval of the employee’s direct manager.

Calculation formula for payment of the dry-dock / port call bonus:

Gratification Dry-Dock / Port Call = (base salary / 200) x 50% x Hours eligible for payment.5. WORK IN REMOTE SITEIt is characterized when the employee has worked in other site of the company, following the workday of the location, which prevents the employee from returning home, staying during the weekend and holiday in the city where is located the Remote Site, and and may request the holding of overtime.

The minimum and uninterrupted stay required to feature a remote site work in another city is 14 days.

This work does not characterize Temporary Transfer.

Work related to trade visit to providers, and those performed in various company offices abroad and / or Business Meetings are not characterized as work in Remote Site, and are therefore not covered by this procedure.

5.1 ELIGIBILITYAll onshore employees in positions up to the band I, excluding employees in positions of band J and above.

5.2 OVERTIMEAre eligible to receive the extra hours exceeding 8 hours as overtime, employees mentioned in item 2.5.2.

5.3 DAY OFFEmployees eligible for overtime for additional




work on weekdays, weekends and holidays, are not subject to the receipt of day off.

Employees of the Band I and below who are not eligible to receive the Overtime if work on Saturday, Sunday and holidays, shall be entitled to one day off for each day worked during the weekend and holiday.

5.4 DAY OFF NOT WORKED

All onshore employees to Band I, who remain in the city where is located the Remote Site and do not work if you are off on holiday, Saturday, Sunday or both shall be entitled to one break for each weekend / holiday in this situation .

The grant of the day off may be replaced by the payment of the day off, and this definition / approval at the discretion of the immediate manager, based on the assessment of the need for work to continue the services performed. The day off to be worked will be calculated at the rate of one day of base salary for each day off in this situation, as per item 3.4.

The day off control should be administered by the employee's immediate manager. When the day off occurs it should be recorded in the employee's CATS.

6. TRAINNING HOURS

6.1 ELIGIBILITYAll offshore employees of Subsea 7 Brazil region, hired under the CLT regime, excluding Onshore employees.

6.2 REMUNERATIONOffshore employees who are appointed by the company to provide training on the occasion of their clearances, will be paid according to the following calculation, based on the number of days available to the company:

Collaborators linked to Sintasa:




(((Base Salary*1,97)/30)*2)*number of trainning days

Collaborators linked to ABEAM:

((Base Salary+Bonus/30*2)* number of trainning days 7. RESPONSIBILITIES

COLLABORATORS:Make all releases of hours in CATS module and keep your working hours in line with the direct manager.MANAGERS:Approve / Disapprove all inclusions of hours in CATS module and maintain the alignment of activities with your employees.

HRMake payment / discount of hours / events launched and approved in the CATS module.

8. GENERAL RULESThis procedure may be amended by liberality of Subsea 7 at any time, regardless of any prior notice.


Documents

Administração da Jornada de Trabalho e eventos de alocação de horas_Rev Final ENGLISH VERSION