Rental Policy and Procedures

Scorpion Subsea, LLC – Rental Policy and Procedures

In consideration of the mutual covenants contained herein Scorpion Subsea, LLC (sometimes “Scorpion”) agrees to rent to its customers equipment in accordance with the following terms, which shall be applicable to any rentals, unless separately agreed to in writing:

Office hours are from 8:00 am to 5:00 pm. Monday‐Friday ‐ Closed on weekends and legal holidays. Our office will maintain a person on call 24 hours a day, 365 days a year.

Rental Rates

Rates are provided on attached Price Sheet.

Will begin from the time the equipment is picked up and will continue until it is returned by the customer to Scorpion facilities.

One‐day minimum will be charged for all equipment

Long‐term rentals may be negotiated

Equipment exchange due to misuse or damages shall be considered separate rentals

Weather days and start and stop dates are at the discretion of Scorpion.

All rates included in this Price Sheet are strictly exclusive of any and all local taxes, levies and duties as may be levied by the relevant authorities.

Responsibility of Renter

To inspect all equipment received and notify Scorpion of any problem.
To inspect the delivery ticket to assure that all equipment received is on said ticket.
Provide proper preventive maintenance to rental equipment
Renter agrees that it is solely responsible for the safe use and operation of the equipment in accordance with all applicable laws and regulations (including, without limitation, the provisions that restrict operation and use of the equipment to Renter’s qualified personnel, and to prohibit anyone other than Renter’s authorized personnel to repair or adjust the equipment.
To insure that Scorpion’s equipment is not altered or tampered with
Advise Scorpion of purchase order numbers, job charges, offshore location, tax status, or any other pertinent information.
If your company requires purchase order numbers, IT IS YOUR RESPONSIBILITY TO ISSUE THESE NUMBERS.
In case of a swap out, the rented equipment that is being swapped must be returned to Scorpion within 72 hours or it will be placed back on rent as a separate unit.
Renter agrees to maintain policies of insurance for the full replacement value of rented equipment throughout the duration of hire.
In the event of early termination of the rental by Renter, Scorpion shall be entitled to the following (i) Full payment for work completed up to the date of termination and (ii) Reimbursement for all materials, goods, and services irrevocably committed prior to the date of termination on cost plus 15% basis

Terms of Payment

Standard terms are net 30.
Any undisputed sums no paid within 30 days after receipt of invoice shall bear interest at the rate of 1‐1/2% per month on all overdue amounts, compounded monthly.
Payment at full replacement cost plus accrued rental on any items not returned.
Payment in full for parts and labor to repair improperly used or damaged equipment.
If it becomes necessary for the lessor to consult an attorney for collection of rental due hereunder and/or payment for the loss of equipment, customer agrees to pay the fees of the said attorney plus interest at the rate of 18% per annum of the amounts due hereunder from the due dates.

Technician Rate

Technicians for repair or modifications are available at $125.00 per hour, two hour minimum.

Damaged and Lost Equipment

Damage to rental equipment to be assessed immediately upon return to company facility by company’s service manager.
Renter of said rental equipment to be notified immediately and invited to Company facility to inspect any such damages.
Company repair cost on parts to be calculated at cost plus 15%
Renter to be presented repair quote on repairing of any such damages, with projected hours for repair to be provide on a per incident basis.
Renter may obtain a repair or replacement cost quote from its qualified in‐house or qualified third‐party sources.
Repairs performed by renter or renters outside source to be made to the satisfaction of company.
Repairs performed by renter to be completed in the most timely fashion possible (not to exceed 10 days).
Any negotiations are to be conducted between company and renter “Only” in regard to repairs or replacement cost of damaged and lost rental equipment.
Renter is responsible for rented equipment and associated components from the time said equipment departs and/or returns to company’s facility.
Rental equipment not returned, whether lost or stolen, will be replaced at current replacement value and charged to renter.
Quotes: Addendums

All equipment on a 28 day billing cycle
ROV Tooling Equipment will be accessed mobilization and de‐mobilization charges
Trucking will be charged at cost plus 15% for any equipment to be delivered or picked up outside 25 mile radius of Morgan City facility
It is the responsibility of the customer to return any rented equipment to the Scorpion Subsea, LLC. facility within 36 hours of date and time of notification of job ending

RENTER AGREES RELEASE, DEFEND, INDEMNIFY AND HOLD HARMLESS SCORPION SUBSEA LLC. FROM ANY CLAIMS, DEMANDS, LOSSES, EXPENSES, COSTS, DAMAGES, OR SUITS FOR PROPERTY DAMAGE, BODILY INJURY, ILLNESS, OR DEATH SUSTAINED BY RENTER OR THIRD PARTIES, IN ANY WAY ARISING OUT OF OR INCIDENT TO THE RENTAL OF EQUIPMENT, REGARDLESS OF WHETHER SUCH DAMAGE, INJURY, ILLNESS, OR DEATH IS CAUSED, IN WHOLE OR IN PART BY NEGLIGENCE, UNSEAWORTHINESS, STRICT LIABILITY, OR OTHER LEGAL LIBILITY ATTRIBUTABLE TO SCORPION SUBSEA, LLC.

LIMITATION OF LIABILITY: IN NO EVENT SHALL SCORPION SUBSEA, LLC. BE LIABLE TO RENTER FOR ANY FAILURE NON‐PERFORMANCE, OR BREACH OF OBLIGATION RELATED TO OR IN ANY WAY ARISING FROM THE RENTAL OF EQUIPMENT FOR ANY AMOUNT IN EXCESS OF THE RENTAL PAYMENTS MADE BY RENTER TO SCORPION SUBSEA, LLC, BUT IN NO EVENT MORE THAN $25000.00 THIS STATES SCORPION SUBSEA, LLC. SOLE AND EXCLUSIVE LIABILITY AND THE RENTER’S SOLE AND EXCLUSIVE REMEDY AGAINST SCORPION SUBSEA, LLC. FOR CLAIMS UNDER RENTAL.