Charter General Terms

Charter fee and payment conditions

The charter fee includes charter of a boat with belongings i.e. equipment and full insurance for the boat and crew during the charter period as indicated in charter contract between parties. Port duties, local taxeswhen out of base marina, fuel, skipper,transit log,finalcleaning and other extra services if any, are not to be considered as charter fee.

The chartered boat with equipment is ready for usage, i.e. charter, when payment of agreed amounts is done under following payment conditions:

-50% of the charter cost to confirm charter period booking

-50% of the charter cost at least four weeks before commencement of the charter

Boat Security deposit

The security deposit to be paid cash only , at the time of taking over the boat. The security deposit shall be refunded in full amount unless the existence of damage or a defect on the boat or equipment is found during the re-delivery (return) of the boat, and unless there are no claims announced prior. In case of loss or damage of the equipment, particular parts of the boat or the boat itself, Owner shell retain exact amount, that matches the value of repair, acquisition and/or purchasing the equipment or particular part of the boat In case caused damage has the consequence that boat cannot be further chartered, Owner has the right to retain the amount which will match the loss of profit.

Owner’s obligation

The Owner is obligated to hand-over the boat to Charterer’s disposal, without any fault, clean and dry with full fuel and water tanks in agreed time and place. If for any reason Owner didn’t fulfill above mentioned conditions, Charterer has right to claim for money refund , for the exact number of days he was not able to use the boat. If the Owner is not able to deliver the boat to the agreed location, 24 hours after the expiry of the time period for Takeover of the boat, or provide another , at least identical/similar or with better characteristics , the Charterer has the legal right to give up the contract and request the total amount of the charter fee and/or request the exact compensation of calculated amount, for number days Charterer could have boat on disposal. The Charterer is able to claim only the charter fee amount, as any other rights to indemnification are excluded. In case of damage or any other malfunctions on the boat, and/or equipment/belongings of the boat, caused by normal condition of boat usage the Charterer is obliged to inform the Owner immediately. The Owner is obliged to remove/remedy failure or damage upon notification within reasonable time. If the Owner is able to remedy the failure/malfunction of the damage within hours, the Charterer has no right to require any reimbursement whatsoever.

Takeover the boat

The charterer will take over the boat at agreed time and place. During takeover the boat, the Charterer is obliged to check and carefully examine the condition of the boat and equipment on board according to the inventory list of the boat. Any possible complains have to be notified before the start of navigation/usage of the boat. The possible unknown defaults/issues, on the boat or equipment on board ,for which The Charterer at the moment of takeover was not familiar with in any case, as well as defaults which could arise/overcome after the takeover of the boat, does not give option/right to the Charterer to reduce the charter fee.When requested by Owner, the Charterer i.e. person(s) in charge for sailing/navigation, have to prove that they are capable to operate the boat safely and according to international maritime laws/rules. Furthermore if the Charterer does not comply with regulations relative to boat seaworthiness, Owner and/or his representative have legal right not to deliver the boat at all and/or not to permit sail out from starting point/marina. No any compensation/request from Charterer can be claimed. If any similar situation has happen, Owner is allowed to request assistance from Port Authority Police/Coast Guard. If the Charterer does not takeover the boat within 24 hours for any reason, the Owner is entitled to consider that the contract between parties is void/not valid any more.

Charterer’s obligation

After the Charterer has taken over the boat, the Charterer shall bear all expenses of the daily berth in the port, or in marina, cost of fuel, oil, water, cleaning and all other necessary items for safe navigation, as well eliminating all damages and defaults, which can appear while the boat is charterer’s responsibility and which are not results of normal boat usage, provided the Charterer has previously contacted the Owner and reached an agreement in regards to technical issues of the repairs that are to be performed.

The Charterer is obliged to sail/navigate within the Croatian territorial waters. If the Charterers are to leave Croatian territorial sea waters, the Charterer is obligated to request from the Owner license and/or permission to take such action.

The Charterer undertakes to respect all regulations and rules, to take care of the boat and its equipment with caution and navigate/operate the same carefully and according to the maritime rules of navigation and sail only during safe weather conditions and good visibility. Charterers are to be informed about weather conditions via radio (VHF).

The Charterer, or skipper, hereby confirms that he is familiar with all necessary navigational skills and that he possesses the valid license/certificate to navigate at the open seas, and the radiophone operations authorized certificate, which has to be presented/shown to the Owner, as per first request of the same.

The Charterer undertakes and hereby agrees that he shall not sub charter the boat or rent it to the any third party that he shall not participate in regattas or boat races, commercial purposes, any type of fishing, or sailing schools.

It I is hereby agreed that Charterer will not navigate/operate the boat under influence of alcohol or narcotics, and/or any other illegal substances unknown to the Owner. It is strictly forbidden to tow of any other boat, neither is allowed to sail at night by unsafe weather conditions. Number of persons on board ofthe boat is to match to the official crew list. The Charterer is responsible for the consequences, which may arise of non-observance of these obligations. Any accidents or damages to the boat or equipment/belongings of the boat, during the charter time, the Charterer is dully obliged to inform the Owner immediately, without any time delay, on 24 hours telephone number indicated in the boat documents.

The Charterer is fully obliged to notify the Owner and authorities immediately,in case the boat or equipment is missing if the further safe navigation is not possible or in case boat was dispossessed by third parties which are not part of the contract, prized or if further navigation was prohibited by authorities or third parties for any reason. If the Charterer is to be fully responsible for all the consequences for the Owner and he guarantees for them.

The Charterer is obliged to check daily oil level in the engine, check any possible leakages, control pressure of oil and cooling water, unusual sounds and take care of sails because they are not insured by insurance policy.

Charterer’s liability

For the damages caused by actions and failure of the Charterer for which the Owner is liable to the third party if any, the Charterer is obligated to compensate financially any damages to Owner fully, whether it is the case of material and/or legal expenses that resulted from such actions and failures. The Charterer is explicitly liable for the boat in case any official authority repossess the boat, due to inappropriate and illegal actions undertaken during the agreed charter time. Charterer is obliged to bear all charges/expenses for failures done by himself, for which Owners has criminal and/or financial responsibility. Charterer is fully responsible for the boat repossession by foreign state authorities in regards to any illegal actions. In the case of damage or accident the Charterer is entitled to inform in writing, authorities

(Port HQ, Police, Medical Institutions) and the Owner in case of disappearance of the boat, impossibility of operating the boat and/or any other actions performed by third person and/or legal representatives of the government.

The Charterer is not allowed to sail out from safe berth or anchorage, until any possible failure is repaired properly.

The Charterer is not allowed to sail out from safe berth or anchorage, without been assured that fuel and water tanks levels are acceptable.The Charterer is not allowed to leave safe berth or anchorage if a weather condition does not allow so and if persons on board the boat and the boat itself are not safe for normal maneuvering/sailing generally.

Hand Over of the boat

The Charterer is obliged to return the boat in agreed time and place as agreed in contract at safe berth.

The boat should be returned with full fuel tanks. If Charterer fails to return the boat with full fuel tanks , Charterer is obliged to bear 200.00 Euro refilling expenses plus cost of the missing fuel.

If the Hand over is not possible at the agreed time and place for any reason. The Owner to be notified immediately in order to plan next step of this operation.

It is clearly stated herein thatCharterer is informed/suggested that he should return the boat near (less than 15 Nm) to agreed port/marina at least one day before the charter contract is to be considered terminated.

If such situation occurs i.e. if Charterer hands over the boat when the contractual agreed time for delivery of the boat has expired, Charterer is obliged to bear all below stated expenses/settlements:

-For the delay up to max three (3) hours - Entire day rental amount.

-For the delay of more than three (3) hours – Four days rental amount

-- For the delay caused by bad weather conditions, Charterer is obliged to bear all Owner’s expenses. Weather conditions are not to be considered as justified reasons for any possible delay of hand over (boat return).

The Charterer must report all possible damages, to the Owner, during hand over of the boat. All possible damages to be settled on Charterer’s account. Based on inventory list checked during Take over operation, the boat, equipment/belongings and machinery is to be inspected carefully. If during the inspection, it isdetermined that some problems persist, the Charterer is obliged to bear the repair expenses.

The boat is to be hand over clean, as it was delivered, and tided without any Charterer’s belongings left over.

Hand over takes about one hour time.

Insurance

The insurance is determined by the terms and conditions defined by insurance company where the boat is insured. The boat and crew are insured against possible damage done by third person. Terms and conditions of insurance are to be delivered to Charterer during Take over operation. In case of damage Charterer is obliged to report the same, to nearest Port Authority office, where damage log/record, will be made for the insurance company and Owner’s office. If the possible damages are not reported on time, Charterer is to be kept responsible and liable for his action.

Insurance covers damages, against possible natural/environmental impacts, but it does not cover any damages done purposely. If damage is done purposely, Charterer will bear all expenses by himself. Engine and sails are not covered by insurance policy, and if any damage has happen, like lack of lubricating oil in engine, Charterer will be responsible and will bear all expenses. Personal belongings of crew are not covered by insurance.

Charter Contract Termination Terms

If the Charterer for any reason is not able to take over the boat, he is entitled to, if mutually agreed, locate another Charterer personally, which will use the rights and agreed conditions of this contract. If Charterer is not able to i.e. not in position to find substitution for himself, the Owner will be forced to retain following:

-30% of amount of charter fee for termination of charter two (2) months before charter commencement date. 50% of the the charter fee for termination of charter one (1) month before charter commencement date.

- - Total charter fee for termination within last month of commencement of charter date. If for some reason like for death of family member, health condition and any other situation which may happen, the deposit will not be refunded. Instead the Owner will provide the boat to Charterer for any other available time or within the next season.

Complaints

Both parties hereby agree, that only written and dully signed complaints, are to be accepted and considered , during Hand Over operations.

Arbitrage – Legal Claims

If any case occurs, that cannot be solved on mutual benefit. Croatian Low to apply, in place of the boat Owner

Signed facsimile copies of this Charter Party & General Charter Terms (3 pages) shall be binding.

Owner : Charterer:

Unimard.o.o.