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General Terms of business

1. General Terms The Charteree is committed to make the chartered yacht available in an immaculate state and ready to sail at the agreed time. Is the Charteree, due to unforeseen circumstances, not able to make the agreed ship available, he can either offer the Charterer a different yacht of the same size and number of bunks or he may reimburse the amount of charter. Unforeseen circumstances could be damages that ocurred during preceding charters. This case shall not constitute a breach of contract and does not entitle the Charterer to any form of refund. If the chartered yacht or a substitute yacht is not available at the contractually agreed time and more than 24 hours have elapsed since the agreed handover time, the Charterer can withdraw from the contract and ask for full refund of payment. For a charter of at least 2 weeks this period increases to 48 hours. If the Charterer does not exercise its right to withdraw from the contract he will have the proportional charter fee reimbursed due to the lost use. Damages of the yacht and its equipment, which do not affect the seaworthiness of the ship and which still permit the use of the ship, do not entitle to a reduction or withdrawal from the contract. The same applies to concealed defects. An extension of the charter period is only possible with the consent of the Charteree. Delays due to repairs, which occur during the charter period, will not be refunded.

2. Insurance The Charteree commits himself to the following terms of insurance for the yacht: boat liability insurance set at a flate rate of at least €5.000,000.00, hull insurance in the amount of the value of the ship including equipment – with a deductible of €1,000.00 per claim for a sailing yacht. Personal belongings of the charter crew are not included in the insurance. We point out that a private travel insurance can be taken out. The respective conditions of the insurance company are part of this contract. The Charterer is liable for damages which occur due to incorrect handling of the navigational instruments. Furthermore we do recommend a charter contingency insurance as well as a travel cancellation insurance.

3. Charter territory In general the territory is restricted to the Baltic Sea. The Charterer is obligated to stay within the confined waters. The Charterer acknowledges that there is no insurance protection outside these waters.

4. Yacht handling The Charterer acknowledges by his signature of the charter contract that he has knowledge of all nautical and navigatorial skills which are essential in order to navigate a yacht. Otherwise the Charteree determines a skipper who signs the contract along with the Charterer. With his signature the Charterer confirms that he is in possession of all licenses mentioned in the charter contract and that he has the certificates of competence which are officially regulated. He is liable for all consequences resulting from false information. The Charterer and the skipper are liable as codebtors, provided that they are not identical. Other than in buoyed areas sailing in waters with less than 5 meters in water depths is prohibited in order to avoid grounding and stranding. Upon its return into the harbour each yacht is inspected for any damages of the underwater hull, the keel and the steering gear by divers.

5. Special Obligations of the Charterer The Charterer is liable for all damages on the yacht and its equipment as well as consequential damages and loss of profits which were caused deliberately or by gross negligence by him or his crew and which are not covered by the insurance. He can only take on board the maximum number of people allowed and the yacht can only be used for pleasure cruises. Furthermore using the yacht for commercial fishing, racing or as a training ship is prohibited unless written authorization is obtained prior to the use. Moreover the yacht shall not be leased to a third party and only be used for towing other ships when they are in distress. Undertaking voyages at night is only permitted at good visibility and in good weather conditions. All necessary checkups (engine and transmission oil, water level in the bilge) have to be done on a daily basis. The engine oil level must be checked daily. Damages to the engine, resulting from a dry run, are not covered by the insurance and will be at the Charterers expense. Furthermore the engine cannot be used at a lean angle of sailing over 10 degrees. Taking pets on board is prohibited due to hygienic reasons. The Charterer is obliged to keep the customs, reference and the logbook conscientiously. In case of a navigational accident or any other accident a detailed course of events must be prepared which has to be verified by a harbour master, a doctor, an appraiser or the police. Moreover the Charteree as well as the base manager must be notified immediately. The same applies to disabled ships, loss as well as confiscation of a ship by authorities or disablement of the yacht by others.

6. Assumption of the yacht The yacht is handed over to the Charterer with a full tank. The ships’ condition and the completeness of the equipment as well as the inventory will be checked by the Charterer on the basis of a checklist. The checklist must be confirmed by his signature. Subsequent objections by the Charterer concerning the sustainability of the yacht as well as the equipment cannot be made thereafter. If the Charteree cannot eliminate a previous damage in time or only partly the Charterer will have the right to cancel the contract or reduce the price but only if the yachts seaworthiness is impaired.

7. Damage during the charter The Charteree must be informed immediately by telephone or by telegraph in case of damages occuring to the yacht or to the equipment during the charter. The availment of foreign support which is subject to a charge without the Charterees’ consent is only possible in case of danger to life or to avoid the loss of the ship. In every other case the Charterees consent must be obtained prior to any assistance. In order to avoid high rescue costs during towage of the ship own ropes should be used whenever possible. The Charterer must compile a list of deficiencies and casualties which shall be handed over to the Charteree during the return of the ship.

8. Repossession of the chartered yacht At the end of the charter the yacht must be returned with a full tank, cleaned, cleared up and stowed in accordance with the checklist. If the tank was not filled the Charterer must pay 4 l of diesel (according to the current price) per covered hour in compliance with the operating hours counter. In case of a clogged toilet the Charteree will charge €125.00. A lump-sum of €200.00 will be charged for the adjustment of instrument calibration.

9. Return; Delay The Charterer ist committed to return the yacht in time. He must fulfill this commitment uneffected by weather conditions. The trip must be planned in accordance to reach the port of registry in time even in bad weather conditions. If he is not able to reach the port of registry in time due to bad weather he must inform the Charteree immediately and ask for further instructions. Charges which apply due to the return of the yacht (e.g. repatriation on water/on land, travel expenses for the non-Charterer) must be paid by the Charterer. The Charteree is entitled to twice the current daily price for each day of delay. Furthermore the Charteree is entitled to €50.00 for every commencing hour due to a delayed return of the ship. This applies to a total delay of 12 hours. In general the contract is renewed until the return of the yacht.

10. Liability of the Charterer and the Charteree The Charteree is clear of all acts and ommissions of the Charterer for which he may be made liable for by third parties. This includes all cost monitoring and litigation at home and abroad. The Charterer renounces to all objections of the Charteree towards the insurance policy as well as the fact that there is no further prominent coverage. Furthermore the Charterer is liable for all damages resulting from his negligence, especially serious and gross negligence, because these damages can not be covered by the existing hull insurance. He is particularly liable for damages resulting from incorrect operation of the instruments or from poor maintenance of the devices on bord. We do recommend to buy an extended skipper liability insurance with a charter contingency insurance.

11. Regattas The participation in regattas is permitted only with explicit approval and must be noted on the front under extras. The participation in regattas is with costs.

12. Terms of payment One third of the charter must be paid when the contract is concluded; another third is due 8 weeks prior to the first day of charter and the last third is due 4 weeks prior to the charter.

13. Security deposit A security deposit of € 1,000.00 must be made in cash or by credit card (Visa/Eurocard) at the handover location. Deposits will be completely refunded after a charter trip without any damage but only after the diver has finished a check up of the boat.

14. Withdrawal from the contract Compensation amounting to 50% of the charter fee is due if the Charterer cancels the contract less than 8 weeks prior to the begin of the charter. In case of a cancellation of more than 8 weeks before the charter the whole amount of the charter fee is due unless a substitute charter can be arranged. In this case all received payments will be returned to the Charterer minus a processing fee of €125.00.

15. Miscellaneous A verbal agreement or secondary agreements are only effective upon written comfirmation. Should one or several provisions of this agreement be or become invalid or should this agreement contain a loophole, the effectiveness of the remaining provisions shall remain unaffected. The contractual partners must behave in such a way that the intended purpose can be accomplished. They will do everything that is needed in order to remedy the partial nullity as soon as possible. On all aspects an amicable settlement shall be reached.

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