Yacht Charter Management Agreement

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1 Please review all Pages - Page 1 of 6 PO Box 229, Chester, MD Phone: Owner s Name (s)- LLC Yacht Charter Management Agreement 2 Home Address Street/City/ State/ ZIP- 4 Home phone- Work phone- 5 Cell Phone- address- 6 Yacht Name - 7 Yacht Manufacturer & Year - Model- 8 Length- State Reg # USCG Doc # 9 Hull ID # - Entry Key or Combo- 10 If Key Where is it stored - 11 Mooring Location: Proposed Charter Fees 1/2 Day Daily * 2 Days 3 Days 4 Days 5 Days 7 Day Week Gross Charter $1,200 $1,800 $2,100 $2,400 $2,700 $3,600 Fee Estimated Return to Owner $720 $1080 $1260 $1440 $1620 $2160 For your vessel is there a min per day $ amount expected: $ Charter Preferrence: Capt. Charter Bareboat Charter : Either: WHEREAS, CYC and the Owner(s) mutually desire to enter into this Agreement whereby CYC will act as the Owner(s) Agent in chartering and managing the above yacht from the date of this contract until canceled under the terms in section 6 (six) of this Agreement.

2 Please review all Pages - Page 2 of 6 1 In consideration of this Agreement, CYC AGREES TO: a. Advertise and promote the yacht for charter. b. Correspond with and accept applications from prospective charters. c. Provide multiple listing charter services, whereby the yacht will be made available for corresponding charter brokers to procure charters. d. Review each application, check charter references, qualify and approve prospective charters. e. Accept deposits, payments, and handle financial details and arrangements of the charter. f. Negotiate any adjustments in fees with Charterers where, in CYC s judgment, adjustments are warranted. Such as, loss of charter time due to equipment failure, or where extra time is added to a concurrent charter. g. Establish pricing policies for charter, including certain promotional or discount policies to encourage additional charters. h. Establish inventory requirements for the Owner(s) vessel. i. Prepare check-out/check-in lists, handbooks, and will perform all check-in and check-out duties. 2 In consideration of this AGREEMENT, OWNER AGREES TO: a. Honor all charters procured and approved by CYC during the term of this Agreement. b. Have the yacht charter ready and available to CYC by 15 April of the charter season. The term charter ready shall constitute the meaning of all ships inventory, systems, and all equipment shall be in full complement and operating condition. The bottom shall be free of growth, topsides shall be clean and free of damage, all rigging in serviceable condition, and proper registration and insurance are in force. c. Provide CYC with requested information including, but not limited to, inventory lists, yacht manufacturers equipment literature and a charter management agreement sixty (60) days prior to the yachts first charter of that season. d. Keep the yacht charter ready for each booked charter and throughout the term of this Agreement. Failure of an Owner to have his yacht ready will warrant the expenditure by CYC of any retained funds for any needed maintenance to meet the yachts charter schedule. e. Ensure that all required and advertised equipment is on board and working throughout the period of this Agreement. f. Bear all costs of maintenance, repairs, or replacements not covered by insurance. g. Bear expenses incidental to charter servicing, including, but not limited to, fuel used by Owner, oil, slip rent, licensing, spring preparations, and initial spring cleanings. h. Bear costs of emergency services contracted for by CYC not otherwise covered by insurance. i. Provide CYC with a slip with potable running water and electricity from which a charter may depart, return, and utilize overnight. j. Provide CYC with the yachts documentation, ships mortgage, current state registration, and proof of adequate charter insurance which as required by law shall remain on board the yacht at all times.

3 Please review all Pages - Page 3 of 6 3. AVAILABILITY OF THE YACHT: a. Owner(s) agree to make the yacht available at Edgewater Boating Center, or agreed location, for all charter periods procured by CYC under the terms of this Agreement. b. The dated CYC Charter Application filled in by the charterer will take precedence over Owner(s) or any other use of the yacht. c. CYC must be notified in writing sixty (60) days in advance of the Owner(s) intention not to avail the yacht, and the duration of the unavailability of the yacht for charter. d. Owner(s) must coordinate, thirty (30) days in advance with CYC as to the availability of the yacht prior to making plans for yearly maintenance and lay up for winter. 4. INSURANCE PROVISIONS: 1) Owners are required to provide Charter Yacht insurance with CYC as an also named insured under the CYC Owners Fleet Policy with minimum coverage as follows: 2) Watercraft and equipment coverage for damage to the Owner(s) yacht and its equipment: This amount of coverage will be based upon the hull value of the yacht and its equipment. The deductible amount shall be one percent (1%) of the hull value of the yacht. Watercraft Liability Coverage will be at least $1,000,000 for bodily injury or property damage for which the Owner may become liable. 3) A security deposit shall be collected by CYC from the charterer and will be between $500 and $5,000. In the event of an insured loss caused by the charter, the full amount of the deductible will be collected by forfeiture of the charterer s security deposit. In all cases, the charterer is responsible for a 1% hull value deductible amount of the yachts insurance deductible provision. In the event the insurance deductible provision is greater than 1%, then the Owner shall pay that amount exceeding a 1% deductible. 4) CYC agrees to file all claims on behalf of the Owner(s) and the Owner(s) agree, when necessary, to assist CYC for filing and pursuing all aspects of any insurance claim which results from a charter booked through CYC. 5) In the event the Owner(s) removes his yacht from the CYC Charter Fleet, it is understood the insurance of his yacht under the CYC Owners Fleet Policy shall be canceled by him immediately following the last charter. The Owner is responsible for all premiums incurred by him while his yacht is insured under the CYC Owners Fleet Policy. 5. CHECK-OUT/CHECK-IN OF CHARTER: a. CYC will perform a check-in of the Owner(s) yacht within two (2) business days after termination of a charter or before the yacht is used again by anyone, whichever comes first, and assess any damages or missing equipment resulting from the charter. Costs for damages or the replacement of missing standard charter equipment as determined by CYC as being incurred by any charterer will be deducted from the charterer s security deposit being held by CYC. CYC shall not be held responsible for the loss or damage of any non-standard equipment aboard the yacht.

4 Please review all Pages - Page 4 of 6 b. CYC will return all charter security deposits within seven (7) business days after the last day of charter to the charterer unless estimates for repairs resulting from charterers loss or damages are delayed. 6. CANCELLATION or TERMINATION OF THE CHARTER YACHT MANAGEMENT AGREEMENT: a. This Agreement may be cancelled and terminated by the Owner with a 90 day advance written notice to CYC. In the event the Owner desires to cancel this Agreement prior to April 15 of any year, CYC must be notified prior to b. January 15 of the same year. Should CYC elect to cancel and terminate this Agreement, they may do so with a 30 day advance written notice to the Owner. c. In case of the cancellation of this Agreement by the Owner for any reason, including sale, donation, lease or charter of the yacht, the Owner agrees to honor all existing charter commitments as of the date of cancellation and or termination. The Owner further agrees not to sell or remove the yacht without honoring his commitment and in the case of sale, donation, lease, or charter of the yacht the Owner agrees to make that sale contingent on the new Owner honoring all provisions of this Agreement. d. In the case of cancellation by CYC, all charters previously agreed to might be considered void and CYC has the option of rescheduling the charter(s) on other yachts in the CYC Fleet or another cooperative charter agency at their discretion. In the case of cancellation by the Owner less than twenty-four (24) months from the inception of this agreement, FSY shall be reimbursed the amount of Five Hundred & 00/100 ($500.00) to offset initial charter fleet setup costs. e. This Agreement is effective when ratified and will remain in effect unless otherwise cancelled or terminated by the Owner or CYC. 7. CHARTER FEES AND SECURITY DEPOSITS: a. The fees and any adjustments of fees for charter shall be established by CYC and so stated on the Bareboat Charter Agreement and upon acceptance of the Agreement. b. CYC will return all charter security deposits within seven (7) business days after the last day of charter to the charterer unless estimates for repairs resulting from charterers loss or damages are delayed. 8. PAYMENT OF CHARTER FEE PROCEEDS TO OWNER(S): a. CYC shall receive forty per cent (40%) of the stated charter fee for acting as the Owners Agent and for this fee will advertise, procure, qualify and perform check-out/check-in duties for each charter and all other duties directly related to accommodating the charterer and his crew. b. Charter fee proceeds shall be paid by CYC to the yacht Owner(s) on a monthly basis in the Owner(s) regular Yacht Management statement for charters completed the previous month.

5 Please review all Pages - Page 5 of 6 c. Upon the default by a charterer of their agreement to accept delivery of a yacht, CYC shall attempt to obtain a substitute charter. If a substitute charter cannot be obtained, any fees forfeited by the charterer shall be distributed between CYC and the yacht Owner(s) as follows: i) All reservation deposits shall be retained by CYC. ii) All other charter fees collected in excess of the reservation deposit shall be divided in accordance with the per cent specified in paragraph 6b. d. Owner referrals will be handled as above with CYC to receive a thirty percent (30%) base commission in lieu of the full forty percent (40%) commission. 9. MAINTENANCE OF THE YACHT: a. The yacht will remain in charter ready condition per the definition of charter ready contained in this Agreement. b. CYC will not be responsible for the cost of any maintenance, repairs, overhaul, painting, or survey unless the parties enter into a separate contract. In the event of an equipment failure, Owner agrees and authorizes the making of repairs by CYC in order to prevent damage to or loss of the yacht and to perform services deemed necessary prior to the time of a charter departure to make the yacht charter ready. All such repairs and expenses shall be for the account of the Owner(s) and will be billed accordingly. e. Billing for maintenance or repairs shall be made as charges are incurred with full accounting and proceeds sent to the Owner each month when there is activity on the account. Owner agrees to pay his account balance within 30days and all late payments are subject to a late fee of $5.00 or 1.5% of the invoice amount, whichever is greater. All past due invoices are subject to a 1.5% monthly interest charge. In the event Owners charter income proceeds remain in the Owners account, then all outstanding invoices plus accrued interest, if any, will be deducted from the Owner s share of charter income received and so indicated in the Owner(s) monthly statement. 10. DAMAGE OR EQUIPMENT LOSS BY CHARTERER a. In the event the charterer is unwilling to be held responsible for damage or lost equipment resulting from a charter, excluding normal wear and tear, CYC agrees to either repair said damage or replace the lost equipment without cost to the Owner. 11 ACCOUNT MANAGEMENT FEES: a. An annual accounting fee of $350 will be assessed against the yacht to cover billing, account management, and other related record and bookkeeping costs and will be deducted from the Owner(s) proceeds.

6 12 SUPPLEMENTARY PROVISIONS: Please review all Pages - Page 6 of 6 a. It is agreed that all customers arranging a charter through CYC will continue to be considered a CYC customer for five (5) years. If said customer contracts privately with the Owner(s) during this period, the charter fee shall be paid to CYC as if CYC had arranged the charter. In the case of a change in the fee charged, CYC shall be paid the rate as currently published less twenty- percent (20%) of the current rate. b. This Agreement, by reference, incorporates the terms and provisions of the Chesapeake Yacht Charter Bareboat Charter Agreement (Exhibit 1). THIS AGREEMENT and its attachments constitute the entire Agreement of the parties hereto. No other agreement or understanding shall be made unless in writing. Owner: Owner: CYC: CYC: Witness: Witness:

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