CONTRACT ­TERM CHARTERS 1. NAME: Standard Crewed Charter Yacht Contract. 2. CYM will receive (Name of Vessel) into the Management Company CYM starting ______ of _______/ _______ 3. CYM Management fees of $__________ are due on the 1st of each month. 4. PLACE OF OPERATION CYM will operate its business out of Baughers Bay Marina and all yachts within the Management Program will operate out of the above mentioned Marina Whilst on Charter the Yachts Principle Area will be the Caribbean Islands or such areas as may be designated by the Management Company. 5. MANAGEMENT FEE 5.1 Your Yacht Management fee will be $____ per month, paid into the CYM¹s bank account. In addition you will be charged $_____ for each hour of maintenance and $____ per hour of cleaning or portion thereof. You will be liable to pay ____% commission of charter cost to the said broker company that booked the charter. There is also a fee of $ _____ to be paid to the Clearing house each month for holding your Calendar. 5.2 Once the break even number of charter weeks have been achieved you may be liable to pay a profit share to the Management company (dependant on specific agreement you have with the Management Company). 5.3 The Contract and terms of conditions will be reviewed annually on ___________ of each year. 5.4 The management fee is deemed to be an earned fee at the completion of each month. 6 OUR SERVICES INCLUDE ANY OR ALL OF THE FOLLOWING 6.1 Vessels Administration and Accounts A foundation is set for accurate budget assessment and implementation. The Management Company administrates a separate bank account for each vessel, handling any crew pay roll and accounts as directed. Monthly cash flow and budget reports are submitted to the owner for analysis and revision, thus transforming the operation of the yacht into a professional business. 6.2 Vessels technical assistance and Consulting Through our various domestic and global contacts all the day- to-day variety of yachts specialized needs and unique requests will be addresses and taken care of, assuring the owner/captain of our expertise and prompt follow through. 6.3 Crew Management With access to professional crew we will assist in the hiring process resulting in creating a successful team with our experience in marketing crew¹s personality and the proper qualifications, our continuing interaction and communication will allow us to avoid high crew turnover. The owner may recommend any respective termination or hiring The Management Company reserves the right to hire or fire said crew. 6.4 Crew Administration Once the crews are in place all employment contracts are executed with the proper adherence to the various legal, insurance and tax implications for the British Virgin Islands. The crews will report to the Management Company for Instructions on the operation of the vessel. It is the Management Company¹s responsibility to ensure that the vessel and accounts are operated correctly 6.5 Yacht Insurance The responsibility for the insurance of the yacht and any bi-yearly survey remains with the owner. This includes the yearly payment of an insurance fee. The Management Company if requested can obtain group insurance rates for the vessel. The owner is responsible for supplying a list of all supplementary personal items required under the yachts insurance. This to include the dinghy and associated accessories. 6.6 Hurricane Safety The Management Company will provide the owner of each vessel with a plan for each hurricane season; this plan will include any costs involved for Mooring or Hauling of the vessel during the period of the passing of a named storm. A plan will be submitted to the owner before 1st June each season. The Management Company may not be held liable for any damage caused during this period due to the passing of a named storm. This said the Management Company will do all in its power to ensure the safety of the vessel. Under the guidance of the Management Company the owner is relieved of the time consuming and specialized job of overseeing and protecting his yacht, offering our client the maximum pleasure of his investment. 6.7 Owner Time This is a perk that our company offers owners that join our program. Any owner will have the option to book any weeks of charter they desire, provided that there is no working hold charter booking for dates they request. The owner may take the crew on charter or not. The owner is responsible for the crew fee and any expenses (at cost) incurred for preparation, charter and post charter clean-up. A Performa costing is available at request. It is noted that the more weeks booked for owner time the less possible weeks are available for charter and profitability. 7. HOURS OF WORK: There are no normal hours of work for the Management Company; The Management Company will work such hours as may be necessary for the proper performance of our duties. In the normal application of duties The Management Company is available Mon-Sat 8:30 ­ 17:00. 8. HOLIDAY DOWN TIME The Management Company¹s Directors may be unavailable for a given period of 4 weeks per year. During this period the Company will appoint the Company¹s Operations Director the responsibility of running the day-to­day operations of the business. 9. TERMINATION 9.1 The period of notice to be given in writing to terminate the Management Company services is three months. 9.2 The Management Company may also with three months notice terminate this contract. 9.3 The said Management fee will be payable to the management company until the last day of contract. 10. OBLIGATIONS UPON TERMINATION 10.1Upon termination of the Management Companies services for whatever reason the Management Company will immediately hand back all keys, records, documents, accounts, papers within our possession or control relating to the affairs or business of the said vessel and its associated companies and any other property belonging to the said vessel, or its associated companies. 11. CHANGES TO YOUR TERMS OF THE CONTRACT 11.1 The Company reserves the right to make reasonable changes to any of the terms or conditions of the contract 12.2 You will be notified of all recommended changes to the contract before implementation 12. OWNER RESPSONSIBILITY 12.1 The owner of the vessel has the responsibility for the insurance of the said vessel. This insurance is to include liability insurance for any matters arising by the negligent action of the owner or crew operating his vessel. The Management Company will not be held liable for any legal action pertaining to owner or crew use of the vessel. 12.2. The owner remains responsible for the covering of expenses incurred in the operation of the vessel for charter and yacht operating expenses. The Management Company will endeavor to reduce these expenses and through chartering offer a profitable accounting for the vessel. The owner is responsible to maintain funds in the yacht account to cover normal operating expenses in the event of no charter bookings and revenue. 12.3 The owner remains responsible for any expenses incurred due to major mechanical or electrical failure of equipment (This to include damage to engine, refrigeration, steering mechanism, rigging and electrical systems). Normal "wear and tear" operational repairs will be covered through the yachts management account. 13. GOVERNING LAW English law shall govern this contract and each party submits to the jurisdiction of the English Courts. Please confirm your acceptance of the terms and conditions of this letter by signing and returning the enclosed copy. Yours sincerely We accept and agree the terms of the letter of which the above is a copy. Signed ŠŠŠŠŠŠŠŠŠŠŠŠŠ. Date ŠŠŠŠŠŠŠŠŠŠ Signed ŠŠŠŠŠŠŠŠŠŠŠŠŠ. Date ŠŠŠŠŠŠŠŠŠŠ Contract for Crewed Yacht Charter Owner Including Proposed Budget and Maintenance Schedule stdowner-termchtr.docOctober 02 2002 Page 1 of 4