CONTRACT ­ YACHT MANAGEMENT 1. NAME: Standard Yacht Contract. 2. CYM will receive (Name of Yacht) 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 Village Cay Marina. All yachts within the Management Program will operate out of the above mentioned Marina¹s. The Yachts Principle Area will be the Caribbean Islands or such areas as may be designated by the Management Company and Owner. 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 local customs and relevant import duties as shown in the attached Performa Budget. 5.2 The Contract and terms of conditions will be reviewed annually on ___________ of each year. 5.3 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. Any Contracted vessels may be operated under the CYM Trade License. CYM will be on hand to handle work permit and customs importation requirements. There are additional fees applicable for work permit and Trade License applications. 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 addressed and taken care of, assuring the owner/captain of our expertise and prompt follow through. CYM has procedures in place to handle the importation and customs clearance of spares and yacht inventory. Relevant items will be uplifted, cleared and delivered to the yacht. 6.3 Crew Management With access to professional crew we will assist in the hiring process. CYM will be on hand to manage and provide assistance to each Managed Yacht¹s crew. With our experience in marketing crew, their personality¹s and the proper qualifications, our continuing interaction and communication may allow us to avoid high crew turnover. The owner may recommend any respective termination or hiring of 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 may report to the Management Company for Instructions on the operation of the vessel. CYM will provide Management assistance to crews but will in no way be held liable for crew actions onboard, or any damage onboard due to crew negligence. 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 owner is responsible for supplying a list of all supplementary personal items covered 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 will 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 Usage The owner may take a crew on charter or not. This is an option used be some private owners who require a temporary crew. 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. 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 Company Directors may be unavailable for a given period of 4 weeks per year. During this period the Company will appoint the Company¹s Operations Manager 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 one month. 9.2 The Management Company may also with one month 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 normally incurred in the operating of the vessel for charter and normal yacht operating expenses. The Management Company will endeavor to reduce these expenses and through chartering (if contracted) 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 mechanical or electrical failure of equipment (This to include damage to engine, refrigeration, steering mechanism, rigging and electrical systems). 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 Yacht Management Private Yachts Including Proposed Budget and Maintenance Schedule stndowner-privagree.rtfOctober 02 2002 Page 4 of 4