PSYCHE

Written by the charter company, in its own words and language. navi-gate is not a party to them.

AGREEMENT ON BUSINESS COOPERATION LUXURIA ADRIA LTD. and AGENCY hereinafter called Agency ARTICLE 1 - Subject of the agreement Subject of this agreement is the organisation of accommodation on the vessels entrusted by the company LUXURIA ADRIA LTD. to the Agency for the current year due to its further organisation of accommodation for the Third Party on vessels. The vessels are located in Marina Kaštela and the Agency shall offer them during periods available for charter in accordance with the booking list. The Price List for the current year and General Terms and Conditions for Charter set out by LUXURIA ADRIA LTD. form an integral part of the Agreement. ARTICLE 2 - Liability of the Agency 2.1 The Agency shall include the vessels in the charter program to hire them in domestic and foreign markets taking care of their highest possible score of exploitation options. 2.2 The Agency shall promote the accommodation on vessels in specified magazines, fairs, web sites for the purpose of the highest posibble score of exploitation options for organised accommodation on vessels. 2.3 The Agency shall organise the accommodation on the said vessels in the boundaries of the territorial waters of the Republic of Croatia. 2.4 The Agency shall run business on its own behalf arranging a discount for the provided accommodation service on vessels with LUXURIA ADRIA LTD., and it shall establish its own price for the accommodation of clients on vessels. 2.5 The Agency shall provide the Third Party (clients) with effective information on the accommodation capacity type of the vessel, integral parts of vessels and possible additional costs (skipper, or similar). The Agency shall provide LUXURIA ADRIA LTD. with information on all potential clients, their data, bookings and it shall make payments on behalf of clients. 2.6 The Agency shall provide LUXURIA ADRIA LTD. with all possible options, which must be confirmed upon payment for the booking within seven days as set out in Article 5. 2.7 The Agency shall be requested to deliver LUXURIA ADRIA LTD. the Crewlist (list of crew members with date of birth, passport number or identification card number with nationality) as well as with the copy of valid navigation license and the VHF certificate within a week prior to starting date of accommodation service. ARTICLE 3 - Liability of LUXURIA ADRIA LTD. 3.1 LUXURIA ADRIA LTD. shall undertake to ensure the navigability of vessels, the investment maintenance, the current maintenance, preparations of vessels during check in and check out of clients, bear the berthing costs in the port of registry of the chartered vessel and insurance costs for the vessel and passengers. 3.2 LUXURIA ADRIA LTD. shall undertake to bear all the costs which should be charged by the Client in the event of nonfulfillment of terms and conditions of the General Terms and Conditions concerning the organised accommodation on vessels. 3.3 LUXURIA ADRIA LTD. shall undertake to provide the Agency with the tender according to the Price List by LUXURIA ADRIA LTD. for the current year including discounts as set out in the Price List, to highlight the compensation the Agency shall get for all services as set out in Article 2, or it shall provide the Agency with information the required vessel is not available during the period asked by Client. ARTICLE 4 - Discount In respect of the fact that the Agency runs business on its own and on behalf of an affiliate, the Agency shall be receive a compensation – contractual discount. The compensation makes number % out of the price for accommodation service issued by LUXURIA ADRIA LTD. The compensation will be calculated on the NET price after the discounts regarding price list of LUXURIA ADRIA LTD. Invoicing: - LUXURIA ADRIA LTD. shall invoice the agency directly less the compesation ARTICLE 5 - Terms of Payment 5.1 The Agency shall make payment towards LUXURIA ADRIA LTD. upon the realization of option (by booking), which is reduced to its compensation as set out in Article 4 according to the following principle: - 50% of the price at the time of booking - 50% of the price six weeks prior to the arranged charter period 5.2 LUXURIA ADRIA LTD. reserves the right to reject the Client if the payment for accommodation service has not been made timely and in full. 5.3 Based on the Tourist Tax Act, the Client shall be required to pay the tourist tax per person / per day in the amount of Kn 7.00 for the night's accommodation on the vessel. ARTICLE 6 - Insurance and Security Deposit The Agency is obliged to provide the Third Party (Client) with information on the Security Deposit that may be paid in cash or by credit card at the time of the vessel delivery procedure. LUXURIA ADRIA LTD. is obliged to repay the security deposit to the Third Party (Client) at the end of the charter period and it is obliged to charge the deposit in the event of possible damage up to the security deposit rate (as set out in the Price List for the current year). ARTICLE 7 - Time Limitation Items of the Agreement This Agreement is made for season 2015. 7.1. Each Party has right to terminate this Agreement unilateraly by registered mail: a) if other party of this Agreement does not meet its committments after the receipt of dunning notice, b) in the event of essential change of circumstances which make the performance difficult or prevent any Party from the fulfillment of obligations due to such circumstances the purpose of this Agreement cannot be realized. This Agreement shall be extended automatically unless a prior notice to the contrary is given by any Party hereto by 1 September of the current year. Thereupon, the termination of the Agreement will become effective on 1 October of the current year. Any dispute hereunder shall be decided in accordance with the courts of jurisdiction in Split. ARTICLE 8 This Agreement is made out in 2 (two) original copies, one for each of the Parties. For Agency Director: For LUXURIA ADRIA LTD. Director: GENERAL TERMS AND CONDITIONS FOR ONBOARD ACCOMMODATION SERVICE BY LUXURIA ADRIA Ltd. 1. PRICE, BOOKING AND METHOD OF PAYMENT The accommodation rate includes use of vessels and equipment according to the applicable Price List, bedlinen, auxiliary rowboat*, gas, autopilot, GPS, usual services provided by the charter base at the time of check-in and check-out, mooring expenses in the registry port, wireless internet onboard. The accommodation rate does not include fuel, marina and mooring expenses in ports outside the registry port, port taxes and other fees. After the booking is confirmed, which is valid only if provided in writing, the payment is to be made, as follows: - 50% in the period of 7 days after the booking is confirmed - 50% not later than 4 weeks before the commencement of accommodation Taking the boat into possession is effective once the payment in full has been completed. If you fail to make the 50% advance payment to the scheduled date after the receipt of dunning letter sent by LUXURIA ADRIA LTD. , the stated company shall be entitled to cancel the booking. Upon the payment of the 50% booking rate, the Client agrees to these General Terms and Conditions for Onboard Accommodation Service and vessel features. All the contents of these Terms and Conditions are legally binding for both parties of this Agreement. Additional services shall be charged according to the applicable Price List (airport transfer services for guests, outboard engine, spinnaker, genoa, no-return security deposit, etc.) and they must be confirmed in writing not later than 7 days before the embarkation. Should the Client request from LUXURIA ADRIA LTD. to engage a skipper and/or a hostess, this must be specified when the booking has been confirmed. The copies of navigation license and the VHF certificate must be submitted at the time of booking, and the Crewlist will be required not later than one week before the commencement of accommodation service. It will be useful to send the notice on the hour of arrival and the flight number should the Client arrive by plane one week before the commencement of the accommodation service onboard. Tourist tax in the amount of Kn 7.00 per person/per day(s) must be paid in cash for the racing regatta charter after the confirmation of the Crewlist in the marine base. 2. CANCELLATION In the event of the Client's cancellation of the booked accommodation onboard due to any reason whatsoever, he/she shall be obliged to notify LUXURIA ADRIA LTD. thereof in writing, and in respect, he shall be charged as follows: - up to 50% of the full accommodation rate if the cancellation has been done up to 30 calendar days prior to the starting date of accommodation - up to 100% of the full accommodation rate if the cancellation has been done less than 30 calendar days prior to the starting date of accommodation, - up to 20% of the full accommodation rate if LUXURIA ADRIA LTD. has managed to find another client for the cancelled period. The date of the receipt of the cancellation notice in writing shall be the basis for the settlement of the stated cancellation charges. Should the Client's cancellation be caused by the Force Majeure, or any objective reasons whatsoever (serious damage of the vessel during prior bookings), the Client shall be reimbursed by: - a compensation vessel with the same or similar features and equipment without any delay, or - 100% of all monies paid in respect thereof In the event of damage or loss of any parts of the vessel during the prior accommodation, which are not essential for the navigation safety, and should a course or event be cut short by the breakdown or damage of the vessel before the starting date of the following accommodation, the Client shall not be entitled to any cancellation of the accommodation service or to demand the reduction of the accommodation rate. 3. SECURITY DEPOSIT AND VESSEL INSURANCE All the vessels are covered with Kasko deductible franchises up to the deposit amount according to the Price List for the current year. The insurance policy covers Compulsory Passenger Insurance and Compulsory Third Party Insurance. Personal property of passengers is not covered with insurance and any damage incurred due to gross negligence, or with the plain intention by the Client, shall not be the subject to insurance compensation. A) DEPOSIT *- Before the delivery of the vessel, the Client is expected to pay the security deposit in cash or by credit card (Visa, Amex, MasterCard, Diners) in HRK currency. After completing the accommodation of clients onboard, the security deposit shall be reimbursed in full, unless any damage on the vessel or damage or loss of any item of the vessel equipment has been found. Otherwise, the deposit shall be kept in the equivalent value of the repair or the purchase value of the damaged and/or lost equipment. If a skipper is engaged by LUXURIA ADRIA LTD., the Client will be required to pay the security deposit. In that case, the paid deposit cannot be used to cover any damage incurred due to the skipper’s negligence and poor navigation of the vessel and equipment. B) NO-RETURN SECURITY DEPOSIT** - It is possible to require the payment of no-return deposit according to the applicable Price List. C) Should the Client wish to undertake sailing out of the boundaries of the territorial waters of the Republic of Croatia, he shall be required to inform LUXURIA ADRIA LTD. thereof as soon as possible in order to to ensure an additional vessel. The Client shall be charged for the said costs and expenditures. The information about the sailing out of the boundaries of the territorial waters of the Republic of Croatia is to be confirmed in writing timely, but not later than 45 days prior to the starting date of the accommodation service period. D) SEA DAMAGE and major breakdown - If during the accommodation service period any damage has been incurred due to normal wear and tear, the Client shall be entitled and obliged to provide any repair up to the value of EUR 150.00, which shall be reimbursed to the Client after the redelivery of the vessel to the base. If the breakdown has been removed within the period of 24 hours, the Client shall not be entitled to require any reimbursement. If the damage cannot be removed along the way and requires the returning of the sailboat to the base, an early return of the vessel shall be organized in order the vessel can be repaired and timely prepared for the next accommodation service. The Client shall be entitled to the reimbursement proportional to the number of lost service days if the breakdown onboard has been incurred due to the fault of LUXURIA ADRIA LTD. Otherwise, the Client cannot expect the compensation of costs thereof and he shall be required to compensate any additional costs related to the finding of a substitute vessel. In the event of major damage and sea damage, loss of the vessel, injury to persons, the Client shall notify LUXURIA ADRIA LTD. thereof and shall strictly adhere the instructions of the representatives of LUXURIA ADRIA LTD. The damage that has not been reported shall be considered as caused fully by the Client, therefore, due and payable by the Client. *for racing regatta charter is charged double deposit amount ** not possible for racing regatta charter 4. VESSEL DELIVERY PROCEDURE The vessel delivery takes place on Saturday from 5 pm. The Client shall deliver a verified original voucher with all the Client's data and the accommodation service period along with the original navigation license, i.e. the VHF certificate to the representative of LUXURIA ADRIA LTD. The vessel must be delivered with full fuel and water tanks and it is expected to be returned in the same condition as first delivered. During the vessel delivery procedure the Client will be required to inspect the inventory along with the representative of LUXURIA ADRIA LTD. and confirm the condition of the vessel with his signature. The same procedure shall be referred to the devices onboard. Any subsequent complaints will not be accepted, provided that the good working order and the full equipment of the vessel have been established and signed during delivery procedure. Any possible concealed defects or deficiencies of the vessel, which could not have been expected by LUXURIA ADRIA LTD., shall not entitle the Client to claim for the reduction of the accommodation rate. LUXURIA ADRIA LTD. may request from the Client to demonstrate by navigating the vessel his/her competency to sail the yacht in presence of LUXURIA ADRIA LTD. representatives. The costs associated therewith shall be borne by the Client and the testing time shall be included in the period of accommodation on the vessel. If, after inspection, LUXURIA ADRIA LTD. is of the opinion that the Client is not, or may not be competent to be in charge of the vessel, an official skipper shall be engaged and the Client will be charged for his services according to the Price List. Should the Client refuse to accept the designated skipper, he shall be prohibited to leave the port, the Agreement shall be terminated and the paid accommodation rate shall be kept without right to compensation of damage. 5. REDELIVERY OF THE VESSEL (CHECK-OUT) Redelivery of the vessel takes place on Saturday not later than 9 am. In the event of racing regatta charter, the redelivery shall take place not later than on Friday at 6 pm. At the time of redelivery of the vessel, the items of the inventory list must be checked as well as the fuel tank. The Client agrees to submit the bill of the last tank filling service. If the fuel tank is not full, the Client shall be charged for the missing fuel enlarged for the tank filling service, and for a damage up to the sum of the security deposit, if any have been found during the vessel inspection. Otherwise, the security deposit shall be returned to the Client. The Client is obliged to return the vessel with emptied septic tanks. If the vessel is not returned to the agreed destination port, the Client shall pay all the costs for the vessel transfer to the destination port designated hereunder and the penalty, as prescribed, for any delay that may have been incurred. Any delayed redelivery of the vessel due to weather conditions shall not be acknowledged, for it is necessary to keep the vessel during the last 24 hours of the accommodation service period at an adequate distance from the charter base. Any delay longer than 1 hour shall be charged at the double rate of the daily accommodation service as well as any costs resulting from the inability to deliver the vessel on time to the following Client. The Client wishing for any reason whatsoever to extend the stay onboard must notify LUXURIA ADRIA LTD. thereof in order to check out the further availability of the vessel for accommodation and to obtain the necessary documentation (charges for additional days, crew list extensions, registration of foreign nationals at the Police Dept., Tourist Board, etc.). 6. LIABILITY OF CLIENT The Client undertakes: - to be capable and competent to sail the vessel (Otherwise, he shall be obliged to accept a skipper provided by LUXURIA ADRIA LTD. according to the Price List) - to have all original navigation licenses - not to surrender the vessel to the Third Party - not to carry persons or goods for commercial purposes - not to accept more passengers onboard of the vessel than it is specified in the Crewlist - the Client (lease-holder) shall guarantee his being jointly liable for all crew members - the Client shall keep the Crewlist and the residence registration certificate along with the vessel's documentation for the duration of the accommodation service period - to notify LUXURIA ADRIA LTD. of any changes relating to the number of crew members or passengers made during the accommodation service period - to comply with the law of the host country; - not to participate in competitions and racing regattas without the prior written consent by LUXURIA ADRIA LTD. - not to operate the vessel under the influence of alcohol or drugs - the Client shall immediately inform representatives of LUXURIA ADRIA LTD. following their instructions in the event of sea damage or major breakdown - the Client shall follow the compulsory control intervals of propulsion engine during the accommodation service - he shall contract the rescue fee before accepting the assistance if any towing services are necessary - to take all the preventive measures to keep the vessel in the same condition as first delivered to avoid any towing situations - not to leave the port if the expected wind power is greater than 25 knots, or the port authorities have already issued a prohibition for leaving port - to plan carefully the navigation route so that 2 days before returning to the port of destination the vessel shall have been located at the approximate distance of 40 NM from the said port - not to sail at night without the prior written consent by LUXURIA ADRIA LTD. - in case of rough weather conditions (gale-force wind) he shall notify the representative of LUXURIA ADRIA LTD. of the exact location in order he may receive any needed assistance or to avoid unnecessary and costly vessel search operations - not to engage in fishing and submarine activities without valid licenses - depending on weather conditions to avoid unnecessary strain on masts, sails and ropes - not to embark any pets (dogs, cats, birds, etc.) without the prior written consent by LUXURIA ADRIA LTD. - to empty septic tanks at the open sea, i.e. on the minimum distance of 1 NM from the nearest land *not applicable for racing regatta charter 7. LIABILITY OF LUXURIA ADRIA LTD. LUXURIA ADRIA LTD. shall be obliged to deliver the vessel in good working order, cleaned and with full fuel and water tanks. In case of inability to deliver the booked vessel at the arranged time, the Client shall be entitled to request the refund on account of such, as the maximum, 24-hour delay, in the amount equivalent to one day of accommodation, but in case of any delay exceeding 24 hours the vessel of equivalent or similar features will be delivered to the Client. Should the Client not wish to accept the substitute vessel, but decides to wait for the delivery of the booked vessel, he may claim for the sum equivalent to the number of days of the vessel being unavailable. Any liability of LUXURIA ADRIA LTD. in excess of the accommodation rate hereunder is excluded. LUXURIA ADRIA LTD. shall not be liable for any delay incurred due to the Force Majeure or rough weather conditions. 8. COMPLAINTS The Client shall be entitled to file complaints only in writing, signed personally and by a representative of LUXURIA ADRIA LTD. on the completion date of the accommodation service. The Client may claim for compensation at the time of check-out onl LUXURIA ADRIA LTD. If requests of the Client cannot be solved at the time of check-out, they are to be submitted in writing within the period of 14 days. Otherwise, they shall not be taken into consideration. 9. CLOSING PROVISIONS Any dispute hereunder, which the Parties have not been able to settle amicably, shall be decided in accordance with Croatian Law. The court of jurisdiction is the court in Zagreb.