GENERAL CHARTER CONDITIONS (ARH)

2015.

GENERAL TERMS OF LEASE

1. Boat lease:

The Lessor obliges himself with a Record of Take-over to lease the boat to the Lessee in perfect condition, complete with all necessary equipment, with all permits for use of the charter boat, with LIST OF CREW as required by law, equipped with technical instructions for the use of boat and with concluded insurance of the boat.

Boat insurance covers:
a) obligatory insurance against third parties
b) insurance for boat damage, except in case engine should fall into the water
c) insurance against theft, burglary and fire

Boat insurance does not cover:
a) damage incurred to personal property of the crew
b) bodily injuries of the crew
c) damage occurring due to negligence and disregard of maritime regulations
d) damage occurring on dangerous locations marked on sea maps or marked so directly on the spot in the sea.
e) Personal damage coverage (deduction franchise) in an amount of obligatory deposit in accordance with the official price list of the Lessor.

2. Notice to quit boat lease

In case the Lessor is unable to lease the contractual boat within 48 hours, due to unforeseen damage or malfunction that occurred during the previous lease period, or due to any other unintentional reason for the retention of the boat, the Lessor is entitled to lease a similar boat with an equal number of beds or to reimburse the Lessee with the contractually agreed price. The Lessee does not have a right to demand compensation.
For the time of the lease which remained unused, the Lessee is reimbursed in a proportional amount.

3. Lessee's take-over of the boat

The Lessee or a member of the crew must have a valid license to drive the contractual boat, a valid license to use radiophony (our recommendation is GMDSS) and have knowledge and experience with handling the boat. The Lessee obliges himself to admit onto the boat only as many persons as allowed for the contractual boat and for which the Lessor has issued a LIST OF CREW.

4. Return of the boat and eventual delay.

The Lessee obliges himself to return the boat in a perfect condition, cleaned, with same equipment, as present at taken-over and with full reservoirs of fuel, within the contractually agreed time to the DALMACIJA MARINE, b.b., pier XI. In any other event, the Lessee is charged an anchor fee according to the official price list of the Lessor, increased by 50 % for every day of the delay with returning of the contractual boat. In case, the Lessee should return or leave the boat at a place different from the contractually agreed one, the Lessee is charged with all costs incurred by the Lessor, such as transport of the boat, delay in days or hours necessary for the transport, as well as all eventual damage occurring while boat transport and not part of the boat insurance.

5. Minor and greater damages
In cases of minor damage up to the amount of EUR 50, caused by normal use of the boat, the Lessee is entitled to find on his own an authorized person to repair the damage. For all damage exceeding the above-stated amount, the Lessee must consult the Lessor (the telephone number is given at the take-over of the boat) and request additional instructions. If minor damage of the boat is of extent which does not impair continued safe voyage, the Lessee can carry on the lease providing that he return to base 24 hours prior to lease termination, so that the damage can be repaired and the following lease started on schedule.
In cases when damage on the boat or missing equipment is noted, the Lessee is charged with costs of repair or purchase of new parts; with the amount paid for the repair being deducted from the Lessee's deposit. In case the damage is covered by the insurance, the deposited amount is reduced by a proportional amount of the personal franchise damage coverage and all other additional costs incurred (such as fax, wire, telephone, transfer etc.)
In case of greater damage, such as collision with sea bottom, accidents with other vessels, fire and theft of the boat and equipment, the Lessee is obliged to report the incident to the competent authorities (port master, police etc.), so that the authorized body makes an official record of the incident. The Lessee must also notify the Lessor of the incident. Should the Lessee fail to perform all stated formalities, he can be charged with covering the total damage; the same pertains also for the theft of the boat (in this case the Lessee is obliged to provide a copy of theft report).
Loss of the useful time of boat lease due to the accidental unforeseen damage is not cause for the reimbursement of a partial or total amount of lease price.
The Lessee obliges himself to handle the boat in a manner so as not to cause a situation which would require the boat to be towed. Should such a situation nevertheless occur, the Lessor must be notified prior to the towing, and a tow price agreed with the captain of the tow vessel.

6. Engine or equipment malfunction

Should a malfunction of engines or equipment, which renders the boat immovable, occur, the Lessee is obliged to contact the Lessor and secure the boat from danger in order to prevent other damage. The Lessor shall take care to reach the malfunctioning boat as soon as possible (within 24 hours) and repair the malfunction within 24 hours of the Lessee's reporting the breakdown, so that it will be possible to use the boat further. In case the malfunction occurred due to negligent maintenance or due to unforeseen situation, the Lessor will bear all costs of repair. However, in case the malfunction occurred due to incorrect use of the boat, contrary to the GENERAL TERMS OF LEASE and TECHNICAL INSTRUCTIONS FOR THE USE OF BOAT with which the Lessee has acquainted himself prior to the commencement of the lease and are present on the boat itself, all costs of repair, transfer, tow etc. will be borne by the Lessee. In case the boat is not repaired within 24 hours, and the Lessee is not responsible for the malfunction, he will be offered a different similar vessel with same number of beds within 24 hours or the option to be reimbursed for the unused time of lease.

7. Conduct and safety

The Lessee obliges himself to handle the boat with good business judgment and according to the TECHNICAL INSTRUCTIONS FOR THE USE OF BOAT.
Furthermore, the Lessee obliges himself not to use the boat for racing and towing, except in case of emergency. Lessee must conduct himself on board with responsibility and to the approval of his crew, which must consist of at least one experienced skipper. The Lessee is not authorized to sail beyond territorial waters of the Republic of Croatia or to let the boat into sublease.
The Lessee's crew must act in accordance with the legislation of the Republic of Croatia and other countries. They must also act in accordance with fishing legislation. No objects of archaeological value are to be admitted on board. In case of breach of stated legislation, the CONTRACT ON BOAT LEASE is annulled and Lessor thus absolved of any liability, while the Lessee assumes full liability towards the AUTHORITIES.
Furthermore, the Lessee obliges himself not to sail in case bad weather is anticipated, or in case the PORT MASTER has forbidden setting sail. He also obliges himself not to set sail in case one of the important parts of the boat is malfunctioning; engine, pumps, anchor, navigation lamp, safety equipment etc. He shall also not set sail without sufficient fuel supplies.
The Lessee also obliges himself:
- not to sail without previous sufficient examination and determining of sail routes
- not to sail without navigation lights in time of limited visibility
- to carefully observe for possible obstacles at all times

8. Contract
Every Lessee signs the CONTRACT ON BOAT LEASE at the latest prior to boat take-over, with GENERAL TERMS OF LEASE being an integral part of the CONTRACT ON BOAT LEASE.