1. PAYMENTS
The Charterer binds himself to pay the charter fee and the caution deposit as provided the present
charter party. In case all these payments are not paid or the terms are not observed then this
charter party will be automatically cancelled and the Lessor shall be entitled to retain what has
been received and to claim the damages suffered.

2. COMMAND OF THE YACHT
In case of the Charterer doesn’t have a license in possession by law for the cruise he has to
appoint the Captain who shall also sign this charter party undertaking all those obligations
entailed under it. The Lessor or his representative has the right to ask the Charterer or his crew the
license valid in Italy. In judgement of the Lessor or his representative, if the knowledge and
ability of the license holder are not considered sufficient for the safety of the people on board or
of the yacht chartered, the Lessor or his representative may propose the presence of a Captain to
the Charterer at his charge otherwise the charter party will be automatically cancelled and the
Lessor shall be entitled to retain what has been received.

3. CHARTERER AND CAPTAIN DUTIES
The Charterer and the Captain shall use the yacht with particular diligence according to its
technical characteristics and the agreed employment. The Charterer and the Captain are jointly
and severally responsible for any violations of this charter party and they bind themselves to pay
for any request made to the Lessor for any happenings made during the charter period or in its
consequence.

4. DELIVERY AND INSTRUCTION FOR USE
The Lessor must deliver the yacht at place and time foreseen by this charter party giving it in
condition of seaworthiness, with all its accessories, equipment, safety equipment, and navigation
papers as required by law, duly insured against all navigation risks, special average and third party
liability. At the delivery, the Lessor will gave an inventory list to the Charterer who will confirm
to have received the yacht with all its required accessories and supplies. Any kind of protest will
be not accepted after the delivery. The period of time spent to explain the instruction for use and
to check inventory list, will be considered a part of the charter period.

5. DELAYED DELIVERY
If for any reason the Lessor is unable to deliver the yacht, he will be entitled having informed the
Charterer, to deliver another yacht with similar characteristics within 48 hours and he will refund
the Charterer for the period of delay and the pro-rata daily charter fee. If the delay exceeds this
period, for any reason not imputable to the Lessor, the Charterer will be allowed to confirm his
charter with the refund for the lost days or to give up the whole charter and to claim the repayment
of the whole charter fee, with interests, but not be entitled to damages. This decision shall be
immediately communicated in writing to the Lessor and the contract will be rescinded.

6. USE OF THE YACHT AND RESTRICTIONS
The Charterer and the Captain bind themselves to use the yacht exclusively for pleasure cruising
between safe and secure ports and anchorage where it can enter, remain and set sail safely lie
always afloat within the cruising area. They must take note that it is not allowed to transport
goods, passengers or any other commercial items. Moreover the Charterer and the Captain bind
themselves:

a) to respect minimum crew and the maximum number of people allowed on board;

b) to use the yacht within the above mentioned cruising area and not to leave Italian territorial
waters without the written consent of the Lessor;

c) to obtain a written authorisation of the Lessor
to take part in races, regattas or competition;

d) not to ask to be towed or tow other vessels except
under emergency circumstances;

e) to respect the hosting country laws, especially the set of rules
concerning customs declaration, fishing, scuba diving and the dispositions of harbour custom and
sanitary Authorities;

f) to follow the competent Authorities disposition when navigation is not
allowed because of any reason (bad weather, danger of area) and not to leave the harbour or the
anchorage or, if the yacht is in navigation, to enter the nearest harbour of safe place at once when
the wind and sea are or are predicted to be over five of Beaufort scale or when vessel or crew
condition are such as to affect the safety of the vessel and their guests;

g) to moor the yacht near
the coast in a safe position and never leave it without control;

h) not to give sailing lessons;

i) not
to keep any kind of animals on board;

l) to enter in the yacht’s log book arrivals and departures
from the harbours atmospheric conditions, hours cruised using engine, damages, repairing etc.;

m)
not to sail in dangerous areas in consequence of wars, hostilities, military operations, revolutions,
riots and where the navigation is forbidden taking note that insurance is not operating;

n) not to
keep fire arms or drugs on board, even for personal use.

7. MAINTENANCE OF THE YACHT
The maintenance of the yacht is charged to the Charterer, who bind himself to take care of the
yacht, to keep it and its accessories in order and clean and to provide for normal maintenance (oil,
care of the engine, batteries, winches, sail etc.). During the charter period the expenses for
damages due to force majeure or normal wear due to the normal use of the yacht under the terms
of this charter party will be paid in advance by the Charterer and they will be refunded at the end
of the charter.

8. RUNNING COSTS
The Charterer shall pay all the expenses concerning the use and consumption of the yacht during
the charter period and in particular for fuel, oil, water, electricity, harbour fees and dues,
anchorage and mooring dues, local and customs taxes, employment of radiotelephonic equipment
and finally pecuniary and administrative penalties. If at the end of the charter it is not possible to
establish the cost of telegrams, telephone and radiotelephonic calls their amount will be estimated
by the Lessor and paid by the Charterer.

9. DAMAGES AND REPAIR
The Charterer must inform in writing, best by fax, the Lessor or his representative of any average
damages or anomalies which may have occurred on the yacht within 24 hours. The Charterer can
continue the navigation only if it does not worsen the damage or if it does not expose the yacht
and the people on board to danger. The Charterer shall previously and necessarily obtain the
consent in writing of the Lessor, for price and technical suitability of all repairs to be made, inorder to be refunded at the end of the charter. If the yacht is damaged, independently of the
Charterer’s fault, such as to prevent the responsible use of the yacht for a period exceeding 48
consecutive hours, when in foreign waters, the Lessor shall refund the Charterer for the period at
the pro-rata daily charter fee and the Charterer must not put forward any right for further damages.
If the time necessary to repair the yacht exceeds the 96 consecutive hours, the Charterer shall have
the right to terminate the charter and to claim the pro-rata repayment for the part of the charter
period of that commenced at the time of disablement. According to the organising exigencies the
Lessor shall allow a pro-rata extension of the charter period adding the days of disablement. If any
repair is necessary at the Charterer expenses, these shall be effected before redelivery. Anyway
the Charterer shall refund the Lessor for the needed time for the repairs exceeding the charter
period and further damages because of this waste of time.

10. REDELIVERY AND OBSERVANCE OF THE TERMS
The Charterer binds himself to redeliver the vessel in the terms and in the harbour above defined
without any debts that he might have had during the charter in as good conditions as when
delivery was taken with all the accessories, equipment, supplies and documents received from the
Lessor. The cruise itinerary must be planned in order not to delay the redelivery, that must be
anticipated in case of bad weather forecast. If the redelivery doesn’t occur in the defined time, the
Charterer shall pay a penalty equal to twice the daily hire rate agreed for each day or fraction part
of a day exceeding two hours until the redelivery will be effected and the Lessor will be entitled to
claim the repayment for damages due to the failed or delayed delivery to the following user of the
yacht. If the Charterer doesn’t end his cruise in the defined harbour, the time required to take the
yacht to the harbour of redelivery will be considered as delay and he shall pay all costs for
transferring the yacht to the agreed harbour of redelivery. The parties agree that the delay of
redelivery cannot exceed five days, if any written authorisation will be given by the Lessor. The
Charterer declares that he knows his behaviour. Both parties agree that the delay in the redelivery
of the yacht should never exceed five days unless there is a written authorisation on the part of the
Lessor. The Charterer declares that he is aware that his behaviour implies an interversion
possessionis (interversion of the possession) of the hired yacht and the offence of embezzlement.

11. RELEASE OR INTERRUPTION
In case of the Charterer’s release to the charter party he has to inform immediately in writing the
Lessor who will be entitled to claim or to retain: a)the down payment, if the notice arrives before
the date agreed for the settlement; b) the full charter fee, if the notice arrives within 30 days before
leaving. However, if the Lessor will be able to re-let the yacht to other Charterers for the same
period at the same conditions first agreed, he will return all payments received, deducting all
expenses (commission included) incurred for this charter and the new one. If the cruise is
voluntarily interrupted, the Charterer won’t have any refunds, but he shall pay all expenses due to
this anticipated redelivery to the Lessor.

12. CAUTION
The caution paid in security for any obligation of the Charterer, the Captain or the guests, will be
returned to the Charterer, without interests, after having ascertained that no damages, contractual
violations and obligations have been made during the charter period.

13. INSURANCE
The insurance made by the Lessor don’t cover the loss or damage of items belonging to the
Charterer and his guests, public liability towards the things of third party and towards the
Charterer’s parents on board. Insurance conditions will be all known by the Charterer, because a
copy of them will be given to him before embarkation. In any case, the Charterer shall pay for any
damage not covered by the insurance due to the Charterer’s responsibility, the franchise and the
inadequate insured value.

14. BAD WEATHER CONDITIONS
The Lessor doesn’t take on any responsibility for departure delays or cruise interruption due to
bad weather conditions or to Orders issued by the Port Authority.

15. REMUNERATION FOR ASSISTANCE, SALVAGE AND RECOVERY
During the charter, any benefits for salvages, towage and assistance operations shall be equally
shared between the Lessor and the Charterer after deducting expenses and hire for the charter
period not enjoyed. All measures undertaken by the Lessor to have payment for assistance and
salvage will be binding for the Charterer and Capitain.

16. SUBCHARTERING AND TRANSFER OF CONTRACT
The Charterer is not allowed to subcharter the yacht or to give up the rights which result from the
present charter party.

17. REGISTRATION COSTS
Any possible registration costs of this charter party and any other costs relating to it will be
charged to the requiring Party.

18. CONTROVERSY
Any controversy about interpretation or execution of this charter party will be referred to an
arbitration board in ,
consisting of three members, one of those appointed by each party and the third one chosen by
these two arbitrators. In case of lack of agreement the third one will be appointed by the Harbour
Master of the Harbour Office of . The Arbitration
board will decide as friendly composer with all kind of freedom of procedure.

19. APPLICABLE LAW
With regard to what not specifically stipulated in the present charter party reference is made to the
current Italian legislation. If this charter party is translated, the Italian one will be considered
prevalent for interpretation or discrepancy.

20. BROKERAGE COMMISSION
Any brokerage commission in respect of stipulation of this charter to the Lessor. With this charter
party the Lessor gives on his behalf a mandate to the Broker to receive the down payment and the
settlement of the charter fee retaining his
commission. The commission will be in any case entirely paid,
after the down payment, even thought the charter is cancelled.