Yacht Share Owners' Agreement

YACHT-SHARE OWNERS' AGREEMENT

1/ YACHT DETAILS Yacht Name Make/model Serial Hull No Year Built Registration # Home mooring

2/ PARTNERS DETAILS (in alphabetical order) First Partner Name Address Id./passport No. Occupation Phone (home) (work) (mobile) Email

Second Partner Name etc.

Third Partner Name etc.

3/ OWNERSHIP Each Partner owns one/n (n being the number of parties to this agreement) of the capital value of the Yacht and unless otherwise stated all costs and usage are shared equally.

The initial annual budget is estimated at NIS x,xxx.

For the purposes of this agreement: "Owner" refers to a Partner currently in physical charge of the boat.

Name of first syndicate manager (the Manager):

4/ SYNDICATE MANAGER'S RESPONSIBILITIES 4.1/ To agree with the other Partner(s) the general policy to be adopted for the coming season regarding the maintenance, repair, and renewal of equipment; the valuation for insurance purposes and to establish allocation of responsibilities and authority to incur expenditure. 4.2/ To make after consultation with the other Partner(s) arrangements for the purchase of capital equipment as may be decided by all Partners.

1 4.3/ To insure the boat, her apparel and fittings either at Lloyds or with a recognised insurance company. 4.4/ To employ any yard, sail-loft, brokers or agents on their usual business terms to transact any necessary business in relation to the boat. 4.5/ Accounts paid together with account statement as evidence of payment will be presented at each AGM (Annual General Meeting) (AGM will take place each year during November). 4.6/ To establish the estimated annual running cost for the coming year in order to reset the maintenance fund level. 4.7/ A designated cheque account will be opened for the running of the boat. The signatory powers for this account will be: single signature for any amount subject to the above agreements and discussions equal or less than NIS xxx; all other expenditure - 2 signatures. All partners will be authorised signatories. The chequebook will be retained by the Manager. The managership shall pass to the next Partner after each annual meeting by agreement.

5/ MAINTENANCE Unless otherwise agreed by all Partners all maintenance tasks shall be performed by professional boat-service companies. In the event of one or more partner having adequate skill and knowledge to undertake certain maintenance tasks then this work may be done only after agreement from all the other partners. This shall not include routine cleaning, polishing, checking and replenishing of engine fluids as is required to ensure the safe use of the boat in commission.

6/ USAGE Total time: time is allocated to each Partner in proportion to the Partner's capital share in the boat in weeks and days as a proportion of the year from lst November to 31st October (in the event of a shorter season - the proportion of the actual time available).

To avoid concentration of usage time, partners may not usually book periods in excess of 2 weeks in any one holiday unless agreed by all the other Partners.

After booking of major holidays the rest of the year shall be allocated to the Partners on a rolling rota of one week in n (n being the number of the partners). Swapping of time within this rota shall be acceptable in order to maximise the use of the boat.

Booking of holidays shall be notified to the manager 2 weeks prior to the AGM, a draft schedule can then be discussed at the meeting and changes made if necessary. A Partner who agrees to alter his preferred booking in one year shall have his first choice in that period in the next year.

Normal week: this shall be deemed to start on Thursday at 1700hrs.

7/ INSURANCE The Owner will ensure at all times that whilst under his care the terms and conditions of the insurance cover are observed. (see appendix).

2 In the event of an accident caused by the Owner the unreclaimed loss (excess) shall be paid by that Owner. In the event of an accident caused by a third party the unreclaimed loss (excess) shall be paid by the maintenance fund. An Owner shall comply with all the legal requirements (including customs, harbour bylaws and marina rules etc.) concerning the use of the boat and shall indemnify the other Partners for any loss resulting from the failure to so comply.

Racing shall not be allowed.

8/ REGISTERED SKIPPERS In order to observe the terms of the insurance cover and ensure the safety of the boat and her crew, the boat shall only be under the responsibility of a skipper who has adequate sailing permit and experience to be in charge of a boat of this type. The personal and nautical details of each such skipper shall be lodged in writing with the Manager and approved by all partners prior to the use commencing. A registered skipper must also be a partner. A skipper under the age of 26 XX shall not be allowed. The boat shall not be lent or chartered.

9/ DISPOSAL Each Partner is beneficial owner of the proportion of the capital value of the boat as stated above (section 3) plus the maintenance fund (less outstanding payments) and is free to give, bequeath or sell this share. The disposee shall be subject to all the conditions of this agreement and become a registered skipper prior to any use commencing. The remaining Partners reserve the right to vet prospective incoming partners but may only refuse transfer on reasonable grounds.

The remaining Partners reserve the right to have first refusal on the purchase of the share for sale at a market value. If the Partners are unable to agree a market value then the Partner wishing to sell his share shall be deemed to have given the remaining Partner(s) first refusal and shall be free to place the share on the open market. The share may not be sold to a third party at a value of equal to or less than that last offered by an existing Partner without this Partner being given the opportunity to buy.

A sale may not take place which will result in the total number of Partners differing from "n" (n being the original number of parties to this agreement) of equal standing unless agreed by all the Partners.

10/ RUNNING COSTS Routine: Each Partner shall be responsible for his share of the cost of necessary routine maintenance tasks as shall be required to keep the boat in a safe and readily usable condition during the sailing season and agrees to pay these by standing order or on demand should the maintenance fund fall below NIS3,000.

3 Non-routine maintenance and capital improvements: this will be undertaken when the safety of the boat is at risk, when an item of existing equipment requires renewal, or when an item of new equipment is desired. Such expenditure is made on the unanimous vote (100%) of all the Partners and will be paid for initially from the maintenance fund.

Small renewals and replacements of up to NIS2,000 per partner p.a. may be undertaken without prior discussion in order to be able to continue a cruise. An end of year balancing will occur.

All costs and losses incurred by a partner in the course of his personal use of the boat shall be paid for by the partner, this shall include but not be restricted to temporary marina and mooring costs and accidental loss of equipment.

11/ MAINTENANCE FUND This shall start at NIS4,000 and shall be put in place by a contribution of NIS4,000/n by each Partner. Each Partner shall pay by monthly standing order an amount of NISXX as adjusted for changes in the estimated annual running cost of the boat to a designated bank account

At all times the fund shall have a minimum level of NIS3,000 and shall be topped up on demand should the need arise.

12/ DEFAULT OF PARTNER All Partners are required to observe the contents of this agreement which is freely entered into by all, failure to abide by one or more of the rules may require that the partner is asked to leave the group by the other partners and to market his share. Non-payment of maintenance and/or other running costs by a Partner shall, unless agreed by all other partners, exclude the use of the boat by that Partner until such time as the outstanding amount is paid along with interest at 3% over the Bank of Israel’s minimum lending rate. Non-payment for more than 6 months shall allow the remaining partners to insist on the sale of the share, the proceeds from which shall first be used to pay arrears plus interest. In the event that the defaulting Partner does not make adequate steps to find a suitable replacement then the remaining partners may market the share and obtain the best price available in the market place at the time. Needs addition of a clause to ensure that the sale is practicable, like a pre-signed proxy to act on behalf of the partners in certain cases.

13/ ARBITRATION In the event of the Partners failing to agree on a matter of substance relating to the Yacht, an arbitrator shall decide the matter. The arbitrator shall be agreed upon by the Partners within 21 days and in default of agreement shall be appointed by an officer of the RYA. The costs of the arbitrator shall be borne equally by the Partners unless the arbitrator directs otherwise. The arbitrator will not be bound by local laws and procedures and his decision will be final and not subject to court appeal in any case.

14/ MOORING LOCATION

4 The location and/or style of mooring may be changed only by agreement of all Partners.

15/ ENTERING AND LEAVING BOAT The owner shall not attempt to take the boat before the start of the normal week booked for his use. The Owner shall leave the boat in a fully clean state, refilled with fuel and water. Gas shall be replenished on an as needed basis. Personal items of clothing/bedding shall not be stored on the boat. Perishable items shall not be kept on the boat unless for the use of all partners. Basic kitchen supplies shall be replenished by partners on an as needed basis, an end of season balancing shall take place. On leaving, the boat must be fully vacated prior to the start of the next normal week start point and returned to its home mooring. Failure potential or actual to return on time must be notified to the Manager as early as possible in order to make arrangements with the next partner.

16/ SMOKING AND PETS Smoking shall not be allowed on the boat at any time. Domestic animals of any type shall not be allowed on the yacht at any time.

17/ BREAKDOWN IN SEASON In the event of a breakdown or failure of the yacht, the Owner must make the yacht safe, notify the Manager and assist as much as possible to arrange repairs to restore the boat to its normal condition as quickly as possible. In the case of an extended breakdown (more than 60hrs) the Owner's allocated time will be compensated by other Partners at another period in the year.

18/ VARIATION OF AGREEMENT This agreement cannot be changed without consultation of all Partners and a unanimous vote (100%) will decide.

SIGNED

FOR FIRST PARTNER:

DATED:

FOR SECOND PARTNER:

DATED:

5 FOR THIRD PARTNER:

DATED:

Appendix

Insurance - Notwithstanding all the terms of the insurance policy which the Partners are required to follow, it is drawn to the attention of all Partners that the following specific instances will invalidate the insurance on the vessel: - Operating the vessel while under the influence of alcohol or prohibited drugs - At all times the boat shall be under the control of two competent people. Single-handed sailing is only permitted after prior notification to the insurers via the manager. Clause not required in Israel, as the IMOT craft license defines the minimal safety crew per vessel.