GENERAL TERMS OF VESSEL CHARTER

NEWERA CHARTER – VRTINEC D.O.O.

The General Terms and Conditions of the vessel charter (hereinafter referred to as ‘the Terms’) form an integral part of the charter agreement concluded between the Charterer and the Lessor NEWERA CHARTER – VRTINEC d.o.o, ZADAR, Put Petrića 45 / E, 23000 Zadar (hereinafter referred to as ‘the Lessor’).

Definition of terms in the present terms and conditions:

Charterer (also ‘user’) – a person who concludes a charter agreement for a vessel with the lessor and is obliged to pay the rent and the deposit.

Lessor – a company that has vessels at its disposal and concludes a charter agreement with the charterer

Rent – the amount paid by the charterer to the lessor stipulated in the charter agreement.

Security deposit – the amount paid by the charterer under the terms of the lease agreement to the lessor for flat-rate damage insurance.

Indirect damage – any damage that occurs or is induced as a result of loss, depreciation, and/or impairment of the vessel, loss of earnings, non-use of the vessel, etc.

Boating – navigation and temporary berths under the control of the vessel’s charterer.

Vessel – is a seaworthy vessel intended for boating at sea; 

Motor – propulsion engine with electrical and all standard equipment, reducer, inverter, shaft or transmission on the stern, propeller, machines …

Electrical wiring – batteries, electrical machines and devices, electrical panels, electrical protection devices, cables and power lines.

Auxiliary boat – is a vessel without its own registration number, which belongs to and is used only alongside the chartered vessel.

Fire – combustion with a flame outside the normal fireplace. 

Knot – a unit for measuring the speed of a vessel (nautical miles per hour).

Market value – is determined as the most probable price that can be achieved on the market on the valuation date.

Burglary – theft in case the perpetrator:

a) breaks into a locked vessel (breaks the door, windows, locked lids, or  hull);

b) enters the locked space of the vessel through an opening that is not intended for entry and must overcome obstacles that prevent entry without effort;

c) breaks into the fenced and locked vessel holding premise

Robbery – is the seizure of a vessel or object for the purpose of unlawful appropriation by using force or threatening the charterer or his/her crew with a direct attack on life or body.

Suitable berth – is a berth that is equipped in the usual local way with appropriate floating devices and ropes, so that in normal weather conditions (which includes weather worsening with stronger winds and larger waves) it does not allow the vessel to strike a bottom, shore or other floating objects nearby.

Article 1 OBLIGATIONS OF THE CHARTERER

(1) By confirming the reservation for the vessel, it is concluded between the tenant and the lessor vessel rental agreement in accordance with these general rental conditions. Contractual parties can further strengthen this commitment by signing the contract in written form (the electronic form counts as written form), which more precisely defines the subject of the lease and the obligations of the contracting parties. To confirm the reservation, the charterer provides the following information: name and surname/company of the payer, street, place, telephone number, VAT ID, name and surname of the Boat master, number of the Boat master’s license, date and place of issue and VHF GMDSS number. The reservation is confirmed upon payment of 40% of the charter amount (advance payment) stated in the proforma invoice (within the period indicated on the estimate), and the remaining part of the value is settled no later than one month before the date of a charter of the vessel or nautical service. In the case of the LAST-MINUTE charter (less than a month before the charter) it is necessary to pay 100% of the proforma invoice. If the Charterer does not pay the advance payment within the term that is specified on the estimate, the Lessor may consider that the reservation has not been confirmed and consequently, the contract was not concluded. The Lessor can also accept a reservation in case of late payment but is not obliged to do so. In the latter case, the reservation is counted as confirmed only if the Lessor expressly confirms it.

(2) The Charterer takes over the vessel in perfect condition and with all mandatory equipment. The Charterer undertakes to conduct appropriate due diligence on the chartered vessel and equipment at all times. The Charterer shall be liable for any possible damage, malfunctions, and loss of equipment or documents that were not identified at the time of handover. The Charterer agrees to be personally responsible for the vessel during the rental period. The Charterer is aware that the vessel is insured, and that no replacement vessel is provided.

(3) A vessel may be operated only by a person who has a valid Boat master’s license to operate a vessel. Charterer must have the proper skills required to navigate the vessel. The lessor has the right to check the charterer’s skills and ability to drive the vessel and may withdraw from the charter agreement if he considers that these skills are not sufficient for safe navigation. In this case, the Charterer does not meet the conditions for a refund. The Charterer is obliged to get information on the use and operation of the vessel before the vessel handover and must clear all ambiguities before taking over. Therefore, the Charterer cannot later invoke ignorance of the instructions for the use or operation of the vessel as an excuse.

(4) Inaccurate disclosure or intentional concealment of information regarding circumstances that affect the assessment of the charterer’s ability to operate a vessel may be the reason for vessel removal or prevention of vessel used without the obligation to return the rent and security deposit already paid.

(5) Before taking over the vessel, the Charterer is obliged to examine the instructions for operating the vessel and the regulations applicable to the operation of the vessel in the area where the vessel will be used. Charterer is obliged to disclose all ambiguities regarding the use and management of the vessel to the lessor and the latter is obliged to provide the necessary information at the request of the charterer. The Charterer undertakes to comply with all applicable regulations when using the vessel, otherwise criminal and financial liability for the consequences may be imposed. The Ignorance of the laws and regulations in force in the Lessor’s area does not release the Charterer from liability. The Charterer is also liable for any damage caused to other persons and property due to negligence. The Charterer is obliged to monitor the weather conditions and weather reports and make sure that the vessel is always at a suitable berth according to the forecast weather conditions.

(6) The Charterer shall explicitly declare that he/she will not use the vessel under the influence of alcohol or other prohibited substances. The Charterer is responsible and undertakes to reimburse all damages for the vessel caused during the use of the vessel under the influence of alcohol or other prohibited substances, and all consequent economic damages caused to the lessor due to temporary or permanent inoperability of the vessel. The Charterer agrees to alcohol testing or testing of other prohibited substances at the Lessor’s request. If the charterer rejects the lessor’s testing request, it is considered that the vessel was used under the influence of alcohol or prohibited substances. In case the Charterer is undoubtedly under the influence of alcohol or other prohibited substances, the lessor may temporarily refuse to hand over the vessel or withdraw from the present contract based on the Charterer’s infringement and without obligation to return the rent and security already paid.

(7) The Charterer agrees that the Lessor expressly prohibits navigation under the Vir Bridge.

(8) The vessel is registered for as many persons as indicated on the vessel’s registration plate. The Charterer may take on board only as many persons as previously agreed with the Lessor, and in no case more than stated in the vessel registration.

(9) The Charterer is obliged to pay the rent in full before taking over the vessel, in accordance with these general conditions and specific requirements of the Lessor if they deviate from these conditions.

Article 2 CHARTER PRICE AND SECURITY

(1) The charter price includes the use of an equipped vessel and insurance of the vessel. The charter price does not include fuel and other special services, the cost of the marina and the mooring in the marinas during the charter. The insurance does not include accidents to persons on board, damage to property brought on board and damage caused by improper use or loss of equipment on board.

(2) Upon payment of the charter rent, the charterer shall also pay a security and damage deposit in the amount specified in the agreement to cover the cost of any damage to the vessel and equipment, any delay in the return of the vessel, any cleaning costs and the cost of fuel. The charterer can pay the security deposit two ways:

• as a refundable deposit as specified in the agreement or in the charter conditions for the specific vessel (the charterer receives the security deposit refunded in full upon return of the vessel, or deducted, by the damage caused, if any),
• as a non-refundable deposit in the amount specified in the agreement or in the charter conditions for the vessel (the security deposit is non-refundable whether or not damage has been caused).

Insurance of the refundable security and damage deposit shall not be covered by the agreement unless expressly agreed.

(3) The security and damage deposit does not release the charterer from liability for damage caused by the charterer’s acts or omission as a result of negligence or intent of the charterer or the person authorized to use the vessel, such as mooring the boat in an inappropriate berth or in an inappropriate manner, navigating under the influence of alcohol or other prohibited substances, violation of regulations, negligent operation of the vessel, failure to correct defects on board (the lessee does not inform the lessor of defects that may result in bigger defect or damage), lost keys, failure to take care of the keys or the possibility of unauthorized access to the vessel, etc.

(4) The security and damage deposit shall be returned in full upon the vessel return if the following conditions are met: the vessel is returned in perfect condition, the equipment is undamaged, the vessel is cleaned, the fuel tank is full, and the vessel is returned on the agreed time to the agreed place. If any of the above conditions are not met, the lessor retains the security in full or deducted by the amount of the estimated damage. The refundable security and damage deposit shall be paid (by the bank order) within 48 hours of the return of the vessel.

Article 3 CHARTERER IDENTITY

(1) The Charterer confirms their identity with an ID (identity card, passport), and submits the ID to the Lessor upon request.

(2) The Charterer confirms he/she is authorized to operate the vessel and that he/she holds a Boating license. The Charterer undertakes to ensure that the vessel is operated only by persons who are qualified to navigate the vessel and hold a boat master’s license.

(3) The charterer allows the lessor to process his/her personal data and personal data of the crew for the needs of the charter, informing the competent authorities and for advertising the services of the lessor.

Article 4 INSURANCE

(1) As a rule, the vessel has compulsorily and multiple-risk insurance for the territory of the Republic of Croatia and the Republic of Slovenia (the vessel does not have compulsory insurance for other countries). The insurance is determined by the conditions defined by the insurance company The vessel is insured in the event of damage caused to third parties and is fully insured for all cases of damage caused by force majeure, up to the amount expressed as a proportion of the vessel value and the risk in accordance with the insurance policy. The Charterer is obliged to inform the Lessor or the competent authorities in the event of an accident or any damage. Any damage incurred that is covered by the insurance and is in accordance with the insurance policy, but was not immediately reported to the Lessor, will not be recognized. The insurance does not cover personal items.

(2) Irrespective of the concluded insurance policy (even if it is not concluded), the Charterer is liable for damage caused by the charterer’s conduct or omission as a result of negligence or intent on the part of the Charterer or the person authorized to use the boat i.e. mooring the boat in an inappropriate berth or in an inappropriate manner, navigating under the influence of alcohol or prohibited substances, violation of regulations, negligent operation of the vessel, failure to correct defects on board (the Charterer does not inform the Lessor of defects or injuries), etc.

(3) In case the insurance company establishes on the basis of a case investigation that it is not entitled to cover the damage on the basis of the concluded insurance policy, the Charterer shall be fully liable to the Lessor for all damage not covered by the concluded insurance policy.

(4) Examples of excluded hazards when the Charterer is fully responsible for the damage:

• resulting from the intentional conduct or gross negligence of the Charterer, the persons to whom the vessel is handed over, the persons for whom the Charterer is legally responsible, or the persons on board with the consent of the Charterer;

• caused to the vessel and/or its parts due to improper use or lack of care for the vessel;

• resulting from damage, loss, tearing or removal of tarpaulins, sunshades, cushions, mooring or anchor ropes and similar equipment, unless this is the direct result of force majeure, fire, explosion, lightning, sinking, stranding, impact or collision, robbery, theft and malicious acts of third parties as well as the rescuing of the vessel;

• resulting from a defective or unsuitable mooring, insufficient measures or an inappropriate method of mooring or anchoring;

• occurred when the vessel has been left unmanned in place exposed to wind and waves over one quadrant (i.e. when there is no shelter for at least 270 degrees) or in positions not marked in sea charts – guides, pilots charts) as suitable anchorages for smaller vessels;

• the damage to the engine due to clogging of the cooling system or cooling water inlets, caused by the actions of the Charterer;

• resulting from towing, whether or not the vessel has been used for towing or has been rescued in this way, except in cases where maritime customs dictate the towing due to a proven urgency;

• caused when the vessel is operated by a person who does not have a boat master’s License. The boat master’s License must be issued for the category the vessel belongs to;

• arising directly or indirectly from illicit trade, hunting, smuggling, illicit navigation or related breaches of official regulations and the like, as well as from confiscation and suspension;

• resulting from burglary, theft or other criminal offences if the event is not reported to the police;

• caused on the vessel if the operator of the vessel was under the influence of drugs or alcohol while the damage occurred (if he has more than 0,5 g/kg of blood alcohol in his blood or more than 0,24 mg/l of alcohol in his exhaled air) or if he refuses an alcohol test or the presence of drugs in the body.

Article 5 OBLIGATIONS OF THE LESSOR

(1) The lessor undertakes to make the chartered vessel available by the agreed deadline, ready for use and in perfect condition. The lessor is obliged to deliver the vessel at the agreed place and time. Otherwise Charterer is entitled to reimbursement for the days when he/she could not use the vessel. The Lessor may refuse delivery if the weather conditions are dangerous (wind, storm, etc.) and carry out delivery with a delay when weather conditions allow. 

(2) The Charterer may request reimbursement of costs in the amount of the rent, he is not entitled to other damages. The lessor is obliged to rectify the defect caused by the normal use of the vessel as soon as possible upon receipt of the charterer’s notice. 

(3) During the handover of the vessel, the lessor shall give the Charterer general instructions for the use and operation of the vessel, which the charterer is obliged to follow. 

Article 6 WITHDRAWAL FROM CONTRACT

(1) In the event that the Charterer is unable to take over the vessel for any reason, he/she must inform the Lessor as soon as possible, agreeing on further measures (e.g. the Charterer is replaced by a third party), and the lessor has every right to withhold a certain share of payment lease, which depends on the time of notification of the charter termination. 

(2) In the event that the charterer does not settle the entire value of the lease within the period specified in 1. article of these conditions (at least one month before the rental), it is considered that the charterer has withdrawn from contract for reasons on the part of the charterer.

(3) In case of cancellation by the charterer after a confirmed reservation (advance payment within the deadline or subsequent acceptance of the advance payment and confirmation of the reservation by the lessor) until one month before the reserved rental date, the lessor keeps 10% of the total rental value, and the remaining 30% of the rental value (the rest of the advance payment) is returned within 8 days to the charterer. In case of cancellation of the rental from one month to 14 days before the reserved date of the lease or in the event that the charterer does not pay the full amount of the rental by the agreed deadline (at least one month before the rental), the lessor keeps 40% of the total rental amount (full advance payment). In case of cancellation within 14 days prior to the reservation date, the lessor can keep the entire rent. In case of cancellation, a “last minute” reservation, the lessor retains the entire amount of the funds paid.

(4) In case the Lessor cannot provide the agreed vessel due to force majeure or other reason outside the lessor’s scope (e.g. damage or destruction of the vessel), the Charterer is entitled to get the same or better vessel for the same price, or refund of the full rent.

Article 7 VALIDITY OF THE CONTRACT

(1) By paying part or the entire rent, the Charterer concludes a contract with the Lessor in accordance with these general conditions. Before taking over the vessel, the Charterer also signs the contract (electronic form is considered as written form), where the characteristics of the chartered vessel are defined in more detail. 

(2) The time of chartering a vessel is precisely defined in the Charterer’s request or in a written contract, which the parties sign before the vessel handover takes place. The Charterer is obliged to return the vessel at the agreed time, otherwise, he is liable for all direct and indirect damage (e.g. loss of profit) due to delay.

(3) The Charterer undertakes to return the vessel to the agreed place and at the agreed time, undamaged and with a full tank of fuel. If the Charterer does not return the vessel to the agreed place and on time, he will pay the lessor for each missed day in the amount specified in the price list of the vessel charter. 

(4) If the charterer does not return the vessel to the agreed place and on time, he will paid the lessor for the delay by returning the rented vessel and equipment, which can be covered from the amount of the security deposit received, if this is not sufficient, with an additional payment according to the issued invoice:

• for a delay of up to 2 hours, the charterer is obliged to pay half (50%) of the amount of the daily rate rental (for the vessel and equipment according to the Lessor’s price list) as a contractual penalty for delay, which does not exclude liability for damage caused by the delay,
• for a delay of more than 2 hours on the same day, the charterer is obliged to pay the full (100%) amount of daily rental (for the vessel and equipment according to the lessor’s price list) as a contractual penalty for delay, which does not exclude liability for damage caused by delay,
• for late return on the next day or later, the tenant is obliged to pay twice (200%) of the daily rental amount (for the vessel and equipment according to the Lessor’s price list) as a contractual penalty for delay, which does not exclude liability for damage caused due to delay and does not accumulate the delay for the agreed return day (delay for the first day is calculated according to the previous paragraph).

Article 8 RESPONSIBILITY OF THE CHARTERER IN CASE OF DAMAGE 

(1) After the occurrence of the damage, the Charterer must immediately do everything in his power to prevent further damage, considering the instructions of the Lessor.

(2) The Charterer must immediately notify the Lessor of the damage that occurred.

(3) The Charterer must report the maritime accident to the port authority (harbor master’s office), and to the police in the event of a burglary, theft, robbery, or other criminal offenses.

(4) The Charterer must initiate all legal and other measures to secure all rights against the persons responsible for the damage and, at the request of the Lessor, provide the data and documents necessary to determine the type, cause, extent, and amount of damage. The Lessor has the right to determine the type, cause, extent, and amount of damage, and the Charterer is obliged to provide full cooperation and assistance.

(5) When reporting damage, the Charterer is obliged to enclose the following documents:

a) a confirmed report to the port authority (harbor master’s office) and/or the police station of the maritime accident;

b) Police records in the event of a burglary, theft, robbery, or other criminal offense;

(6) If the charterer fails to report the occurrence of a damage event within the time and in the manner determined by these conditions, he must reimburse the Lessor for any damage resulting from the accident.

Article 9 METHOD OF NOTIFICATION

(1) Agreements on the content of the lease contract are valid only if they are concluded in writing. The electronic form is considered as a written form. Written documents are also considered part of the contract agreements by e-mail or electronic messages.

(2) All notices and declarations to be given in accordance with the provisions of the contract must be in writing.

(3) A declaration to be given to the contracting party shall be valid only when the latter receives it.

Article 10 PROTECTION OF PERSONAL DATA

(1) Until revoked, the Charterer allows the Lessor and his authorized companies to store, process and use in his/her personal data required for the implementation of the charter and for the purposes of informing about charter news and offers as well as the sale of vessels

(2) The Charterer allows the Lessor to provide personal data for the purposes of direct marketing, informing the Charterer about novelties and offers in the field of charter and sale of vessels. The Charterer also allows the Lessor to obtain the required data from the administrators of personal data files and forward them to the Green Card Office or another body that resolves claims.

(3) The Charterer may at any time request the termination of the use of his personal data for the purpose of direct marketing under the preceding paragraph. The Lessor undertakes to stop the use of personal data for which the consent has been given in accordance with the previous paragraph of the present Article within a maximum of 15 days.

(4) The Lessor undertakes to carefully protect all personal data in accordance with the applicable personal data protection legislation.

Article 11 SETTLEMENT OF DISPUTES

(1) The Charterer and the Lessor will resolve any disputes amicably, but if this is not possible, the court in Ljubljana, Slovenia, under Slovenian law, is competent to resolve disputes related to these conditions and the concluded contract.