YACHT MANAGEMENT AGREEMENT 

This agreement is made between SAN DIEGO YACHT MANAGEMENT LLC ("SDYM") and the undersigned boat owner(s), and/or agent (collectively, “OWNER").

In consideration of the mutual covenants contained herein, the parties agree as follows:

1. Service Authorization. OWNER authorizes SDYM, and SDYM agrees, to perform the services described in this Agreement authorized by OWNER. All such services shall be incorporated in, deemed to be a part of, and governed by this service Agreement.

2. Management Plan. SDYM agrees to perform the following duties and responsibilities with regards to the vessel according to the selected plan of this form, Standard, Deluxe, or Premier.

3. Frequency of Service. SDYM agrees to perform the duties and responsibilities of the selected Management Plan at the selected frequency of this form, Weekly, Bi-Weekly or Monthly.

4. Term of Contract. This Agreement shall commence upon the Start Date of this form for the selected of this form, 3, 6, or 12 months.

If not sooner terminated, this Agreement shall renew at the end of the Initial Term and shall thereafter continue for the same successive duration until terminated by either party upon not less than 30 days’ written notice prior to the expiration of the Initial Term or the then current renewal term.

5.  Maintenance & Repair. SDYM shall be responsible for performing, or hiring necessary personnel to perform, all necessary maintenance and repairs to the vessel. SDYM shall provide OWNER notification of any necessary maintenance. Upon written approval, authorization and a 50% initial deposit of any work order estimate, SDYM is then responsible for the completion of necessary maintenance and repairs. Upon completion SDYM will provide OWNER an invoice of the total costs. Owner shall reimburse SDYM for the total cost of all such maintenance and repairs within 30 days of delivered invoice. 

6.  Compensation. The Parties agree SDYM shall be compensated by OWNER as follows: The agreed upon Management Plan times the frequency of service for each month. Compensation shall be provided at the first of each month for the duration of the management Term of Contract.

7.  Termination. This Agreement may be terminated at any time by either Party upon 30 days written notice to the other party. Upon termination, OWNER shall reimburse SDYM for any expenses incurred or approved prior to the date of termination within 30 days from the date of termination.

8.  Representations and Warranties. Both Parties represent that they are fully authorized to enter into this Agreement. The performance and obligations of either Party will not violate or infringe upon the rights of any third-party or violate any other agreement between the Parties, individually, and any other person, organization, or business or any law or governmental regulation.

9.  Indemnity. The Parties each agree to indemnify and hold harmless the other Party, its respective affiliates, officers, agents, employees, and permitted successors and assigns against any and all claims, losses, damages, liabilities, penalties, punitive damages, expenses, reasonable legal fees and costs of any kind or amount whatsoever, which result from the negligence of or breach of this Agreement by the indemnifying party, its respective successors and assigns that occurs in connection with this Agreement. This section remains in full force and effect even after termination of the Agreement by its natural termination or the early termination by either party.

10.  Limitation of Liability. Under no circumstances shall either Party be liable to the other Party or any Third Party for any damages resulting from any part of this Agreement such as, but not limited to, loss of revenue or anticipated profit or lost business, costs of delay or failure of delivery, which are not related to or the direct result of a Parties negligence or breach. In the event of damages to the vessel resulting from this Agreement both Parties agree to hold a current insurance policy.

11. Legal Fees. In the event of a dispute resulting in legal action, the successful party will be entitled to its legal fees, including, but not limited to its attorneys’ fees.

12. Legal and Binding Agreement. This Agreement is legal and binding between the Parties as stated above. This Agreement may be entered into and is legal and binding both in the United States and where applicable. The Parties each represent that they have the authority to enter into this Agreement.

13. Governing Law and Jurisdiction. The Parties agree that this Agreement shall be governed by the State and/or Country of the Vessel’s designated location.

14. Entire Agreement. The Parties acknowledge and agree that this Agreement represents the entire agreement between the Parties. In the event that the Parties desire to change, add, or otherwise modify any terms, they shall do so in writing to be signed by both Parties.

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Appendix i - VESSEL EVALUATION

Vessel Evaluations are based on visual examination. The installation and external condition of machinery, plumbing, electrical systems, and electronics are visually inspected and operated with permission of the OWNER. Certain parts of the vessel’s structure, systems, and equipment can only be inspected by destructive means and therefore no tools or machinery are used. Electronic and electrical equipment are tested by powering up and observing basic function. There is no guarantee or warranty, expressed or implied, as to the suitability of the vessel, or equipment.  

Vessel Evaluations visually examine the following:

  • Engine and generator: belts, hoses and clamps, exhaust system, propeller shaft and seal, sea strainer.

  • Helm: auto pilot, engine controls, gauges, ignition, navigational electronics, pod drive(s), stabilizers, thruster(s), trim tabs, windlass.

  • Fluid Levels: Coolant, engine, generator and gear oil, fuel, transmission, water.

  • Electrical: Batteries, chargers, inverters, outlets, shore power.

  • Plumbing: Bilge pumps, sump pumps, through hulls, water heater, water pumps.

  • Safety (USCG): CO monitors, fire extinguishers, first aid kit, flares, flags, life jackets, type IV, navigational lights, rules of the road, smoke detectors, sounding device, VHF.

  • Rigging (if sailboat): Furlers, hardware, lines, sails, standing rigging, winches.

  • Waste: Holding tank, heads, trash, sanitation.

  • Miscellaneous: Air handlers, appliances, auxiliary lighting, emergency tiller, gates, LPG, opening ports and hatches, stereo, TVs, stations, lifelines.

Appendix ii - STANDARD CLEANING

Standard Cleaning provides the removal of dirt, debris and disposable waste using the appropriate brushes and towels necessary for specialized surfaces. This includes an exterior wash down, interior wipe down and the removal of trash. This does not include sterilized disinfectant, emptying the holding tank, waxing, detailing or any other additional services.