Storage Agreement

Turnkey Yacht Services d/b/a ‘Annapolis Harbor Boat Yard,’ hereinafter ‘AHBY’) is willing to give said Owner a license to use space upon certain terms and conditions and to evidence the same, it is mutually agreed as follows:

1. That this is a license for the use of ground space and is not a bailment agreement.

2. That the Owner will:

a. Remove all accessories and equipment and other personal property not permanently affixed to the boat and store off premises. For Winter and Hurricane Season, Owner shall strip the vessel of all sails, dodgers, biminis and canopies. Mainsails and mizzens should be removed or secured with heavy rope.

b. Insure the vessel for casualty and liability.

c. Maintain the vessel in a safe condition so as not to cause damage to AHBY.

d. Permit no one to work on the vessel except AHBY, the immediate owner, his immediate family or paid crew without the express written consent of AHBY management.

e. Not store combustibles in or around the vessel.

f. Keep the area assigned to the vessel clean and free of debris. Owner is to exercise caution so as to not damage the facilities of AHBY or other vessels stored nearby.

g. Pay the charges for the storage and utilities provided herein. Click here for current storage rates.

3. The charges for the storage are payable by Owner on the first of each month together with the charges for utilities. If AHBY has not received payment by the 4th day of the month, your credit card will be charged. If the card declines a late fee of $25.00 will apply. Interest will be included at 30 days past due and will be calculated as 1.5%/month or 18%/year. In the event AHBY deems it necessary to retain counsel and/or a collection agency to resolve unpaid invoices, Owner agrees to pay reasonable costs of collection including attorney fees and/or court costs. ALL CHARGES MUST BE PAID IN FULL BEFORE VESSEL WILL BE LAUNCHED OR RETURNED TO OWNER.

4. All bottom preparing, sanding, stripping, painting, fiberglass work, carpentry work, electrical work and shrink wrapping In Yard must be performed by AHBY. All bottom painting In Yard must be performed by AHBY. No owner, independent contractors, brokers, service organizations or outside individuals will be allowed to perform these duties at AHBY without the express written consent of AHBY management.

5. No independent contractors, brokers, service organizations or outside individuals will be allowed to perform work, or to enter upon the floats, yards, or buildings of AHBY for any commercial purpose who have not first obtained written permission from AHBY. Torches or open flames to be used only by AHBY employees. The owner agrees to hold harmless and indemnify AHBY against any/all losses resulting from violation from this provision. Note: Boat owners are not to hire any outside contractors to work on any boat in our yards, floats or buildings, unless previously approved by AHBY and the contractor first files a current certificate of insurance for worker’s compensation and liability with AHBY named as the insured.

6. It is expressly understood and agreed that in the event the boat, its contents and/or equipment are lost or damaged through theft, fire, vandalism or act of God, AHBY shall not be liable to the owner for such loss or damage, unless such loss or damage results from the direct, active and gross negligence of the AHBY, its agents or employees.

7. Owner agrees to indemnify, exonerate, and hold harmless AHBY against loss, damage, liability,

or expense by any reason of any suits, claims, demands, judgments, Acts of God (Hurricane) or causes or action for personal injury (including death) or property damage (including property of the parties) arising out of or in any way in consequence of the performance hereunder by Owner, his employees, family, agents, invitees and guests to the full extent allowable by applicable law, except that in no instance shall Owner be held responsible for any claim, demand, or cause of action attributable solely to the negligence of AHBY. Upon written request by AHBY, Signer shall, at his/her own expense, defend AHBY in any arbitration, litigation, or other proceeding in which a claim covered by this indemnity provision is alleged.

8. Boat owners must provide their own means of entry to and from their boats, ie., ladders, platforms, and shall keep same and hold harmless AHBY from any and all liability arising from and out of boat owners use of premises to enter, clean, repair or otherwise perform any duties on their boats. The boat owner will also assume all liability for any of its agents, servants or invitees. Ladders must not be chained or tied to jack stands. Ladders that are found to be chained to the jack stands or in other ways impede the movement through the facility will be removed without notice.

9. Owner certifies and warrants that the vessel is insured with both Marine Hull and Liability Insurance. Owner waives any right or claim against AHBY that is covered by either of these insurance policies. Owner’s insurance carriers also waive their rights of subrogation with respect to the same. AHBY does not provide insurance for boats in storage or on moorings.

10. Storage bills are to be paid in full by the 5th of the month and or prior to launching, whichever occurs first.

11. Winterizing work will be billed upon completion. Rates are all based on time and materials unless otherwise posted.

12. Vessels will not be routinely inspected unless specifically requested by owner and at the sole expense of the owner. It is understood that if a boat is in need of immediate attention (collapsed covers, accumulated water, broken hatches, etc.), AHBY can take minimum steps to remedy problem and bill owner’s account. Findings and subsequent repairs or work may result in additional charges. Owner specifically authorizes AHBY to take any action AHBY deems necessary to protect Owner’s boat during winter storage, and to pay AHBY its normal rate for labor and materials to do so. AHBY shall not be liable in contract or at law for any personal injury, death, or damage to the vessel or any other property except to the extent such damage was caused by the negligence of AHBY. Under no circumstances, however, will AHBY by held liable for economic loss or consequential damages including but not limited to lost profits, wages, salvage expenses, or loss of use. AHBY expressly disclaims any warranty to work so performed.

13. A vessel stored in the yard may not be transferred in a sale until all payments owing have been made and the new owner(s) have filled out the required contracts.

14. Owner agrees that if recourse to the courts by AHBY becomes necessary in order to collect the whole amount due or any part hereof, the Owner agrees to pay any and all costs, court expenses, disbursements and attorney fees which may be incurred in addition to any monies owed adjudged to AHBY.

15. Any boat left in the yard for 60 days without payment, or contact from the owner will be considered abandoned and the yard will commence appropriate steps to seize the vessel for payment owed. Owner expressly authorizes AHBY to institute mechanic’s lien proceedings pursuant to Maryland Commercial Law §§ 16-201 et seq. in the event Owner’s account is more than 60 days overdue.