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Medical concession agreement between represented

by.........................................

and
Dr. med. Werner Kalbfleisch
Kirchstraße 7
89195 Staig
Germany (reinafter referred to as "Concessionaire")

Table of contents

 

Article 1 Concessionaire's obligations3

Article 2 Concessionaire's Staff4

Article 3 Manager's obligation7

Article 4 Financial terms8

Article 5 Exclusivity10

Article 6 Professional negligence10

Article 7 Communications11

Article 8 Laying up - accidents - yard times11

Article 9 Force majeure12

Article 10 Arrest of the Vessel etc.12

Article 11 Liens/subrogations13

Article 12 Alterations13

Article 13 Disputes settlement13

Article 14 Communication between the parties14

Article 15 Termination of the agreement14

Article 16 Validity16

 

 Preamble

 

WHEREAS MV "???"(hereinafter referred to as "Vessel") is registered in ......;

 

WHEREAS the Vessel has been bareboatchartered by ......

WHEREAS Managers act as managers for Messrs. .....

 

WHEREAS the Vessel is operated as passenger cruise vessel of a standard of the European Four Star Plus Category, mainly with German passengers and from time to time international passengers through cruises around the world;

 

WHEREAS the Concessionaire is licensed as general practitioner and to operate hospitals aboard ships and desires to operate the hospital on board the Vessel, serving both passengers and crew.

 

NOW THEREFORE THE FOLLOWING IS HEREBY AGREED:

 

Article 1

Concessionaire's obligations

 

1.The Concessionaire undertakes to provide all passengers and crew for any time being on board the Vessel with first class medical services required for the immediate and intermediate well-being of the passengers and crew.

 

2.The Concessionaire represents that it has full knowledge of the medical services to be
provided in accordance with the usual scientific standard practised in Germany.

 

3.The Concessionaire confirms that the hospital designated to and known by the Concessionaire on board including its fittings, installations and premises is sufficient for cruises as operated by the Managers for approximately ??? passengers and approximately ??? crew and that the type of cruises as well as the different lengths of the cruises are known to and accepted by him.

 

All additional material which the Concessionaire should deem necessary will be provided and installed at the Concessionaire's costs and - unless permanently installed - will remain the property of the Concessionaire.

 

It is the Concessionaire's sole responsibility to ensure that the hospital is manned in respect of quantity and qualification according to the requirements and laws of Germany, the regulations of the flag state and other international rules and regulations. In case of change of the flag, the Managers will inform the Concessionaire in writing at least sixty (60) days in advance.

 

4.The Concessionaire undertakes to control and report the observance of the sanitary, health and safety regulations in force on board the Vessel and in the cruising area and to keep the hospital premises clean.

 

5.The Concessionaire will operate the hospital during times agreed upon in writing from time to time between the parties, always provided that the times must allow good service to the Vessel's passenger and crew. The Concessionaire shall ensure that the hospital facilities are available for emergency treatments at all times.

 

 

Article 2

Concessionaire's Staff

 

1.The Concessionaire undertakes to provide at all times the services of one or two licensed doctor/general practitioner and of one or two licensed nurse (hereinafter referred to as "Concessionaire's Staff") who shall be permanently on board the Vessel. The doctor's services may be performed by the Concessionaire himself or by an additional doctor. The doctors rank is not less than 3 "stripes". The nurses rank is not less than 1 1/2 "stripes". The additional doctor and the nurse shall be solely employed and fully insured by the Concessionaire at his own expense. The doctor (being the Concessionaire himself or the additional doctor) shall bear the responsibility for the operation of the hospital on board and the Concessionaire shall ensure that such obligation shall be included in the additional doctor's contract of employment. The Concessionaire's Staff must be highly
qualified and have a good knowledge of the German and English language.

 

The Concessionaire shall ensure that in case of change/repatriation of the Concessionaire's Staff, the leaving members of the Concessionaire's Staff are obliged to do a hand-over to the new members of the Concessionaire's Staff signing on and may leave the Vessel only once the new members of the Concessionaire's Staff are on board the Vessel.

 

2.The Concessionaire may change the number of Concessionaire's Staff only after prior written approval of the Managers. However, the Concessionaire shall be free to change the Concessionaire's Staff whenever it is necessary, on its own account, after consulting the ship's command for confirmation regarding the "Cruise Ship's Status" of the Vessel.

 

3.The Concessionaire has at all times the obligation and right to control all of the
Concessionaire's Staff as to whether their performance of their obligations is satisfactory. The Manager, if notified well in advance, will endeavour to make an additional cabin available to the Concessionaire for that purpose.

 

4.Should the Managers have to repatriate the Concessionaire's Staff or pay fines, hospital or medical or funeral expenses or expenses in any way connected or related to the Concessionaire's Staff, howsoever such expenses may occur or become liable to third parties in any act, default or neglect of the Concessionaire's Staff or in any way expend money on behalf of the Concessionaire's Staff, then the Concessionaire will indemnify the Managers for any loss, expense or damage so caused.

 

5.The Concessionaire is solely responsible and will take care of all wages including overtime, medical, life and disability insurance of the Concessionaire's Staff, as well as their social security contributions, as and where required, vacation pay and repatriation expenses for the Concessionaire's Staff and any other expenses which pertain to the Concessionaire's Staff such as professional association indemnities and/or other governed by labour law, if any.

 

6.The Concessionaire is also responsible for the transport of the Concessionaire's Staff to the Vessel and vice versa and to pay all cost deriving therefrom. The Managers will assist the Concessionaire in obtaining cheapest possible tickets.

 

7.The Concessionaire and Concessionaire's Staff shall obey to the Vessel's disciplinary rules and regulations. The Master of the Vessel shall have the right to dismiss any of the Concessionaire's Staff in case of their nonconformity to such rules and regulations. The costs for repatriation of the respective member of the Concessionaire's Staff are to be borne by the Concessionaire. The Concessionaire will pay the costs of any damage caused by the Concessionaire's Staff.

 

8.The Concessionaire's Staff shall have their meals in the officers' mess.

In case of bad working-hours and/or of impediment by emergencies, the hospital-staff has the permission to eat in public restaurants.

 

 

9.The Concessionaire's

Staff shall have the right to use all public rooms for their private employment. It is understood that passengers will be respected at all times. Handling in general shall be according to the ship's rules established from members of the crew.

 

10.The Concessionaire's Staff have the right to buy items for personal use in the crew bonded store, as per ship's regulations.

 

11.The cost of cleaning, laundering and maintaining the Concessionaire's Staff's clothing will be borne by the Managers. The cleaning of private clothing of the Concessionaire's Staff will be charged to the Concessionaire's Staff based on a rate of 50 % of the listed passenger tariffs. The Concessionaire's Staff will be granted a 50 % (subject to change) discount of all bar drinks and wine (except champagne and cigarettes), and a 20 % (subject to change) discount on hair dresser's service.

 

12.Neither the Managers nor the Vessel will be responsible or liable for any violation of customs laws, rules or regulations made or omitted by the Concessionaire's Staff concerning the hospital or their personal actions.

 

The Concessionaire shall be fully responsible for any faulty declaration made by the
Concessionaire's Staff concerning the hospital's customs manifest required prior to arrival in the ports. However, the Managers' representative shall provide the Concessionaire with all necessary forms and proper instruction for the various ports of call, if possible.

 

13.The Concessionaire is fully liable for any damage and delay to the Vessel caused by wrongful and/or criminal acts of the Concessionaire's Staff, for example smuggling, drug crimes etc.

 

In case of the Concessionaire's Staff's failure regarding the a.m. items, the Concessionaire will assume all expenses arising therefrom.

 

14.The Concessionaire shall be fully responsible regarding visa, medical certificates (vaccination) or any other documents therefrom regarding the Concessionaire and the Concessionaire's Staff. Costs arising in this respect are to be borne by the Concessionaire.

 

 

Article 3

Manager's obligations

 

1.The Managers undertake to provide whatever may be necessary for the correct execution of all services to be rendered by virtue of this agreement and not specifically mentioned as
Concessionaire's obligations. In particular, the Managers shall provide the hospital and ward rooms, the computerised cash registers, the supply of electric power, bulbs, water, air conditioning. Any technical assistance in this respect from the ship's technicians shall be free of charge.

 

It is expressly understood that the Managers do not covenant that the water which is available on board the Vessel is always in a quality to be used for medical purposes.

 

2.The Managers shall provide adequate accommodation in one or two officer cabins and one ore two crew cabins (total of four cabins) on board for the Concessionaire's Staff without additional charge to the Concessionaire. Both parties agree that the allocation of cabins will be at the sole discretion of the Managers. The Managers will also supply the Concessionaire's Staff with bed linen and towels sufficient for their personal and operational requirements.

 

3.The Managers agree to obtain and maintain a protection and indemnity insurance entry for the Vessel which shall cover the Concessionaire against all risks normally covered by a P&I insurance where said risks are applicable to the Concessionaire. The deductibles in respect of the P&I insurance are for the account of the Concessionaire.

 

The Managers agree to obtain and maintain a Hull & Machinery insurance entry for the
Vessel, which shall cover the Concessionaire against the risk of damages caused by the
Concessionaire or the Concessionaire's Staff and against all risks normally covered by a Hull & Machinery policy where said risks are applicable to the Concessionaire. The deductibles in respect of the Hull & Machinery insurance are for the account of the Concessionaire.

 

The Managers shall provide adequate insurance for all property of the Concessionaire, so that in event of a fire on board, a ship's loss or similar problem, including force majeure, the Concessionaire is fully compensated for his equipment, supplies and other property on the Vessel for its true value as per inventory report, up to a total maximum upper limit of USD 50,000 (United States Dollars fifty thousand). The deductibles in respect of such insurance are for the account of the Concessionaire. Any exceeding value is to be insured by and for account of the Concessionaire.

 

 

Article 4

Financial terms

 

 

Article 5

Exclusivity

 

1.The Concessionaire shall be the exclusive Concessionaire on board the Vessel for the supply of medical services to entitled persons (passengers, officers, staff, crew).

 

 

Article 6

Professional negligence

 

1.The Concessionaire will insure himself and the Concessionaire's Staff against liability for
wrongful medical treatment against the passengers and/or crew members. A copy of the insurance cover and the renewal has to be automatically presented to the Managers every year.

 

2.The Concessionaire undertakes to insure all materials and equipment of his property or
possession. Therefore, the Managers will not bear any responsibility for whatever damage caused to the property or possessions of the Concessionaire.

 

3.The Concessionaire is not an employee or servant of the Managers in respect of medical
treatment. He and the Concessionaire's Staff are solely liable for all damages caused to
passengers/crew members who are patients of the Concessionaire and the Concessionaire's Staff.

 

4.In the event of any claim by crew or passengers against the Managers, the owners, the
bareboatcharterer or the tour operator of the Vessel for damages, the Concessionaire will hold the beforementioned persons and the Vessel free and harmless of any liability and claims whatsoever.

 

5.The Concessionaire agrees to maintain good records of all medical treatment given in a
professional manner to patients and to record all charges and/or transactions in a suitable manner resulting from the operation of its medical services. The records will be kept for a period of 4 years.

 

 

Article 7

Communications

 

The Concessionaire is entitled to use the Vessel's radio system (telefax, telex, email, telcom) for his business related to the cruises. The charges on actual costs for the services are to be paid directly to the ship's administration.

 

 

Article 8

Laying up - accidents - yard times

 

1.In the event of laying up or non-scheduled long stay in port/yard e.g. due to Force Majeure, Managers shall have the right to require that the services due under this agreement be temporarily suspended at no cost for Managers. In this case the parties shall meet in due time in order to revise and/or modify terms of this agreement accordingly.

 

2.Once every year the Vessel will go into dock. The Concessionaire will be informed well in
advance about the dates of the yard time. The Managers may decide that during this time the services due under this agreement may be suspended and if so, at no cost for Managers.

 

3.During yard-time the Concessionaire will have the right to leave the hospital equipment in the hospital and in any other of the rooms used by the Concessionaire sealed by the Concessionaire for the period of Vessel's repair at the entire Concessionaire's risk but after Managers' confirmation.

 

4.The Concessionaire is to make a proper list of the above mentioned equipment and materials for the customs authorities and the Vessel's management.

 

5.In any case the Managers carry no responsibility for the safety of above mentioned good.

 

 

Article 9

Force majeure

 

1.In this agreement, Force Majeure shall be deemed to be any cause beyond the reasonable contemplation or control of either party which prevents or delays or otherwise impedes the due performance of the agreement and which by due diligence the affected party is unable to control despite the making of all reasonable efforts to overcome the cause concerned.

 

2.Force Majeure may include, but shall not be limited to any other of the following:

 

- war or hostilities

- riots, civil commotions, insurrections

- sabotage, terrorism

- governmental rules and regulations

- earthquakes, floods, tempests, lightning or other natural or physical disasters, but

excluding purely adverse weather conditions such as rain, frost, snow, etc.

- strikes, of a national or regional nature, excluding company strikes by Managers or

Concessionaire

- impossibility in use of any port, shipping service or other means of transport or

communication (occurring concurrently)

- haverie grosse

 

The occurrence and termination of such events shall be notified in the shortest time possible by the party wishing to avail itself to the provisions of this clause to the other party in writing, and the nature and duration of such events shall be independently verified by competent organisations.

 

 

Article 10

Arrest of the Vessel etc.

 

In the event of the arrest of Vessel or bare-boat charter of the Vessel, sale of Vessel or other events involving the Vessel in any way, both parties are entitled to request the cancellation of this agreement.

 

 

Article 11

Liens/subrogations

 

1. Neither the Concessionaire nor any of its associated companies or independent contractors or their respective employees shall have any right, power or authority to create, incur or permit to be imposed upon the Vessel any lien whatsoever.

 

2.Neither the Concessionaire nor its associated companies or independent contractors or its employees as aforesaid nor the insurers thereof shall have any right of recovery or subrogation against the Vessel or its Owners or Managers on account of any loss or damage that may be covered by any insurance policy effected by the Concessionaire or its associated companies or independent contractors or the employees thereof.

 

3.The Concessionaire shall order stores for his operation solely under the Concessionaire's
name and not in the name of the Owners/Managers. The same applies for the contracts of the Concessionaire's Staff.

 

 

Article 12

Alterations

 

Any alterations to this agreement mutually agreed upon are only valid, if made in writing and signed by both parties concerned. Neither party shall be entitled to transfer their rights and duties under this agreement to a third party without consent of the other party concerned in writing in each specific case.

 

 

Article 13

Disputes settlement

 

This agreement is subject to German law. Any dispute which may arise under this agreement which cannot be settled by negotiation shall be decided by the High Court in Hamburg, Germany.

 

 

Article 14

Communication between the parties

 

All correspondence and documents to be addressed to:

 

for the MANAGERS

for the CONCESSIONAIRE

Dr. med. Werner Kalbfleisch

Kirchstraße 7

D-89195 Staig / Germany

Phone: --49-7346-436

Fax: --49-7346-407

Mail: kalbfleisch@cruiseship.li

 

 

 

Article 15

Termination of the agreement

 

1. The Managers may by notice to the Concessionaire terminate this Contract with immediate effect upon the happening of any of the following events:

 

a.The Concessionaire is declared bankrupt or insolvent.

 

b.The Concessionaire attempts to assign or transfer this contract to another party, except
its own or associated companies.

 

c.The Concessionaire commits a material breach of any of his obligations as per this
contract and fails to remedy such breach within thirty (30) days of receipt of the Managers' written notice specifying such breach.

 

d.After

- lay-up of the Vessel

- Sale of the Vessel

- Repairs of an expected duration of over two (2) months to the Vessel

- Total or constructive total loss of the Vessel

- In case of bareboat charter to a different company.

 

2.In case the immediate effect was caused by the Concessionaire negligently, especially in
accordance with section 1.c) of this Article the Concessionaire has to compensate all and any damages which will occur due to the termination to the Managers.

 

3.The Concessionaire may by notice to the Managers terminate this contract with immediate effect upon the happening of any of the following events:

 

a.The Managers are declared bankrupt.

 

b.The Managers commit a material breach of any of their obligations set out in this
agreement and fail to remedy such breach within thirty (30) days of receipt of the Concessionaire's written notice specifying such breach.

 

4.An advance notice of thirty (30) days minimum is required on the above mentioned points.

 

If the charter is terminated, this Agreement shall be subject to the same termination period as per charter agreement. In such case the Managers will notify the Concessionaire immediately.

 

5.In case the immediate effect was caused by the Managers negligently, especially in accordance with section 3.b of this Article, the Managers have to compensate all and any direct damages which will occur due to the termination to the Concessionaire.

 

In case the immediate effect was caused by the Managers in accordance with section 1.d) the repatriation costs are on the account of the Managers.

 

Article 16

Validity

 

1.This agreement comes into effect on ................

The Concessionaire's Staff has to be on board and start their services on .........

2.The agreement will be valid for 24 months plus or minus 15 days before/after the relevant contractual termination date in order to allow the Vessel to perform its then current contractual commitments. The agreement will be automatically prolonged afterwards on a two year basis, provided that no notice of termination has been given to the other party, not later than three (3) months before the end of the agreed period.

 

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