SHARED OWNERSHIP AGREEMENT

This agreement is made on the ******

(the "Agreement Date")

between

[need to name the owners here]

IT IS HEREBY AGREED THAT:

1. The subject of this agreement shall be a narrow boat known as **BOAT**, hereinafter referred to as "the boat ".

2. .[need to specify who owns what bit of the boat]

3. This agreement supersedes all previous agreements between the owners, and it is understood

that all the owners have terminated their agreements with Ownerships Ltd.

4. Not used.

5. The term of this agreement shall be for an indefinite period.

5a. The agreement may be terminated by the Owners [need to specify how the agreement is to be terminated]

USE OF THE BOAT

6. Each complete year during the duration of the agreement, the Owner shall be entitled to use the boat for a minimum period of [[need to specify how log each owner has] weeks. The procedure for selecting these weeks is as set out in Schedule 1 to this agreement headed "Booking Arrangements" or as otherwise agreed by the Owner in concert with all other Owners of the boat.

7 Not used.

8. Not used

9. Not used

OBLIGATIONS OF THE OWNERS

10. `When using this boat, the Owner shall ensure that he or she and all those on the boat observe the "Code of Conduct" set out in Schedule 2 to this agreement. The Owner shall draw the attention of everyone on the boat to the Code of Conduct. A copy of the Code of Conduct shall be kept on the boat and not removed therefrom.

11. Not used

SINKING FUND

12. The Owners will operate a sinking fund in respect of the boat. Payments will be made from the sinking fund in respect of the boat as set out in Schedule 4 to this agreement headed "Sinking Fund"..

13. The Owners shall by 31st December in each year during the currency of this agreement agree a breakdown of the expenditure out of and payments into the sinking fund for the twelve month period ending on 30th September of the same year. Individual items of payment of less than £25.00 need not be separately itemised. The balance standing in the sinking fund at the end of that period shall further be agreed.

14. The Owners shall fix the level of payments into the sinking fund such that the estimated amount in the sinking fund at the year end shall be £1000.

15. On the sale of the boat, any surplus in the sinking fund will be divided amongst the Owners in accordance with their respective shares in the boat. Any deficit will be deducted from the proceeds of the sale of the boat.

16. In the event of any payments being necessary in the upkeep of the boat that exceed the amount currently available in the sinking fund, the Owners will contribute additional single contributions to the sinking fund to cover these payments. In such an event, there must be the agreement of the clear majority of all the Owners of the boat prior to collecting these contributions and making these payments, as set out in schedule 4 to this agreement.

17. The Owner shall pay an annual sum into the sinking fund at the beginning of each complete year during the currency of this agreement, such sum being calculated in accordance with the size of the owner's share. The amount of this payment is as defined in Schedule 4 to this agreement.

18. Not used

19. Not used

EXCLUSIONS

20. The Owners will use reasonable endeavours to operate the shared ownership scheme in the mutual interests of all the Owners in the boat.. [need to define these circumstances] a proportion of the Owner's sinking fund contribution for the current year will be returned to the Owner. This proportion will be calculated as the contribution for the current year divided by the minimum number of weeks available to the Owner as set out in clause 6 multiplied by the number of previously booked weeks that the boat is not available to the Owner. These refunds shall be the sole remedy of the Owner in respect of non-availability.

21. The Owners collectively will not accept any responsibility for any loss or damage arising during the use of the boat. In the event of any guest or member of the family of the Owner making any claim against the Owners, the Owner will provide the other owners with a full indemnity .

DEFAULT

22. All sums due but not paid from the Owner to the Sinking Fund shall bear interest at the rate of 4% pa above Barclays Bank base rate to be calculated from day to day until payment is made.

23. If the Owner is in breach of any of the terms of this agreement, including the Code of Conduct and other schedules, the Owner shall pay to the Sinking Fund the full cost of remedying the breach together with its costs, legal and otherwise, of recovery against the Owner. In particular if the conduct of the Owner has been such as to prevent or restrict the availability or amenity of the boat for the benefit of other Owners, the Owner will pay all the costs incurred in making suitable arrangements for the benefit of other Owners.

SUSPENSION OR TERMINATION OF THE USE OF THE BOAT

24. In the event that any default in payment of any sum due to the Sinking Fund from the Owner continues beyond 14 days, the Owner shall lose the right to use this until the outstanding amount together with interest is paid.

25. Without prejudice to the preceding clause, if the Owner or member of his or her family or his or her guest

a) either wilfully or negligently causes damage or injury to the boat or to the mooring adjacent to the boat or to any person or property on the boat.

b) is in serious breach of the Code of Conduct or other terms of this agreement or, after due warning, persists in such breach

c) behaves in an anti-social manner towards other Owners of this or other boats

then the other owners by written notice addressed to the Owner may suspend or terminate or subject to conditions the right to use this boat. In serving such a notice, the other owners shall give their reasons but shall not be liable to the Owner for any inaccuracy in the reasons provided the reasons reflect the genuine belief of the other owners.

26. Within one month after receipt of the notice, the Owner may appeal to the other Owners in writing against the terms of this notice. The appeal procedure shall be as set out in Schedule 5 of this agreement entitled "Appeal Procedure"

27. If a majority of the Owners agree to vary or set aside a notice, the notice shall be varied or set aside accordingly. The notice served by the other owners shall take effect until the outcome of any appeal is ascertained. Service of a notice does not terminate this agreement and the Owner will continue to be liable hereunder.

ASSIGNMENT

28. The Owner may assign his interest under this agreement including his share in the proceeds of sale of the boat to any other person with the consent of the other owners, which consent is not to be unreasonably refused in the light of the interests of other Owners. An administration fee of œ25.00 shall be paid to the Sinking Fund on assignment.

SALE OF THE BOAT and DISTRIBUTION OF THE PROCEEDS

29. If agreed by a clear majority of all of the Owners of the boat, the owners shall offer the boat for sale immediately following the termination date of the Agreement. The owners shall use their best endeavours to obtain the best price for the boat in accordance with prevailing market conditions. Out of the gross proceeds of sale shall be paid all the expenses of sale, any independent broker's sale commission where applicable, and any deficit on the sinking fund as at the termination date. The owner shall then be paid that proportion of the resulting net proceeds as is specified at clause 3 herein less any sum that may be payable by the Owner to the Sinking Fund as compensation for any breach of the agreement.

30. Prior to the offering for sale of the boat on the open market in accordance with paragraph 29 hereof, each Owner shall be granted the option to purchase the boat or such shares thereof as may be for sale; the price thereof to be determined by the owners in accordance with prevailing market prices at the time of such sale. The Company shall notify the Owner of the proposed sale price and available shares no later than five calendar months before the due termination date as defined in clause 5 herein, following which each Owner shall inform the other owners within two calendar months if they wish to make a purchase.

31. In the event that the procedures described in paragraph 30 above are followed and that all available shares of the boat are thus assigned to existing Owners in a manner agreeable to each, the agreement will continue with the new owners.

32. Not used

32. Not used

34. In the event that shares of the boat remain unassigned after the procedures in paragraph 30 hereof have been followed, then the ownerwill offer these shares on the open market. If shares of the boat still remain at the due termination date as defined in clause 5 hereof, the Ownerswill offer the boat for sale on the open market in accordance with paragraph 29 hereof.

Signed by the Owners

Names: ____________________________________________

SCHEDULE 1 - BOOKING ARRANGEMENTS

1 For the purposes of this agreement, a booking period may be a number of weeks where a week is defined as being from 3.00pm Friday to 9.30 am on the following Friday except in such circumstances where the boat is to be passed from one Owner to another at a pre-arranged location other than at its designated mooring site as defined in Schedule 3 of this agreement, in which case the end of the period is taken to be at mid-day rather than at 9.30am.

2. The order of priority employed in the booking procedure is based on fifth shares of the boat, each Owner being the holder of one or more fifth shares or else a part thereof. The priority given to each fifth share will be reassigned at the beginning of each complete year over the period of this agreement in the manner indicated by the following chart, where the holder of the first fifth share or part thereof is called A, the holder of the second is called B and so on. The letter assigned to the Owner is as agreed with the other Owners. This letter may be exchanged with that of another Owner of the boat by mutual agreement. The priority numbers are referred to in the paragraphs below, where 1 denotes the highest priority. The priorities used in the 1st year are then repeated in the 6th year, and the cycle is then repeated

Year 1st 2nd 3rd 4th 5th

A 1 5 4 3 2

B 2 1 5 4 3

C 3 2 1 5 4

D 4 3 2 1 5

E 5 4 3 2 1

2a Where a one fifth share is divided between two Owners, the priority applied to the bookings of each tenth share shall be alternated each year. Where such a one tenth share is divided between two or more Owners, the priority applied to the bookings of each within that tenth share shall be agreed by the Owners.

3. Not used

4. Not used

5. Not used

6. All weeks are available to all Owners.

7 Bookings may be made of any weeks of the year subject to the normal booking procedures described in this schedule

8. From 1st October preceding each complete year, each Owner will book up to half of their allocated weeks out of the following year during which he or she will require the use of the boat. Proposed bookings of such weeks will be agreed by the Owners in writing up until and including 30th November The order of priority applied to these bookings will be as indicated by the numbers in clause 2 of this schedule. The Company shall then invite the Owner to book their remaining weeks out of the following year. Proposed bookings of these further weeks will be accepted by the Company in writing up until and including 30th December. The order of priority applied to these bookings will be the opposite of those indicated by clause 2 of this schedule. The total number of weeks booked in this way will not exceed 40. Written confirmation or otherwise of such bookings will be sent to the Owner as soon as possible within the constraints of the priority system. No bookings will be accepted in this manner from any parties other than the Owners of this boat.

SCHEDULE 2 - CODE OF CONDUCT

1. The conditions set out in this schedule shall apply equally to the use of the boat by the Owner and by any person or persons appointed by the Owner to enjoy such use.

2. The Owner shall not attempt to access the boat other than by following the appropriate procedures set out in Schedule 1 to this agreement or as otherwise agreed with the other Owners.

3. The Owner shall return the boat to its designated mooring site, as defined in Schedule 3 to this agreement, at the end of a period of use, unless other arrangements have been specifically agreed with the Owners.

4. The Owner shall return the boat at the end of a period of use in the same condition as that in which it was found save only for the effects of reasonable wear and tear through its usage. In particular, the Owner shall return the boat with a full tank of fuel, an empty or virtually empty lavatory waste holding tank, and sufficient water in the water tank(s) to enable the next user to reach a suitable source of replenishment without suffering a shortage. In addition, the Owner shall replace any empty gas bottle with a full bottle of similar size.

5. The Owner shall also clean all cutlery, crockery, glassware, and domestic equipment on board, as well as clearing any dirt from all interior surfaces and from those exterior surfaces that are above the water line.

6. The Owner shall exercise his or her best endeavours to ensure that no damage or loss of equipment is suffered by the boat, and also that no damage or loss is suffered by any third party as a result of the use of the boat. In the event of such loss or damage being suffered, the Owner shall immediately note down the appropriate details in the boat's log, along with the details of any witnesses to the event in which loss or damage was suffered. The Owner shall then send a copy of these details to the other owners.

7. The Owner shall not wilfully cause any loss or damage of any kind to be suffered by any other Owner.

8. The Owner shall be aware of and adhere to the various regulations and by laws in force from time to time restricting the use of the inland waterways system, and to give adequate consideration at all times to the safety of the boat, its passengers, and any other party who might suffer the effects of the boat's presence.

9. The Owner shall manoeuvre the boat only in those waterways designated by the boat's current cruising licence.

10. The Owner shall, on a daily basis, adhere to the procedures set out in the boat's user manual.

11. The Owner shall not hire out the use of the boat to any other party.

SCHEDULE 3 - OBLIGATIONS OF THE OWNERS ACTING TOGETHER

1. The Owners shall arrange for the boat to be comprehensively insured, including protection against claims by any third party for amounts of up to £1,000,000 .

2. The Owners shall arrange for the boat to be licensed for cruising on those inland waterways that are managed by British Waterways. In addition, on the request of any Owner, the Owners will arrange for appropriate licences to be issued for the boat to cruise on other inland waterways.

3. The Owners shall, , arrange for the boat to be moored at a secure mooring site, and further arrange for appropriate mooring fees to be paid. This "designated" mooring site may be changed from year to year by agreement

4. The Owners shall arrange for the boat to satisfy British Waterways' standards of compliance as published from time to time.

5. The Owners shall set aside a period of weeks or part weeks each year during which regular maintenance is to be carried out on the boat, such period to be no greater than reasonably necessary in order for such works to be completed.

6. The Owners shall arrange for preventative maintenance and servicing of the boat and its integral parts to be carried out annually by an appointed firm of reputable Marine Engineers.

7. The Owners shall arrange for assistance to be summoned by the Owner in the case of a "breakdown". For the purposes of this agreement, a breakdown is defined as a malfunction of the boat or of one or more of its integral parts resulting in reasonable enjoyment of the boat's use being adversely affected or else a potential hazard being created that may endanger the boat's users. A breakdown is also defined as not being the exhaustion of stocks of fuel, gas, or water; nor a lack of lavatory facilities being available resulting directly from such facilities being left unemptied; nor a malfunction of the television or audio equipment on board.

8. not used

SCHEDULE 4 - SINKING FUND

1. The Owner shall make a contribution into the sinking fund applicable to the boat on or before 1st January each year during the term of this agreement.

2. The amount of the "standard" annual contribution into the sinking fund for each year will be calculated in the light of the previous year's expenditure such that after taking into account foreseeable expenditures in the year ahead, and after providing contingencies for unforeseeable expenditures, the predicted balance at the year end will be £1000.00.

3. Not used

4. Not used

5. The Owners shall make payments from the Sinking Fund directly applicable to the boat for the boat's benefit and for the benefit of its users. These may include payments to the providers of the following services to the boat:

· A suitable mooring.

· An appropriate cruising licence.

· Insurance protection.

· Maintenance and repairs.

· Breakdown recovery.

· Marine surveying.

· Brokerage services provided towards the sale of the boat.

6. Notwithstanding clause 12 of this agreement, the Owners shall obtain the consent of the majority of the Owners of the boat before making payments for any other items. In such an event, the Owners will collect additional single contributions to be made by the Owner into the sinking fund to cover these payments.

7. Not Used