The Old OwnerShips Share Agreement
SHARED OWNERSHIP AGREEMENT
Please find below a specimen of the Shared Ownership Agreement that is signed by each of the participants in the OwnerShips scheme. This one is for a share in a new narrow boat.Where there are XXXX-s, specific figures are inserted according to the particular share chosen when we send you a "live" Agreement - IF you decide to proceed further.
(Note: This page is not linked from any other page on our web site, if you feel that you may wish to return to this section you should make a note of the page address).
If you would like to see a copy of the equivalent specimen Agreement for a share of a new Dutch barge - with additional facilities for holiday exchanges, "cash back, etc., - please click here.
SHARED OWNERSHIP AGREEMENT
This agreement is made on the __ (day) of _______(month) ____(year) (the "Agreement Date")between
hereinafter referred to as "the Part Owner"
of 39 Westminster Drive
London N13 4NT
hereinafter referred to as "the Company".
IT IS HEREBY AGREED THAT:
1. The subject of this agreement shall be a narrow boat known as "XXXX", hereinafter referred to as "the boat". An inventory of the furniture and fittings to be supplied with the boat will be provided on request.
2. On signing this agreement, the Part Owner has paid a deposit of £XXXX. On or before each of the first days of XXXX, XXXX, and XXXX, a further £XXXX will be paid by the Part Owner to the Company.
3. On payment of the sums specified in clause 2 above, the Part Owner will become the owner of a XXXX equitable share in the boat. The boat will at all times be held by the Company upon trust for the Part Owner and other like Part Owners.
4. The Company will have the right, for any reason, to cancel this agreement within one month after the date the Part Owner has paid the sums referred to in clause 2. If the Company exercises the right of cancellation, all sums paid by the Part Owner to the Company will forthwith be repaid together with reasonable interest and neither party shall have any further liability to the other under the agreement.
5. Not withstanding clauses 5a and clauses 35 to 38 hereof the term of this agreement shall be from the agreement date as above until 31st December XXXX ("the termination date").
5a. The duration of this agreement shall be capable of being extended by a further period of six years provided that the Part Owner in concert with all other Part Owners of the boat consent to such extension; such consent to be given in writing to the Company no later than six calendar months before the due termination date.
USE OF THE BOAT
6. Each complete year during the term of the agreement, the Part Owner shall be entitled to use the boat for a minimum period of XXXX weeks. The procedure for selecting these weeks is as set out in Schedule 1 to this agreement headed "Booking Arrangements". The boat will first be available for use from XXXX. During the first incomplete year, the Part Owner shall be entitled to use the boat for a minimum period of XXXX weeks.
7. Further periods may be booked for use of the boat over and above the minimum period referred to in clause 6 according to the boat's availability. The procedure for selecting these weeks is also set out in Schedule 1 to this agreement.
8. The Company has or intends to enter into similar Shared Ownership schemes in respect of other boats. The Part Owner is entitled to book periods of time on other boats subject to similar schemes by following the procedure set out in that part of Schedule 1 to this agreement that relates to "Booking Other Boats".
9. Just as the Part Owner is to have rights to book periods of time on other boats subject to similar Shared Ownership schemes, so other Part Owners participating in such arrangements will have like rights to book periods of time on this boat in accordance with the reciprocal access arrangements set out in Schedule 1 to this agreement.
OBLIGATIONS OF THE PART OWNER
10. When using this boat, or another boat subject to a similar scheme, the Part 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 Part 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. The Company reserves the right to amend or add to the Code of Conduct in the interests of the boat, other Part Owners, legal requirements, or the environment.
OBLIGATIONS OF THE COMPANY
11. The Company has the obligations in respect of the upkeep and availability of the boat as set out in Schedule 3 to this agreement headed "Obligations of the Company".
12. The Company 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". The Company has the right to make further payments out of the fund if the Company considers it reasonable in the interests of the upkeep or the amenities or the availability of the boat.
13. The Company shall give to the Part Owner by 31st December in each year during the currency of this agreement 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 disclosed.
14. The Company 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 £500.
15. On the sale of the boat, any surplus in the sinking fund will be divided amongst the Part 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 Company will collect additional single contributions to be made by the Part Owner into the sinking fund to cover these payments. In such an event, the Company will obtain the agreement of the clear majority of all the Part Owners of the boat prior to collecting these contributions and making these payments, as set out in schedule 4 to this agreement.
17. The Part 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 part owner's share. The amount of this payment is as defined in Schedule 4 to this agreement.
18. In the initial incomplete year, the Part Owner shall pay an amount pre-set by the Company into the sinking fund as set out in Schedule 4 to this agreement.
PAYMENT FOR USE OF OTHER BOATS
19. If the Part Owner books another boat, the Part Owner will have to pay charges as set out and in accordance with Schedule 1 to this agreement headed "Booking Other Boats". Other Part Owners participating in like schemes in respect of other boats will have to pay like charges for the use of this boat. These charges will be credited to the sinking fund applicable to this boat.
20. The Company will use reasonable endeavours to operate the shared ownership scheme in the mutual interests of all the Part Owners in the boat. However the Company accepts no liability if for any reason the boat is not available to any Part Owner during any period other than in the event that such non-availability has arisen directly from the actions of the Company or any of its agents or employees. In this latter event a proportion of the Part Owner's sinking fund contribution for the current year will be returned to the Part Owner. This proportion will be calculated as the contribution for the current year divided by the minimum number of weeks available to the Part Owner as set out in clause 6 multiplied by the number of previously booked weeks that the boat is not available to the Part Owner. These refunds shall be the sole remedy of the Part Owner in respect of non-availability.
21. The Company will not accept any responsibility for any loss or damage arising during the use of the boat save in the event of injury to persons arising directly through the negligent act or default of the Company or its employees or agents. In the event of any guest or member of the family of the Part Owner making any claim against the Company, the Part Owner will provide the Company with a full indemnity save in the event of injury being caused through the negligent act or default of the Company or its employees or agents.
22. All sums due but not paid from the Part Owner to the Company 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 Part Owner is in breach of any of the terms of this agreement, including the Code of Conduct and other schedules, the Part Owner shall pay to the Company the full cost of remedying the breach together with its costs, legal and otherwise, of recovery against the Part Owner. In particular if the conduct of the Part Owner has been such as to prevent or restrict the availability or amenity of the boat for the benefit of other Part Owners, the Part Owner will pay all the costs incurred in making suitable arrangements for the benefit of other Part 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 Company from the Part Owner continues beyond 14 days, the Part Owner shall lose the right to use this boat or any other boat in any similar scheme until the outstanding amount together with interest is paid.
25. Without prejudice to the preceding clause, if the Part 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 Part Owners of this or other boats
then the Company by written notice addressed to the Part Owner may suspend or terminate or subject to conditions the right to use this boat or any other boat in any similar scheme. In serving such a notice, the Company shall give its reasons but shall not be liable to the Part Owner for any inaccuracy in the reasons provided the reasons reflect the genuine belief of the Company.
26. Within one month after receipt of the notice, the Part Owner may appeal to the other Part 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" but shall be under the general control of the Company who acting bona fide may vary the procedure in any particular instance as the Company may think fit.
27. If a majority of the Part Owners agree to vary or set aside a notice, the notice shall be varied or set aside accordingly. The notice served by the Company shall take effect until the outcome of any appeal is ascertained. Service of a notice does not terminate this agreement and the Part Owner will continue to be liable hereunder.
28. The Part 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 Company, which consent is not to be unreasonably refused in the light of the interests of other Part Owners. An administration fee of £25.00 shall be paid to the Company on assignment.
SALE OF THE BOAT and DISTRIBUTION OF THE PROCEEDS
29. If so instructed by a clear majority of all of the Part Owners of the boat, the Company shall offer the boat for sale immediately following the termination date of the Agreement. The Company shall use its best endeavours to obtain the best price for the boat in accordance with prevailing market conditions. The Company on sale of the boat shall be paid a sales commission equal to 5% of the gross proceeds of sale unless the Company selects to appoint an independent broker to arrange the sale on its behalf. Out of the gross proceeds of sale shall be paid all the expenses of sale, the Company's sale commission where applicable, and any deficit on the sinking fund as at the termination date. The part 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 Part Owner to the Company 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, the Part 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 Company in accordance with prevailing market prices at the time of such sale. The Company shall notify the Part 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 the Part Owner shall inform the Company within two calendar months if he wishes 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 Part Owners in a manner agreeable to each, the Company's sales commission as set out in paragraph 29 shall not apply.
32. If a clear majority of the newly assigned Part Owners of the boat wish to terminate their agreements with the Company then these agreements shall be terminated; otherwise the terms of the existing agreements shall each be extended for a further six years not withstanding clause 33 below.
33. If all of the newly assigned part owners of the boat wish to extend the terms of their agreements by a period of less than six years, the length of which has been agreed between them all, then the Company shall not unreasonably refuse to extend each agreement for this length of time.
34. In the event that shares of the boat remain unassigned after the procedures in paragraph 30 hereof have been followed, then the Company will 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 Company will offer the boat for sale on the open market in accordance with paragraph 29 hereof.
TERMINATION OF THE AGREEMENT AFTER ONE YEAR
35. If, before eleven months have expired following the date on which the boat is first made available, as defined in paragraph 6 herein, at least 75% of all part owners of the boat inform the Company by letter that they wish to arrange a termination of this agreement, then this agreement will be terminated immediately after twelve months have expired from the same date.
36. In this event, the Company and the part owner, along with other part owners of the boat will enter into negotiations prior to the termination with a view to the formulation of a new agreement involving the administration of the boat.
37. If these negotiations are inconclusive, and this agreement is duly terminated at the end of the twelfth month, the Company will have no further obligations to the part owner after that time, and the Company's position as trustee of the boat will cease.
38. In the event of a termination being made as above, the Company will pass any surplus that exists in the sinking fund to the part owner, the amount paid being in direct proportion to the size of share held by the part owner. Alternatively, the part owner together with other part owners of the boat will reimburse the Company for any deficit in the sinking fund by making a payment to the Company also calculated in proportion to the size of share held. In either case, the Company will provide the part owner with a copy of the records of moneys credited to and debited from the sinking fund during the first twelve months.
Signed by the Part Owner
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Signed on behalf of the Company
1. For the purposes of this agreement, a booking period may be a number of weeks or part weeks or a combination of the two where a week is defined as being from 3.00pm Friday to 9.30 am on the following Friday and a part week is defined as being either from 3.00pm Friday to 9.30am on the following Monday or from mid day Monday to 9.30am on the following Friday except in such circumstances where the boat is to be passed from one Part 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. Also for the purposes of this agreement, a "High Season" week is defined as one in which the start day falls in one of the months between April and September inclusive, the remaining weeks of the year being defined as "Low Season" weeks.
2. The order of priority employed in the booking procedure is based on sixth shares of the boat, each Part Owner being the holder of one or more sixth shares or else a part thereof. The priority given to each sixth 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 sixth share or part thereof is called A, the holder of the second is called B and so on. The letter assigned to the Part Owner is as agreed with the Company when the payments referred to in the second clause of paragraph 2 of this agreement are received. This letter may be exchanged with that of another Part Owner of the boat by mutual agreement. The priority numbers, bracketed and otherwise, are referred to in the paragraphs below, where 1 denotes the highest priority.
1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year
A 1 (6) 6 (1) 5 (2) 4 (3) 3 (4) 2 (5)
B 2 (5) 1 (6) 6 (1) 5 (2) 4 (3) 3 (4)
C 3 (4) 2 (5) 1 (6) 6 (1) 5 (2) 4 (3)
D 4 (3) 3 (4) 2 (5) 1 (6) 6 (1) 5 (2)
E 5 (2) 4 (3) 3 (4) 2 (5) 1 (6) 6 (1)
F 6 (1) 5 (2) 4 (3) 3 (4) 2 (5) 1 (6)
2a. Where a one sixth share is divided between two Part Owners, the priority applied to the bookings of each within that sixth share shall be alternated by the Company each year.
3. Within this priority system, the Part Owner may apply to the Company for "special" status in any year during the term of this agreement. Such applications may be made at or prior to the time of making the bookings described in paragraph 8 in this schedule, and will apply only to these bookings. "Special" status, once accepted by the Company, will continue to apply for the full term of this agreement unless the Part Owner instructs the Company that this status is no longer required.
4. The Company will accept applications for "Special" status as they are received. However, the Company will set a limit on the number of applications it accepts such that no more than a quarter of the boat may be owned by Part Owners having "Special" status in any one year.
5. If the Part Owner has "Special" status in the current year, he/she may book weeks within the procedure described in paragraph 8 in this schedule that include the following:-
a) The two weeks surrounding Easter.
b) The week that includes the last Monday in May.
c) All weeks where all or part fall within the month of August.
d) The first complete week in September.
e) The last complete week in July.
f) A "half term" week in the Autumn term.
g) A "half term" week in the Spring term.
h) The week including Christmas
i) The week including New Year's Day
If more than one Part Owner of the boat has "Special" status in the current year, bookings amongst "Special" Part Owners will be confirmed according to the current priority ratings as defined in paragraphs 2 and 2a in this schedule.
6. If the Part Owner does not have "Special" status in the current year, he/she may book the weeks defined in the preceding paragraph within the procedure described in paragraph 8 in this schedule only after those having "Special" status have made their selections within this procedure. Otherwise, all weeks are available to all Part Owners.
7. If none of the Part Owners of the boat has "Special" status in the current year, paragraphs 5 and 6 of this schedule will not apply, and 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, the Company shall invite the Part Owner to book up to XXXX weeks of which no more than XXXX may be in the High Season out of the following year during which he or she will require the use of the boat. Proposed bookings of such weeks will be accepted by the Company in writing up until and including 30th November from those Part Owners whose current priority numbers lie between 1 and 3 inclusive and up until and including 31st December from other Part Owners of this boat. The total number of weeks booked in this way will not exceed 36. The order of priority applied to these bookings will be as indicated by the unbracketed numbers in clause 2 of this schedule. Written confirmation or otherwise of such bookings will be sent to the Part Owner by the Company 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 Part Owners of this boat.
9. In addition, from 1st January onwards, the Part Owner may book one or more weeks in which he or she will require the use of the boat during the month two months hence from the month in which the booking is being made. eg. Bookings for the use of the boat in April may be made during February, etc. These bookings are subject to the availability of the boat after the bookings in clause 8 of this schedule have been made. The order of priority applied to such bookings will be as indicated by the bracketed numbers in clause 2 of this schedule. Written confirmation of successful bookings made in this way will be sent to the Part Owner by the Company as soon as possible within the constraints of the priority system. Any proposed bookings made in this manner by the Part Owners of other boats subject to similar schemes will each be allocated a priority number of 7, and considered on a "First come first served" basis. Any proposed bookings made in the manner described in this clause are subject to the priority restriction set out in clause 11 of this schedule.
10. At any time the Part Owner may book one or more weeks or part weeks for the use of the boat in the current or following month. These bookings are subject to the availability of the boat after the bookings in clauses 8 and 9 of this schedule have been made. The order of priority applied to such bookings will be based on a system of "First come first served". Written confirmation of successful bookings made in this way will be sent to the Part Owner by the Company as soon as possible. Bookings will also be accepted in this way from the Part Owners of other boats subject to similar schemes and such bookings will be granted equal priority with those from the Part Owners of this boat. Any proposed bookings made in the manner described in this clause are subject to the priority restriction set out in clause 11 of this schedule.
11. For proposed bookings of weeks or part weeks that fall into the months of January and February, priority will be given to those bookings made in the manner described in clause 8 of this schedule.
BOOKING OTHER BOATS
12. The Company shall set, from year to year, two figures in pounds specific to this boat and other similar pairs of figures specific to other boats subject to similar schemes, the first of these figures being approximately equal to half of the average commercial weekly hire fee for an equivalent boat during an average high season week, and the second being the same for an average low season week. These figures, hereinafter referred to as the "ratings" of the boat shall be an approximate average of those published by the major boat hire agencies operating in the UK.
13. The Part Owner may book one or more weeks or part weeks on other boats subject to similar schemes in the manner set out in clause 10 of this schedule.
14. The Part Owner shall pay to the Company at least 14 days prior to the commencement of a particular period of use booked the full rating multiplied by the period of use booked less any deposit already paid, unless other arrangements for payment have been agreed with the Company.
CODE OF CONDUCT
1. The conditions set out in this schedule shall apply equally to the use of the boat that is the subject of this agreement and to the use of other boats subject to similar schemes, by the Part Owner and by any person or persons appointed by the Part Owner to enjoy such use.
2. The Part Owner shall not attempt to access the boat other than by following the appropriate procedures set out in Schedule 1 to this agreement.
3. The Part 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 Company.
4. The Part 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 Part 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 Part Owner shall replace any empty gas bottle with a full bottle of similar size.
5. The Part 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 Part 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 Part 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 Part Owner shall then send a copy of these details to the Company.
7. The Part Owner shall not wilfully cause any loss or damage of any kind to be suffered by any other Part Owner in the scheme nor by the Company.
8. The Part 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 Part Owner shall manoeuvre the boat only in those waterways designated by the boat's current cruising licence.
10. The Part Owner shall, on a daily basis, adhere to the procedures set out in the boat's user manual.
11. The Part Owner shall not hire out the use of the boat to any other party.
OBLIGATIONS OF THE COMPANY
1. The Company 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 Company 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 the Part Owner, the Company will arrange for appropriate licences to be issued for the boat to cruise on other inland waterways.
3. The Company shall, on instructions from the Part Owner in concert with all the other Part Owners of this boat, 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 on further instructions from the Part Owner in concert with all the other Part Owners of this boat.
4. The Company shall arrange for the boat to satisfy British Waterways' standards of compliance as published from time to time.
5. The Company 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 Company 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 Company shall arrange for assistance to be summoned by the Part 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. The Company shall provide access by telephone to the booking service by the Part Owner during normal office hours.
1. The Part 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. The "standard" initial contribution is calculated to be £XXXX (see paragraph 3 below), payable on or before XXXX.
2. The amount of the "standard" annual contribution into the sinking fund for each subsequent 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 £500.00.
3. The Part Owner shall pay variations of the "standard" contributions defined in the preceding two paragraphs as follows: If the Part Owner has "Special" status in the current year or incomplete year, he/she shall pay a contribution into the sinking fund calculated to be 125% of the "standard" rate. If one or more other Part Owners of the boat has/have "Special" status in the current year or incomplete year, but the Part Owner does not, he/she shall pay a contribution into the sinking fund that is less than the "standard" rate, this amount being calculated, in proportion to the size of the Part Owner's share, such that the total of all contributions from all Part Owners is the same as if none of the part owners of the boat had "Special" status.
4. If none of the Part Owners of the boat has "Special" status in the current year, the Part Owner shall pay the "standard" contribution into the sinking fund.
5. The Company 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.
Maintenance and repairs.
Brokerage services provided towards the sale of the boat.
Management of the shared ownership scheme.
6. Not withstanding clause 12 of this agreement, the Company shall obtain the consent of the majority of the Part Owners of the boat before making payments for any other items.
In such an event, the Company will collect additional single contributions to be made by the Part Owner into the sinking fund to cover these payments.
7. During the first twelve months following the date when the boat is first available, as defined in paragraph 6 of this agreement, the Company shall not make any payments from the sinking fund into its own funds for the provision of its services. From the thirteenth month onwards during the term of this agreement, the total amount paid from the boat's sinking fund to the Company for its services has been set at £250.00 plus VAT per month. This payment may be made annually and may only be adjusted in line with the proportionate increase or decrease in prices as reflected by the retail prices index (or any similar index as the Company may select if that index is no longer published).
1. If a Part Owner wishes to appeal from a notice served under clause 25 of this agreement, the following procedure shall apply.
2. The Part Owner may apply within 2 weeks of the date of the notice to the Company for a meeting with an officer of the Company in relation to the notice. The meeting shall be held as soon as possible at a time and place that the Company shall reasonably select. It is open to the Company in its absolute discretion as a consequence of the meeting to revoke the notice or modify it in favour of the Part Owner.
3. Within 4 weeks of the date of the notice, the Part Owner may serve on the Company written grounds of objection to the notice. Within 1 week the Company may serve a reply thereto on the Part Owner and within 3 days of the receipt of this reply the Part Owner may serve a rejoiner on the Company.
4. Within 2 weeks from the date of receipt of the Part Owner's grounds of objection the Company shall send to each Part Owner of the boat:
a) a copy of the notice served under clause 25 of the agreement
b) a copy of the notes, if any, of any meeting held pursuant to clause 2 of this schedule
c) a copy of the Part Owner's grounds of objection, any reply by the Company and any rejoiner thereto
d) a letter inviting the Part Owners to express a view in writing as to whether the notice served pursuant to clause 25 should be upheld, modified in favour of the Part Owner, or set aside, the other Part Owners to give their views in writing to the Company within 7 days of receipt of the letter.
5. In the event that a clear majority of other Part Owners excluding the Part Owner on whom notice under clause 25 was served wish to set aside and/or modify the notice in favour of the Part Owner, the notice shall be set aside or modified accordingly. The Part Owner shall have the right to scrutinise the replies received from the other Part Owners. In the event that any of the views expressed by any of the other Part Owners are ambiguous or otherwise unclear or unknown, the Company may in its absolute discretion seek further clarification from the other Part Owners. The Company's decision in relation to the outcome of the appeal procedure shall be final.