GENERAL TERMS AND CONDITIONS

(hereinafter: General terms)

Version 1.

Compliant from 20.11.2019

INTRODUCTION

Article 1

Rona trade d.o.o. (Ltd.) with headquarters at Opatija, Nova cesta 119, is a company registered with the Commercial Court in Rijeka under company registration number: 040054456, OIB: 39217415068 (hereinafter: RONA), which has a total of IT, technical, intellectual solutions and services for accommodation management under the name "HOSTA package", which it markets according to the regulations of the Contract on cooperation in the provision of accommodation services and other services (Croatian “Ugovora o suradnji u pružanju usluga smještaja i drugih usluga”) and these General Terms, and is registered and licensed to provide all the services of the travel agency to which these General Terms apply. (Art. 12, par. 1, item 6, item 13, item 14, of the Law on Provision of Services in Tourism NN 130/2017 ,, 25/19; further: ZOPUT – Zakon o pružanju usluga u turizmu)

The "HOSTA Package" is a set of actions by a travel agency provides solutions to the Rental owner’s worries regarding booking, welcoming guests, cleaning and maintaining the Accommodation while increasing the number of nights. In doing so that RONA takes the following activities:

HOSTA booking multichannel, yield management computer application for synchronized advertising of the property on all relevant online travel portals and offline agencies according to the "no guests - no fee" system,

e-reception - an application with secure electronic locks integrated into the RONA booking system that allows navigation and reception of guests 24/7 with online check-in / check-out on eVisitor platform and payment from the guest

self-issuing of the Rental owners account by RONA with the keeping of the Income Registry (Croatian “knjiga Evidencije o prometu”)

costs of online tourist portals and offline tourist subagents (VAT included)

organization of “guest change” cleaning with the rental, delivery and change of linen and towels (does NOT include the immediate cost of cleaning, washing and changing linen)

call center service that receives notifications of faults and malfunctions and organizing defect repairs, which involves ensuring the timely arrival of the “handyman” for all types of emergency interventions (does NOT include the cost of labor and materials required for the remedy of the failure)

creation and setting of price lists, House rules and navigation insignia,

Post-season inspection of the property with the purpose of identifying technical deficiencies to be remedied during the winter - at the latest by the next season’s handover,

Inspection of technical correctness and general cleaning when handing over the property,

Creating description and photographing the property.

Additional services are services/works not covered by the "HOSTA Package" but organized and/or performed (independently or by a third party) by RONA, as to complete a specific task of the Rental owner, expressly covered by the Contract or subsequently issued, and therefore separately charged the Rental owner for prices from the accepted offer or at the current prices of additional services: Price list for cleaning and linen, Price list for technical interventions.

Rental owner is any private or legal person, resident or non-resident of the Republic of Croatia, who is the holder of an authorization for providing accommodation services (Classification certificate), or who is authorized to perform the catering activity of providing accommodation services, according to the current Croatian Tourism Legislation; for whose compliance the Rental owners is held responsible at all times; concluded by the Contract on Cooperation in the Provision of Accommodation Services and Other Services with RONA, and thus became the beneficiary of the "HOSTA package".

The Contract on Cooperation in the Provision of Accommodation Services and Other Services and these General Terms and Conditions dictates the mutual relations, the manner of cooperation and the rights and obligations of RONA TRADE doo, as the provider of the “HOSTA package” services and/or other (additional) services, and the Rental owner as the User of services for your property, at a fair fee. By closing Contract with RONA, as a domestic travel agency, the Rental owner is exempted from paying fees to subagents and the associated VAT, and this becomes an obligation of RONA.

Accommodation is any accommodation unit of the Rental owner (apartment, studio apartment, room, holiday house, etc.) for which he obtained an authorization to provide accommodation services (Decision on the classification of the object) in accordance with the applicable current law (Catering Act, Classification of catering facilities, etc.).

The subagents are online and/or offline agencies mediators at home and abroad with whom RONA has entered into cooperation contract on its behalf in order to expand the sales network and improve the placement of the Accommodation (booking.com, etc.).

Own Occupancy of the Accommodation is the period of use of the Accommodation by the Rental owner, his relatives, friends, old guests within the Rental Period, subject to availability and obligated to pay “guest change” cleaning with change of linen, and occupancy no more than 15 days per season. Occupying above 15 days per season, the Rental owner negotiates directly with the RONA marketing/reservation department. In case of realization of their own occupancy, the Rental owner is responsible for signing up for eVisitor, and RONA is not responsible for the correctness of keeping the Income Registry (Croatian “knjiga Evidencije o prometu”).

The Rental Period represents the period of the current calendar year covered by the Classification Decision (referred to in Article 1 of the Contract) within which RONA places the Accommodation on the Tourist Market

The Price List of the Accommodation is an integral part of the Contract and represents the final prices of the Accommodation issued to the guest (referred to in Article 3 of the Contract), which prices are not fixed but are subject to changes (yield management) within the min-max range defined by the Contract.

No show implies the situation where a guest who has not previously canceled the reservation, nor has arrived to the accommodation.

Cancellation/Cancellation charge is a situation in which a guest cancels a reservation within the period specified by the cancellation policy, depending on the time remaining until the start of use of the service, as the proportionate payment period for the cancellation of the reservation.

Unless otherwise specified in these General Terms or the Contract, all binding communication of the Rental owner with RONA shall be in writing by email to the following addresses:

for accounting and finance financije@hosta.hr

for marketing and reservations marketing@hosta.hr

for technical interventions majstor@hosta.hr

Telephone communication of informative meaning is performed on the phone numbers:

for calculation and finance +385 51 272 338

for marketing and reservations +385 51 715 755

for technical interventions +385 51 715 208

By concluding the Contract, the Landlord expressly acknowledges that it is aware of all the provisions of these General Terms and Conditions, which, as an integral part of the Contract, represent the way RONA conducts business with the Rental owner and apply in full, unless otherwise stipulated by the Contract, that it received them in the conclusion of the Contract and that fully accepts.

HOSTA PACKAGE

Article 2

By entering into the Contract, the Rental owner becomes the User of all services covered by the "HOSTA package" under the conditions specified in the Contract and these General Terms and Conditions, as well as their daily amendments, which include:

BOOKING: (Article 12, paragraph 1, item 6 ZOPUT) implies the sale, mediation and reservation of a accommodation, which in the broad sense implies undertaking activities of the placement and promotion and the sale of the Owner’s accommodation. Moreover, activities with the purpose of advertising, reservation and sale of the Accommodation are made through the RONA website and through other agents in the country and abroad/subagents (multichannel sales) for what purpose; In its own name, RONA concludes a cooperation Contract with the subagents - thereby becoming obliged to pay the subagents a fee. When presenting the object on all sales channels, RONA bears the costs of: first visits to the property, creating descriptions, making photographs. Presentation material, photographs, texts; except those provided by the Rental owner; they are owned by RONA. The eligibility of the photos for publication is solely decided by RONA without the Rental owner's right to choose or to object to RONA's choice. By submitting own photos to RONA, the Rental owner warrants that it owns the copyrights thereof, and gives RONA, for the term of the Contract, a non-exclusive, global, irrevocable, unconditional and unlimited right to use, reproduce, display, distribute, at its sole discretion, through its own website and digital tools as well as (online/offline) subagencies, promotional materials, systems and publications.

YIELD MANAGEMENT (YIELDING): implies occasional adjustments to commercial conditions (prices and minimum days of stay) in individual terms based on monitoring the Rental owner’s accommodation and the average occupancy of its immediate competition, including actions: last-minute, first-minute, min. stay etc.

Through the Yielding service, RONA, on its own, without obligation to consult the Rental owner in advance or to make subsequent notices, adjusts the price of accommodation under the Contract, but not below the level of cost effectiveness. The rental owner is not entitled to any further objections, inquiries or requests for further clarification regarding the reason for the reduction of the price in relation to the price of accommodation from the Contract.

RECEPTION OPERATIONS: implies reception and navigation of the guest; check-in and check-out of the guest via eVisitor system, keeping the guest list, payment for accommodation, including the payment, settlement and payment of the tourist tax, self-issuing of the Rental owner's account according to RONA, keeping the Income Registry.

Navigation and reception of guests primarily entails handing over the Accommodation to and from the guests upon arrival/departure exclusively through an online or offline lock or keybox, which is decided by RONA depending on the location. Their procurement, installation and maintenance are included in the price of the "HOSTA Package" and remain the property of RONA, and the Rental owner is not responsible for theft, damage or malfunction. The Rental owner is required to provide 2 sets of keys when handing over the property.

HOSTA electronic locks or electronic keyboxes are easily mounted at the expense of RONA without damaging the door and facilitating the reception and enabling guests to pick up/ leave keys at any time of the day or night. RONA is responsible for any damage caused by their installation or disassembly. During the possession of the keys of the Accommodation, RONA is not liable for the condition/damage of the Accommodation, the devices and appliances, the equipment; as well as in case of burglary, theft, damage done by the third party, the action of the guest, wear and tear, and force majeure.

For any damage done to the property, devices or equipment; or for the disappearance of the latter, caused by the guest, or any persons visiting or under the guest’s responsibility - in accordance with Art. 30 “Special guests for catering are the responsibility of the guest” RONA is not responsible for the collectability of damages.

It is recommended that the Rental owner insures the accommodation against the risk of burglary and theft, fire, water spills from plumbing and sewage and electrical installations, the risk of storm, breakage.

In order to avoid ambiguity, it is emphasized that by taking over the keys of the Accommodation, RONA assumes sole and only responsibility for the timely enabling of the guest/other authorized persons to enter/exit the Accommodation, which implies only the responsibility for the loss, failure or damage of the key itself and the obligation to replace it at its own expense, and RONA is responsible for handing over the keys exclusively to guests and authorized personnel with the purpose of cleaning and maintaining the accommodation.

For the purpose of registering and logging out a guest in the eVisitor system, which also maintains the Guest List, the Rental owner is obliged to hand over the TAN table to RONA.

RONA acts on behalf of the guest and/or subagency, which implies payment from the guest and/or subagency performs on its own behalf, and is obliged to pay to the Rental owner the corresponding amount of income (the remainder after compensation and cession) for each realized accommodation service, regardless of whether or not it will charge its claim for the realized accommodation service from the guest or subagent.

In order to avoid ambiguity, it is emphasized that RONA does not guarantee the occupancy of the Accommodation and in no way answers to the Rental owner for unrealized reservation or in case of no show or cancellation of the reservation.

RONA self-issues the Rental owner’s invoice towards RONA in accordance with Article 78, item 6 of the VAT Act taking into account compliance with all legal requirements regarding the issuance of such invoices. Self-invoicing is done electronically, which includes automatic downloading of relevant data, as well as generation and keeping Income Registry (Croatian “knjiga Evidencije o prometu”), following the chronological order of the Rental owner’s account. The rental owner agrees to accept all self-issued invoices, which RONA provides electronically on a daily basis. RONA is not responsible for invoices issued by the rental owner outside the HOSTA system or during the own occupancy of the accommodation.

ORGANIZATION AND PROVIDING OF THE CLEANING SERVICE:

implies both the organization and immediate cleaning of the property after “guest change”, which includes washing and changing linen (sheets, pillows) and towels, bath mats, dish towels with the supply of toilet paper, hand soap, dishwasher detergent, tablet dishwasher, dishwashing sponge. In doing so, RONA uses its own professional cleaning supplies and solutions, and the requirement for the Contract is that RONA uses exclusively its linen, towels, bath mats and dish towels.

RONA shall indemnify the Rental owner for damage caused by the negligent performance of the service provided resulting in the breaking of things or any direct or indirect material damage, as well as damages related to justified customer complaints regarding the cleanliness of the Accommodation.

In order to avoid ambiguity, it is emphasized that:

"HOSTA package" includes only organization of the cleaning service, which includes monitoring of the reservation calendar and depending on the timely determination of the need for “guest change” cleaning (including delivery and laundry) and ensuring the timely cleaning of the accommodation. The cleaning is charged extra to the Rental owner by the price formed based on the actual state of the calculation elements defined in the Cleaning Price Questionnaire.

The “HOSTA package” does not cover blankets, quilts and pillows, general “in detail” cleaning before and/or after the season, or other cleaning such as deep cleaning of furniture, dry cleaning or washing of quilts, pillows, carpets, etc. These services can be ordered separately at the conclusion of the Contract or afterwards and are additionally charged by the Rental owner at the prices from the valid Price List of cleaning and linen.

Since the prices of cleaning of each accommodation at the conclusion of the Contract are formed on the basis of the state of the calculating elements obtained from the Rental owner based on the "Cleaning Price Questionnaire", it is informative in nature. RONA reserves the right to, within 60 days from the day of the conclusion of the Contract, on the basis of the actual state of the calculation elements determined during the inspection of the Accommodation, unilaterally correct and redefine the final prices for the cleaning of the Accommodation, without the right of the Contracte (Rental owner) to cancel the Contract for the reasons of such change of the cleaning price.

If RONA does not submit to the Rental owner the corrected cleaning prices within the stated deadline, the valid prices for that Business year are defined on the basis of the data from the Questionnaire completed by the Rental owner.

The organization of cleaning and technical interventions also entails the authority of RONA to hire a third party of their choice for the immediate realization of these services.

RECLAMATIONS AND COMPLAINTS, ORGANIZING OTHER SERVICE OF MAINTANANCE, FAULTS AND DAMAGES REPAIRS:

implies that all complaints from the guest regarding the technical condition of the facilities and equipment are received by RONA through its Call Center and:

if the complaint relates to minor technical intervention, removal of minor malfunction, irregularities, damage, small inventory replenishment i.e. less than one hour of work (various fixtures of furniture, siphon removal, replacement of light bulbs, replacement of small inventory, TV and channel set-up, WI-FI, boilers, refrigerators, etc.);

if emergency maintenance of an urgent nature is required, which implies works that cannot be delayed for the purpose of providing the accommodation service or it is a necessity of intervention, where waiting for the Rental owner's permission would result in material damage or endangerment of people (pipe rupture, sewage spill, etc.),

RONA promptly without prior notice, without special order or seeking the consent of the Rental owner intervenes (in person or by a third party) and issues a special invoice for the additional service according to the valid Technical Services Price List. RONA shall promptly notify the Rental owner of any interventions carried out, as soon as the opportunity arises.

RONA shall indemnify the Rental owner for any damage caused by the negligent performance of the works resulting in the breakage of the property or any direct or indirect material damage.

In order to avoid ambiguity, it is emphasized that:

"HOSTA package" includes only service of receiving information about malfunction and organizing timely response, while repairs or works and materials are additionally charged by the Rental owner at prices from the valid Technical Services Price List,

All other interventions that are not urgent or do not belong to the group of minor interventions or are of an investment nature RONA arranges directly with the Rental owner.

FEES PAID TO RONA

Article 3

For services covered by the “HOSTA package”, RONA is entitled to participation of the revenue generated by the Accommodation. Cooperation between RONA and the Rental owner is based on the principle of "no guests - no fee", so RONA's participation is realized and calculated on condition of realization of the accommodation service. The accommodation service is realized upon arrival of the guest, which implies that the RONA fee is charged from the price charged to the guest. In case of no show or cancellation/cancellation fee, the accommodation service is not realized. As RONA acts on its behalf to the guest and/or subagents, subagent commissions, including VAT (booking.com, airbnb, etc.), are charged to RONA.

ADDITIONAL SERVICES ON RENTAL OWNER'S REQUEST

Article 4

All additional services (e.g. listed below) provided by RONA (independently or through third parties) at the special request of the Rental owner are additionally charged at the current price list of additional services or at the offer accepted by the Rental owner:

the cost of the arrival and work of the “handyman” and repair material,

cleaning costs with rental, delivery and change of linen, towels, bath mats, dish towels - on offer

costs for pre-season and post-season general “in detail” cleaning - on offer

the cost of cleaning the surroundings, common parts of the building and maintaining the horticulture

washing blankets, pillows, quilts,

costs of the outcome of the Classification certificate - on offer,

installation costs of the Classification plaque,

costs of obtaining other documents necessary for legal operations (tax rulings, etc.) –on offer,

payment of legal obligations of a private landlord to tax and other institutions (taxes, tourist membership fees, tourist tax, etc.) - on offer,

any additional service ordered by the Rental owner-on offer

STATEMENTS AND PAYMENT TO RENTAL OWNER

Article 5

For each realized accommodation service, RONA pays the Rental owner the corresponding amount of income (after compensation and cession), regardless of whether or not RONA will charge their claim from the guest or subagent.

The Rental owner is obliged to explicitly authorize RONA to sign off any amount of its arrears to RONA arising from the business cooperation based on the Contract, including all performed additional services, to deduct from the amount of the corresponding income for each realized booking made and to pay compensation.

In the event that the cleaning and/or technical intervention service is not provided by RONA but by a third party of RONA's choice, the Rental owner is obliged to expressly authorize RONA to deduct any arrears from the monthly corresponding amount of income and to pay the provider of the service.

Upon completion of the said works (tasks), payment of the remainder of the income to the Rental owner shall be made to his giro account by the 15th in the month for the realized number of days of occupation during the previous month.

DURATION OF THE JOINT VENUTRE

Article 6

The business cooperation between the RONA and the Rental owner in the HOSTA system is based on an indefinite period of time and ends with termination. Each party is entitled to unilaterally cancel the Contract, but with effect for the next Business year. The cancellation statement, effective on the last day of the Lease period of the current year, shall be addressed to the other party not later than 01.09. of the current year.

Each Business year begins on the first day after the end of the Lease period of the current year. In no case can the Contract be terminated with the termination of the rental period in the current year or during the period in which the reservations have already been confirmed.

The notice of termination shall be sent to the other party in writing at the e-mail addresses referred to in Article 1 of these General Terms and Conditions (for the Agency: info@hosta.hr) and shall be deemed duly received by the other contracting party within the period of 3 (three) working days from the day of sending the email/cancellation.

In the event of termination of this Contract, each contracting party shall be obliged to fulfill obligations of any kind up to that time, contracted and due, and to cover the costs incurred up to that time to the other party.

OTHER OBLIGATIONS AND RESPONSIBILITIES OF THE RENTAL OWNER

Article 7

Immediately after the conclusion of the Contract, the Rental owner is obliged to:

prepare accommodation for photo shoot, which implies that all rooms and equipment are without any visible signs of damage or dirt, and beds are furnished,

enable RONA to inspect the Accommodation

In the case of the sale of the Accommodation, the Rental owner is not authorized to lease the Accommodation to the buyer until the end of the rental period, or before the period for which the reservations have already been confirmed.

The Rental owner is obliged to obtain all the statutory permits and permissions for the provision of accommodation services (Classification Decision) and to take into account their compliance. According to the state entities for the legality of its business the Rental owner bares all the legal responsibility (criminal, tax, administrative responsibility).

For the purpose of concluding the Contract and enabling timely contact for communication and submission of notifications necessary for the execution of the Contract, the Rental owner is obliged to submit to RONA: Classification Certificate, Decision of registration of person as a VAT taxpayer, authorization to use the eVisitor system, up-to-date and true information: name, surname, OIB (personal identification number), address of residence, e-mail address, telephone number, VAT number, as well as any additional documents and data necessary for the Contract conclusion requested by RONA, and if it does not do so within the given deadline the Contract is treated as not concluded.

Only information submitted to RONA in writing in the manner set out in the Contract and these General Terms and Conditions shall be taken as true, credible and binding. The Rental owner is not authorized to place the Accommodation for the duration of the Contract through another agency.

OTHER OBLIGATIONS AND RESPONSIBILITIES OF RONA

Article 8

RONA is responsible for the legality of its business (criminal, tax, administrative responsibility). RONA shall be materially liable for actual damages suffered by the Rental owner as a result of the intent or negligence of its employees in the performance of their Contractual Obligations. RONA does not guarantee or bear any responsibility for the occupancy of the Rental owner’s accommodation. By taking over the keys of the Accommodation, RONA assumes sole responsibility for allowing guests/persons to enter the Accommodation in a timely manner, and has no responsibility for the condition of the inventory and equipment.

RONA shall not be liable for material damages sustained by the Rental owner by the guest, or for any damages to the devices or equipment that were put to the guest's use and which resulted from the unintended use of the said equipment, which shall be stipulated by Art. 30 Special Fees for Hospitality.

RONA has no influence or responsibility on the time required for subagents to post Accommodation on their channels (Visibility of the Accommodation). The responsibility of RONA for the timely entry of the Accommodation data into the HOSTA central system is excluded due to in case of the events outside of RONA’s power, as well as due to force majeure and other justifiable reasons, which preclude the proper placement of the said data.

RONA shall not be liable for any damages or for any other direct or indirect loss incurred by the Rental owner due to unavailability of the reservation system resulting from technical problems or force majeure and the like. In the event of a malfunction or omission, RONA will take all the steps required to remedy the defect or omission as soon as possible.

RONA reserves the right, without prior notice to the Rental owner, and without any responsibility to temporarily close the booking calendar from its pages and other sales channels for technical or any other justified reason, which does not automatically mean termination of the Contract. RONA cannot guarantee that all information about the Guest received by the Rental owner through RONA is accurate, complete and true, nor can it be responsible for the same. RONA undertakes to collect, process and store the personal information of the Rental owner in accordance with GDPR.

FINAL REGULATIONS

Article 9

These General Terms and Conditions shall enter into effect on the day of their public announcement on the website www.hosta.hr. RONA reserves the right to amend these General Terms and Conditions, at any time, without prior notice and without the need of obtaining the prior consent of the Rental owner, but with the obligation to send information notice to the Rental owner. Amendments to these General Terms and Conditions shall be published on the web site www.hosta.hr and shall enter into effect on the day of such public announcement and shall apply for the next Business year. The Rental owner shall be deemed to have accepted the modified General Conditions if within 30 calendar days; from the date on which the amended General Terms and Conditions become available; does not terminate this Contract.

The revised General Terms will be made available in writing at the office in Opatija, Nova cesta 119. For any uncertainties and anything not stated in the Contract or the General Conditions, the relevant provisions of the applicable positive regulations of the Republic of Croatia relating to the subject matter and business cooperation, including the Terms and Conditions, shall apply.

The original Croatian version of the General Terms and Conditions may be translated into other languages. The translated version is only an unofficial translation and no rights arise from it. In the event of a dispute over the content or interpretation of the Contract or the General Terms and Conditions or the inconsistency and disagreement between the Croatian version and any other version, the Croatian version shall apply in accordance with the law and shall apply.

If any paragraph/article of the Contract or the General Conditions is now or in the future invalid, null, void or non-binding, all other Paragraphs/Articles will continue to apply. In such a case, such Paragraph/Article will continue to be applicable as permitted by law, and the contracting parties must agree to conditions similar to those prescribed by such Paragraph/Article in terms of the purpose, content and purpose of the General Terms

Any possible disputes of the contracting parties will be settled by mutual agreement, and if they fail to do so they contract the jurisdiction of the competent court which RONA headquarters falls under and contract the application of the law of the Republic of Croatia.