It is the intention and strict policy of the Company to pay all crew members for all hours

worked. Details of crew position and individual wages, which will have been received by all

crew members in advance of reporting for employment or signing onto a vessel, are as set

forth in the Acceptance of Employment Terms and Conditions the crew member signs at

or before the time of signing the Crew Agreement. Crew members governed by these

Terms fall into one of the following two categories for purposes of Guaranteed

Consolidated Monthly Wage rate and eligibility (or ineligibility) for excess overtime hours

pay: (1) hourly crew members whose compensation for regular and overtime hours is

based on a guaranty of pay for three hundred thirty (330) hours per thirty (30) day month

(“330 crew members”), and (2) hourly crew members whose compensation for regular

and overtime hours is based on a guaranty of pay for three hundred ninety (390) hours per

thirty (30) day month (“390 crew members”). Details regarding Guaranteed Consolidated

Monthly Wage and overtime hours in excess of those already included in the Guaranteed

Consolidated Monthly wage (hereafter “excess overtime hours”), if any, are as set forth in

the Crew Agreement, in the Acceptance of Employment Terms and Conditions, and in

these Terms, additional copies of which are available on board the vessel upon request.

B. GUARANTEED CONSOLIDATED MONTHLY WAGE

Crew members receive a Guaranteed Consolidated Monthly Wage for each calendar

month worked. Except as specified herein, this Guaranteed Consolidated Monthly Wage

includes all the compensation crew member will receive from the Company for all regular

hours worked including, without limitation, overtime hours and for working on Saturdays,

Sundays and public holidays, whether locally, nationally or internationally observed.

The calculation of the Guaranteed Consolidated Monthly Wage is neither increased nor

decreased based on the specific itinerary of any vessel or whether it crosses international

date lines.

C. EXCESS OVERTIME HOURS

In consideration of the Guaranteed Consolidated Monthly Wage and payment for excess

overtime hours worked (if any), as defined in this section, all 330 crew members agree to

perform all work assigned to them. For 330 crew members, excess overtime hours are

paid in addition to the Guaranteed Consolidated Monthly Wage when the Company’s

records show that the total hours actually worked during the month exceed eleven (11)

hours multiplied by the total days in the month. Thus, for example, all hours worked in a

thirty (30) day month in excess of three hundred and thirty (330) hours are compensated

at the excess overtime hours’ rate. For periods worked of less than one month, excess

overtime hours are paid when the Company’s records show that the total hours actually

worked exceed eleven (11) hours multiplied by the number of days worked. For example,

all hours worked in excess of one hundred and ten (110) during a period of ten days

onboard during a month would be paid at the excess overtime hours’ rate. It is understood

and agreed that a 330 crew member is not entitled nor does he/she have any right to work

or to be assigned to work excess overtime hours, which are assigned at the discretion of

the shipboard management on an “as needed” basis. Therefore, all hours worked for

which excess overtime is claimed must be authorized in advance of working such hours.

In consideration of the monthly wage and, where applicable, the opportunity to participate

in various pools and bonus programs, all 390 crew members agree to perform all work

assigned to them. For 390 crew members, the monthly wage has been calculated and will

be paid by the same method as for 330 crew members, except using thirteen (13)-hour

days in a thirty (30) day month. The guaranteed pay for these positions therefore already

4 PCL 11/07

includes compensation for all hours that could be worked. Accordingly, the Company will

not assign, authorize or approve excess overtime to 390 crew members, and every 390

crew member hereby agrees not to work, and therefore not to claim compensation for,

any excess overtime hours. No hours shall be authorized or worked by 390 crew

members under any circumstances in excess of a total of 390 hours per month, unless and

solely to the extent authorized and directed by the Captain in exigent circumstances.

Hours of work and/or rest shall be recorded for each individual. The Company relies upon

each crew member to accurately report and verify in writing all hours worked and/or rested

on a daily basis and crew member agrees to be responsible for ensuring the accuracy of

any time records he/she signs. The crew member’s written verification of his/her hours

during or at the end of each month shall be deemed an admission by crew member of the

accuracy of the hours recorded and a waiver of any right to claim compensation for unpaid

hours at a later time.

D. PAYMENT OF WAGES

Unless otherwise specified, wages accrue from and including the day the crew member

signs the Crew Agreement onboard, up to and including the day when the crew member

signs off the vessel. Wages are paid monthly in arrears according to the Company’s

records. Compensation for periods of less than one month is pro-rated on the basis of

one/thirtieth for each day worked. The monthly wage paid to each crew member shall be

in accordance with the wages in effect at the time and as set out in each individual crew

member’s letter of appointment and/or Acceptance of Employment Terms and Conditions

setting forth such wages as applicable.

E. DISCRETIONARY HOTEL & DINING CHARGE POOL

Other than as specified in these Terms or the Acceptance of Employment Terms and

Conditions, the Company makes no promise, guarantee or commitment, and crew

member agrees he/she does not expect or anticipate payment by the Company of any

compensation beyond the Minimum Wage Guarantee.

It has been the Company’s experience that passengers often wish to recognize and

reward shipboard staff for working successfully and as a cohesive team to make the cruise

experience enjoyable. Accordingly, during each voyage of each vessel a voluntary

contribution by each passenger will be suggested for that purpose. Passengers are not

obligated to make a contribution or to adhere to the Company’s suggested guidelines for

such a contribution. Nonetheless, to the extent passengers follow the suggested

contribution guidelines in whole or in part, or deliver their contribution to the Company or

directly to any crew member(s), each and every crew member agrees that any such

contribution is not his personal wage, but rather a contribution to the Discretionary Hotel

and Dining Charge Pool (the “Pool”). Each and every crew member also agrees to deliver

any such voluntary passenger contribution he or she receives from any passenger under

any circumstances to the Pool immediately upon receipt of the contribution from the

passenger. Other than as stated below, the Company is in no way liable to make up any

difference between the total of the suggested contributions to the Pool and the actual

contributions for any given vessel voyage. The solicitation of compensation of any kind by

crew members from passengers is strictly prohibited.

A separate Pool of passenger contributions will be collected and maintained by the

Company for each voyage of each vessel for the benefit of crew members eligible to

receive distributions from the Pool, i.e. those working on the vessel voyage associated with

a particular Pool in positions so specified in each crew member’s Acceptance of

Employment Terms & Conditions. Employees who might be eligible to participate in the

Pool include all persons working in any capacity in the Hotel and Food and Beverage

5 PCL 11/07

Departments. Each crew member agrees that the Company reserves and has the

exclusive right to determine, in its sole discretion, the eligibility and number of total crew

members entitled to share in the Pool and the proportionate share applicable to each

position.

Since passenger participation in the Pool for any given vessel voyage is strictly voluntary,

the Company cannot predict and does not guarantee the size of the Pool or the amount of

money any eligible crew member may receive from the Pool for that given voyage. Some

crew members do not receive a fluctuating share of the vessel voyage Pool, although

these crew members do receive a minimum wage guarantee. All crewmembers

understand and agree that such crew members who are not eligible to receive a fluctuating

share of the vessel voyage Pool will nonetheless receive some of their guaranteed monthly

compensation from that Pool on a fixed basis, before the fluctuating share of eligible crew

members is calculated from the remaining balance of the Pool. Each crew member

understands and agrees that the amount which will be distributed to crew members

participating in the Pool on a fixed basis is within the sole discretion of the Company, and

may change from time to time. Each crew member understands and agrees that the funds

in the Pool allocated on a fixed basis to crew members not eligible to participate in the Pool

on a fluctuating basis are not and shall not be deemed wages of the remaining

crewmembers in the Pool under any circumstances.

A crew member who otherwise may be eligible to participate on a fluctuating basis in a

given Pool will not be entitled to Pool participation in the event that the crew member

departs the vessel before the end of the voyage which creates the Pool, either for personal

convenience or because the crew member is in violation of the terms of the Contract of

Employment.

F. WAGE GRIEVANCE PROCEDURE

No claim for wages or employee compensation of any kind against the Company may be

pursued unless crew member first provides written notice pursuant to the following

grievance procedure by certified mail to the Company, addressed in care of Fleet Personnel

Department, Princess Cruise Lines Ltd., Par La Ville Place, 14 Par La Ville Road, Hamilton,

Bermuda HM JX. Crew member hereby agrees to provide such written notice of any claim

or dispute including, without limitation, a dispute as to the record of hours worked or rested,

or the amount of wages or other employee compensation paid, within one hundred eighty

(180) days after the date on which crew member receives his or her wages or other

employee compensation that are in dispute. Crew member hereby acknowledges that

he/she has access to his/her timekeeping records and that such may be obtained by

request to his/her supervisor, Head of Department, or via written request to the Princess

Cruise Lines office address described above. The crew member’s claim must specify the

exact amount of wages or other employee compensation claimed to be owed, the specified

period for which said amounts are claimed to be owed, the date on which the crew member

alleges that the Company was required to pay the wages or other employee compensation,

and the basis for the claim. Crew member further agrees that his/her acceptance of wages

and a pay stub or wage statement for a specified pay period is notice that Company

contends it has paid the crew member all wages or other compensation due.

Timely and properly submitted claims will be adjudicated by the Company’s Vice President of

Fleet Personnel who shall consider, in addition to the crew member’s claim, all available and

relevant data. A written determination (“Determination”) of the crew member’s claim will be

issued within 30 days of the date the claim is received by the Company. The Determination

will specify the reasons for all findings made. If the crew member does not dispute the

Determination reached in this grievance process within thirty (30) days of the date of issuance

of the Determination, then the Determination shall be final and binding on the crew member.

6 PCL 11/07

If the crew member desires to dispute the Company’s Determination, then the crew member

agrees that he/she must pursue his/her claim through arbitration, said arbitration to be

formally initiated within 45 days of the date of issuance of the Determination. The procedures

for such arbitration shall be fully described in the Determination.